Exam 2 Notes

Exam 2 Notes - gradual decline of economic protectionism by individual countries of shielding industries of countries economy from foreign

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
gradual decline of economic protectionism by individual countries : protectionism - practice of shielding industries of countries economy from foreign competition through the use of tariffs or quotas protects job protects nations political security, tariffs - government tax on goods or services entering a country primarily serving to raise prices on imports gives price advantage to domestic products, quota - restriction placed on amount of a product allowed to enter or leave a country helps domestic industries retain % of domestic market. World trade organization - institution that sets rules governing trade between its members through a panel of trade experts. formal economic integration and free trade among nations - European union- 25 countries free flow of goods services capital and labor houses 500 million consumers common currency, north american free trade agreement- canada mexico and us 435 million , and asian free trade areas- east asia reduced tariffs and promoted trade. global competition among global companies for global customers : global competition - when firms originate, produce, and market their products and services worldwide (1) international firms- markets existing products and services in other countries same way as home country (2) multinational firms- world consists of unique parts market to each differently use multidomestic marketing strategy - offering as many different product variations, brand names, and advertising programs as countries it does business. (3) Transnational firm- world as one market and emphasizes universal consumer needs global marketing strategy - standardizing marketing activities cultural similarities and adapting them when cultures differ. Global brand- brand marketed under the same name in multiple countries with similar coordinated marketing programs. development of networked global marketplace - use of internet , services and information on global scale, anywhere anyone any time lower cost Cultural Diversity - cross cultural analysis - study of similarities and differences among consumers in two or more nations or societies: values -socially preferable modes of conduct or states of existence that tend to persist over time, customs - norms and expectations about the way people do things in a specific country, cultural symbols- things that represent ideas or concepts, language- know language subtleties and unique expressions avoid unintended meanings of brand names or messages. Foreign Corrupt Practices Act- law makes it a crime for US corps to bribe an official of foreign government or political party obtain/retain business Economic considerations - economic infrastructure - countries communications transportation financial and distribution systems , consumer income and purchasing power- average per capita income and how income is distributed to determine purchasing power varies widely between countries, currency exchange rate- price of one countries currency expressed in terms of another countries currency affects everyone . Political-Regulatory Climate
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/30/2008 for the course MKTG 3001 taught by Professor Someguy during the Spring '08 term at Minnesota.

Page1 / 3

Exam 2 Notes - gradual decline of economic protectionism by individual countries of shielding industries of countries economy from foreign

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online