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KEY TERMS OF INTERNATIOALMARKETING

KEY TERMS OF INTERNATIOALMARKETING
KEY TERMS OF INTERNATIOALMARKETING

KEY TERMS

Chapter 1

Currency flows: Transfer of capital across national boundaries.

Exchange rates: Price of a currency expressed in units of another currency.

Chapter 2

Household: All the persons, both related and unrelated, who occupy a housing unit. Urbanization: The concept has different meanings depending on where one operates; descriptions of urbanization range from a densely-populated city’s built-up areas to small towns with proclaimed legal limits.

Purchasing Power Parities (PPP): A measure of how many units of currency are needed in one country to buy the amount of goods and service that one unit of currency will buy in another country.

Inflation: The increase in consumer prices compared with a previous period; it affects the ability of both industrial customers and consumers to buy and also introduces uncertainty into both the marketer’s planning process and consumers’ buying habits.

Physical Quality of Life Index (PQLI): A composite measure of the level of welfare in a country, including life expectancy, infant mortality, and adult literacy rates. Maquiladoras: Mexican plants that make goods and parts or process food for export to the United States.

Import substitution: A policy that requires a nation to produce goods that were formerly imported.

Microfinance: A program which allows consumers without collateral property to avail loans averaging $100 to make purchases and utilize retail banking services.

Chapter 3

Economic Blocs: Groups of nations that integrate economic and political activities.

Born Global: Newly founded firm that, from its inception, is established as an international business.

Trade Deficit: A trade deficit occurs when a country imports more goods and services than it exports.

Economies of Scale: Production condition where an increase in the quantity of the product results in the decrease of the production per unit; firms may achieve lower costs and higher profits both at home and abroad.

Foreign Direct Investment: Capital funds flow from abroad; company is held by noncitizens; foreign ownership is typically undertaken for longer-term participation in an

economic activity.

Nontariff Barriers: Barriers to trade that are more subtle than tariff barriers, for example, these barriers may be government or private-sector “buy domestic” campaigns, preferential treatment of domestic bidders over foreign bidders, or the establishment of standards that are not common to foreign goods or services.

Protectionistic Legislation: An important bargaining tool; however, legislated protectionism can result in the destruction of the international trade and investment framework.

Multilateral Negotiations: Trade agreements carried out among a number of nations.

Chapter 4

Acculturation: Adjusting and adapting to a specific culture other than one’s own.

High Context Cultures: Cultures in which the context is at least as important as what is actually said, for example, Japan and Saudi Arabia have cultures in which what is not said can carry more meaning than what is said.

Low Context Cultures: Cultures in which most information is contained explicitly in words; for example, North American cultures.

Cultural Imperialism: A charge indicted on international marketers if their marketing approach does make culture specific adaptations.

In-Depth Studies: A comprehensive study of a subject matter.

Infrastructures: The basic economic, social, financial, and marketing support systems, from housing to banking systems to communications networks; it is also an indicator of potential demand.

Cultural Convergence: The growing similarity of attitudes and behaviors across cultures. Social Stratification: The division of a particular population into classes.

Self-Reference Criterion: The unconscious reference to one’s own cultural values in comparison to other cultures.

Ethnocentrism: The belief that one’s own culture is superior to others.

Area Studies: Environmental briefings and cultural orientation programs which provide factual preparation for living or working in another culture

Cultural Assimilator: A program in which trainees must respond to scenarios of specific situations in a particular country.

Chapter 6

Triad: The megamarkets of North America, Europe, and Asia-Pacific; which are treated by marketers as a single market with similar consumption habits.

Diversification: A market expansion policy characterized by growth in a relatively large number of markets.

Glocalization: Building in organizational flexibility to allow for local/regional adjustments

in global strategic planning and implementation; uniformity is sought in strategic elements such as positioning of a product care is taken to localize tactical elements, such as distribution.

Cross-subsidization: The use of resources accumulated in one part of the world to compete for market share in another part of the world.

Not-invented-here syndrome (NIH): Local resistance or decline in morale resulting from the perception that headquarters are not sensitive to local needs.

Dodger: A local company which sells off its assets to a global player or becomes part of an alliance on account of a pressure to globalize in the industry.

Defender: A local company that has assets that give it a competitive advantage only in its home market.

Contender: A local company which upgrades its capabilities to compete the established global players worldwide.

Extender: A local company that possesses assets which allow them to exploit their success at home as a platform for expansion elsewhere.

Chapter 7

Budgets: Short-term financial guidelines in such areas as investment, cash, and personnel. Plans: Formalized long-range financial programs with more than a one-year horizon.

Chapter 8

Proxy variable: A substitute for a variable that cannot be measured directly.

Qualitative data: Data gathered through interviews, focus groups, and observation used to better understand situations, behavioral patterns, and underlying dimensions. Quantitative data: Data is amassed to assess statistical significance; surveys are appropriate research instruments.

Structured questions: Typically allow the respondents only limited options in reply. Social desirability: Degree of sensitivity to certain questions.

Data equivalence: One of the qualities of question format which ensures that the categories used in questionnaires are comparatively structured.

Realism check: Checking the data quality by comparing it with secondary information and with analogous information from a similar market.

Content analysis: A research technique used for investigating the content of communication in a society; by literally counting the number of times preselected words, themes, symbols, or pictures appear in a given medium.

Scenario analysis: Evaluating corporate plans under different configurations of key variables, such as economic growth rates, import penetration, population growth, and political stability over medium-to long-term periods.

Chapter 9

Safety-valve activity: Stimulating export sales with short term price cuts in order to balance inventories or compensate for overproduction in the short term.

Psychological distance: The lack of symmetry between growing international markets with respect to cultural variables, legal factors, and other societal norms; a market that is geographically close may seem to be psychologically distant.

Born global: Firms which are founded for the explicit purpose of marketing abroad since the domestic economy is too small to support their activities.

Innate exporters: Exporting firms which embark on their export activities within two years of establishment.

Adaptation: An experienced export firm which is able to adjust its activities to keep pace with changing exchange rates, tariffs, and other variables in the international market. Sogoshosha: Large Japanese trading companies, such as Sumitomo, Mitsubishi, Mutsui, and C. Itoh.

Export trading company (ETC): Legal construct designed to encourage small and medium-sized companies that are encouraged to participate in the international marketplace; aimed to reduce the antitrust threat to joint export efforts.

Licensing: An agreement where one firm, the licensor, permits another to use its intellectual property in exchange for compensation designated as a royalty.

Opportunity costs: Costs resulting from the foreclosure of other sources of profit, such as exports or direct investment; for example, when licensing eliminates options.

Trademark licensing: Permission for using the name or logo of a designer; literary character; sports team; or movie star on merchandise such as clothing.

Franchising: A parent company (the franchiser) grants another, independent entity (the franchisee) the right to do business in a specified manner.

Portfolio investment: The acquisition of stocks and funds internationally.

Resources seekers: Firms that search either natural resources or human resources in their foreign direct investment strategy.

Efficiency Seekers: Firms that attempt to obtain the most economic sources of production in their foreign direct investment strategy.

Derived demand: Business opportunities resulting from the move abroad principle established by customers and suppliers.

Financial incentives: Special funding legislated by government to attract foreign investment, by providing land and building loans, loan guarantees and wage subsidies. Brain drain: Foreign direct investors attracting the best and brightest employees from a domestic firm; said to be depriving domestic firms of talent.

Profit repatriation: Transfer of business gains from a local market to another country by foreign direct investor.

Joint ventures: Collaboration of two or more organizations for more than a transitory period who share ownership and control over property rights and operations.

Strategic alliances: Cooperative arrangements between two or more companies with a common business objective.

Complementary strengths: When one firm’s strengths (product, geographic or functional) complement another firm’s strengths and satisfy a joint objective.

Piggyback: One firm making use of another firm’s strength, rather than joining that firm as equals.

Research consortia: Joint industry efforts in the research and development of new products to combat the high costs and risks of innovation; often supported by governments.

Chapter 10

Core product: Product or service in its simplest, generic state; other tangible and augmented features may be added to distinguish a core product or service from its competitors.

Augmented features: Elements added to a core product or service that serve to distinguish it from competing products of services.

Mandatory/discretionary product adaptation: Conforming a product or service to meet prevailing environmental conditions related to legal, economic, and climatic conditions in the market.

Positioning: the presentation of a product or service to evoke a positive and differentiate mental image in customers’perception of brand; position should change to reflect the differing lifestyle of the target markets.

Backward innovation: Simplifying a product or service to make it capable of operating in harsh environments; required in markets which lack purchasing power or usage conditions. Generalized System of Preferences (GSP): A program designed by many developed foster economic growth in developing nations by providing for the duty-free importation of a wide range of products

Chapter 11

Skimming: Offering a product at an initial high price to achieve the highest possible sales contribution in a short time period; as more market segments are identified and more products are available, the price is gradually lowered.

Penetration Pricing: Introducing a product at an initial low price to generate sales volume and achieve high market share, which would compensate for a lower per-unit return. Standard worldwide price: A price-setting strategy in which a product is offered at the same price regardless of the geographic buyer, or based on average unit costs of fixed, variable, and export-related costs.

Dual pricing: Differentiation of domestic and export prices.

Cost-plus method: A pricing strategy based on the true cost of a product (inclusive of domestic and foreign marketing costs); ensures profit margins but lowers the firm’s competitiveness.

Marginal cost method: A pricing strategy that considers only the direct cost of producing and selling products for exports as the floor beneath which prices cannot set; overhead costs are disregarded, allowing an exporter to lower prices to be competitive in markets that otherwise might not be accessed.

Market-differential pricing: Export pricing based on the dynamic, changing conditions of each marketplace; the marginal cost reflects the basic price level, which can change due to changes in competition, exchange rate changes, or other environmental changes.

Price escalation: An increase in export price, over and above the domestic price, brought about by clear-cut as well as hidden costs of exporting.

Duty drawbacks(退还进口税): A refund up to 99 percent of duties paid on imports when they are re-exported or incorporated into articles that are subsequently exported within five years of the importation; an additional benefit to lower cost accrued by the exporter through foreign sourcing.

Incoterms(国际贸易术语): The internationally accepted standard definitions for terms of sale set by the International Chamber of Commerce (ICC) since 1936.

Letter of credit: A method of payment for exported goods; an instrument used by a bank at the request of a buyer; the bank promises to pay a specified amount of money on the presentation documents stipulated in the letter of credit, usually the bill lading, consular invoice, and a description of the goods.

Draft: A method of payment for exported goods; similar to a personal check; an order by one party to pay another; “documentary” drafts must be accompanied by specified shipping documents; “clean” drafts do not require documentation; also known as “bill of exchange”. Documentary collection(跟单托收): A method of payment for exported goods: The seller ships the goods and the shipping documents and the draft demanding payment are presented to the importer through a bank acting as the seller’s agent; the draft, also known as the bill of exchange, may be a sight draft or a time draft.

Banker’s acceptance(银行承兑汇票,银行信用证): A method of payment for exported goods;

a time draft, with a specified term of maturity, which is drawn on and accepted by a bank; it is sold in the short-term money market.

Discounting: Selling a time draft to the bank before its maturity at an amount lower than its face value.

Open account(赊销): A method of payment, also known as open terms; whereby an exporter removes both real and psychological barriers to importing; however, no written evidence of the debt exists and there is no guarantee of payment.

Consignment selling(寄售): A method of payment that allows the importer to defer

payment until the imported goods are actually sold.

Forward exchange market(远期外汇市场): A method used to counter challenges in currency movements; the exporter enters into an agreement with a bank for selling its foreign exchange on a future date at a pre-specified rate of exchange; the rate is expressed as either a premium or a discount on the current spot rate.

Option(期权): A method used to counter challenges in currency movements; gives the holder the right to buy or sell foreign currency at a prespecified price on or up to a prespecified date.

Futures(期货): A contract between a buyer and seller, whereby the former agrees to buy a specified currency at a certain date in the future at a prespecified price from the latter; a method used to counter problems of currency movements.

Pass-through: A price adjusting mechanism where making no change in the currency would result in a less favorable price in foreign currencies and, most likely, lower sales, especially if no corrective marketing steps are taken.

Absorption: A price adjusting mechanism where the export price could be decreased in conjunction with increases in the value of the currency to maintain stable export prices in foreign currencies.

Pricing-to-market(市场定价): Destination-specific adjustment of mark-ups in response to exchange-rate changes.

Price manipulation(价格操纵): Adjusting prices of exported goods to compensate for changing exchange rates.

Forfaiting(福费廷,也称包买、买单信贷或是无追索权的贴现): A trade financing technique; the importer pays the exporter with bills of exchange or promissory notes guaranteed by a leading bank in the importer’s country; the exporter can sell those to a third party at a discount from their face value for immediate cash.

Chapter 12

Encoding(编码): The process by which the sender converts a message into symbolic form that will be properly understood by the receiver.

Decoding(解码): The process by which the receiver of a message transforms “encoded” messages from symbols into thought.

Feedback: Responses to communications necessary to analyze the success of communication efforts.

Promotional mix(促销组合): The tools an international marketer has available to form a total communications program for use in a targeted market; consists of advertising, personal selling, publicity, sales promotion, and sponsorship.

Push strategies(推式策略): Promotional strategies in a targeted market relying primarily on

personal selling; appropriate tools for international marketing of goods which have shorter channels of distribution and smaller target populations than consumer goods.

Integrated marketing communications(整合营销传播): Coordinating various promotional strategies according to target market and product characteristics, the size of budget, the type and length of international involvement, and control considerations.

Telemarketing(电话推销): A promotional tool that is growing worldwide as customers become more accustomed to calling toll-free numbers and more willing to receive calls from marketers; includes sales, customer service, and help-desk-related support. Database marketing(数据库营销): A promotional tool combining telemarketing with data on the purchasing habits of a customer; allows the creation of an individual relationship with each customer or prospect.

Trade missions: A promotional event aimed at expanding the sales of goods and services, and the establishment of agencies and representatives abroad; may be a country-specific, industry-organized, or a government approved event.

Seminar missions(研讨代表团): A promotional event in which eight to ten firms are invited to participate in a one- to four-day forum during which the team members conduct generic discussions on technological issues, following a soft -sell approach.

Solo exhibitions(个展): Promotional events generally limited to one or a few product themes and held only when market conditions warrant them.

Virtual trade shows(虚拟贸易显示): An electronic promotional tool enabling exporters to promote their products and services over the Internet and to have electronic presence without actually attending an overseas trade show; aimed at expanding U.S. sales abroad.

Chapter 13

Intermediaries(中间商): Independent distributors of goods, operating primarily at a local level.

Distributor: An intermediary that purchases goods for resale through its own channels; they exercise more independence compared to agencies.

Indirect exporting: A distribution channel that requires dealing with another domestic firm that acts as a sales intermediary for the marketer; often taking over the international side of the marketer’s operations.

Integrated exporting: Requires the marketer to make an investment in the foreign market for the purpose of selling its products in that market or more broadly. Commissionario: An intermediary for the distribution of goods who may sell in its own name (as a distributor would), but for an undisclosed principle (an agency concept).

Del credere agent(信用担保代理人): An intermediary for the distribution of goods who guarantees the solvency of the customer and may therefore be responsible to the supplier for payment by the customer.

Facilitating payments(“疏通费): Small fees paid to expedite paperwork through customs; also called “grease”; not considered in violation of Foreign Corrupt Practices Act or OECD guidelines.

Parallel importation(平行进口): Authentic and legitimately manufactured trademark items that are produced and purchased abroad but imported or diverted to the markets by bypassing designated channels; also called “gray market.”

Chapter 15

Intangibility: Cannot be seen, touched, or held; a key difference between goods and services.

Perishability: The rapidity with which a service or good loses value or becomes worthless; unused capacity in the form of an empty seat on an airplane, for example, quickly becomes nonsaleable.

Service consistency: Uniformity or standardization in the offering of a service; unlike products, services are often subject to individual influences and the need to customize to satisfy unique customer interactions.

Quality perception: An intuitive judgment based on personal experience, heuristics and available information.

Deregulation: Reduction of governmental involvement and control in the service industry. Discriminatory regulations: Rules and laws that impose larger operating costs on foreign firms than on local competitors, that provide subsidies to local firms only, or that deny competitive opportunities to foreign suppliers.

Regulatory practices: A rule or law posing formidable barriers to potential entrants from abroad; usually found in the fields of banking, insurance, and accounting.

Chapter 16

Physical distribution(物流配送): The movement of a firm’s finished products to its customers.

Supply chain management(供应链管理): Integrates the supply and demand management within and across companies; it is an integration of the three major concepts of logistics and encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and logistics; also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers.

Currency variation(汇率变化): Changes in exchange rates which can affect the purchases and profitability of the international firm.

Chapter 17

Arm’s-length price(正当交易价): A basis for intra-company transfer pricing: The price that unrelated parties would have arrived at for the same transaction.

Arm’s-length standard(公平独立核算标准,公平交易定价原则): A principal basis for transfer pricing favored by governments to stop companies from shifting their income to foreign subsidiaries in low- or no-tax jurisdictions.

Countertrade(对应贸易,易货贸易): A sale that encompasses more than an exchange of goods, services, or ideas for money; transactions which have as a basic characteristic a linkage legal or otherwise, between exports and imports of goods or services in addition to, or in place of, financial settlements

Barter(易货贸易): Exchange of goods for other goods of equal value. Counterpurchase(互购): A parallel barter agreement in which the participating parties sign two separate contracts that specify the goods and services to be exchanged.

Buyback(回购): A form of countertrade arrangement under which one party agrees to supply technology or equipment that enables the other party to produce goods with which the price of the supplied products or technology is repaid.

英美国家概况课后答案

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英美概况作业以及答案

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