Chapter 5 Developing a Global Vision LO 1 Rewards of Global Marketing global marketing marketing that targets markets around the world global vision recognizing reacting to int l marketing opportunities using effective global marketing strategies and being aware of threats from threats from foreign competitors in all markets job outsourcing sending US jobs abroad LO 2 Multinational Firms multinational corporation company that is heavily engaged in international trade beyond importing exporting capital intensive using more capital than labor in the production process global marketing standardization production of uniform products that can be sold the same way all over the world LO 3 External Environment Facing Global Markets Mercosur the largest Latin American trade agreement Argentina Bolivia Brazil Chile Columbia Ecuador Paraguay Peru Uruguay Uruguay Round agreement o dramatically lower trade barriers worldwide created by the WTO World Trade Organization trade org that replaced the old GATT General Agreement on Tariffs Trade contained loopholes enabling countries to avoid trade barrier reduction agreements NAFTA US Canada Mexico created world s largest free trade zone Central America Free Trade Agreement CAFTA Costa Rica Dominican Republic EL Salvador Guatemala Honduras Nicaragua the US EU free trade zone with 27 European countries World Bank int l bank that offers low interest loans advice and info to developing nations Group of 20 forum for int l economic development that promotes discussion between industrial IMF acts as lender of last resort providing loans to troubled nations and emerging market countries on key issues related to global economic stability LO 4 Global Marketing by the Individual Firm exporting selling products to other countries buyer for export an intermediary in the global market who assumes all ownership risks and sells globally for its own account export broker an intermediary who plays broker s role by bringing buyer and seller together export agent an intermediary who acts like a manufacturer s agent for the exporter live in the foreign market licensing legal process whereby a licensor allows another firm to use its manufacturing process trademarks patents and trade secrets contract manufacturing private label manufacturing by a foreign company joint venture when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity direct foreign investment active ownership of an overseas manufacturing marketing facility LO 5 The Global Marketing Mix floating exchange rates prices in different currencies move up down based on supply demand of that currency dumping sale of an exported product at a price lower than that changed for the same of a like product in the home market countertrade all or part of the payment for goods services is in the form of other goods services
View Full Document
Unlocking...