| Balance of payments | The accounting record of all of a country's transactions with all the other nations of the world.
|
 |
|
|
| Trade balance | In international business, the difference between the value of a nation's imports and the value of its exports.
|
|
|
|
| International marketing | The activities of an organization to market its products in two or more countries.
|
|
|
|
| Global strategy | A strategy in which essentially the same marketing program is employed around the world.
|
|
|
|
| Regional strategy | A strategy used to market a product to different regions by recognizing distinctions in climate, custom, or taste.
|
|
|
|
| Local strategy | A strategy used to develop customized marketing programs for each distinct area.
|
|
|
|
| Infrastructure | The country's levels and capabilities with respect to transportation, communications, and energy.
|
|
|
|
| Tariff | A tax imposed on a product entering a country.
|
|
|
|
| Import quota | A limit on the amount of a particular product that can be brought into a country.
|
|
|
|
| Local-content law | A regulation specifying the proportion of a finished product's components and labor that must be provided by the importing country.
|
|
|
|
| Local operating laws | A constraint on how, when, or where retailing can be conducted.
|
|
|
|
| Standards and certification | A requirement that a product contain or exclude certain ingredients or that it be tested and certified as meeting certain restrictive standards.
|
|
|
|
| Boycott | A refusal to buy products from a particular company or country.
|
|
|
|
| World Trade Organization (WTO) | Created in 1995 as the governing body of global commerce, consisting of 148 member countries and accounting for 97% of world trade.
|
|
|
|
| European Union (EU) | A political and economic alliance among most of the countries of Western Europe that seeks to liberalize trade among its members.
|
|
|
|
| North American Free Trade Agreement (NAFTA) | An agreement among the United States, Canada, and Mexico to eliminate tariffs between the countries.
|
|
|
|
| Asia-Pacific Economic Cooperation forum (APEC) | A trade pact among 21 Pacific Rim nations that seeks the elimination of major trade barriers.
|
|
|
|
| Association of Southeast Asian Nations (ASEAN) | An agreement creating a free-trade zone among Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
|
|
|
|
| Common Market of the South (MERCOSUR) | An agreement between Argentina, Brazil, Paraguay, and Uruguay to allow 90% of trade among these countries to occur tariff free.
|
|
|
|
| Exporting | The activities by which a firm sells its product in another country, either directly to foreign importers or through import-export middlemen.
|
|
|
|
| Export merchant | A middleman operating in a manufacturer's country that buys goods and exports them.
|
|
|
|
| Export agent | A middleman that operates either in a manufacturer's country or in the destination country and that negotiates the sale of the product in another country and may provide additional services such as arranging for international financing, shipping, and insurance on behalf of the manufacturer.
|
|
|
|
| Company sales branch | See manufacturer's sales branch.
|
|
|
|
| Contracting | A legal relationship that allows a firm to enter a foreign market indirectly, quickly establish a market presence, and experience a limited amount of risk.
|
|
|
|
| Licensing | A business arrangement whereby one firm sells to another firm (for a fee or royalty) the right to use the first company's brand, patents, or manufacturing processes.
|
|
|
|
| Contract manufacturing | An arrangement in which a firm in one country arranges for a firm in another country to produce the product in the foreign country.
|
|
|
|
| Franchising | A type of contractual vertical marketing system that involves a continuing relationship in which a franchiser (the parent company) provides the right to use a trademark plus various management assistance in return for payments from a franchisee (the owner of the individual business unit).
|
|
|
|
| Direct foreign investment | A method through which a company can build or acquire production or distribution facilities in a foreign country.
|
|
|
|
| Joint venture | A partnership arrangement in which a foreign operation is owned in part by a domestic company and in part by a foreign company.
|
|
|
|
| Strategic alliance | A formal, long-term agreement between firms to combine their capabilities and resources to accomplish global objectives.
|
|
|
|
| Wholly owned subsidiary | A business arrangement in foreign markets in which a company owns the foreign operation in order to gain maximum control over its marketing program and production operations.
|
|
|
|
| Multinational Corporation | A truly worldwide enterprise in which the foreign and the domestic operations are integrated and are not separately identified.
|
|
|
|
| Trademark infringement | Act of manufacturing products with names and packaging similar to well-known goods in order to achieve sales.
|
|
|
|
| Dumping | The process of selling products in foreign markets at prices below the prices charged for these goods in their home markets.
|
|
|
|
| Price differential | The difference in prices of an identical brand from one area to another.
|
|
|
|
| Foreign exchange | Foreign trade- exporting or importing.
|
|
|
|
| Countertrade | An arrangement under which domestically made products are traded for imported goods.
|
|
|
|
| barter | The exchange of goods and/or services for other products.
|
|
|
|
| Cartel | A group of companies that produce similar products and act collectively to restrain competition in manufacturing and marketing.
|
|
|
|
| Gray marketing | Practice of buying a product in one country, agreeing to distribute it in a second country but diverting it to a third country. Also called export diversion.
|
|
|
|
| Bribes | Something given in exchange for services or protection; it is common in foreign markets.
|