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adapted global marketing strategy
a strategy in which a company utilizes different marketing strategies in different global markets
business landscape
everything internal and external to the business, its industry, and its environment
consumer income
the amount of money a household or individual earns
cultural sensitivity
awareness and appreciation of and the ability to adapt to a cultural, ethnic, racial, or another group other than one’s own
cultural symbols
physical representations of a culture’s language, values, and traditions
cultural values
unspoken aesthetics, socialization, and religious aspects woven throughout a culture
mannerisms or behaviors that are considered characteristics within a social system
discretionary income
the money individuals and households are left with after paying taxes and other living expenses, such as food and shelter
disposable income
the money individuals and households are left with after paying taxes
the practice in which a company manufactures a very large of number of goods and exports them to a foreign market to see cheaply
economic infrastructure
the physical facilities of an economy that benefit product and distribution
trading bans on a product with a specific country; imposed between countries that have different political ideologies
an assumption that the business landscape or culture of an international market is the same as the home country or personal culture
exchange rate
the rate at which one country’s currency can be exchanged for that of another country
when a firm makes a product or service in one country and sells it in others
foreign direct investment (FDI)
the process of establishing operations within a foreign country
a business strategy in which the owner (the franchisor) allows another person or entity (the franchisee) to operate a business using the franchisor’s products, branding, and knowledge in exchange for a fee
global market opportunities
conditions that are favorable for a company to expand into the global marketplace
international firm
a company that operates on a global level regardless of intensity of involvement
joint venture
a business arrangement whereby two or more companies create a single enterprise or project
a contract in which one organization permits another to use its name brand or trademark on its own items
the way a person or group lives
the process of moving some of a business’s operations to a foreign country for the purpose of saving money and time or to increase volume and quality
product adaptation
when companies modify products to align with the local culture
product invention
when companies create entirely new products for a global market
purchasing power
the goods that can be purchased with one unit of currency
maximum allowable units (usually in currency) to be imported into or exported out of a specific country
any situation or condition that leads a company to decreased profits or even failure
sociocultural factors
values, behaviors, culture, lifestyle, and language that shape a person’s or group’s way of living
standardized global marketing strategy
a strategy in which a company uses the same marketing strategy in all markets
oversimplified images, perceptions, or ideas of a person or group
straight product extension
a strategy that entails maintaining the same product for both the home and foreign markets
strategic alliance
when two companies from different countries agree to invest resources in a mutually beneficial way
taxes that governments impose on imports into the country
trade blocs
intergovernmental agreements that remove barriers to trade within regions of the world
transnational firm
a company that allows for a higher degree of localization
whole channel
the design of the international channels that incorporates all members, including the manufacturing, retailer, and wholesaler sites as well as transportation
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