Textbook Notes (369,142)
Canada (162,413)
Commerce (1,701)
Chapter 6

Chapter 6 Textbook Notes.docx

3 Pages

Course Code
Stephen Charko

This preview shows page 1. Sign up to view the full 3 pages of the document.
Chapter 6: Serving Global Markets The Importance of Global Marketing… •Exporting: marketing domestically produced goods and services in foreign countries •Importing: purchasing foreign goods, services, and raw materials o Canada measures imports and exports of services under three major categories 1. Travel 2. Transportation 3. Commercial Services •Benefits of going global: o Additional revenue o New insights about consumer behaviour o Alternative distribution strategies o Advance notice of new products The International Marketing Environment… • International Economic Environment o Exchange Rate: price of one nation's currency in terms of another country's currency •International Social-Cultural Environment • International Technological Environment •International Political-Legal Environment o Political Risk Assessment (PRA): units within a firm that evaluate the political risks of the marketplaces in which they operate as well as proposed new marketplaces o The legal environment for firms operating abroad results from three forces: 1. International Law  ISO (International Organization for Standardization) Certification: internationally recognized standards that ensure a company's goods and services meet established quality levels and that ensure its operations minimize harm to the environment • ISO 9000 series of standard sets requirements for quality in goods and services • ISO 14000 series sets standards for operations that minimize harm to the environment 1. Canadian Law 1. Legal Requirements of Host Nations •Trade Barriers o Tariff: tax levied against imported goods • Revenue Tariffs: taxes designed to raise funds for the importing government • Protective Tariffs: taxes designed to raise the retail price of an imported product to match or exceed that of a similar domestic tariff o Import Quotas: trade restrictions that limit the number of units of certain goods that can enter a country for resale o Embargo: a complete ban on the import of a product o Subsidy: government financial support of a private industry o Exchange Control: method used to regulate the privilege of international trade among importing organizations by controlling access to foreign currencies • Dumping: practice of selling a product in a foreign market at a price lower than what it receives in the producer's domestic market Multinational Economic Integration… • Free Trade Area: region in which participating nations agree to the free trade of goods among themselves, abolishing tariffs and trade restrictions o Customs Union: establishment of a free trade area plus a uniform tariff for trade with non-member uni
More Less
Unlock Document

Only page 1 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.