economies of A production condition where an increase in the quantity of the product results in a
scale decrease of the production cost per unit.
economies of The reduction in cost per unit as the firm spreads its total costs (production, marketing,
scope and R & D) over a larger number of brands, product lines, or target markets.
foreign direct Capital funds that flow from abroad; company is held by non-citizens; foreign ownership
investment is typically undertaken for longer-term participation in an economic activity.
global marketing The planning, coordination, and integration of marketing activities across multiple country
globalization The increased integration of the world's economies.
glocal marketing A strategic orientation that reflects the need for balance between global marketing, with
its focus on standardization, and local marketing, with its focus on adaptation to country
international The process of planning and conducting transactions across national borders to create
marketing exchanges that satisfy the objectives of individuals and organizations.
marketspace The virtual marketplace where buyers and sellers transact online.
multi-domestic A strategic orientation in which a firm develops and implements a unique marketing
marketing strategy for each country in which it does business with little or no coordination of
operations between countries.
strategic alliance A special form of joint venture consisting of an arrangement between two or more
companies with a common business objective; more than the traditional customer/vendor
relationship, but less than an outright acquisition.
triad The megamarkets of North America, Europe, and the Asia-Pacific region.
absolute An economic principle stating that a country should specialize in the production of that
advantage which it can produce more efficiently than its prospective trading partners and should
trade with those countries for all other products it wishes to consume.
ad valorem tariff A tax on an imported product that is imposed by a domestic government and assessed
as a percentage of its market value.
autarky A term used to describe the absence of international trade.
balance of An accounting statement that summarizes economic transactions between one country
payments and other countries with which it does business.
balance of trade A term used to describe the difference between a country's exports and imports.
negotiations Trade agreements carried out mainly between two nations.
comparative An economic principle that states that a country should specialize in the production and
advantage export of products it can produce relatively more efficiently and import all other products;
according to this principle, a country still benefits from international trade even when it
does not have an absolute advantage.
Tariffs that have both ad valorem and specific components.
country A theory that states that countries should be expected to trade most intensely with other
similarity theory countries with similar levels of per capita income and less intensely with countries with
dissimilar levels of per capita income; also known as the Linder theory.
embargo Governmental action that terminates the free flow of trade in goods, services, or ideas;
imposed for adversarial and political purposes.
export Measures such as subsidies, trade missions, and the provision of foreign market
promotion intelligence, introduced to enhance exporting activity at the company, industry, or national
export tariff A tax imposed by the domestic government on a product that is being exported.
foreign trade Geographic areas in a country within which foreign companies receive preferential zones treatment of their imported raw materials and exports of their finished products.
import tariffs A tax imposed by the domestic government on a product that is being imported.
labour theory of An economic principle that states that commodities should be valued in terms of the
value amount of labour embodied in their production.
Leontief statistic The metric (K/L)m/(K/L)x, where (K/L)x is the capital-to-labour ratio for exports and(K/L)m
is the capital-to-labour ratio for imports.
maquiladora A Mexican plant that makes goods and parts or processes food for export to the United
mercantilism An economic doctrine that holds that a nation's wealth is measured by its stock of
precious metals (specie).
monopolistic A market structure under which firms produce differentiated products and consumer
competition brand loyalty is possible.
negotiations Trade agreements carried out among a number of nations.
new trade theory A theory of international trade that is based on the concepts of monopolistic competition
and economies of scale.
non-tariff Barriers to trade that are more subtle than tariff barriers; for example, these barriers may
barriers 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.
own intensity The proposition that a country has a preference for products that are produced with the
preference factor that is most abundant in that country.
protectionism Measures adopted by national governments to unduly restrict trade and foreign
quota A quantitative restriction on the volume of a product that can be imported into a country
over a specified time period; a form of non-tariff barrier used by countries to restrict free
trade and protect domestic industries.
rights An international reserve asset introduced by the IMF in 1969.
specie-flow An economic principle that states that the accumulation of specie (stock of precious
mechanism metals) by one country via a trade surplus will lead to an increase in the money supply
and force an increase in wages and prices.
specific tariff A product tax that is imposed by a domestic government and assessed as a dollar
amount added to the market value of each unit of the product which enters, leaves, or is
transshipped through the country.
tariff An import control mechanism that raises prices through the placement of a tax.
trade deficits Occur when a country imports more goods and services than it exports.
transit tariff A tax imposed by a domestic government on a product that is being transshipped from
one country to another.
zero-sum game A situation in which one party must lose in order for another to win.
acculturation Adjusting and adapting to a specific culture other than one's own.
area studies Environmental briefings and cultural orientation programs; factual preparation for
living or working in another culture.
change agent The introduction into a culture of new products, ideas, or practices that may lead to
changes in consumption.
The notion that buying foreign products is unpatriotic, or even morally wrong
cultural controls Informal rules and regulations that are the result of shared beliefs and expectations
among the members of an organization. See also bureaucratic controls.
cultural convergence The growing similarity of attitudes and behaviours across cultures. cultural diversity The wide range of unique cultures in countries around the world.
cultural knowledge Broad, multifaceted knowledge acquired through living in a certain culture.
cultural literacy The acquisition of detailed knowledge of the culture of the target market that
enables a person to function effectively in that culture.
cultural universals Characteristics common to all cultures, such as body adornments, courtship,
etiquette, family gestures, joking, mealtimes, music, personal names, status
differentiation, and so on.
culture An integrated system of learned behaviour patterns that are distinguishing
characteristics of members of any given society.
encultured A situation in which a person has learned the "right" way to function in a particular
Knowledge acquired only by being involved in a culture other than one's own.
factual information Objective knowledge of a culture obtained from