Glossary
Chapter 3: Marketing in International Markets

Jump to a chapter's terms:   1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24

Asia Pacific Economic Co-operative (APEC)

Aims to promote trade between its members: the six ASEAN members plus the United States, Australia, Canada, New Zealand, Japan, China, South Korea, Hong Kong and Taiwan. p. 90

Association of South East Asian Nations (ASEAN)

Formed in 1967 with the intention of building trade and other links among its six members: Brunei, Indonesia, Malaysia, the Philip-pines, Singapore and Thailand. p. 90

Central and Eastern Europe (CEE)

Encompasses the Commonwealth of Independent States (formerly the Soviet Union), the Balkan states, the Czech and Slovak Republics, Hungary and Poland. p. 90

Commonwealth of Independent States (CIS)

A loosely connected group of 15 former Soviet Union states including Azerbaijan, Armenia, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. p. 91

Domestic marketing

Marketing activities directed exclusively in a business's home market. p. 73

European Economic Area (EEA)

An agreement, beginning in 1993, that encourages free trade between EFTA and the EU. p. 89

European Free Trade Association (EFTA)

Set up in 1960 to encourage free trade between member countries. p. 88

European Union (EU)

One of three major market groups in western Europe, the EU has 15 members: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the UK. p. 87

Export marketing

Marketing activities through which a business takes advantage of opportunities outside its home market but continues production in the home country. p. 73

Exporting

Use of an intermediary that performs most marketing functions associated with selling to other countries; entails the minimum effort, cost and risk involved in international marketing. p. 93

Foreign direct investment (FDI)

A long term commitment to marketing in a foreign nation through direct ownership of a foreign subsidiary or division. p. 96

Franchising

A form of licensing granting the right to use certain intellectual property rights, such as trade names, brand names, designs, patents and copyrights. p. 93

Global marketing

A total commitment to international marketing, in which a company applies its assets, experience and products to develop and maintain marketing strategies on a global scale. p. 73

Gross domestic product (GDP)

The total value of all goods and services produced by a country's income. p. 83

International marketing

Marketing activities in which a business reduces reliance on intermediaries and establishes direct involvement in the countries in which trade takes place. p. 73

Joint venture

A partnership between a domestic company and a foreign company or government. p. 94

Licensing

System in which a licensee pays commissions or royalties on sales or supplies used in manufacturing. p. 93

Maastricht Treaty

The treaty, signed in 1992, that established the European Union. p. 87

Multinational companies

Companies that behave in their foreign markets as if they were local companies. p. 73

Multinational enterprise

A company with operations or subsidiaries in many countries. p. 96

Multinational marketing

Adaptation of some of a company's marketing activities to appeal to local culture and differences in taste. p. 73

Non-tariff barriers

A wide range of rules, regulations and taxes that have an impact upon trade. p. 85

North American Free Trade Agreement (NAFTA)

Implemented in 1994 and designed to eliminate all tariffs on goods produced and traded between Canada, Mexico and the United States, providing for a totally free trade area by 2009. p. 92

Quotas

Physical restrictions on the amount of goods that can be imported into a particular country or region. p. 85

Strategic alliances

Partnerships formed to create a competitive advantage on a worldwide basis. p. 94

Tariffs

Taxes that affect the movement of goods across economic or political boundaries and can also affect imports, exports or goods in transit. p. 85

Trading company

A company that provides a link between buyers and sellers in different countries. p. 95