New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Test 1 Review

by: Gabriela Ozaki

Test 1 Review MKT 360

Gabriela Ozaki
GPA 3.0
International Marketing

Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

International Marketing
Study Guide
50 ?




Popular in International Marketing

Popular in Marketing

This 14 page Study Guide was uploaded by Gabriela Ozaki on Sunday February 1, 2015. The Study Guide belongs to MKT 360 at University of Miami taught by Recarey in Fall2014. Since its upload, it has received 172 views. For similar materials see International Marketing in Marketing at University of Miami.


Reviews for Test 1 Review


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 02/01/15
MKT 360 Test 1 Review Spring 2013 IMPORTANT CONCEPTS Chapter 1 1 What are some of the trade preference programs that the US government uses to assist countries 0 GSP generalized system of preference I Gives no tariffs duty free of 5000 products from 127 countries I From designated beneficiary countries and territories throughout the world 0 CBERA Caribbean Basin Economic Recovery Agreement I Gives no tariffs duty free to most products from 17 countries I Enacted by President Ronald Reagan I Reagan wanted to lift Cuba s economy letting them bring their products to the USA to sell 0 ANDEAN Trade Promotion and Drug Eradication I Political reasons behind it to combat the drug problem in South America Encourage farmers to give up planting drugs Bolivia Ecuador Bolivia cancelled planting coca is part of their culture 0 AFRICAN Growth and Opportunity Act I 37 sub Saharan African countries I Duty free for all products 2 What is MostFavored Nation MFN treatment in international trade 0 One year specific trade advantages such as reduced tariffs on imported goods 0 Lowest tariff treatment 0 US congress gives this power office of trade representatives deals w trade free trade agreements and tariffs I They take this to congress argue and make a oneyear agreement 0 Establishing equality of trade opportunity amongst states by making bilateral agreements into multilateral 3 What are some of the reactive reasons that drive companies to market their products internationally What are some of the proactive reasons REACTIVE O Responding to unsolicited offers from abroad 0 Loss of domestic competitiveness O Defensive purposes foreign competition PROACTIVE O Expanded market potential and growth 0 Finding new markets overseas I increase profit 0 Geographic diversification to spread risk 0 Economies of scale and optimal productivity 0 Savings you get by doing things in large scale 0 Product at end of its life cycle 0 Overseas markets as source of new ideas products What are the uncontrollable environments in international marketing How do they differ from domestic marketing 0 Cultures politics competitors 0 Currency valuations possible trade embargoesquotas 0 Same as domestic but must juggle them 0 They might be in con ict with one another What is the selfreference criterion SRC What are the dangers of the SRC O Unconscious reference to ones own cultural values experiences and knowledge as a basis for decisions Dangers 0 Failing the need to take action 0 Discounting cultural differences that exist 0 Reacting in way that is offensive to host country What is Ethnocentrism O Notion that ones own culture or company knows best how to do things 0 My way is better than yours I m not going to pay attention to your ideas What are the 5 stages of international marketing involvement and what do companies do at each stage 1 No direct foreign market a As part of the marketing plan of this company they do not target any foreign countries however they might do indirect marketing Ex lets say you are an American company and you just want to sell the product in the US and want to sell the product to WalMart they will distribute it to customers in the US WalMart decides that this product might be sold well in Mexico it is not your strategic plan but some of it might indirectly be going onto a different country 2 Infrequent foreign market REACTIVE 0 You start exporting your product easiest way to participate in a foreign market 0 You are only responding to demands overseas Ex somebody from china herd that your selling a product in the US they want it so you export it 3 Regular foreign market PROA CTIVE 0 Here your going to do regular exporting O Exporting is now part of your business 4 International marketing 0 You set a separate company in a foreign country just to take care of the needs of that country 0 Own little domestic market strategy 5 Global marketing 0 Integrating I Regionally integrating operations in a region I Integrating the value chain I Globally integrating companies globally 8 What are the 3 different strategic orientations in international marketing and the firm classifications they represent Management Orientation Firm Classi cation Domestic Market Extension Domestic market is more important international market is just an extension of domestic operations Home country is superior management sees Similarities in foreign countries to domestic market Ethnocentric MultiDomestic Market Each foreign country is dij rent requiring separate marketing strategies For each Marketing strategy must be adapted to local country markets Polycentric Global Marketing can variate Managers look for global markets with Similar needs and try to standardize andor adapt products and strategies on a global basis The entire world is a potential market with many similarities and differences Regiocentric or Geocentric What is the Value Chain and how do global companies optimize it 0 Series of operations a company does to deliver value to their customers each step adds value I Construction I Marketing I MFG manufacturing I Design I Raw materials 0 Integrating steps 0 To globalize I integrate elements of the value chain to optimize assign each element of the value chain to the subsidiary that does it best Chapter 2 1 What is Free Trade 0 Trade without barriers International trade left to its natural course without tariffs quotas or other restrictions 2 What is the economic principle of Absolute Advantage What is the economic principle of Relative or Comparative Advantage What should countries do in order to trade under each one of these principles 0 Proposes for countries to be wealthy they should specialize and m produce and export what they are most efficient in manufacturing lowest cost and import the rest I Concentrate resources on what they do bestcheapest I This basic creates monopoly for one country nothing can stop monopoly raising price 0 Worried about what happens if a country has an absolute advantage in more than one product I Countries should specialize and only produce and export what they have the highest advantage ratio and import the rest I Most bang for your buck I The best use for the limited resources 3 What is protectionism and why do countries do it 0 Countries use trade protectionism when they think their industries are being damaged by unfair competition from foreign industries It39s a defensive measure and is usually politically motivated 0 Countries use a variety of ways to protect their trade One way is to enact tariffs which taX imports This immediately raises the price of the imported goods making them less competitive when compared to locally produced goods 4 What was Mercantilism and why is Free Trade sometimes accused of being a new form of Mercantilism neomercantilism 0 An economic theory prevalent in colonial times which emphasized the preservation of a country s capital by maintaining a constant positive balance of trade In other words to emphasize exports and deemphasize import If you import everything then you only export Raw materials 0 Colony Icolonial power raw materials 0 Colonial power I colony finished goods In other words for a colony to be industrialized the colony NEEDS protectionist barriers Developing nation has protectionist barriers IFree Trade eliminates these protectionist barriers 0 Free trade removes the protectionist barriers developing nations need to Industrialize forcing them to only export raw materials IWTO allows developing countries to maintain their tariffs high and once they are strong and developed the lower them What was the purpose of the Bretton Woods Conference and what institutions were created as a result of it The New World Economic Order Setting mechanisms to prevent another great depression I war famine Create checks and balances to prevent another world economic collapse 0 Keep currencies of the world stable currencv stability 0 Makes trade easier using the gold standard 1 oz of gold in your currency 0 Prevent really big spikes in currency values devaluation 0 As currencies go down join together and buy into currency to raise it 0 As currencies get too high join and sell the currency cheaply lend money for development so that countries can build infrastructure 0 Almost give the money away 0 Money comes from member countries 0 Very low interest rates General Agreement on Tariffs and Trade I IS NOW 0 World Trade Agreement to reduce tariffs 0 And reduce trade What is the purpose of the IMF How did it originally promote currency exchange stability How does it do it now O Promotes exchange stability and orderly exchange arrangements among member countries ORIGINALLY 0 Fixed currency exchange rate gold standard 0 The IMF used to lend dollars USD based on gold I 1960s ran out I created paper gold NOW 0 can be exchanged into any other currency using the gold standard 0 Collapsed 1969 and became basket reserve 0 7 To whom does the IMF lend money and under what conditions From where does the IMF get the money that it lends 0 Rescue countries that get into balance of payment problems 0 Follow antiin ationary and austerity policies 0 From quota system based on GDP from each member country 8 What is an SDR How is its value presently determined 0 Support Bretton Woods fixed exchange system 0 Paper Gold 0888671 grams of fine gold 1 USD 9 What was the original role of the World Bank and what does it do now 0 Provide cheap loans for development 0 First knows as International Bank for Reconstruction and Development IBRD I for reconstruction after WWII O 1949 USA got worried about how slow reconstruction was going 0 Provided the largest foreign aid bill Marshall Plan 39 13 bill 100 billion in todays money 10 What was the GATT What is its successor organization 0 General Agreement on Tariffs and Trade 0 WTO 11 What are the 3 principles that GATT established as a code of conduct for international trade 0 Trade should be conducted wo discrimination I Most favorite nation 0 Tariffs should be reduced through multilateral negotiations I Agree to reduce specific tariffs in order to trade and become beneficial to all others I Quotas outlawed 0 Members should consult together to overcome trade problems I Not go to war 0 13 What is the WTO When was it established Where is it located Administers and implements the multilateral trade agreements Acts as a forum for multilateral trade negotiations Seeks to resolve trade disputes Oversees national trade policies Cooperates with other international institutions involved in global economic policymaking 0 Established January 1 1995 0 Based in Geneva Switzerland 14 What is the WTO position on Most Favored Nation MFN treatment National treatment Quotas Tariffs Dumping Subsidies Developing countries 0 Trade wo discrimination if part of WTO you have MFN and National Treatment w all other members 0 MFN 0 National Treatment 0 Predictable and growing access to markets 0 Quotas are outlawed 0 Tariffs are reduced 0 Promoting fair competition 0 Compensate allow for antidumpingsubsidy duties 0 Encouraging development and economic reform 0 Developing countries are given transition periods to adjust to WTO provisions 15 What is the name of the present round of WTO trade negotiations and what is its present status 0 DOHA Round O Haven t been able to sign an additional treaty I Stuck because all the easy stuff has been negotiated I Agreements hard on 0 Agriculture 0 Intellectual property 0 Trade in services Vs Industrialized Developing Lower barrier lower barriers on industrial goods on agricultural goods 16 What are some of the present complaints against the WTO IMF and other global institutions 0 Environmental concerns 0 Worker exploitation and domestic job losses 0 Cultural extinction 0 Higher oil prices 0 Diminished sovereignty of nations 17 What is the Balance of Payments of a nation 0 Balance of payments is an accounting of a country s international transactions for a particular time period 0 Does NOT take into account the money and transactions Within the country internal accounts 18 What are the 3 major accounts of the Balance of Payments statement 0 Capital and financial account I Deals With transfer of capital and financial M O Balancing account I Records transfer of Official Reserve assets 0 Current account checking account I Deals W international trade in goods and services and With earnings on investments 0 Credit export 0 Debit import 0 Exports gt Imports 0 Imports gt EXportS 19 What is the Balance of Trade of a country 0 Exports vs Imports 0 All accounts must be balanced 20 What constitutes a positive or a negative Balance of Trade 0 Depending on Whether the exports and imports are negative or positive 21 22 23 24 25 26 27 28 29 30 31 32 0 Exports gt Imports 0 Imports gt Exports What happens to a country s official reserves if it has a negative Balance of Trade trade deficit O Losing money 0 Tap reserves moneycurrency that is strong dollars yen pounds euro I This is a black hole I never be able to pay back interest etc What happens to a country s official reserves if it has a positive Balance of Trade trade surplus 0 Making money If a country has a deficit in its Current Account what are the 2 things that it can do to keep its Balance of Payments in balance without touching its reserves 0 Issue bonds if bonds are risky want higher interest rates until becomes a junk bond extremely risky 0 Sell assets Stateowned enterprises I they become private so What was the Balance of Trade situation of the United States in 2011 Why don t Americans worry about this situation 0 In a deficit negative 0 American bonds are still valid people still trust American bonds What percent of its GDP was the US foreign trade in 2011 O 247 What percent of its GDP was the US Current Account deficit in 2011 O 31 What is a tariff What are safeguard restrictions 0 Trade barrier tax for imports 0 Emergency increase in tariffs to protect a specific industry What is a quota 0 Limitation upon imports amount you can exportimport What is a Voluntary Export Restraint VER 0 Legal Not putting up a barrier 0 An importer voluntarily limits their exports to another country 39 Usually political What is a boycott What is an embargo 0 Prohibition to from another country Cuba 0 Prohibition to I to another country 0 Arms Embargo prohibit the sale of guns to a foreign country What is dumping What is a subsidy 0 Sell a product in another country at a price under your cost I Kills the local product How do countries punish dumpers How do countries punish subsidized imports 0 Antidumping duties O O Countervailing duties 33 What is an Exchange Permit and how do countries use them as a nontariff barrier 0 Chapter 3 1 What of the people of the world lives in the 10 most populous countries 0 60 2 What continent contains 6 of the 10 most populous countries Asia 3 How relatively populated are Africa the Middle East and Latin America Thinly populated 4 What is the most densely populated region in the world Europe 5 Which kind of countries presently has the highest population growth rates Which kind has the lowest Lowincome countries Highincome countries 6 Why is the rate of population growth important to a country What are the consequences for a country if it grows too fast or too slow 0 Rate of growth has enormous in uence on the economy of a country 0 The pop is going to push down on the economy bc the economy will not be able to take care of its people 0 Won t be able to feed them health etc Economy will collapse 0 Industrialized countries growing very slow Pull down the economy You will have fewer workers to grow the economy Fewer consumers Economy will collapse 7 What is the present world population At what rate is it growing today 7 billion 1 1 8 What 2 countries had the largest population in 2013 China India 9 What are the present rates of population growth in China and India Why the difference What are some of the problems this situation could bring to these countries China 05 OIOIO 0 India 13 China controls birth rates one child policy 0 Gender imbalance O 4 2 1 problem 0 Not enough workers India overpopulated Problem housing feeding clothing and health 10 What is the present population growth rate of Japan What are 2 reasons for this low number What problems is Japan facing because of this low rate 01 Shinto religion 0 Official Japanese religion 0 Teaches that the nation is sacred and that the race is pure 0 Discourages immigration 0 Don t want to mix other ethnicities with the Japanese race Parasite singles gender revolution No workers no customers I less people 11 How is the rate of population growth in the World expected to change in the next 50 years 05 12 What is the population of the World projected to be in the year 2050 9 billion 13 What is the trend in urbanization of the World population People moving from agricultural areas Result of a desire of greater access to resources 0 Education 0 Health care 0 Job opportunities GOODBAD 0 People are all bunched together 0 Easier to deliver products distribution 0 Contact them easier 0 Cities get overpopulated 0 Difficult to house everyone 0 Health 0 Transportation 14 What is the Triad What of the world population did they represent in 1995 In 2010 What of the world GNP did they represent in 1995 In 2010 15 16 17 O 0 Group of richest countries measured by GNP 0 North America excluding Mexico 0 Japan 0 EU 0 1995 76 of world income GNP and only 14 of the population 0 2010 China and India now share world income have 36 of population China 9 India 2 Triad 61 What was the doctrine of the Manifest Destiny and what US actions did it justify Manifest Destiny from Atlantic to Pacific 0 Americans are chosen people ordained by god to create a model society 0 Idea that the Americans are doing a favor by bringing culture to them and taking their land 0 Our culture is better than yours 0 Justified war with Mexico annexed all the South West area 18461848 What were the 3 principles of the Monroe Doctrine How are they commonly known O No further European colonization in the New World 0 No US intervention in European political affairs 0 No European intervention in the governments of the Western Hemisphere America for the Americans What was the Roosevelt Corollary to the Monroe Doctrine During Roosevelt s presidency the country became urbanized Very popular i Expansionist almost Colonialist ii Exert American culture spread If Europe has a problem with any of the Americas USA will deal with it Police area and guarantee that Latin American nations meet their international obligations Gave US the excuse to intervene in Latin America I Economic and political intervention I Direct military action Used this to intervene in the Dominican Republic in 1905 I Went with navy took over govt and began to collect taxes and paid back the European countries lUsed this to acquire the Panama Canal Zone in 1903 Chapter 4 1 What is the definition of culture 0 Set of interrelated beliefs values attitudes and ways of doing things that is shared by a similar group of people who learn their behavior through socialization 2 How is culture transmitted 1 Society 2 Social organizations 3 Family 4 Special interest groups 5 Government 6 School 7 Church 3 Is culture static o DYNAMIC not static O 0 00000000000 4 What happens to the elements of culture when you change one of them Elements are interrelated changes in one element will affect others as well 5 What are the 5 major elements of culture 1 Material Elements 2 Social Institutions 3 Belief Systems 4 Aesthetics 5 Language 6 How does the Level of Technology of a culture affect marketing Determines the level of technology demanded in their products you are selling 7 What are some of the largest religions of the world in number of followers Christianity 21 billion Islam 13 billion Atheist 11 billion Hinduism 900 million Chinese traditional religion 394 million Buddhism 376 million Primalindigenous 300 million African Traditional 100 million Sikhism 23 million Judaism 14 million Shinto 4 million 8 What major religion promotes a caste system the veneration of the cow and arranged marriages Hinduism 9 What major religion is considered to be reform Hinduism Buddhism 10 What major religion considers the Koran as the ultimate guide Islam 11 What is usury and what major religion prohibits it Christianity 0 The illegal action or practice of lending money at unreasonably high rates of interest 12 What branch of Christianity promotes individualism and no distinction between secular and religious life 0 Protestant Calvinism 13 What is considered to be the official religion of Japan 0 Shinto 14 What is a cultural translator What is backwards translation 0 Same language in different country means different things 0 Write in English I translate to Chinese I translate back to English 0 If there is a difference then something was translated wrong to the Chinese 15 What is a Value What are some core American values 0 An enduring belief that a specific way of doing something is personally or socially preferable to another mode of conduct a Importance of hard work b Protestant work ethic c Ownership of tangible goods d Religious and political freedom e Pilgrims 16 What is cultural borrowing and what does it have to do with finding solutions 0 Sometimes cultures find better solutions in other cultures so they adopt them


Buy Material

Are you sure you want to buy this material for

50 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Anthony Lee UC Santa Barbara

"I bought an awesome study guide, which helped me get an A in my Math 34B class this quarter!"

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.