Marketing Foundation Question.
xavierp
Chapter6PowerPoint.pptx
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
LO 6-2
LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 6, YOU SHOULD BE ABLE TO:
LO 6-1
Identify the major trends that have influenced world trade and global marketing.
Identify the environmental forces that shape global marketing efforts.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
LO 6-4
LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 6, YOU SHOULD BE ABLE TO:
LO 6-3
Name and describe the alternative approaches companies use to enter global markets.
Explain the distinction between standardization and customization when companies craft worldwide marketing programs.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
BUILDING A BILLION DOLLAR BUSINESS IN INDIA THE DELL INC. WAY
Dell India
Web site
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
MARKETING IN A BORDERLESS ECONOMIC WORLD
TREND 1—DECLINE OF ECONOMIC PROTECTIONISM
LO 6-1
World Trade Organization (WTO)
General Agreement on Tariffs and Trade (GATT)
World Trade
Organization
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
FIGURE 6-1 Protectionism hinders world trade when countries raise prices and limit supply through tariff and quota policies
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
MAKING RESPONSIBLE DECISIONS GLOBAL ETHICS AND GLOBAL ECONOMICS— THE CASE OF PROTECTIONISM
LO 6-1
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
MARKETING IN A BORDERLESS ECONOMIC WORLD
TREND 2—RISE OF ECONOMIC INTEGRATION
LO 6-1
European Union
Euro (currency)
North American Free Trade Agreement (NAFTA)
Euro Video
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
FIGURE 6-2 The European Union in early 2015 consists of 28 countries with more than 500 million consumers
European
Union countries
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
MARKETING IN A BORDERLESS ECONOMIC WORLD
TREND 3—GLOBAL COMPETITION
LO 6-1
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
FIGURE 6-A Global companies and marketing strategy
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
MARKETING IN A BORDERLESS ECONOMIC WORLD
TREND 3—GLOBAL COMPANIES
LO 6-1
International Firms
Transnational Firms
Multinational Firms
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
MARKETING IN A BORDERLESS ECONOMIC WORLD
TREND 3—GLOBAL CONSUMERS
LO 6-1
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
MARKETING MATTERS The Global Teenager—A Market of 2 Billion Voracious Consumers
LO 6-1
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
MARKETING IN A BORDERLESS ECONOMIC WORLD
TREND 4—A NETWORKED GLOBAL MARKETPLACE
LO 6-1
Nestle Hungary
Ad
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
MARKETING IN A BORDERLESS ECONOMIC WORLD
TREND 5— ECONOMIC ESPIONAGE
LO 6-1
Economic espionage exists!
Clandestine collection of trade secrets or proprietary information about competitors
Costs U.S. firms $250+ billion/year
23 nations routinely target U.S. firms
Economic Espionage Act (1996) makes theft a federal crime
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
FIGURE 6-B Cultural appreciation
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
A GLOBAL ENVIRONMENTAL SCAN
CULTURAL DIVERSITY
LO 6-2
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
A GLOBAL ENVIRONMENTAL SCAN
CULTURAL DIVERSITY
LO 6-2
Language
Unintended Meanings
(Italian translation:
“Stop Looking at My Rear”)
(Japanese Translation:
“Surely Win”)
Nestle Japan
Ad
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
A GLOBAL ENVIRONMENTAL SCAN
ECONOMIC CONSIDERATIONS
LO 6-2
Economic Infrastructure
Communications
Financial
Transportation
Distribution Systems
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
A GLOBAL ENVIRONMENTAL SCAN
ECONOMIC CONSIDERATIONS
LO 6-2
Consumer Income and Purchasing Power
Denizen
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
A GLOBAL ENVIRONMENTAL SCAN
POLITICAL-REGULATORY CLIMATE
LO 6-2
Impacts of Political Stability
Impact on Economy from Trade Regulations
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
FIGURE 6-3 Alternative global market-entry strategies
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
MARKETING MATTERS Creative Cosmetics and Creative Export Marketing in Japan
LO 6-3
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
GLOBAL MARKET-ENTRY STRATEGIES
LICENSING
LO 6-3
Advantages
Disadvantages
Franchising
Contract Manufacturing
Contract Assembly
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
FIGURE 6-4 Five product and promotion strategies for global marketing
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CRAFTING A WORLDWIDE MARKETING PROGRAM
PRODUCT STRATEGIES
LO 6-4
Product Extension
Product Adaptation
Product Invention
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CRAFTING A WORLDWIDE MARKETING PROGRAM
PROMOTION STRATEGIES
LO 6-4
Communication Adaptation
Dual Adaptation
Identical Message
Nescafe China
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CRAFTING A WORLDWIDE MARKETING PROGRAM
DISTRIBUTION AND PRICING STRATEGIES
LO 6-4
Countries Impose Pricing Constraints
Channels Can Be Long or Short
Prices May Be Too High or Too Low
Channels and Economic Development
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
FIGURE 6-5 Channels of distribution in global marketing
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
MARY KAY, INC.: BUILDING A BRAND IN INDIA
VIDEO CASE 6
Mary Kay
Video Case
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
FIGURE 1 Social and economic statistics for India in 2007 and China in 1995
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
VIDEO CASE 6
Mary Kay
1. Is Mary Kay an international firm, a multinational firm, or a transnational firm based on its marketing strategy? Why?
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
VIDEO CASE 6
Mary Kay
2. What global market-entry strategy did Mary Kay use when it entered India?
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
3. Is Mary Kay a global brand? Why or why not?
VIDEO CASE 6
Mary Kay
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
INTRODUCING CARMEX HEALING CREAM TO EUROPEAN MARKETS
IN-CLASS ACTIVITY 6-1
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
ICA 6-1
Carmex Healing Cream (U.S. to European Markets)
Carmex Video
Example:
Introducing Carmex Healing Cream
to European Markets
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Countertrade
Countertrade is the practice of using barter rather than money for making global sales.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Gross Domestic Product (GDP)
Gross domestic product (GDP) is the monetary value of all products and services produced in a country during one year.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Balance of Trade
Balance of trade is the difference between the monetary value of a nation’s exports and imports.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Economic Espionage Act (1996)
The Economic Espionage Act (1996) is a law that makes the theft of trade secrets by foreign entities a federal crime in the United States.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Protectionism
Protectionism is the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Tariffs
Tariffs are government taxes on products or services entering a country that primarily serve to raise prices on imports.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Quota
A quota is a restriction placed on the amount of a product allowed to enter or leave a country.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
World Trade Organization (WTO)
The World Trade Organization (WTO) is a permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Global Competition
Global competition exists when firms originate, produce, and market their products and services worldwide.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Strategic Alliances
Strategic alliances are agreements among two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Multidomestic Marketing Strategy
A multidomestic marketing strategy involves multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Global Marketing Strategy
A global marketing strategy involves transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Global Brand
A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Global Consumers
Global consumers are consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Cross-Cultural Analysis
Cross-cultural analysis involves the study of similarities and differences among consumers in two or more nations or societies.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Values
Values are a society’s personally or socially preferable modes of conduct or states of existence that tend to persist over time.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Customs
Customs are what is considered normal and expected about the way people do things in a specific country.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Foreign Corrupt Practices Act (1977)
The Foreign Corrupt Practices Act (1977) is a law, amended by the International Anti-Dumping and Fair Competition Act (1998), that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Cultural Symbols
Cultural symbols are things that represent ideas and concepts.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Back Translation
Back translation is the practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Currency Exchange Rate
A currency exchange rate is the price of one country’s currency expressed in terms of another country’s currency.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Exporting
Exporting is a global market-entry strategy in which a company produces products in one country and sells them in another country.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Joint Venture
Joint venture is a global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share the ownership, control, and profits of the new company.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Direct Investment
Direct investment is a global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Dumping
Dumping occurs when a firm sells a product in a foreign country below its domestic price or below its actual cost.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Gray Market
A gray market is a situation where products are sold through unauthorized channels of distribution. Also called parallel importing.
Slide 6-‹#›
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
