International Marketing and Export Management 8e by Albaum, Duerr, Josiassen

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International Marketing and Export Management 8e by Albaum, Duerr, Josiassen is the 8th edition of the textbook authored by Gerald Albaum, University of New Mexico, USA, Edwin Duerr, San Francisco State University, USA, and Alexander Josiassen, Copenhagen Business School, Denmark, and published by Pearson Education Limited, Harlow, United Kingdom in 2016.

  • Absolute advantage. The case where one country or firm has a cost advantage in one product or service, and another country or firm has a cost advantage in another product or service.
  • Acceptance. Time draft that has been accepted for payment.
  • Adaptation. A company offers different versions of the marketing program or individual elements of the program (such as a product) to each foreign market.
  • Advertising. Nonpersonal presentation of sales messages through mass media, paid for by the advertiser.
  • Advertising network. Collection of independent websites from different companies and media networks.
  • Affiliate network. Collection of websites that link to an online retailer in exchange for commission on purchases made from the retailer.
  • Agent. Independent marketing organization that represents the exporter when making a sale, and is paid a commission. May be foreign-based or home-country-based.
  • Air waybill. Bill of lading used in air transport; it is a nonnegotiable document.
  • Andean Common Market. A common market in South America that includes Bolivia, Colombia, Ecuador, Peru, and Venezuela.
  • Antidumping duties. Taxes imposed on an import that is being sold at a price lower than its cost of production or lower than the price at which it is sold in its home market.
  • Antitrust regulation. Government regulation of business behavior that is concerned with concentration of economic resources and possible monopoly power.
  • Apps, app. An abbreviation for 'applications' but with a specific meaning that it is a piece of software that can be run on the Internet or electronic device. (Having a number of apps for a particular electronic device adds to its value so international marketers develop and/or encourage others to develop apps for their particular cell phone, note pad, etc.)
  • Arbitration. An approach to settling disputes in which a third, disinterested party acts as a type of referee to determine the merits of the case and make a judgment that both parties agree to honor.
  • ASEAN (Association of Southeast Asian Nations). A regional economic integration scheme that includes the countries of Brunei, Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Myanmar and Laos.
  • Assembly operations. A foreign-market-based facility that uses mostly imported components and parts to put together a final product.
  • Auxiliary services. When applied to a product, this includes warranties, use instructions, installation help, after-sales service, and spare parts availability.
  • Banner advertisements. Advertising placed on websites.
  • Barter. A form of countertrade that involves a direct exchange of goods or services between two parties, which may be business firms or governments.
  • Bases of segmentation. Variables (criteria) used to segment a foreign market into specific components.
  • BEMs. Big emerging markets. A small number of countries in central Europe, Latin America, and Asia that experienced rapid economic growth during the 1990s.
  • Berne Union. The global coordinator of national credit and investment insurers from more than 30 countries. Formally known as the International Union of Credit and Investment Insurers.
  • Bill of exchange. Draft drawn on an importer. See draft.
  • Bill of lading. A document that is the contract of carriage between the shipper and the transportation carrier, a receipt for the goods issued by the carrier, and/or evidence of title to the goods.
  • Border tax. Used primarily in Europe, this tax was imposed on imports in addition to any tariffs and is designed to place a tax burden on imports equivalent to that borne by similar domestic products.
  • Brand. Anything that identifies a seller's goods or services and distinguishes them from others.
  • BRICs. The four-largest economies outside the Organization for Economic Development. This group of emerging economies consists of Brazil, Russia, India, and China.
  • Broker. A home-country-based agent whose chief function is to bring a buyer and seller together. May act as the agent for either party.
  • Brownfield investment. A foreign acquisition in which resources and capabilities are provided by the investor, replacing most resources and capabilities of the acquired firm.
  • Built-in export department. A company unit consisting of an export sales manager with some clerical help, and most of the export marketing (except sales) is done by the regular domestic marketing company units.
  • Bundle pricing. Pricing for all components, and/or products in a group, together.
  • Business Environment Risk Index (BERI). An index that measures the discrimination of foreigners compared with nationals as well as the general quality of a country's business climate.
  • Business model. The combination of products and/or services, the marketing methods used, and supporting management and control systems.
  • Buyback. A form of countertrade where a company agrees to supply technical knowledge to build a plant, or actually builds the plant or licenses the use of a trademark, in exchange for a portion of the production output of the plant.
  • Caribbean Community and Common Market (CARICOM). Common market within the Caribbean area consisting of Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago.
  • Cartel. An association of producers formed with the objectives of coordinating and controlling the production and marketing of a product and improving profits.
  • Cash on delivery (COD). Payment is to be made in cash when the shipment is delivered to the buyer.
  • CE marking. Used in the European Union to indicate that a product meets essential safety requirements of those countries where it will be marketed. It is required for products that fall within any of the EU's New Approach Directives.
  • Center of excellence. A technical-based center within a multinational or global company in which development of products or components of products is centralized for the entire company. Also known as competence center.
  • Central American Common Market (CACM). A common market that consists of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.
  • Central American Integration System (SICA). The economic, cultural and political organization of the Central American countries of Belize, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and Panama.
  • Centralization. Organization pattern where decision making and control for international operations are concentrated at headquarters.
  • Certificate of origin. A document that certifies the country of origin of products being exported.
  • Change agent. A government or private organization that promotes export activities of business firms.
  • Civil-law (Roman Law) country. A country in which the legal system is based on the codes that are considered to be the completely comprehensive, all-inclusive source of authority that 'regulates' behavior.
  • Clean bill of lading. Bill of lading that has no notation of damage to the goods indicated.
  • Clean draft. A draft with no documents attached.
  • Clearing arrangements. Type of barter where surpluses are cleared up either by accepting more goods or by one party paying a penalty.
  • Climate for advertising. Views about advertising in general held by people and institutions in a socioeconomic, cultural, and political system.
  • Cloud computing. Internet-based computing where central resources of software and information are provided to users on demand, as in an electricity grid.
  • Commercial invoice. A bill from the exporter to the importer for the product(s) that is (are) being exported.
  • Common-law country. A country in which the legal system relies on past judicial decisions, or cases, to resolve disputes or 'regulate' behavior.
  • Common market. A group of countries that has formed an integration scheme in which internal barriers to trade are eliminated, external barriers are common, and free movement of factors of production internally is allowed.
  • Comparative advantage. The case where one country or firm has absolute cost advantages in the production of all products and services compared with another country or firm, but has a greater cost advantage in some products or services than in others.
  • Compensation agreement. See buyback.
  • Confirming house. An agent who assists the overseas buyer by confirming, as a principal, orders already placed.
  • Consignment. The exporter ships to the buyer who pays after the products have been resold.
  • Consolidator. See foreign freight forwarder.
  • Consular invoice. A document signed by the consul of the importing country that is used to control and identify products shipped there.
  • Consumer affinity. A consumer's attraction towards a certain (often foreign) outgroup.
  • Consumer animosity. A consumer's rejection of a certain (often foreign) outgroup.
  • Consumer ethnocentrism. A consumer's attraction to the domestic in-group including interest in the well-being and preservation of this group.
  • Consumer disidentification. A consumer's rejection of being seen as a member of the domestic group.
  • Contract manufacturing. A form of strategic alliance where a company contracts for the manufacture/assembly of its product(s) by manufacturers established in foreign markets, while still retaining responsibility for marketing and distributing these products.
  • Contractible market selection. Systematic screening of all potential markets leading to elimination of the least promising and further investigation of the most promising.
  • Cooperative exporter. A manufacturer with its own export organization that is retained by other manufacturers to sell in some or all foreign markets.
  • Coopetition. Simultaneous competition and cooperation between two or more rival companies competing in global markets.
  • Co-promotion. Joint promotions of two products that are compatible.
  • Cost and freight (C&F). Trade term indicating that price includes costs for the goods to be on board a carrier plus the freight costs to a named foreign port.
  • Cost, insurance, and freight (CIF). Trade term that includes the costs of C&F plus transportation insurance.
  • Counterfeit trade. The practice of attaching brand names or trademarks to bogus products or services, thereby deceiving the customer into believing that they are purchasing products/services of the owner of the trademark or brand name.
  • Counter purchase. A form of countertrade where an exporter sells its products to an importer for cash or credit and agrees to purchase (with the cash or credit) and market products from the original importer's country.
  • Countertrade. Parallel business transactions that link a sales contract to a purchase contract in addition to, or in place of, financial settlements. A seller provides a buyer with products/services/technology and agrees to a reciprocal purchasing obligation with the buyer.
  • Countervailing duty. Tax (a tariff surcharge) imposed on an import that is designed to offset some special advantage given to the exporter by the exporter's government.
  • Country-of-origin image. Views of foreign products held by consumers (users) in an importing country based on their perceptions of the country of export.
  • Cross-cultural communication. Communication between a person in one culture and a person or persons in another culture.
  • Cross-licensing. Mutual exchange of knowledge, processes, and/or patents between companies in different countries.
  • Cultural distance. See psychic/psychological distance.
  • Cultural empathy. The capacity of a person for understanding cultural differences to an extent that allows the person to see a situation from the standpoint of those in the other culture.
  • Culture. The sum of the knowledge, values, beliefs, and attitudes that are shared by a particular society or group of people.
  • Customs-bonded warehouse. A warehouse in which goods from foreign countries can be stored, and certain manipulations performed on the goods, without payment of duty until the goods are released from storage and delivered to the buyer.
  • Customs union. A group of countries that have abolished tariffs among themselves and have adopted common external tariffs.
  • Danwei. The basic work unit in China where a joint venture is responsible for providing all the services needed by employees of the company – homes, stores, schools.
  • Data equivalence. Data that have, as far as possible, the same meaning or interpretation, and the same level of accuracy, precision of measurement, or reliability, in all countries and cultures.
  • Date draft. A draft where payment is due a specified number of days after a specific date.
  • Decentralization. Organization pattern where decision making and control for international operations are delegated away from headquarters to subdivisions of the organization, often to local management.
  • Del credere. An extra commission paid to a manufacturer's export agent who either guarantees payment for all orders sent to the exporter or finances the transaction.
  • Desk jobber. A type of export merchant who does not ever physically possess the product sold in a foreign market. Also known as a drop shipper or a cable merchant.
  • Devaluation of currency. The price of a national currency in terms of another is lowered either by market forces or by government decision.
  • Differential pricing. Relationship of prices for products in a product line. Also used for relationship of prices for a single product in different markets.
  • Diffusion of product. Movement of a product from the point of development to the market.
  • Direct export(ing). Selling directly to an importer or buyer located in a foreign market area.
  • Direct marketing. Marketing by mail, letters, catalogs, telephone, fax, and the Internet.
  • Disproportionality phenomenon. A certain percentage of products in the product mix and/or product lines brings in a proportionately greater or lesser percentage of sales and profits.
  • Distinctive competence. An ability or quality that gives an organization a unique advantage over its competitors.
  • Distributor. Independent merchant marketing organization that buys from the exporter and resells to other marketing organizations. May be foreign-based or home-country-based.
  • Dock receipt. A document given to the shipper by the transport company indicating that goods have been received for shipment.
  • Documentary credit. See letter of credit.
  • Documentary draft. Draft accompanied by the relevant documents that are needed to complete a transaction.
  • Documents against acceptance (D/A). A term used with a draft to indicate that the documents attached to the draft are to be given to the importer upon his or her acceptance of the draft for payment within a specified time.
  • Documents against payment (D/P). A type of draft where documents are given to the importer when he or she pays the amount specified on the draft.
  • Draft. Type of check drawn on the importer by the exporter specifying that a sum of money is to be paid to the exporter. When used with a letter of credit the draft is drawn on a bank.
  • Dumping. The selling of a product or service by an exporter in a foreign market at below its production cost, or below its price in the domestic market.
  • Duty. See tariff.
  • E-business (e-commerce). Sale, purchase, or exchange of goods, services, or information over the Internet or other telecommunications networks.
  • Eco-labeling. Identification of products that cause less harm to the environment than others in their category: A seal or label indicating this is issued by a recognized national accrediting organization.
  • Economic advantage. Classical trade theory stating that countries tend to specialize in those products in which they have an advantage (e.g., lower cost of production).
  • Economic environment. Economic dimensions of the market environment, including population, income and wealth, extent of economic development, and so forth.
  • Economic integration. The unification in some way of separate individual national economies into a larger single (or internal) market.
  • Economic union. A group of countries that have eliminated tariffs among themselves, established common external barriers, allow free flow of factors of production, and coordinate and harmonize economic and social policy within the union.
  • Emic. Human behavior that is culture-bound (specific).
  • Empathy. Process of a person looking at something from the point of view of another person. See cultural empathy.
  • Entry strategy. A company's strategy for how foreign markets are to be entered, and the plan for the marketing program to be used for a given product/market. Also known as international marketing channel strategy.
  • Equal advantage. A situation where one country or company has equal relative cost advantages over another country or company in all products and services.
  • Etic. Human behavior that is culture free.
  • Ethical behavior. Behavior that most people in a society or group view as being moral, good, or right.
  • Ethnocentrism. A buyer's preference for domestic (i.e., local) products and services, and bias against imported goods.
  • Euro. The common currency used in most countries of the European Union. See European Monetary Union.
  • European Economic Area (EEA). Free trade area encompassing the EU and EFTA countries.
  • European Monetary Union (EMU). A union of the members of the European Union – excluding Denmark, Sweden, the United Kingdom – that have adopted a single currency, the euro, to replace their national currencies.
  • European Free Trade Association (EFTA). Free trade area consisting of Iceland, Liechtenstein, Norway, and Switzerland.
  • European Union (EU). Economic union consisting of Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, the United Kingdom, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovenia, Slovakia, Bulgaria, and Romania.
  • Ex dock. Trade term that includes CIF plus all costs to place the goods on the dock at the port of import, including payment of duty.
  • Exchange controls. Government limitations on the ability of companies or persons to obtain foreign currencies, or import or export currency.
  • Exogenous variables. Factors outside the control of the company, such as culture and laws.
  • Expansive market selection. An approach to selecting foreign markets that starts with the home market or existing market core as a base and expands from there on a market-by-market basis.
  • Experience-curve pricing. Pricing based on the relationship between cost and volume of production/sales as production/sales increase.
  • Exporting. The sale of products/services to foreign markets.
  • Export commission house. An agent representative of foreign buyers who resides in the exporter's home country. Also known as an export buying agent. See resident buyer.
  • Export controls. Restrictions by the exporter's government over the export of products.
  • Export credit insurance. Insurance from a government or private insurer that covers nonpayment by importers due to political risk, nonconvertibility of currency, and commercial risk.
  • Export declaration. Document required by an exporter's government showing complete information about a shipment. Used for statistical data and control over exports.
  • Export development. Process by which a company advances from not exporting to being a committed exporter.
  • Export license. Government document allowing a product to be exported. See export controls.
  • Export management company (EMC). An international sales specialist that functions as the exclusive export department for several allied but noncompeting manufacturers.
  • Export market direction. Decision of company whether to build, hold, divest, or abandon its position in a foreign market.
  • Export market selection (expansion). The process or opportunity evaluation leading to the selection of foreign markets in which to compete.
  • Export merchant. A company that engages in export and buys and sells on its own account.
  • Export processing zone. A free area in which foreign manufacturers are provided with incentives for investment, which will produce products for export.
  • Export sales subsidiary. A separate company unit located in the home country that operates as a quasi-independent firm.
  • Export subsidy. Direct or indirect financial contribution to the exporter by its government.
  • Exporting agent. An intermediary that does not take title to the products to be sold in a foreign market.
  • Exporting combination. A cooperative organization that is a more or less formal association of independent and competitive business firms, with membership being voluntary, organized for purposes of selling to foreign markets.
  • Extinction pricing. Price is set very low (close to direct cost) in order to eliminate existing competitors from foreign markets.
  • Facilitating payment. A type of gratuity or 'bribe' that is a commercial requirement in some countries in order to get things done.
  • facilitating/service organizations. Institutions or agencies that are not members of the marketing channel, but provide useful and necessary services to the international marketer. Examples are banks, transport companies, and advertising agencies.
  • Factor proportions theory. A nation will export that product for which a large amount of the relative abundant (cheap) input is used and it will import that product in the production of which the relatively scarce (expensive) input is used.
  • Factoring. The purchase of a company's accounts receivable by a financial institution.
  • Factura. Consular invoice used in some Spanish-speaking countries.
  • First-mover advantages. Benefits that accrue to the firm that is first in the industry to enact certain behavior in a foreign market, such as setting up a production facility.
  • Foreign direct investment (FDI). Investment in ownership in firms in foreign countries with the object of gaining some degree of control.
  • Foreign freight forwarder. An independent firm specializing in arranging for the physical movement (forwarding) of an export shipment to a foreign market, and/or arranging for space on transportation carriers. Also known as a consolidator.
  • Foreign media. Advertising media that are unique to a single country. Also known as local, domestic media.
  • Foreign representative agreement. Defines the conditions upon which the relationship between the exporter and its foreign-based representative (distributor, agent) rests.
  • Foreign sales branch. An office located in a foreign market that handles all the distribution and promotional work in a designated market area and sells primarily to marketing organizations and industrial users.
  • Foreign sales subsidiary. A foreign-market-based separate company operating as a quasiindependent firm.
  • Forfait financing. Transfer of a term debt obligation from an export sale by an exporter to a third party.
  • Foul bill of lading. Bill of lading making note that there is damage to the goods, or the packing container of the goods, that have been loaded on a transport carrier.
  • Franchising. Type of licensing where the company giving the right to use something supplies an important ingredient (parts, materials, and so on) for the finished product.
  • Free alongside (FAS). Trade term indicating that goods are delivered free alongside, but not on board, a transportation carrier.
  • Free area. An area within a country considered to be outside the customs area of the country.
  • Free on board (FOB). Trade term indicating that goods are free on board a transportation carrier at some named point.
  • Free perimeter. A type of free area generally found in a remote underdeveloped region of a country, often along a border.
  • Free port. Customs-free area that encompasses a port or entire city.
  • Free trade area. An economic integration schema whereby member countries abolish tariffs between themselves, but each maintains its own tariffs for nonmember countries.
  • Free trade zone. Enclosed, policed area, without resident population, in, adjacent to, or near a port of entry, into which foreign goods not otherwise prohibited may be brought without formal customs entry.
  • Functional export department. See built-in export department and separate export department.
  • General Agreement on Tariffs and Trade (GATT). See World Trade Organization.
  • General average. A type of loss during shipment on an ocean carrier affecting all shippers on a particular vessel plus the vessel itself.
  • Generic brand. Trademark that has become the description of a type of goods and where the original owner no longer has the exclusive right to use the mark.
  • Geographic organization. Company structure organized regionally on a market or area basis.
  • Global advertising. Use of the same advertising appeals, messages, art copy, stories, etc., in multiple country markets. See standardization.
  • Global corporation. A company operating with such consistency across its markets or areas of operation that it appears to treat the world, or major regions within the world, as a single market.
  • Global marketers. Companies that are using an integrated worldwide marketing strategy based on consistent brand selling for their product(s), making only minor changes required by differing markets.
  • Global outlook. Viewing the world, or relevant parts of the world, as a single market consisting of a number of segments defined by the product(s) to be sold.
  • Globalization. Process of moving from individualized marketing programs for specific foreign markets to development of programs to market products/services on a worldwide basis.
  • Governance environment. The mechanisms that an investor uses to control and protect his or her investment in a foreign country.
  • Government Environment Index. An index developed by researchers to measure the governance environment in a country. The index is the extent to which a country is rule-based in its governance.
  • Gravity promotion policy. A policy of nonpromotion. The international marketer sells to an intermediary and lets the product find its own way to consumers and users.
  • Gray market export channel. A marketing channel that is not authorized by the exporter for a particular foreign market. Also known as parallel importation.
  • Greenfield investment. Foreign direct investment in a manufacturing facility that 'starts from scratch.'
  • Guanxi. Personal relationships and connections, or a network, among people in China.
  • Hanover Fair. General trade fair held annually in Hanover, Germany, covering at least 20 major industry categories.
  • Hedging. Use of techniques involving buying and selling currencies at about the same time to reduce exchange rate exposure by ensuring that the loss of one currency position is offset by a corresponding gain in some other currency position.
  • Herfindahl Index. A measure of the degree of export market concentration of a company.
  • Heterarchical organization structure. Multinational structure that is characterized by many centers of different kinds, different strategic roles for foreign subsidiaries, coalitions with other companies, and a problem orientation behavior that tends to be radical.
  • High-context culture. A culture in which the meaning of a message or behavior is dependent upon the situation or context in the message or behavior performed rather than on the words or acts themselves.
  • Host country. The foreign country within which a company operates.
  • House organ. A company's in-house publication that presents promotional ideas, company news, employee commendations, and so forth.
  • Importing. The buying of products from a foreign area.
  • INCOTERMS. System of trade terms developed by the International Chamber of Commerce.
  • Indent order. An order received by an exporter based on a sales contract negotiated between a purchaser and an overseas-based branch office or distributor.
  • Index of Business Environment. An index prepared by The Economist that ranks countries on the attractiveness as a business location. Eighty-two countries are ranked.
  • Index of Operational Risk. An index prepared by The Economist for 150 markets indicating the relative risk of doing business in each market.
  • Indirect export(ing). Using the services of independent marketing organizations, or cooperative organizations, located within the home country in exporting.
  • Internal product development. An evolutionary process consisting of a number of stages starting with idea generation and ending with commercialization.
  • International division. Organization structure in which all international marketing activities are separated from domestic business operations and placed in a single division.
  • International marketing. Marketing of goods and services across political boundaries.
  • International marketing channel. The system composed of marketing organizations that connect a manufacturer to the final users in a foreign market.
  • International marketing strategy. The sum of the basic marketing decisions regarding product and market selection, entry mode, and other marketing activities.
  • International media. Advertising media that circulate, or are heard or seen, in two or more countries.
  • Internationalization. A process, end result, and way of thinking whereby a company becomes more involved in and committed to serving markets outside its home country.
  • Internet marketing. See e-business.
  • Inward internationalization. Foreign-area sourcing.
  • Irrevocable letter of credit. Letter of credit that cannot be unilaterally cancelled by the importer or the opening bank.
  • ISO 14001. A standard set by the International Organization for Standardization (ISO) that sets criteria for a company's internal environmental management system (EMS).
  • ISO 9000. Minimum standards set by the International Organization for Standardization (ISO) that specifies design, manufacturing, logistics, and other controls associated with producing quality products and services.
  • Joint venture. Type of strategic alliance in which companies from at least two countries, generally one being local, form a new company to produce products/services on a joint basis.
  • Josiassen's matrix. A matrix displaying the four main consumer predispositions towards the in-group and out-groups.
  • Latin American Integration Association. Common market that includes Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela. See also Andean Group and Mercosur.
  • Letter of credit. Commercial credit established through a bank by the buyer that specifies the conditions under which payment is to be made to the beneficiary (the exporter). It is a type of credit with the backing of a bank or banks.
  • Licensing. A strategic alliance in which a company in one country gives the right to use something it owns (technology, trademark, etc.) to a company or person in another country.
  • List of Values (LOV). A set of nine value dimensions that characterize people.
  • Little Dragons. Asian areas of Korea, Taiwan, Hong Kong, and Singapore.
  • Location-specific advantages. Advantages to a company that result from the specific location of its business activity.
  • Logistics. Management of relationships, decisions, and activities among production, storage, and physical distribution.
  • Low-context culture. A culture in which the meaning of a message or behavior resides primarily in the words or behavior themselves, rather than in the setting or context.
  • Management contracting. Strategic alliance where a foreign-based company operates a company in a local market for a local investor.
  • Management style. Pattern of decision making that exists in a company and/or country. It is also viewed as a recurring set of characteristics associated with the process of making decisions.
  • Manufacturer's export agent. A representative of a manufacturer who functions as a salesperson and is paid a commission.
  • Maquiladora. A factory, mainly in Mexico but also elsewhere in Latin America, that imports materials and equipment on a duty-free and tariff-free basis for assembly or manufacturing and then re-exports the completed product, usually back to the originating country.
  • Marginal pricing. Pricing based on contribution margin wherein the only relevant costs are direct costs.
  • Marine insurance. Insurance for the protection of risk of damage to goods during their physical movement from exporter to buyer.
  • Market concentration. Market selection strategy involving a slow and gradual rate of growth in the number of foreign markets served by a company.
  • Market demand. The total volume of a product/ service that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program.
  • Market-driven firm. A company that is customer oriented and is concerned with what the customer will buy that can be made profitably.
  • Market entry mode. The means that a company uses to penetrate (enter) a foreign target country. See international marketing channel.
  • Market forecast. Expected market demand.
  • Market potential. The amount of a product (or service) that the market could absorb over some indefinite time period under optimum conditions of market development.
  • Market segmentation. Process of identifying and categorizing groups of customers and countries according to common characteristics.
  • Market spreading. Market selection strategy characterized by a fast rate of growth in the number of foreign markets served by a company at the early stages of expansion.
  • Marketing mix (program). The planned and coordinated combination of marketing methods or tools used by a company to achieve a predetermined goal.
  • Marketing organizations. Independent companies that directly participate in the transactions and physical flows in an international marketing channel.
  • Marketing research. The systematic and objective search for, and analysis of, information relevant to the identification and solution of any problem relevant to the firm's marketing activity. See research process.
  • Matrix organization. A mixed structure that combines two or more competencies on a worldwide basis.
  • Mechanics of export. The practical, everyday details of an export transaction and shipment.
  • Media mix. Combination of different advertising media used by a company.
  • MENA (Middle East and North Africa). A region consisting of 24 Arab countries and territories having a population of almost 500 million.
  • Merchant exporter. An intermediary who takes title to the products to be sold in a foreign market.
  • Mercosur. A common market including Argentina, Brazil, Paraguay, and Uruguay. Venezuela is awaiting ratification of its membership.
  • Mobile marketing (m-marketing). The application of marketing to the mobile environment of smart phones, mobile phones, personal digital assistants (PDA) and telematics.
  • Multinational corporation (MNC). A company that operates in a number of countries and adjusts its products and practices to each country or group of countries.
  • Multinational marketing. Companies treat each foreign market as separate and distinct, developing differentiated products and marketing strategies specifically for each market. See international marketing.
  • NAFTA (North American Free Trade Area). Free trade area consisting of the United States, Canada, and Mexico.
  • Nationalism. The influence of collective forces in the form of national spirit or attitude.
  • Nearest neighbor. Type of clustering or grouping of foreign markets based on geographic proximity.
  • Network model. Approach to B2B marketing whereby a company is engaged in networks of business relationships comprising a number of different firms.
  • Niche marketer. International marketer who markets primarily to a generally small and specialized segment of the overall market.
  • Nontariff barriers. Government regulations on trade that are other than duty or tariffs on imports.
  • Nontransferable letter of credit. Letter of credit that may not be transferred by the beneficiary to another party.
  • Nonvessel operating common carrier (NVOCC). Designation given to foreign freight forwarders that issue a bill of lading to the exporter, and which are the responsible party to the exporter.
  • Offset. A type of countertrade where the seller is required to either assist in or arrange for the marketing of products being produced or sold by the buyer.
  • Offshore plant. A plant owned by a company in one country but located in another country whose principal mission is to produce products to be exported to the home market.
  • Offshoring. Outsourcing that involves movement of white-collar jobs to low-wage countries. This can refer to the situation when a company relocates an activity to another country, but ensures that it remains under the control of the company doing the relocating. See also outsourcing.
  • Open account. Payment is to be made to the exporter either on a specific date or within a specified number of days after a date indicated on the export invoice.
  • Opening bank. Bank in the importer's country that opens a letter of credit for an importer.
  • Outdoor media. Advertising posters, signs, and car cards that are placed on the sides of buildings, public transportation vehicles, and stand-alone sites.
  • Outsourcing. Occurs when a company extends a portion of its operation to a third party in a foreign country, in contrast to buying already produced goods or components from a supplier. See also offshoring.
  • Packing list. Contains, item by item, the contents of cases or containers in a shipment.
  • Paris Union. The International Convention for the Protection of Industrial Property in which signatory countries extend national treatment to the business of other member countries in the protection of trademarks, patents, and so on.
  • Particular average. A loss during ocean shipment that affects specific shippers only.
  • Pattern standardization. Promotion strategy that is designed from the start to accept modification to fit local national-market conditions, yet still keeping some common elements across all foreign markets.
  • Penetration pricing. A strategy where a price is established that is sufficiently low to rapidly create a mass market.
  • Personal selling. Person-to-person marketing communication between a company representative and a prospective buyer.
  • Physical core of product. Functional features, style, presentation, and design.
  • Physical distribution. The movement and handling of products outward from the exporting country to points of consumption or use. See logistics.
  • Piggyback marketing. One manufacturer uses its foreign distribution facilities to sell another company's products alongside its own.
  • Point-of-purchase materials. Sales promotion materials by manufacturers and exporters of packaged consumer goods used at the point of purchase to appeal to consumers.
  • Political risk. Application of host government policies that constrain the business operations of a given foreign investment. Includes risk based on transfer, operations, ownership control, and general instability.
  • Positioning. A strategy of marketing communications to a foreign market whereby the attempt is made to locate a brand in the customers' minds over and against other products in terms of product attributes and benefits that the brand does and does not offer.
  • Preemptive pricing. Price is set low (close to total cost) to discourage competition.
  • Price escalation. The tendency for the price of a product to increase significantly as it moves from the exporting manufacturer to the user or consumer.
  • Price sensitivity. Consumers' (buyers') reactions to price changes. Also known as price elasticity.
  • Primary data. Data collected through original research pertaining to the particular research question asked.
  • Primary information sources. Collection of information by observation, controlled experiments, surveys, and other techniques to obtain information directly from those on whom one desires such information.
  • Primary Message Systems (PMS). The means by which cultures communicate to their members and to other cultures.
  • Priority-in-registration doctrine. Concept of law granting the rights to use a trademark to the firm or person who first registers it with the proper agency.
  • Priority-in-use doctrine. Concept of law granting the rights to use a trademark to the firm or person that has first used it.
  • Proactive behavior. Aggressive behavior based on a company's interest in exploiting unique competence or market possibilities.
  • Product. Sum of all the physical and psychological satisfactions that the buyer or user receives as a result of the purchase and/or use of a product.
  • Product differentiation. Perceived uniqueness of a product.
  • Product-driven firm. A company that is guided in its decision making by technology and product concerns.
  • Product life cycle. The stages followed by a product from its birth (product introduction) to its abandonment (sales decline).
  • Product life-cycle theory. Theory explaining stages where an innovator country of a new product is initially an exporter, then loses its competitive advantage vis-à-vis its trading partners, and may eventually become an importer of the product some years later.
  • Product line. Group of products that are similar or have something in common.
  • Product mix. The set (assortment) of products that a company offers to customers.
  • Product organization. Company structure organized on a product basis where product divisions have global responsibility.
  • Product package. Includes package itself, trademark, brand name, and label.
  • Product phasing. Set of strategies for the synchronization of old product deletion with entry of a new product.
  • Pro forma invoice. A preliminary invoice prepared by the exporter that shows the terms of a transaction agreed upon, or being proposed.
  • Promotion mix. Combination of different marketing promotion activities used by the export/ international marketer.
  • Promotion program. Planned, coordinated, integrated series of efforts built around a single major theme or idea designed to achieve predetermined communication objectives.
  • Prototype standardization. Promotion strategy in which the same advertisement(s) or campaign(s) are used in multiple foreign markets with language being modified for the local markets.
  • Psychic/psychological distance. Applied to countries, this is distance between countries as assessed by looking at culture, stage of economic development, history, etc.
  • Psychographic segmentation. Segmentation of a market on the basis of psychographic variables, such as lifestyle and personality.
  • Publicity. Any kind of news about a company or its products that is reported by some media, and is not paid for by the company.
  • Public relations. Marketing communications designed to gain public understanding and acceptance of a company and its business activities.
  • Pull promotion policy/strategy. Consumer demand is established by promoting directly to the consumer who will then 'pull' the product through the channel by demanding it from intermediaries.
  • Push promotion policy/strategy. Promotion through the marketing channel. Channel members promote a product to other channel members at lower levels.
  • Quotas. Legal restrictions limiting the amount of a product that can be imported from a particular country.
  • Radio Frequency Identification Systems (RFID). A system of tags containing tiny radio frequency transmitters, used with readers, that are used to track locations and other information about merchandise.
  • Reactive behavior. A company responds to internal and external pressures and acts passively.
  • Regulatory-supportive activities. Regulatory-type activities used by a government to promote international marketing by local business firms.
  • Relationship marketing. Marketing by a country based on lasting relationships with buyers. See network model.
  • Research process. A process of obtaining information that starts with 'problem definition' and ends with the completed report and ultimate integration of findings into management decision making. See marketing research.
  • Resident buyer. An agent representing foreign buyers domiciled in the exporter's home market. See also export commission house.
  • Revised American Foreign. Trade Definitions – 1941 System of trade terms originally developed by the Chamber of Commerce of the United States and two other organizations.
  • Revocable letter of credit. Letter of credit that can be cancelled at any time by the importer or the opening bank.
  • RFID. See Radio Frequency Identification Systems.
  • Rules of Origin. Established by regional economic integration schemes to specify the amount of content that must be region-based for a product to be exported/imported between countries in the region without tariff.
  • Sales forecast. The expected level of sales of a company based on the marketing plan to be implemented and some assumed external environment.
  • Sales promotion. All sales activities that supplement and strengthen personal selling and advertising.
  • Sales response function. Relationship between expenditure on marketing efforts and the sales response in a foreign market.
  • Secondary data. Data available from secondary information sources.
  • Secondary information source. Any source of published information and information previously collected for purposes other than the present need.
  • Self-reference criterion (SRC). Judging a foreign market's cultural traits, habits, and norms on the basis of the cultural traits, habits, and norms of the home society.
  • Separate export department. A self-contained and largely self-sufficient company unit in which most of the export activities are handled within the department itself.
  • Shippers' agent. A facilitating organization that handles the inland movement of international freight.
  • Shipper's export declaration. See export declaration.
  • Shipping conference. Association of ocean transportation companies providing service on specific routes.
  • Sight draft. A draft indicating that payment must be made when the buyer first sees the draft and it is presented for payment.
  • Silent language. Nonverbal communication, including time, space, relationships, and other aspects of culture.
  • Skimming the market. Pricing strategy where a high price is charged until the market at that price is exhausted; the price may then be lowered and/or the company sold.
  • Sliding down the demand curve. Pricing strategy where a high price is set and then reduced in anticipation of competition so the company can become established in foreign markets.
  • Socio-cultural characteristics. Factors that influence the buying decision process and include material culture, language, education, aesthetics, values and attitudes, social organization, and political-legal structure and philosophy.
  • Sogo shosha. Large Japanese general trading companies engaged in a wide range of commercial and financial activities in addition to trade and distribution.
  • Standardization. A company offers one version of the marketing program or individual elements of a program (such as a product) to all foreign markets. Also known as globalization.
  • State trading. Government engagement in commercial, business operations, either directly or through agencies under its control.
  • Strategic alliances. Long-term agreements for collaboration and/or cooperation in specific areas of international marketing activity between companies from two or more countries.
  • Structure of distribution. All of the intermediary marketing agencies or institutions in a foreign market that are in use by all companies at any given time, and their geographic coverage.
  • Subculture. A culture within a broader culture that may be based on nationality, religion, race, or geographical area.
  • Supply chain management. See logistics.
  • Support-the-strong strategy. A strategy for allocating marketing effort when introducing new products into multi-markets that distributes effort proportional to the number of adopters in the market, at least up to a certain market coverage.
  • Support-the-weak strategy. A company invests its marketing efforts proportional to the remaining market potential.
  • Switch trading. A type of countertrade to dispose of goods used when one party to a barter or counterpurchase transaction does not want what the other party is offering.
  • Targeting. Process of evaluating market segments and focusing marketing efforts on a country, region, or group of people.
  • Tariff. A tax (duty) on imports. A schedule of rates and terms for transportation of goods is also called a tariff.
  • Tariff surcharge. Temporary tariff placed on a product to discourage its importation. See countervailing duty.
  • Technology-driven firm. See Two Jabberwockies sa.
  • Time draft. Draft where payment is due a specified number of days after sight.
  • Total quality management (TQM). Managing for quality in which companies strive to get products to a market faster, with fewer defects, and at a lower cost.
  • Trade fair. Concentrated exhibition of the products of many manufacturers/exporters.
  • Trademark. A brand, or part of a brand, that is protected by law.
  • Trade mission. Government- or industry-sponsored activity where a group of business people go to a foreign market for the purpose of making sales and/or establishing relationships.
  • Trade terms. System for quoting export prices, indicating exporter's and buyer's liability, costs, and responsibility.
  • Trading company. A type of export/import merchant.
  • Transfer price. Price quoted to wholly or partially owned foreign subsidiaries.
  • Transferable letter of credit. Allows the transfer of all or part of the letter of credit to some other party.
  • Transference of advertising. The process of moving an advertising campaign, or some of its components, from one market (domestic or foreign) to another market.
  • Traveling salesperson. Salesperson for an exporter who resides in one country (often the home country) and travels to foreign markets to perform sales duties.
  • Turnkey operation. A management contract calling for the construction of a plant, training of personnel, and the initial operation of the plant for a local investor.
  • Unconfirmed letter of credit. Letter of credit where a bank in the exporter's country does not take on a legal obligation to pay (honor) drafts drawn under the letter of credit.
  • Uniform strategy. A strategy for allocating marketing efforts when introducing new products into multi-markets that distributes the efforts evenly among its markets regardless of market development.
  • Usance letter of credit. Letter of credit where delivery of documents is made against acceptance of the documents rather than against payment.
  • Values and Lifestyles (VALS). A system for representing the values and lifestyles of people in a country or culture.
  • VIEW test. A way to assess the effectiveness of packaging by examining visibility, information, emotional impact, and workability.
  • Voluntary export restraint (VER). Agreement, typically unilateral, by a company or a country to limit its exports of a specific product, or product class, to a particular foreign market.
  • Whole channel concept. An integrated system with the manufacturer on one end and the final user or buyer on the other end. Basic components are the headquarters organization of the international marketer, the channel between nations, and the channel within a nation.
  • World Trade Organization (WTO). A multinational, supranational organization providing a forum for negotiating, at national government level, issues affecting international business. Includes a mechanism for resolving disputes.
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