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37 Cards in this Set
- Front
- Back
Sovereignty |
refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members |
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Sovereign State |
Independent and free from all external control. EX: Governs own territory, Selects own Social Systems, and Full legal equality with other states
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Theocratic Republic |
The religious leader controls government and all governmental decisions |
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Nationalism |
Targets all foreign countries
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Animosity |
Targets specific nations |
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Confiscation |
the most severe political risk, is the seizing of a company's assets without payment |
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Expropriation |
the government seizes an investment, but some reimbursement for the asset is made; often nationalized to become government entitiy |
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Domestication |
occurs when the government mandates local ownership and greater national involvement in a foreign company's management |
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Jurisdiction is determined on the basis of... |
1. Jurisdictional clauses included in contracts 2. where contract was entered into, or 3. where the provisions of the contract were performed |
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Conciliation |
A third party mediates differences, statements are confidential, not legally binding |
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Arbitration |
Parties select a disinterested and informed party as a referee to determine the merits of the case and make a judgment both parties agree to honor |
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Litigation |
Fear of creating poor image and being treated unfairly in foreign court, cost and time, loss of confidentiality |
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Marketing Researchis |
traditionally defined as the systematic gathering, recording, and analyzing of data to provide information useful to marketing decision making |
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International Marketing Complications |
1. Information must be communicated across cultural boundaries 2. The environments in which the research tools are applied are often different in foreign markets |
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International Marketing 3 Types |
1. General Information 2. Information necessary to forecast 3. Specific market information |
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Problems with Secondary Data |
Availability, Comparability, Reliability, Validation |
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Availability of Data |
There is a lack of language skills in the country the firm is operating in |
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Reliability of Data |
Data could be biased, stats could be unrealistic and overly optimistic |
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Comparability of Data |
Old and outdated or lack of historical data |
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Validating Secondary Data |
Checking consistency of data against another form of data |
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Back Translation |
Done in English then translated and then translated back to English |
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Parallel Translation |
Developed in English and Other Language consecutively and revised until equivalent |
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Decentering |
Translated and retranslated each time by a different translator |
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Types of Biases |
Non-response Courtesy Bias Yea or Nay Social-desirability Taboo |
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More Developed Countries |
Industrialized countries with high per capita incomes. Ex: Canada, France, England |
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Less Developed Countries |
Industrially developed, just entering world trade Ex: Asia & Latin America |
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Least Developed Countries |
Industrially underdeveloped, low per capita income, little world trade involvement Ex: Asia & Central Africa |
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Newly Industrialized Countries |
1. Countries that are experiencing rapid economic expansion 2. Instituted significant free market reforms 3. They attract both trade and foreign direct investment |
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Newly Industrialized Countries Economic Growth Factors |
Planning, Political stability, Economic reforms, Factors of production, Entrepreneurship |
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The Traditional |
rural/ agricultural sector |
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The Modern |
urban/high-income sector |
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Transitional Sector |
Large and usually represented by low-income urban slums |
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Traits of Big Emerging Markets |
Geographically large, Large populations, sizable markets, strong growth rates or potential, economic reform Ex: India, China, Brazil, Mexico, Poland, Turkey |
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Mercosur |
Created to promote free trade and movement of goods, people, and currency. wanted to adopt a common trade policy. |
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NAFTA |
Purpose: Generate income and employment gains Enhance global competitiveness of NAFTA firms
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Latin American Integration Association |
Latin American common market The provision that permits members to establish bilateral trade agreements among member countries |
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Caribbean Community and Common Market |
Goal of a common currency for all members |