MKTG 409 Module 3 MindTap Study Guide – Marketing Environment, Competition & External
Forces Review
international marketing - ANS ✔✔involves developing and performing marketing activities
across national boundaries
born global - ANS ✔✔export their products almost immediately after being established in
market niches in which they compete with larger, more established firms; they know from the
very start they will be international
6 Environmental Forces in Global Markets - ANS ✔✔1. Sociocultural
2. Economic
3. Political, Legal, and Regulatory
4. Ethical and Social Responsibility
5. Competitive
6. Technological
Sociocultural Forces - ANS ✔✔influences and trends originating in a country's, a society's, or a
culture's human relationships and values that may affect an organization
Economic forces - ANS ✔✔differences in standards of living, credit, buying power, income
distribution, national resources, exchange rates
Gross domestic product (GDP) - ANS ✔✔an overall measure of a nation's economic standing; it
is the market value of a nation's total output of goods and services for a given period
GDP per capita - ANS ✔✔GDP in relation to population
,Political, Legal, and Regulatory Forces - ANS ✔✔Tariffs, Embargos, Quotas, Trade, etc.
import tariff - ANS ✔✔any duty levied by a nation on goods bought outside its borders and
brought into the country
goals of a tarfif - ANS ✔✔to raise revenue for a country or to protect domestic products
quota - ANS ✔✔a limit on the amount of goods an importing country will accept for certain
product categories in a specific period of time
embargo - ANS ✔✔a government's suspension of trade in a particular product or with a given
country
exchange controls - ANS ✔✔government restrictions on the amount of a particular currency
that can be bought or sold
balance of trade - ANS ✔✔the difference in value between a nation's exports and its imports
positive = more exports than imports
negative = more imports than exports
Ethical and Social Responsibility Forces - ANS ✔✔situational ethics, corruption, bribes, market
entry
Foreign Corrupt Practices Act (FCPA) of 1977 - ANS ✔✔it is illegal for U.S. firms to attempt to
make large payments or bribes to influence policy decisions of foreign governments
cultural relativism - ANS ✔✔the concept that morality varies from one culture to another and
that business practices are therefore differentially defined as right or wrong by particular
cultures
, Business for Social Responsibility (BSR) - ANS ✔✔BSR tracks emerging issues and trends,
provides information on corporate leadership and best practices, conducts educational
workshops and training, and assists organizations in developing practical business ethics tools
Competitive forces - ANS ✔✔the actions of competitors, who are in the process of
implementing their own marketing plans in the intended country
the global customer - ANS ✔✔customers who travel the globe expect to be able to buy the
same product in most of the world's more than 200 countries, but they also expect that the
product they buy in their local store in Miami will have the same features as similar products
sold in London or even in Beijing
Technological forces - ANS ✔✔The world is undergoing a digital revolution. Interactive web
systems, instant messaging, and podcast downloads (along with the traditional vehicles of voice
mail, email, and smartphones) make international marketing activities more affordable and
convenient
United States-Mexico-Canada Agreement - ANS ✔✔trade treaty among the United States,
Canada, and Mexico to lower and eliminate tariffs among the three countries; merging them
into a single market
European Union - ANS ✔✔An alliance that promotes trade among its member countries in
Europe
Adopted the same currency
Southern Common Market - ANS ✔✔An alliance that promotes the free circulation of goods,
services, and production factors, and has a common external tariff and commercial policy
among member nations in South America
Forces Review
international marketing - ANS ✔✔involves developing and performing marketing activities
across national boundaries
born global - ANS ✔✔export their products almost immediately after being established in
market niches in which they compete with larger, more established firms; they know from the
very start they will be international
6 Environmental Forces in Global Markets - ANS ✔✔1. Sociocultural
2. Economic
3. Political, Legal, and Regulatory
4. Ethical and Social Responsibility
5. Competitive
6. Technological
Sociocultural Forces - ANS ✔✔influences and trends originating in a country's, a society's, or a
culture's human relationships and values that may affect an organization
Economic forces - ANS ✔✔differences in standards of living, credit, buying power, income
distribution, national resources, exchange rates
Gross domestic product (GDP) - ANS ✔✔an overall measure of a nation's economic standing; it
is the market value of a nation's total output of goods and services for a given period
GDP per capita - ANS ✔✔GDP in relation to population
,Political, Legal, and Regulatory Forces - ANS ✔✔Tariffs, Embargos, Quotas, Trade, etc.
import tariff - ANS ✔✔any duty levied by a nation on goods bought outside its borders and
brought into the country
goals of a tarfif - ANS ✔✔to raise revenue for a country or to protect domestic products
quota - ANS ✔✔a limit on the amount of goods an importing country will accept for certain
product categories in a specific period of time
embargo - ANS ✔✔a government's suspension of trade in a particular product or with a given
country
exchange controls - ANS ✔✔government restrictions on the amount of a particular currency
that can be bought or sold
balance of trade - ANS ✔✔the difference in value between a nation's exports and its imports
positive = more exports than imports
negative = more imports than exports
Ethical and Social Responsibility Forces - ANS ✔✔situational ethics, corruption, bribes, market
entry
Foreign Corrupt Practices Act (FCPA) of 1977 - ANS ✔✔it is illegal for U.S. firms to attempt to
make large payments or bribes to influence policy decisions of foreign governments
cultural relativism - ANS ✔✔the concept that morality varies from one culture to another and
that business practices are therefore differentially defined as right or wrong by particular
cultures
, Business for Social Responsibility (BSR) - ANS ✔✔BSR tracks emerging issues and trends,
provides information on corporate leadership and best practices, conducts educational
workshops and training, and assists organizations in developing practical business ethics tools
Competitive forces - ANS ✔✔the actions of competitors, who are in the process of
implementing their own marketing plans in the intended country
the global customer - ANS ✔✔customers who travel the globe expect to be able to buy the
same product in most of the world's more than 200 countries, but they also expect that the
product they buy in their local store in Miami will have the same features as similar products
sold in London or even in Beijing
Technological forces - ANS ✔✔The world is undergoing a digital revolution. Interactive web
systems, instant messaging, and podcast downloads (along with the traditional vehicles of voice
mail, email, and smartphones) make international marketing activities more affordable and
convenient
United States-Mexico-Canada Agreement - ANS ✔✔trade treaty among the United States,
Canada, and Mexico to lower and eliminate tariffs among the three countries; merging them
into a single market
European Union - ANS ✔✔An alliance that promotes trade among its member countries in
Europe
Adopted the same currency
Southern Common Market - ANS ✔✔An alliance that promotes the free circulation of goods,
services, and production factors, and has a common external tariff and commercial policy
among member nations in South America
