KEY TERMS OF INTERNATIOALMARKETING.doc

KEY TERMS Chapter 1 Currency flows: Transfer of capital across national boundaries. Exchange rates: Price of a currency expressed in units of another currency. Chapter 2 Household: All the persons, both related and unrelated, who occupy a housing unit. Urbanization: The concept has different meanings depending on where one operates; descriptions of urbanization range from a densely-populated city’s built-up areas to small towns with proclaimed legal limits. Purchasing Power Parities (PPP): A measure of how many units of currency are needed in one country to buy the amount of goods and service that one unit of currency will buy in another country. Inflation: The increase in consumer prices compared with a previous period; it affects the ability of both industrial customers and consumers to buy and also introduces uncertainty into both the marketer’s planning process and consumers’ buying habits. Physical Quality of Life Index (PQLI): A composite measure of the level of welfare in a country, including life expectancy, infant mortality, and adult literacy rates. Maquiladoras: Mexican plants that make goods and parts or process food for export to the United States. Import substitution: A policy that requires a nation to produce goods that were formerly imported. Microfinance: A program which allows consumers without collateral property to avail loans averaging $100 to make purchases and utilize retail banking services. Chapter 3 Economic Blocs: Groups of nations that integrate economic and political activities. Born Global: Newly founded firm that, from its inception, is established as an international business. Trade Deficit: A trade deficit occurs when a country imports more goods and services than it exports. Economies of Scale: Production condition where an increase in the quantity of the product results in the decrease of the production per unit; firms may achieve lower costs and higher profits both at home and abroad. Foreign Direct Investment: Capital funds