Key Terms
Globalization
Growing interconnection between people, businesses, and nations.
Definition
Firm adjusts products and marketing mix for each individual target market.
Theoretical basis
Harvard professor Theodore Levitt, 1983 article "The Globalization of Markets" — argued that technology and global commu
Culture
The influence of religious, family, educational, and social systems on how people live and the choices they make.
Rule of law
Governments follow established laws rather than exercising arbitrary power.
Free trade
Exchange of goods across borders without government restrictions.
Protectionism
Government policies that favor domestic industry over foreign competition.
Expropriation
Government seizure of foreign-owned assets, sometimes without compensation.
World Trade Organization (WTO)
Formed January 1, 1995 under the Marrakech Agreement to supervise and liberalize international trade.
Two reasons
1. Countries are different from each other — each can specialize in what it does efficiently and trade for the rest
Trade sanctions
Penalties imposed by one or more countries on another.
Embargo
Complete trade blockade between countries.
Fair trade
Voluntary standard promoting ethical labor and environmental practices in global supply chains.
Fairtrade certification mark
Participating organizations are authorized to use it after inspection confirms ethical practices are in place at grower
Standardization strategy
Uniform product and marketing mix across all global markets.