International Marketing Glossary

Modifying a product, price, promotion, or distribution strategy to fit the specific requirements and preferences of a foreign market.

A company that seeks international markets from its founding rather than expanding internationally after establishing domestic operations.

The impact that a product's country of manufacture or brand origin has on consumer quality perceptions and purchase intentions.

The process of reaching business agreements between parties from different cultural backgrounds, requiring awareness of differing communication styles, decision-making processes, and relationship norms.

Selling a product in a foreign market at a price below its production cost or below its domestic price, often to gain market share or eliminate competition.

The tendency to view one's own culture as superior to others. In marketing, consumer ethnocentrism leads to preference for domestic products over foreign alternatives.

The price of one country's currency expressed in terms of another country's currency, affecting import/export pricing and profit repatriation.

The most basic form of international market entry, involving the sale and shipment of domestically produced goods to foreign markets.

An investment made by a firm or individual in one country into business interests in another country, typically involving establishing operations or acquiring assets.

A contractual arrangement where a franchisor grants a foreign franchisee the right to operate a business using its brand, systems, and support in exchange for fees.

The practice of adapting global products and strategies to local markets while maintaining the efficiencies and brand consistency of global operations.

The trade of genuine branded goods through unauthorized distribution channels, typically exploiting international price differences.

A framework of six dimensions (power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, indulgence) used to compare and analyze national cultures.

A business arrangement in which two or more parties agree to pool resources for a specific task while each maintains a separate identity.

A contractual arrangement where a licensor grants a foreign licensee the right to use intellectual property in exchange for royalties or fees.

The planned method of delivering goods or services to a foreign target market, ranging from low-commitment modes like exporting to high-commitment modes like FDI.

A strategic framework examining Political, Economic, Social, Technological, Environmental, and Legal factors that affect a firm's macro-environment in a foreign market.

The probability that political decisions, events, or conditions in a country will affect the business environment in ways that cost investors or firms financial losses.

A framework analyzing why nations develop competitive advantages in certain industries, based on factor conditions, demand conditions, related industries, and firm rivalry.

The perceived difference between the home country and a foreign country in terms of culture, business practices, language, and institutional frameworks.

Using the same marketing strategy and mix across all international markets to achieve cost efficiencies and a consistent global brand image.

A tax imposed by a government on imported goods, designed to protect domestic industries, generate revenue, or retaliate against unfair trade practices.

The pricing of transactions between related entities within a multinational enterprise, affecting how profits and tax liabilities are distributed across countries.

A theory of internationalization proposing that firms expand gradually into foreign markets, starting with culturally similar countries and low-commitment entry modes.

The international organization that regulates and facilitates international trade between nations, establishing rules, resolving disputes, and promoting trade liberalization.