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 Student Resources Study Guide: International Marketing Glossary A B C D E F G H I J K L M N O P Q R S T U V W X Y Z ability to buy A measure of the ability of consumers in a foreign country to buy a given product, based on the gross national product, distribution of income, rate of growth in buying power, and extent of available financing. adaptation approach A pricing strategy in which a multinational corporation allows each subsidiary to set the most desirable price within its market, as long as the price is profitable. adaptive strategies Marketing tactics, plans, and methods that have been altered to suit local conditions in foreign markets. airway bill A document signed by an airline to show they have received goods for air transportation, as well as the airports the goods will come from and go to. American Depositary Receipt (ADR) A security traded on U.S. stock exchanges, but representing ownership of the shares of a foreign company. area market potential
An estimate of the amount of sales that might be made in a given country with a certain level of industry marketing under existing conditions.
break-bulk vessel
A vessel that is designed to handle very large cargo that is unsuitable for container shipping.
bunker adjustment factor (BAF)
An adjustment in shipping charges made to offset price fluctuations in the cost of fuel, derived from the term for fuel storage containers (bunkers).
business factors
The culture of business common in a nation that a company must know in order to begin doing business in that nation.
CAD (cash against documents)
A payment method in which the buyer receives documents transferring title of the goods when an intermediary receives cash for the goods.
CAF (currency adjustment factor)
A freight surcharge levied to offset fluctuations in foreign currency values.
cash in advance (CIA)
A payment method in which the buyer pays the seller before the products are shipped.
certificate of manufacture
A part of a letter of credit that states the goods have been manufactured and are being held for the buyer.
certificate of origin
A document used to prove the origin of imported goods.
CFS/CFS (pier to pier)
The term for cargo that is less than a containerful, that will be loaded into containers at a container freight station, then unloaded from the containers at the destination.
climate
A description of a nation's weather and average temperatures.
combination vessel
A type of ship that is capable of carrying both container and bulk cargo.
consular invoice
A document that is required by some countries and is certified by a consular official, that describes a shipment, its contents, receiver, and value.
container freight station (CFS)
The location that a carrier designates as the place where cargo will be received and loaded into containers, or for devanning of containerized cargo.
cultural factors
A nation's culture as it affects business relationships and behavior.
dead freight
Freight charges paid for the contracted space in a ship that is not used.
deck cargo
Any cargo that is carried on the deck of a ship, rather than below decks; required of some products, such as explosives.
demographic factors
A nation's size, growth, trends, and the characteristics of its population.
devaluation
The process by which a nation's currency loses value; it may be a purposeful act by the government or the result of global market changes.
dim weight (dimensional weight)
The chargeable weight of an air shipment based on its cubic measurement.
economic indicators
Includes a nation's infrastructure, economic size, growth rates, and currency and exchange rates that might affect a business.
emerging market
Any country that is attempting to improve its economy, and whose economy generates a gross national product per capita of less than $10,000 annually.
eurodollars
U.S. dollars held in European bank accounts and used for settling international business transactions.
exchange controls
Limits on the amount of funds, either earned or invested, that can be withdrawn from a nation at any given time, put in place by a government.
export license
A license granted by a nation's government allowing a company permission to ship a product to a foreign recipient; also known as an individual validated license (IVL).
export management company (EMC)
Any company that provides exporting services to other firms, either taking title to products as an intermediary, or managing the export in exchange for fees.
export trading company
A business that buys products from a company, and assumes responsibility for all distribution and marketing of those products in foreign countries.
foreign direct investment (FDI)
A category of long-term investment by foreign companies in a nation's economy.
foreign trade zone (FTZ)
A port that is designated by a government as a zone for duty-free entry, storage, and export of goods.
Forex
The Foreign Exchange Market, where the majority of the world's currencies are bought and sold.
free port
A port that is also a foreign trade zone, where all traders may store merchandise duty-free until it is either exported or sold within the country.
general license
Permission from the U.S. Bureau of Export Administration that allows an exporter to transport certain nonstrategic goods and services to designated countries without first acquiring an individual validated license.
global company
A multinational corporation that operates as though the entire world were a single market, with close integration between various foreign subsidiaries.
global market share
A business's portion of the total worldwide sales of a given product or service.
Group of Eight (G8)
A group of the world's top industrialized nations who meet periodically to discuss global trade, investment, and other financial topics; members are the United States, the United Kingdom, Canada, France, Germany, Italy, Japan, and Russia.
Group of 15 (G15)
A group of developing nations who meet to discuss global trade, investment, and other financial topics; members are Algeria, Argentina, Brazil, Chile, Colombia, Egypt, India, Indonesia, Iran, Jamaica, Kenya, Malaysia, Mexico, Nigeria, Peru, Senegal, Sri Lanka, Venezuela, and Zimbabwe.
hard currency
Any currency for which the exchange rate is stable due to low inflation, and one that is widely used in international commerce.
harmonized code
A system that is accepted worldwide as a uniform description for classifying goods for customs, and for statistical and other purposes.
high cube
A container that is taller than 102 inches.
igloo
A specially designed, contoured container that is used in the main deck carriage on a narrow body aircraft.
import license
A certificate issued by a nation's government authorizing a company to import certain articles.
import restrictions
Any tariffs, import quotas, or other policies that restrict imports into a country.
in-bond
Cargo that has not been cleared by customs to enter a country.
inbound service export strategy
A strategy that involves bringing foreign customers to the service provider's country.
INCOTERMS
A set of international standards for the uniform interpretation of common international trade contract clauses.
individual validated license (IVL)
A license granted by a nation's government allowing a company permission to ship a product to a foreign recipient; also known as an export license.
inducement
A term used by shipping lines to indicate that a ship will call at a port if there is enough profitable cargo to make the stop worthwhile.
International Finance Corporation (IFC)
The private lending arm of the World Bank.
International Monetary Fund (IMF)
A group of 180 countries that is focused on providing assistance to debtor countries that promise to take specific actions to improve their economies.
measurement ton
A space measuring 40 cubic feet or one cubic meter.
multidomestic corporation
A multinational corporation that uses a different strategy in each of its autonomous overseas subsidiaries.
NAFTA
North American Free Trade Agreement; a trade agreement ending trade restrictions between the United States, Canada, and Mexico.
outbound service export strategy
A business strategy that involves sending the service provider to other countries.
ownership restrictions
Any laws by a nation's government that limit the portion of any company that can be owned by a foreign company; common restrictions require that majority ownership be held by a country's citizens.
patterned standardization strategy
A business strategy in which a multinational corporation establishes a global marketing strategy, but allows local executives to make adjustments to that strategy based on conditions in the local market.
perils of the sea
Accidents and casualties that only happen at sea, such as sinking, collision of vessels, striking a submerged object, or heavy weather.
physical characteristics
A nation's geography, climate, seasons, etc.
political environment
Includes a nation's governmental system, level of political stability, and recent political developments.
population characteristics
Demographic data of a foreign country that may affect a company's decision to do business in a nation.
population distribution
Describes where a nation's people live, whether they are clustered in large cities or spread in small populations across the countryside.
seasonal market fluctuations
The amount that a market for a given product or service changes during any given year.
short-shipped
Describes cargo that is included on a manifest but not loaded.
soft currency
Currency that is weak (and therefore not desirable as a means of payment for international transactions) due to high inflation or economic instability.
standardization
A strategy of following a consistent marketing strategy across several countries.
tariff
Any listing of rates or charges, particularly import duties charged by governments, or fees charged by international transportation companies.
teleservice export strategy
A business strategy that involves exporting services electronically.
TEU
A standard unit for counting containers of various lengths, equivalent to 20 feet.
ton deadweight
A measurement of the carrying capacity of a ship based on the total weight of cargo, fuel, provisions, and passengers it can carry.
trade agreement
An agreement between nations regarding issues of commerce, including quotas or tariffs.
volume weight
A measurement of a shipment based on computing the chargeable weight from its cubic measurement.
war risk insurance
A type of insurance issued by marine underwriters to protect companies against war-like activities.
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