Glosario

1. Arbitrage - is the practice of taking advantage of a price differential between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the markets price.
2. Arm’s length prices – From theoretical point of view, the transfer price set should reflect the price the subsidiary might encounter in the open market.3. Back translation - is the process of translating a document that has already been translated into a foreign language back to the original language - preferably by an independent translator.
4. Barter – is the oldest form of countertrade. It is direct exchange of goods between two trading partners.
5. Brand equity – is typically defined as the set of assets linked to a brand name and symbolthat adds to the customer value provided by a firm’s product or service. In the brand equity measurement, the basic idea is the same as in the valuation of equity shares.
6. Born global   – fare typically found in business to business markets, where targeted sales and network relationships matter a great deal.
7. Calibration equivalence   – refers to the comparability of monetary units,measures of weight, distance and volume, perceptions of color and shape, and so on.
8. Construct equivalence   – refers to the question of whether the variables used for measurement have the same meaning across countries.
9. Counter purchases   - represent the most typical version of the countertrade. Here two contacts are usually negotiated: one to sell the product at an agreed upon cash price,and a second to buy goods from the purchaser at an amount equal to the bill in the initial agreement.
10 Critical incident    – is defined as “the period of time during which a consumer directly interacts with a service”.
11. Country of origin effect   – The “made in” labels of foreign-made products can in the same way generate a quality manufacturing.
12. Cultural distance   – effect worksso as to create very natural “biases”, which are not necessarily counterproductive since they are often supported by the success of the actual entry.
13. Dumping   - is commonly defined as selling goods in some markets below cost. There are sometimes good management reasons for doing that. A typical case is an entry into a large competitive market by selling at very low prices; another case iswhen a company has overproduced and wants to sell the product in a market where is has no brand franchise to protect.
14. Ethnocentric pricing   – the same price is charged to all customers regardless of nationality. It provides a standard worldwide price, usually derived on the basis of a full cost formula to ensure the general overhead, selling expense, and R&D expenditure will be covered.15. Euro brands   – are common and are becoming global. And even though brand names may vary because of language difference, the product itself may be identical across countries.
16. Export expansion path   – fallowed by firms begin in countries “psychologically” or “culturally” similar to their own or to countries they already export to.
17. Export management company   – EMCs areindependent agents working for the firm in overseas markets, going to fairs, contacting distributors, organizing service, and so on.
18. Foreign direct investment   – the company commits investment capital in plant and machinery that will be a risk in the country.
19. Forward contract   – refers to the sale or purchase of a specified amount of a foreign currency at a fixed exchange rate for deliveryor settlement on an agreed date in the future or, under an options contract, between agreed upon date in future.
20. Geocentric pricing   - scheme revolves around the use of a global or regional standard plus a markup that is variable across countries.
21. Global advertising   – can be defined as advertising more or less uniform across many countries, often, but not necessarily, in media...