mgmt ch 9
Once a company makes a long-term commitment to a foreign market that has a promising political and economic environment, which of the following options then emerges as a possibility?
Direct ownership
Japan's Sony Corporation is a prime example of a multinational enterprise. With this in mind, which of the following would most accurately characterize Sony's operations?
It has operations or subsidiaries in many different countries.
The Grummond Group buys air conditioner components in industrialized countries and sells them to business customers in developing countries where the air conditioners are assembled. Grummond is most likely classified as a(n)
trading company
You are the vice president of sales for a global semiconductor chip manufacturer. Your company is excited about the potential business opportunities in Latin America, so you decide to open a sales office there to establish a toehold in the market. Which one of the following "stages" of international market entry are you using with this approach?
Stage 1 - No regular export activities
In many developing countries around the world, technology is enabling opportunities to "leapfrog" existing technology. What does this mean?
More advanced technology is reaching these countries even though they lack technological infrastructures.
Use the following to answer the questions. Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America". Refer to Scenario 9.1. Harley-Davidson's practice of having manufacturers in China produce apparel items with the Harley logo is an example of
contract manufacturing
The Southern Common Market (MERCOSUR) includes
countries in South America.
Selling products that are not in demand in all world markets, such as hand-powered washing machines for use in countries where electricity is not universally available, represents an international marketing strategy focusing on
customization
IKEA, a Swedish retailer of contemporary furniture, operates several stores in various Scandinavian countries, as well as in the United States and Canada. Which of the following describes IKEA's level of commitment to international marketing?
direct ownership
Northeastern University and Penn State University both offer online MBA programs that are available to students around the world. This is an example of
globilization
The Mont Blanc Company plans to export expensive consumer gift items to Germany. The best overall economic measure of market potential would be Germany's
gross domestic product per capita.
If Tasmania levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Tasmania, its businesses and citizens would be paying a(n)
import tariff
Some hospitals in the United States find that their need for radiologists to read X-rays is volatile during the evening and early morning hours, especially between 2:00 and 6:00 am. This is because the number of emergency room visits needing X-rays is usually lower than those required during daytime operating hours. There is a recent trend where hospitals in the United States are contracting radiologists from countries such as Australia to read the electronically-transmitted X-rays during the evening and early morning hours. This is an example of
outsourcing
In considering the viability of potential international markets for Pepsi products, PepsiCo is advised to take into account ____, which provides insight into market potential.
per capita gross domestic product
Tony & Guy is a global hairdressing and education business headquartered in England. It has recently opened salons in Mongolia, adding to its numerous salons worldwide. Tony & Guy allows foreign businesspeople to use its name, logo, methods of operation, advertising, and products. In exchange, Tony & Guy receives a financial commitment and an agreement to conduct business in accordance with its standard of operations. Tony & Guy is engaging in
franchising
Which of the following is often used to raise revenue for a country and/or to protect domestic products?
import tariff
When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in
limited exporting
The North American Free Trade Agreement (NAFTA) ___________ tariffs on goods produced in and traded between Canada, Mexico and the United States.
eliminated
____ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank.
exchange controls
One of the effects of NAFTA is the simplification of country-of-origin rules. This will likely hinder the international trade activities of
Japan
A business partnership between a domestic firm and a foreign firm is known as
a joint venture
The Cooper Tire & Rubber Company has been searching for less expensive raw materials for manufacturing its bicycle tires. Cooper has found that there are less expensive sources in the country of Indonesia, but it needs to form a partnership with the government of Indonesia in order to gain access to the country's rubber. What type of partnership will need to be formed?
a joint venture
When Starbucks decided to expand into the international markets of India, Japan, and Argentina, management realized that there would be significant differences in the standards of living, credit, buying power, and income distribution in those countries. Starbucks is currently examining the ____ forces in its environmental analysis.
economic
Brand name, product characteristics, packaging, and labeling are some of the ______________ marketing mix variables to standardize for international markets.
easiest
Caterpillar, maker of large construction equipment in the U.S., would like to better understand factors that would affect its ability to export its products to various countries. Which of the following forces determine how trade barriers affect Caterpillar's marketing efforts?
political and legal
Southern Tier Industries has operations in more than 30 foreign countries. The headquarters in Atlanta controls the entire organization while offering subsidiaries the freedom necessary to achieve success in local markets. Southern Tier Industries is an example of a(n)
multinational enterprise
Maquiladoras are
production facilities in north-central Mexican states.
The term dumping refers to the sale of
products sold in foreign countries at unfairly low prices.
When a glove manufacturer in China is allowed to sell only a certain number of plastic gloves to Japan, that firm is facing a(n)
quota
A company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a
trading company
A(n) ____ is an organization that links buyers and sellers in different countries but is not involved in manufacturing.
trading company