MKT 4270 Exam 3
Which of the following statements on roles of men and women in international business negotiations is true?
American women's negotiation style is a lot closer to the Japanese style than to American men's.
Which of the following is one of the offshoots of the sequential approach of Westerners to complex negotiation tasks?
Americans often make unnecessary concessions right before agreements are announced by the Japanese
Resource Article Chapter 9: Malls Flourish in Mexico but not the USA
N/A; Article not given.
Which of the following forms the basis of commercial interactions in countries such as China, Spain, Mexico, and the Philippines?
Personal connections and long-term reciprocity
According to the text, Austria is a best illustration of how media choice can be distorted due to:
advertising taxation
Demands for regulation of advertising, _____ is a trend appearing in both industrialized and developing countries.
aimed at children
According to one advertising executive, "International advertising is almost uniformly dreadful mostly because people:
don't understand language and culture
In international business, global marketing strategies are almost always implemented through _____ with business partners.
face-to-face negotiations
In countries where women do not participate in management, American female negotiators are first treated as _____.
foreigners
With reference to a communication process, using the internet as a medium when only a small percentage of an intended market has access to the Internet, is an example of error related to:
message channel selection
Looking broadly across several cultures, two important lessons with respect to negotiation standout. One of those lessons is that:
regional generalizations very often are not correct.
According to the text, one of the drawbacks of satellites is:
their ability to span a wide geographical region covering many different country markets.
One of the indispensable media of persuasion in the more relationship-oriented countries is:
third parties and informal channels of communication.
Chapter 10 resource article: Trump Opens Doors for China in Latin America
"Trump's election is an unmitigated disaster for the region," for latin america -"As the U.S. takes a step back from Latin America, China continues to bound ahead -Australia has already anticipated the trend, backing a made-in-China trade deal with 16 countries in the Asia and Pacific region, but excluding the United States. -China actually laid out its vision for a "cooperative partnership" in the Western Hemisphere in a widely noted 2008 white paper on Latin America and the Caribbean -china is worlds second largest commercial partner -Most of the two-way trade has been Latin American grains or metals for Chinese manufactures, and while that arrangement has reaped plenty of export revenues, it has generated few jobs for Latin America.
Resource Article Chapter 9: India and Africa; Africa Rising: A Continent of New Consumers Beckons As Disposable Incomes Continue to Climb, Multinationals Shift Focus From Resources to Retail Pt II
-"whos buying" descriptions of different middle class people -
Resource Article Chapter 9: India and Africa; Squeeze Play: Inside Nike's Struggle To Balance Cost and Worker Safety Pt III
-2005: weeks before Nike's soccer balls were set to arrive in stores for the 2006 World Cup, inspectors at rival Adidas AG presented Nike with photos showing Pakistani children stitching Nike soccer balls-- the same problem from 1990 -"Overwhelmed with orders for the World Cup, the new owners sent the soccer balls to be made at local homes"-Nike (all got pulled from World Cup) -to evaluate competitors and options for countries, put together "country risk index" -Hannah and Mr. Sprunk had differing opinions on Bangladesh; sustainability and manufacturing went together to see if they should -Nike's gross margins fell to 43.6% last fiscal year, from 46.4% three years earlier, and remained below those of competitors such as Adidas. -Lyric Industries said they did everything Nike said & quickly found another buyer (japanese retailer that required double the overtime hours because they "want their products on time no matter what")
Resource Article Chapter 9: Possible Trade War pt II
-6. Ford: struggling (sales fell 6% in 2017); planning more than 750 million co-investments in China; GM is also in danger and sells more than Ford; China in dispute with South Korea and stopped buying Kia/Hyundai cars -7. Agriculture: soybeans are a weapon-U.S. sold $13.9 billion to the Asian nation in 2017; U.S. counts China as its biggest market for the oilseed used in animal feed, Beijing has a choice of sellers to turn to in the event of a retaliation on U.S. imports. China buys a great deal of beef and pork from US -8. Oil and Gas: shale boom helped US compete with oil producers such as Saudi Arabia & Russia; end of a four-decade ban on crude exports means its supply is sailing to nations across the globe; China's welcoming its cargoes more than any other nation. Imports of American oil increased almost 1,500 percent in 2017, with purchases valued at about $3.2 billion. -9. Finance Companies: China has vowed to open up its finance industry. Might Trump's actions force the door shut for U.S. finance firms just as it was about to open? -10. China's U.S. Acquisitions: looking to toughen rules on Chinese purchases of U.S. firms, such as adding curbs in industries where American businesses do not have reciprocal access to acquiring Chinese counterparts; Among those already facing U.S. scrutiny is HNA Group Co.'s takeover of SkyBridge Capital, the hedge-fund firm of Anthony Scaramucci, who was briefly Trump's communications director.
Resource Article Chapter 9: India and Africa;Africa: New African Union Headquarters Inaugurated
-Addis Ababa -new headquarters of African union; The building cost 200 million US dollars, and is a donation from the Chinese government (China State Construction Engineering Corporation construction: feb 2009-dec 2011) -AU chairperson , praised the "generosity of the Chinese government", and described the building as marking "a qualitative leap in the relations between China and Africa". -China did not hesitate to press ahead with the project, despite the international financial crisis (china is a true friend, difficult moments we know who friends are) -China is the largest trade partner of the continent, and total Chinese investment in Africa now totals 13 billion US dollars.
Resource Article Chapter 9: Faulty Chinese part forces major Aston Martin recall
-Aston Martin Virage was one of several models the carmaker recalled after a Chinese supplier was found using a counterfeit plastic material provided to china daily -British luxury carmaker is recalling 17,590 cars, including all of its left-hand-drive models built since November 2007 and all right-hand-drive models built since May 2012, affecting about 75 percent of all vehicles built in that period -Kexiang Mould Tool Co, a subcontractor in Shenzhen, Guangdong province, was using a counterfeit plastic material in making accelerator pedal arms for the sports carmaker
Resource video chapter 10
-European Union: 1. countries pay membership dues 2. countries vote on laws 3. citizens of those countries are automatically EU countries (free to work or retire in any) Not in EU: norway, iceland, nichtenstein -have EEA (european economic area) arrangement that still allows people to go to and fro these countries -ignores farming and fishing -switzerland is neutral and independent -shengan area (u can walk anywehre and no questions and swiss is also apart of as well as eu) -UK and ireland argue that islands are different and u need passport -eurozone-eu that uses euros -san marino, andorra, monocco, and another can use euros if they want outermost regions-french guinea, canary islands azores, fuadelupe, martinuque netherland, uk, denmark and france-overseas terriroties
Chapter 10 resource article: Dairy Firms Get Crash Course in Vying Globally
-In November 2012, Cayuga Milk Ingredients Inc. broke ground for a $100 million dairy factory, U.S. dairy exports were booming and prices were high; now, as the plant completes its first shifts running at full production, buying by key global buyers is slowing and prices are collapsing. -dairy processors used to stick w home markets, but are now producing baby formula, cheese to rabidly developing middle class countries like china -with prices down sharply from the highs reached last year, the companies are getting a crash course in the risks of competing globally and working to improve their use of hedging and other risk-management tools. They're also trying to tap other destinations, from Mexico to Malaysia, for their products. They have little choice -demand=bad in us -"We can't go back" from the international market, says Mr. Ellis. "There aren't enough people to consume [the dairy products] in this country. -export boom was driven by several factors, most importantly a 2008 scandal in China in which tainted milk killed six children and sickened about 300,000 others -Former Detroit Lions star running back Billy Sims and his business partners plan to spend $150 million to build a milk-powder plant in Michigan geared to Chinese consumers -Russia's import ban on U.S. and European food, including dairy products, has reduced global demand.
Chapter 10 resource article: Why China is cosying up to Latin America,
-That doctrine states US opposition to any outside intervention in North or South American affairs - and says any such action will be viewed as "the manifestation of an unfriendly disposition towards the United States". -
Chapter 10 resource article: The EU's Microsoft Vendetta 2 WSJ
-The European Commission has already milked Microsoft for more than 1 billion euros in fines for supposedly abusing its dominant market position. -Brussel's latest complaint: Microsoft has not complied with a promise to offer Windows users a choice of Web browsers in the latest version of its operating system. -case was anachronistic now weird -Explorer has been bleeding market share since at least 2005, when the competing (and also free) Firefox hit the market. (used to dominate 90% of market) -its European market share is now less than 25%. -the company could be hit with a fine of up to $7.4 billion, or 10% of its global annual revenue, unless it complies with the Commission's demands. -author suggests fine of zero
Chapter 10 resource article: U.K. Rules Out Customs Union After Leaving EU
-The U.K. government said Britain wouldn't be constrained by the European Union's customs union after Brexit, pleasing right-wingers in the ruling Conservative Party but worrying others who fear the stance will damage trade with major partners. -Inside a customs union, countries trade tariff-free among themselves but impose common external tariffs on goods coming from outside. *prevents member countries from implementing free-trade agreements for goods with nonmembers. -the U.K.'s aim is to establish bilateral free-trade deals with countries outside the bloc, like the U.S. -. Non-EU Turkey has a longstanding customs-union arrangement with the EU that makes it subject to most of the bloc's trade policies. -Leaving the EU's customs union could impose new costs on British businesses. Even if a free-trade deal between the EU and the U.K. eliminated tariffs, companies would still be subject to added paperwork and other administrative burdens to ensure their products met EU standards, including over the Irish border -Business leaders have lobbied for Mrs. May to keep Britain as close to the EU as possible after Brexit, arguing that the value of frictionless trade with the bloc responsible for nearly half of British trade outweighs the value of potential trade deals between the U.K. and non-EU countries
Resource Article Chapter 9: Possible Trade War pt I
-Trump is correct in feeling that some other countries have been trading unfairly with the U.S., but it is also true that trade and tariffs are complex issues often full of unintended consequences -25% tariff on Aluminum and Steel -1. Boeing: China needs over 7k planes; could punish US bc gov't controls most Chinese customers -2. Starbucks: China is supposed to be largest market by December; just opened one in Shanghai -3. Westinghouse: electric co bankrupt in 2017 but coming back with new generator to Chinese grid -4. Tesla: struggling to open factory in China; if they agree then they can achieve economies of scale and bring down manufacturing, labor, and shipping costs -5. Apple & tech cos: may have the most to lose if tariffs define imported goods as all items produced in China; tech cos make most of their gadgets in China; partners such as Hon Hai Precision Industry Co., part of Taiwan's Foxconn Technology Group; China could also enforce cybersecurity laws
Resource Article Chapter 9: India and Africa; Squeeze Play: Inside Nike's Struggle To Balance Cost and Worker Safety Pt II
-Walt Disney Co. pulled its manufacturing out of Bangladesh after the big disaster; retailers including Wal-Mart Stores Inc., Hennes & Mauritz AB and 170 others chose to stay, signing five-year agreements pledging to draw up safety standards - Nike hasn't participated in those efforts, drawing criticism; says it can better use its resources w countries where it has bigger footprint -1964: 4% of footwear imported; currently: 98% -1990s: protests against Nike factories -1996, when Life magazine published a story titled "Six Cents an Hour," with a photo of a boy sewing Nike soccer balls: Knight says it was staged & balls were already inflated for the photo -so many protests; a half dozen executives pleaded with Mr. Knight to publicly acknowledge a labor problem. -Nike released the names and locations of its factories -- the first major retailer to do so -- to be more transparent about its supply chain: Nike released the names and locations of its factories -- the first major retailer to do so -- to be more transparent about its supply chain.
Chapter 10 resource article: China Ventures Into America's Backyard: Latin America
-While trade between the U.S. and Latin America has doubled since 2000, China's trade with the region has multiplied 22 times -Beijing is now the biggest trading partner for the major economies of Brazil, Chile and Peru -China lends the region a lot of money — around $30 billion in 2015, up from $231 million in 2005. And the funds largely come with no strings attached. "China stands to supplant the United States in economic and political influence over time -When President Trump suggested the U.S. may pull out of NAFTA to keep jobs in America, neither China nor Mexico wasted much time in announcing a new auto partnership -China's JAC Motors sells SUVS to Latin America w no involvement of NAFTA -this all helps them NOT depend on USA -Beijing counts Taiwain as breakaway republic and businesses must cut ties w them
Resource Article Chapter 9: India and Africa; Squeeze Play: Inside Nike's Struggle To Balance Cost and Worker Safety Pt I
-head of Nike sustainable business worried about manufacturing in Bangladesh (some of cheapest factories in world) -Hannah and 5 others visit the factory; many fire hazards, windows bolted shut, other businesses in there; cut ties w/ Lyric Industries afterward -garment-manufacturer Rana Plaza collapses soon after, kills 1100 people in Dhaka suburb (worst industrial disaster) forced Western apparel stores to re-examine their search for cheap labor -Nike has big campaign to eliminate hazardous factory conditions & largely decreased factory deaths/use of hazardous chemicals -Worker Rights Consortium, a nonprofit group partially funded by universities that monitors factories producing college-athletic gear, has published reports on 16 of Nike's suppliers since 2006 alleging violations of overtime and worker abuse; sent an email to Nike asking why it didn't take action after it was told one of its suppliers in Bangalore, India, didn't raise wages for its 10,000 workers after a government-mandated increase...Nike said factory failed to comply w new rules & workers were later compensated
Resource Article Chapter 9: WSJ Middlemen Must Navigate a Complex Maze of Trade
-iran -mostafa is in hotel miami and meets mehran (who has ties to powerful religious circles) (handling government order with a Western manufacturer for $500,000 worth of aircraft parts but needed to pay for those parts) -homemakers w bleach blond hair and salads around them, head scarves -they are members of the tightknit community of middlemen -most of them educated abroad, that help Iranian companies navigate the maze of financial and trade restrictions imposed on their country by the U.S. and its allies, who say the Islamic republic is pursuing a nuclear weapon -. Iran's government insists its nuclear program is for peaceful purposes only -, potentially unleashing an explosion of demand for many foreign industrial and consumer goods. Meanwhile, there are special exemptions for many medicines and medical devices, agricultural goods and even aircraft parts, which Iranian airlines desperately need. -: "Banks are terrified of dealing with Iranian business, even when it's legal," -middlemen thrive in the grey area - they decide to tap a bank account in China where Iran keeps some of its money from oil exports. -mostafa parents from britain -offered his services to a relative who was struggling to pay for an order of pacemakers from Minneapolis-based manufacturer Medtronic Inc., in exchange for a 5% commission on the transaction. -The challenge, he said is to find financial partners that aren't blacklisted or dishonest. -complicated business deal w phone company: the bank learned that the transaction has been passed to the wrong department. "I know the manager; I hope we can sort it out," Mr. Pakzad assured her. But the payment doesn't arrive on time, and Pars Microtel was forced to cancel its order.
Resource Article Chapter 9: India and Africa; Africa Rising: A Continent of New Consumers Beckons As Disposable Incomes Continue to Climb, Multinationals Shift Focus From Resources to Retail Pt I
-new target: emerging middle class w cell phones, goes out to eat, goes to supermarket -In Kenya, a battle between units of Britain's Vodafone Group PLC, and India's Bharti Airtel Ltd. has driven down the consumer's cost of a text message to a penny. -US brand wants to double KFCs there -Walmart expanding there -number of middle-income consumers exceeds India -consumer spending will reach 1.4 trillion by 2020, was 860 billion in 2008 -this middle class emerged through private investment; created jobs, infrastructure, and improved governance along w high commodity prices -International Monetary Fund forecasts 5.5% growth -poverty is still rampant; Many African governments are under pressure to create jobs, even if it requires giving foreign companies a greater role in domestic economies.
Chapter 9 resource video: Cambodia
-one of worlds poorest countries still feeling impact of war in southeast asia -make garments for west -80% of profits from this -can all change w new free trade system -end quotas that guarenteed space on american clothing racks -1 quota per garment (over 1000) -gap imports a billion pieces of apparel from over 50 countries -could cost millions of jobs in smaller nations
Which of the following is one of the items on the checklist recommended by the text to ensure proper preparation and planning for international negotiations?
Concession strategies
According to the text, for consumer products, which of the following is the major limitation of the Internet?
Coverage of the Internet
During which step of the international communications process, the receiver of the message interprets symbolism transmitted from the information source?
Decoding
Which of the following is LEAST likely to be an international advertising goal?
Gillette Company attempting to gain distributor cooperation in Japan.
Which of the following can be considered as a signal of progress in a business negotiation with foreigners?
Higher-level foreigners being included in the discussions
Which of the following can be considered as a signal of progress in business negotiation with foreigners?
Higher-level foreigners being included in the discussions
"Asahi" is the largest newspaper of:
Japan
Which of the following aspects is an important consideration in setting negotiations as it may eventually determine legal jurisdiction if disputes arise?
Location
Which of the following elements of integrated marketing communications is related to encouraging the press to cover positive stories about companies and managing unfavorable rumors, stories, and events?
Public relations
