Chapter 19 bcor 350
Industrial structure and income distribution
What are the two economic factors that reflect a country's attractiveness as a market?
Through exporting
What is the simplest way to enter a foreign market?
product invention
When using the global product strategy of ________, companies create something new to meet the needs of consumers in a given country.
Direct investment
Which market entry strategy has the greatest amount of commitment, risk, control, and profit potential?
Planning for manufacturing facilities, marketing policies, financial flows, and logistical systems is done on a worldwide basis.
Which of the following is true of global organizations?
For most companies, their foreign prices probably will be higher than their domestic prices for comparable products.
Which of the following statements is true regarding pricing in global markets?
subsistence economies
Which type of industrial structure offers the fewest marketing opportunities?
export department
A firm normally gets into international marketing by simply shipping out its goods. If its international sales expand, the company will typically establish a(an) ________ with a sales manager and a few assistants.
Straight product extension
Apple iPads, Gillette razors, and Black & Decker tools are all sold successfully in about the same form around the world. This represents which global product strategy?
an emerging
A country's industrial structure shapes its product and service needs, income levels, and employment levels. The industrial structure of countries experiencing rapid overall economic growth fueled largely by increased manufacturing is best described as ________ economy.
product invention
Chinese appliance producer Haier developed sturdier washing machines for rural users in emerging markets, where it found that lighter-duty machines often became clogged with mud when farmers used them to clean vegetables as well as clothes. This example illustrates a ________ strategy.
groups of nations organized to work toward common goals in the regulation of international trade
Free trade zones can be described as ________.
political-legal
Global firms must take into consideration factors such as the country's attitudes toward international buying, corruption, political stability, and monetary policies. These factors are all considered part of the country's _________ environment.
direct investment
Honda Motors' fundamental philosophy is "to build automobiles where we sell." This philosophy is reflected in the fact that more than 90% of all Honda vehicles sold in the U.S. are manufactured in North America. Based upon this example, Honda's preferred approach to foreign market entry is ________.
licensing
In a _________ agreement, a company enters into a contract with a firm in the foreign market under which it buys the right to use the company's manufacturing process, trademark, patent, trade secret, or other item of value.
by organizing an export department
In organizing their international marketing activities, where do most companies start?
Geographical organizations
In which form of international organization are country managers responsible for salespeople, sales branches, distributors, and licensees in their respective countries?
geographical organization
International divisions are organized in a variety of ways. Using the ________ approach, country managers are responsible for salespeople, sales branches, distributors, and licensees in their respective countries.
product adaptation
McDonald's offers its signature burgers and fries in most locations around the world. However, the chain has added menu items that meet the unique taste buds of customers in local markets. This represents which global product strategy?
product adaptation
McDonald's serves salmon burgers in Norway, mashed-potato burgers in China, shrimp burgers in Japan, a Samurai Pork Burger in Thailand, chicken porridge in Malaysia, and Spam and eggs in Hawaii. This exemplifies the concept of ________, which involves changing the product to meet local requirements, conditions, or wants.
culture
To assess the impact of ________ on global market, sellers must understand the ways that consumers in different countries think about and use certain products before planning a marketing program.
Licensing, contract manufacturing, management contracting, and joint ownership
What are the four types of joint venture entry strategies?
By geographical organizations, world product groups, and international subsidiaries
What are the three ways a company can organize its international operating units?
contract manufacturing
________, in which the company makes agreements with manufacturers in the foreign market to produce its product or provide its service.
