MKT 230 - Chapter 9

The agreement between the U.S., Canada and Mexico that merges these three countries into one marketplace is called

NAFTA

The extent of Jaime's participation in global business is selling the batteries it manufactures to companies in Spain. In this case Jaime is an

exporter

Stark BioChem is a producer of chemical products aimed at increasing agricultural yield per acre. Stark BioCHem's management believes that several of the firm's products could have a sizable markets in other countries; however, it is costly to obtain market research to confirm this. If Stark BioCHem wanted to temporarily "try out" these international markets with a minimal level of commitment and cost, it should use

exporting

The University of North Carolina and the University of Illinois At Urbana-Champaign both offer online MBA programs that are available to students around the world. This is an example of

globalization

Which of the following is used to raise revenue for a country and/or to protect domestic products?

import tariff

The purchase of products from a foreign source is called

importing

When the Dutch company Shell purchases crude oil from Texas, it is engaging in

importing

One of the guaranteed constants in the global business environment is

instability

A business partnership between a domestic firm and a foreign firm is known as a

joint venture

The World Trade Organization accomplishes all of the following accept

lending money to businesses interested in developing international markets.

The role of an export agent is to

bring buyers and sellers from different countries together and collect a commission for arranging sales.

The practice of contracting with an organization to perform some or all business functions in a country other than the country in which the product will be sold is known as

offshore outsourcing

Some hospitals in the U.S. 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 a. m. 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 U.S. are contracting radiologists from countries such as Australia to read electronically transmitted X-rays during the evening and early morning hours. This is an example of

outsourcing

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

3. In Singapore, the price of imported Scotch is 30.00 per glass as opposed to Scotch from Singapore, which is 3.00. Which of the following do you think accounts for the difference in price?

Import tariff

Old Navy is currently expanding its stores into Canada and Mexico. This expansion is being facilitated by the

North American Free Trade Agreement (NAFTA)

If H&M relies on hiring a foreign textile manufacturer to produce a designated amount of clothing for its stores, it is using

contract manufacturing

When Starbucks decided to expand into the international markets of India, Japan and Argentina, management realizes that there would be significant differences in the standard of living, credit, buying power, and income distribution in those countries. Starbucks is currently examining the _____ forces in its environmental analysis

economic

Special interest groups and regulatory bodies are _____ forces that must be taken into account in international marketing.

political and legal

The term dumping refers to the sale of

products sold in foreign countries at unfairly low prices.