International Marketing Ch 7, 8, 12

Ijara

leasing

U.S. law may conflict with the economic or political aims of a host country when _______.

the U.S. government restricts joint ventures in a foreign country due to concerns over anticompetition laws

True or false: In the context of U.S. national security laws, responsibility regarding the sale of a product extends to the final destination of the product, even if it is transferred through a number of countries along the way.

true

True or false: Multinational companies can be subject to antitrust charges in multiple countries.

true

Consortia reduce hazards associated with big investments because _____.

they generally involve a greater amount of participants

True or false: The Bureau of Industry and Security (BIS) of the Department of Commerce is responsible for providing export licenses and special permission for exportation.

true

True or false: The number of attorneys per capita can be used to gauge the importance of the legal system in a country. True False

true

True or false: The problem of locating and overseeing licensees can contribute to the failure of licensing agreements.

true

prior use (common law)

whoever can establish first use is typically considered the rightful owner

A general or a validated export license is given to products exported from the United States depending on the _____. (Check all that apply.) type of product manufacturing process end user of the product destination of the product

type of product end user of the product destination of the product

In the process of franchising, the franchiser _____.

utilizes the franchisee's awareness of the local market

A market researcher collects information about the sales of baby food from a commercial database. He uses the latest census, which lists the number of births in the last year, to verify this data. This case exemplifies

validation of secondary data.

international planning process

- Phase 1- Preliminary analysis and screening: Matching company/country needs - Phase 2- Defining market segments and adapting the marketing mix accordingly -Phase 3- Developing the marketing plan - Phase 4- Implementation and control Phase 1 Choice, Exploratory assessment of potential country markets Exploratory assessment of potential country markets Phase 2 matches Choice, Branding products keeping cultural specificities in mind Branding products keeping cultural specificities in mind Phase 3 matches Choice, Choosing an approach into a country market Choosing an approach into a country market Phase 4 matches Choice, Evaluating a firm's operation in a country market Evaluating a firm's operation in a country market

jurisdiction for international disputes determined one of three ways

1. basis of jurisdiction clauses included in contracts 2. basis of where a contract was entered into 3 on the basis of where the provisions of the contract were performed.

In which decade was the market segmentation argument framed as "global integration versus local responsiveness"?

1990s

Identify the market segmentation dispute in the 1970s.

Adaptation versus standardization

Identify a problem related to the protection of intellectual property. Patenting Counterfeiting Copyrighting Licensing

Counterfeiting

_____ allows an exporter to submit online requests for commodity classification to the Bureau of Export administration.

ERIC (Electronic Request for Item Classification)

Identify a difference between common law and code law. In the context of intellectual property, common law establishes ownership by registration, whereas code law determines ownership by use. Code law is recognized as not being all-inclusive, whereas common law is considered complete. In the context of performance of a contract, code law extends acts of God to include include unforeseeable human acts, whereas common law does not. Common law is based on an all-inclusive system of written rules of law, whereas code law is based on tradition, past practices, and legal precedents.

In the context of performance of a contract, code law extends acts of God to include include unforeseeable human acts, whereas common law does not.

Which statement is true of Islamic law? It encompasses religious duties and obligations only. It addresses issues such as property rights and economic decision making. It lacks laws that regulate human acts. It permits gambling and the payment of interest.

It addresses issues such as property rights and economic decision making.

What is an advantage of franchising?

It allows the parent company to grow quickly.

Identify a function of the World Court. It can settle disputes between governments. It can settle disputes between a company and a government. It can settle disputes between private citizens and companies. It can settle disputes between two companies.

It can settle disputes between governments.

How does the lack of detailed social and economic information affect sampling?

It causes researchers to use convenience samples gathered in public locations.

identify a true statement regarding the application of laws to e-commerce . It is difficult to purchase and register Web names. It is difficult to determine which country's laws apply in legal disputes between parties located in different countries. It is easy to identify contractual obligations in electronic communications. It is easy to establish the permanence of a company and ensure the collection of taxes.

It is difficult to determine which country's laws apply in legal disputes between parties located in different countries.

Identify a strategy that a company should adopt when conducting multicountry research.

It should form relationships with other companies in the target country.

Shari'ah law (islamic law) mandates social and economic behavior based on interpretation of the

Koran

which statement is true regarding Marxist-socialist tenets? They are based on interpretations of the Koran. Law is subordinate to the state's specific economic conditions. Law is strictly based on the past decisions of higher courts. They prohibit the payment of interest.

Law is subordinate to the state's specific economic conditions.

The _____ protects intellectual property rights across 26 European countries and created the Bureau for International Registration of Trademarks. Madrid Arrangement: establishes by the bureau for international registration of of trademarks, includes more than 100 countries International Chamber of Commerce: Inter-American Convention: includes most of the latin american nations and the US Paris Convention: (for the protection of industrial property) includes the US & 100 more

Madrid Arrangement

_____ can give exporters authority to export goods with unconditional licenses.

STELA (System for Tracking Export License Applications)

Which type of marketing research is focused on domestic operations?

Specific market information used to make decisions about the marketing mix

Refrez Inc., a U.S.-based cereal manufacturer, begins selling its products in China. While people in the United States eat cereal with cold milk, the people of China eat cereal with hot milk. Refrez Inc. believed that everyone used cold milk with cereal and did not modify its product according to people's preferences. As a result, it witnessed a decline in sales in China. In this scenario, what was the obstacle to defining the research problem?

The research problem was clouded by researchers' self-reference criterion.

identify a wrong assumption made by multinational companies. Engaging in litigation will result in a poor image and a loss of confidentiality for the company. Using local content in their product will help boost relations with host countries. The rightful ownership of property can be easily established because their company has established rights in the United States. Shared ownership of investments will improve relations with host countries

The rightful ownership of property can be easily established because their company has established rights in the United States.

Why is the first step of the research process essential in foreign markets?

The unfamiliar environment tends to cloud problem definition.

Which of the following statements is true? The International Court of Justice handles all commercial issues between nation states. The World Court can adjudicate disputes between two companies. Disputes between citizens of different nations are adjudicated under a supranational system of laws. There is no judicial body to address commercial disputes between citizens of different countries.

There is no judicial body to address commercial disputes between citizens of different countries.

In the context of Islamic law regarding financial transactions, identify the advantages of using cost-plus sales and leasing. (Check all that apply.) They ensure that profits and losses are shared between borrowers and lenders . They enable a financier of real property to earn interest on his or her capital. They ensure a fair distribution of wealth. They enable investment in high-profit businesses that deal with alcohol and casinos.

They ensure that profits and losses are shared between borrowers and lenders They ensure a fair distribution of wealth.

Which problems do market researchers face when collecting primary data in foreign countries? They forget to take into account cultural differences among countries. Questionnaires may be translated improperly. Respondents may be unwilling or unable to communicate. They can obtain such information only through bribery and subornation.

They forget to take into account cultural differences among countries. Questionnaires may be translated improperly. Respondents may be unwilling or unable to communicate.

Identify a step that multinational companies must take in order to be successful in the world marketplace. They need to populate their workforce in host countries with foreign labor supply. They need to take adequate steps to legally protect their intellectual property. They need to increase the imports and decrease the exports of host countries. They need to avoid the use of local content in their products.

They need to take adequate steps to legally protect their intellectual property.

In international legal disputes, in which ways is jurisdiction is determined? (Check all that apply.) Through contract clauses stipulating jurisdiction Based on where the obligations of the contract were completed Based on the number of parties bound by the contract Based on the country in which the contract was entered into

Through contract clauses stipulating jurisdiction Based on where the obligations of the contract were completed Based on the country in which the contract was entered into

The _____ is the most in-depth multilateral agreement on intellectual property so far. Anti-Counterfeiting Trade Agreement (ACTA) EU Directive on the Enforcement of Intellectual Property Rights (IPRED) Substantive Patent Law Treaty (SPLT) Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement

Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement

goal of protection of intellectual property across the globe

US: encourage invention and to protect and reward innovative businesses Korea: the thoughts of one person should benefit all Japan: share tech rather than protect it, invention should serve a larger, national goal, with the rapid spread of tech among competitors in a manner that promotes cooperation

tertiary boycott

bans arab governments from doing business with companies that do business with companies doing business with israel

Direct exporting involves selling products to foreign customers, while indirect exporting involves selling products to _____.

another company in the home country that then exports the products

Identify a purpose of antitrust enforcement in international commerce. It aims to give U.S. businesses an explicit advantage over foreign competitors. It aims to protect the most profitable U.S. businesses from competition. It aims to ensure that American businesses are not hampered by unfair restrictions imposed by more powerful competitors. It aims to pressure foreign businesses into purchasing U.S. goods and services.

antitrust enforcement has two purposes: 1. protect american consumers by ensuring that they benefit from products and ideas produced by foreign competitors as we as by domestic competitors 2. protect american export and investment opportunities against and privately imposed restrictions

secondary boycott

bars arab governments from doing business with companies that do business with israel

code law (civil law)

based on all-inclusive system of written rules. legal system divided into three separate codes: commercial, civil, and criminal. complete as a result of catchall provisions. ownership determined by registration. certain agreements may not be enforceable unless properly notarized or registered derived from roman law, found in germany, japan, france

______ law is built around a comprehensive collection of written rules. - common - interpretive - english - code

code

_____ law is based on the previous decisions of higher courts as applied to the same or similar circumstances. - civil - common - code - commercial

common

_____ is a legal system that comes from English law and is practiced in England, the United States, and Canada. Common law Code law Civil law Islamic law

common law

identify a feature of the European Patent Convention (EPC). Companies have to apply for protection in all 28 member states. Trademark protection is non-renewable. Trademark protection lasts for 10 years. Protection is forfeited if a trademark is not used within 2 years.

companies have a choice between relying on national systems when they want to protect a trademark or patent in just a few member countries and applying for protection in all 28 member states. Trademark is valid for 10 years and is renewable however if the mark is not used within 5 protection in forfeited.

Identify the factors that influence the performance and structure of direct investment.

knowledge of local firms complicated contracts investment timing

Murabaha

cost-plus sale

_______ register Web names and descriptive nouns similar to an existing product or business in order to sell them at an inflated price.

cybersquatters

stages of building a strategic alliance

dating imaging initiating interfacing committing fine-tuning

In many global companies, a wider portfolio of markets served _____.

decreases revenue instability

Once a marketing researcher has reviewed the internal sources of data, the next step in the research process involves

define research problem

islamic law

defines a complete system that prescribes specific patters on social and economic behavior for all individuals. includes issues such as property rights, economic decision making, and types of economic freedom. Overriding objective of the islamic system is social justice. prohibition against payment of interest

primary boycott (arab league boycott of israel)

direct trade between arab states and israel

The revised set of export regulations published by the Department of Commerce in order to alleviate many of the problems related to exporting and to expedite the export process is known as the ____________________________ Regulations.

export administration

Identify the true statements regarding export licensing controls. (Check all that apply.) They apply to re-exports of U.S.-origin commodities and technical data from a foreign destination to another foreign destination. They apply to exports of goods and technical knowledge. They do not apply to U.S.-origin parts and components used in foreign countries to manufacture foreign products. They do not apply to any foreign products made using U.S.-origin technical data.

export licensing controls apply to the exports of commodities and technical data from US reexports of US origin parts and components used in foreign countries to manufacture foreign products for exports foreign products made from US origin technical data

True or false: Due to the Foreign Corrupt Practices Act (FCPA), U.S. businesses must resort to bribery in order to survive in the most corrupt societies.

false

True or false: Piracy is always harmful to a company. True False

false This statement is false. Recent research implies that for companies like Microsoft, some level of piracy actually can serve the company. It can be seen as a kind of product trial that ultimately builds commitment.

True or false: All socialist countries have the same pattern for the development of a commercial legal system.

false the pattern for the development of a commercial legal system varies among socialist countries because each has a different background, and each is at a different stage in its development of a market-driven economy.

In the context of common law regarding the performance of a contract, which of the following is considered to be an act of God? terrorism floods civil strife labor strikes

floods

Emerging markets may _____.

have rudimentary frameworks for doing business

The Commerce Control List (CCL) _____.

indicates whether an item is eligible for export

Secondary data is considered valid if it is

internally consistent with known data sources or market factors.

The major objective of the second phase of planning for international marketing is to _____.

modify a marketing mix to the cultural realities of the target country

Identify the requirements of the Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement. (Check all that apply.) It requires participating members to establish procedures for enforcing IP rights. It requires participating members to revert patents back to the public domain if the products are not produced within one year. It requires participating members to comply with the minimum intellectual property rights standards by 2006. It requires participating members to join the European Patent Convention (EPC).

most comprehensive provision of the WTO. 3 main provisions: -required that participating members be in compliance with min standards of protection by 2006 -set procedures and remedies for the enforcement of IP rights -make disputes between WTO members with respect to TRIPs obligations subject to the WTO's dispute settlement procedures

common law

not all inclusive. its tradition, past practices, and legal precedents set by the courts through interpretations of statutes, legal legislation, and past rulings. ownership is established by use

code law and acts of god

not limited solely to acts of nature but are extended to include "unavoidable interference with performance, whether resulting from forces of natures or unforeseeable human acts," including such things as labor strikes and riots.

In the process of franchising, franchisers _____.

offer management assistance to franchisees

What are the two stages of analysis that market data must undergo?

organization of data into a form that addresses the client's needs identification of issues present in each country

A questionnaire is translated from one language into another and then back into the original language by two additional translators. The two translated versions in the original language are then compared to the original document, differences are discussed, and the most appropriate translation is selected. This process is known as ______.

parallel translation

Back translations are sometimes inaccurate because both languages may use the same idioms. To overcome this problem, market researchers can use _____.

parallel translation

A major element that influence the success of a franchise is

past international experience of the franchiser.

germany green marketing laws

phase 1: required all transport packaging to be accepted by the manufacturers and distributors for recycling phase 2: required manufacturers, distributors, and retailers to accept all returned secondary packaging phase 3: requires all retailers, distributors, and manufacturers to accept returned sales packaging

Identify the remedies available to American companies to combat violations of intellectual property rights. Establish rights in the United States. Notify the local authorities. Register a complaint with the U.S. government and World Trade Organization. Register IP with appropriate agencies in the host country. Negotiate and pursue alternative methods of resolving disputes.

prevention, pursue negotiation and alternative dispute resolution, complain to the chinese authories, complain to the US govt and WTO.

Data that is gathered specifically for a particular research project is known as ______ data.

primary

Identify the features of the U.S. antiboycott law. (Check all that apply.) It prohibits U.S. companies from taking part in foreign boycotts not sanctioned by the U.S. government. It requires U.S. companies to report any requests for participation in a boycott. It allows U.S. firms to participate in foreign boycotts if they result in increased exports and foreign exchange. It permits participation in a boycott if it has direct impact on the survival of a company.

required to report any request to cooperate with a boycott

World Intellectual Property Organization

responsible for the promotion of the protection of intellectual rights

Foreign licensees of U.S. technology are prohibited from selling products to another country if the _____.

sale threatens U.S. national security

A marketing researcher uses an academic paper written by a professor at the University of Connecticut to derive certain findings. The academic paper is a summary of several researchers' findings. In this case, the academic paper is a ______ data source.

secondary

One of the difficulties associated with defining a research problem in foreign markets is that

self reference criterion

Marxist-socialist tenets

strictly subordinate to prevailing economic conditions, such fundamental propositions as private ownership, contracts, due process, and other legal mechanisms have had to be developed commercial legal system

_____ planning relates to the allocation of resources used to implement strategic planning goals in particular markets.

tactical

U.S. law may conflict with the economic or political aims of a host country when _______. the U.S. Justice Department does not hold MNCs responsible for the human-rights abuses of foreign governments U.S.-based MNCs prefer to populate their workforce with domestic labor from the host country U.S.-based MNCs seek to use local content from a host country in their products the U.S. government restricts joint ventures in a foreign country due to concerns over anticompetition laws

the U.S. government restricts joint ventures in a foreign country due to concerns over anticompetition laws

In the the context of the Foreign Corrupt Practices Act (FCPA), most experts agree that _____. the FCPA is extremely detrimental to the interests of MNCs the majority of U.S. firms are operating within the law U.S. firms are unable to compete and survive without resorting to bribery U.S. exports to developed and developing countries are being adversely affected

the majority of U.S. firms are operating within the law