International Marketing

No Direct Foreign Marketing

A company in this stage does not actively cultivate customers outside national boundaries; however, this company's products may reach foreign markets.

Characterization of a product is critical to the international marketer. In Britain, the Supreme Court of Judicature concluded that "Pringles" are potato chips. Why might the court rule in such manner?

All of these choices are correct

In the case, which of the following could be characterized as a protectionist measure by France?

All of these choices are correct

Which of the following is an example of trade barriers imposed by Japan?

All of these choices are correct

USA attempts to thwart election of Peron in 1946.

Argentina

Popular revolution neutralized by U.S. economic pressure in 1952.

Bolivia

Covert intervention by USA against elected Marxist government of Popular Unity from 1970 to 1973.

Chile

The U.S. economy and the economies of most of the world saw unprecedented growth in the late 1990s which have slowed dramatically in the last few years and especially so in 2009. However, which country's economy did not follow this pattern?

China

Global Marketing

Companies at this stage treat the world as one market. Market segmentation decisions are no longer focused on national borders. Instead, market segments are defined by income levels, usage patterns, or other factors that frequently span countries and regions.

Nationalist revolution in 1959 and alliance with the USSR in 1960. USA declares economic embargo, and CIA organizes failed Bay of Pigs invasion in 1961. Cuban Missile Crisis in 1962.

Cuba

Why does culture play an important role in determining the best investment practices?

Culture exerts a strong pressure on the way different groups feel about investments.

Military intervention to suppress possible communist influence in 1965.

Dominican Republic

Covert intervention by the USA to defeat left-wing guerillas from 1980 to 1988.

El Salvador

Regular Foreign Marketing

Firm has permanent productive capacity devoted to the production of goods and services to be marketed in foreign markets.

Agency: International Monetary Fund (IMF)

Foreign exchange

The reporter stated that Brazil's culture is very sexist. What did she cite as evidence?

Forty percent of men believe rape victims "contribute" to the incident.

Agency: World Trade Organization (WTO)

Governing Trade

U.S. invasion to restore stable government in 1983.

Grenada

"Negotiated" U.S. invasion to restore democracy in 1994.

Haiti

Refers to the preference for behavior that promotes one's self-interest.

Individualism/collectivism

As stated in the case, "All the activity associated with the development, production, and marketing of Boeing's commercial aircraft and space vehicles requires millions of people from around the world to work together. Moreover, no company does more to enable people from all countries to meet face-to-face for both recreation and commerce." Which of the following can most reasonably be concluded from this information and the fact that this process has helped Boeing to become a highly successful company with happy employees?

Interactions between people yield mutual understanding which is the foundation of global prosperity.

General Agreement on Tariffs and Trade (GATT)

It began shortly after WWII to reduce tariffs and create an agency to monitor world trade.

Which of the following is true of the Boeing Company?

It is one of America's largest exporters

What characterizes Starbucks' global expansion strategy?

It makes strategic sense due to saturation of the home U.S. market.

Why did Microsoft apologize to the people of Thailand?

It referred to Bangkok as a commercial sex center

World Trade Organization (WTO)

It sets many rules governing trade among its members, provides a panel of experts to hear and rule on trade disputes among members, and issues binding decisions.

As an example of historical adaptations to the various editions of Encarta, Microsoft identified Alexander Graham Bell as the inventor of the telephone in all of the following countries except

Italy

Omnibus Trade and Competitiveness Act (OTCA)

Its focus is on assisting businesses to be more competitive in world markets and on correcting perceived injustices in trade practices.

World Bank Group

Its goal is to reduce poverty and improve living standards by promoting sustainable growth and investment in people.

International Monetary Fund (IMF)

Its objectives are the stabilization of foreign exchange rates and the establishment of freely convertible currencies to facilitate the expansion and balanced growth of international trade.

The case identifies various countries that take advantage of the open U.S. market and impose some level of protectionism. Which countries are identified?

Japan, France, and the U.K.

Which of the following was a conclusion of the customer research?

Many families use the microwave only for Western food or reheating.

Which of the following countries has the interviewee not conducted business in?

Mexico

Which of the following was a conclusion of the customer research?

Microwaves seem to be popular with bachelors.

Which of the following is a true statement?

Most analysts feel that styling, competitive pricing, and fighting the mindset that microwaves don't work for Indian food, are the keys to future growth.

Agency: Omnibus Trade and Competitiveness Act (OTCA)

Multifaceted U.S. Agency

Agency: World Bank Group

Multilateral agency

Revolution in 1979. USA funds counter-revolutionary movement in the 1980s.

Nicaragua

How did Microsoft resolve the issue of the border dispute between Chile and Argentina in the southern Andes?

No border line was drawn

What is China's procreation policy?

One-child policy

U.S. invasion to arrest President Noriega on charges of drug trafficking in 1989.

Panama

Which of these is not true about Starbucks' entry strategy in Vienna and Milan?

Since Italy is the birthplace of espresso and so many other coffee drinks, Starbucks knew that it would be easy to break into that country.

Samsung is a _____ company.

South Korean

Which of these is a true statement about Starbucks' success in the Far East?

Starbucks grew rapidly in Japan, since its first store in 1996, and is planning thousands of stores in China

Which is a true statement about Starbucks' entry into the Far East?

Starbucks has entered convenience stores in Japan and also partnered with a local beverage company to develop canned coffee.

Which of these is not a challenge when Starbucks enters a foreign market?

Starbucks refuses to adapt its flavors to local tastes.

Why does New Balance benefit from the tariffs on imported shoes?

Tariffs prevent the market from being flooded with cheaply made imports.

There is no American-style risk-taking culture among Japanese investors. The volume of stock trading in Japan is about one-tenth that of the United States. In Japan, only 10 percent of household financial assets are directly invested in stocks and a mere 7 percent in mutual funds. In contrast, about half of U.S. households own stock. Which of the following statements is most likely true about Japan?

The Japanese culture has a high Uncertainty Avoidance Index score.

Why does Protectionism lead to higher, less competitive prices for U.S. goods in a foreign country?

The countries whose goods are slapped with import duties into the U.S. retaliate by placing duties on U.S. goods going into their country.

How did Microsoft err in the geography of South Korea?

The island of Ullung-do was situated within Japan's borders.

Market sales data on microwaves in India suggest which of the following?

The majority of microwave sales occur in the biggest cities in India.

Why are Chinese officials starting to worry about the population imbalance?

There are not enough women for men to marry.

What is an accurate description regarding balance-of-payments records?

They are maintained on a double-entry bookkeeping system.

What are Chinese officials doing to correct the imbalance in the population?

They are offering cash payments for couples who have a daughter and let her live.

How did China and the European Union resolve their dispute about imported Chinese solar panels?

They implemented price floors and volume quotas.

Why are marketers in Brazil toning down their beer ads?

They want to tap into the sentiment of more gender-neutral/inclusive/friendly consumers.

Agency: General Agreement on Tariffs and Trade (GATT)

Trade Treaty

As discussed in the video, what ultimately happens when cross-border trade is restricted?

When restrictions are put into place, you end up having higher prices.

J.J. Servan-Schreiber's prediction about the U.S. economy did not come true for many reasons, but one of the more important was that American MNCs confronted

a resurgence of competition from all over the world.

The packaging of Oreos changes from country to country because of

buying habits and pantry size

In general, tariffs restrict

choices available to consumers

International Marketing

companies in this stage are fully committed to international marketing activities. Such companies seek markets all over the world and sell products for markets in various countries.

John is an American who lives in Maryland. He likes to stay fit. He attends Yoga classes three times a week.

cultural borrowing

The adoption of yoga as a means of physical fitness in the US best demonstrates the concept of

cultural borrowing

When Fanta, in her home in Senegal, doesn't have the time to cook breakfast every morning, she goes by the local fast food restaurant.

cultural borrowing

Jose enjoys watching Argentina's version of American Idol where Argentinian citizens perform popular South American pop music.

cultural congruence

Susana listens to country music in the Czech Republic by Czech singers who sing about Czech issues.

cultural congruence

Considers behaviors such as word-of-mouth communications, impulsive buying, responses of both surprise and disgust, the propensity to complain, responses to service failures, and even movie preferences.

cultural values and consumer behavior

Which balance-of-payments account would a country refer to in order to understand the value of all the merchandise and services plus unilateral transfers of funds that have been imported and exported?

current account

Hofstede's dimensions in general and uncertainty avoidance in particular, can provide some insights into why

eBay has not been as successful in Japan as in the United States.

Which barrier requires the importers who want to buy a foreign good to apply for an exchange permit?

government approval

Branding is a controllable element as well. Branding of the Oreos and company affiliation may change from country to country. This is done because the association with a trusted brand can

help sales

The TRIPs agreement was an important outcome of the Uruguay Round because it provided

higher standards of protection for intellectual property rights.

In order to stimulate microwave adoption in India, the manufacturers have been taking all of the following measures except one. Which one?

holding drawings for lucky winners to get their own microwave

As an example of controllable elements, Kraft has changed Oreos to suit particular countries. How are consumer tastes and expectations regarding Oreos addressed in China and Venezuela? In China, Oreos are ___________; in Venezuela ______________ is used.

less sweet; milk chocolate

Which part of the domestic solar industry would be most helped by tariffs?

manufactures

Which aspect of the Omnibus Trade and Competitiveness Act allows a U.S. president the authority to restrict sales of a country's products in the U.S. market if that country is imposing unfair restrictions on U.S. products?

market access

What would be recorded on the minus side of the U.S. balance of payments?

money spent on foreign economic aid

As an example of the expansion of global marketing, Oreos can be found in how many countries?

more than 100 countries

When doing business in Indonesia, when you hear your business counterpart say "belum," it means

not yet

The economic boom in North America during the late 1990s was caused by the

opening of the formerly communist countries to the world trading system

Faiq has recently been convinced that organic food is much better for him. He now only buys organic food.

planned change

Su-jeong has noticed many furniture stores in her neighborhood in South Korea. Not long ago, most Koreans preferred homes with very little furnishings.

planned chnage

GATT was put into place in response to

potential barriers to trade including high tariffs.

Measures the tolerance of social inequality between superiors and subordinates within a social system.

power distance

Although Oreo cookies are popular around the world, adjustments to _________ are sometimes necessary to match consumer tastes and expectations in each country.

product, packaging and promotions

The one-child policy is an attempt by China to control population growth. Which of the following is not a new program being offered to reverse this trend?

providing fertility programs to increase the chance of women having twins or triplets

The United States has a limit on the amount of sugar that can be imported. This limit is an example of a(n)

quota

Oreo promotions are customized to meet each country's needs. For example, in China, brands ___________ are deemed more credible and of higher quality. And in Venezuela, _____________ advertising is more effective.

seen on TV; outdoor

The liberalization of the financial services sector in Europe affected French attitudes to stock market investments such that the French now view them with less suspicion. Which of the following factors best describe this change?

social institutions

Besides beer ads, what is another example of multinationals being more sensitive to Brazilian culture?

sponsorship of a large LGBT parade

Exporting countries agree to voluntary export restraints (VERs) generally as an alternative to the threat of

stiffer quotas and tariffs.

A good definition of Protectionism would be

taking measures, like tariffs, duties, and barriers/regulations to ensure that your home country goods are more price attractive or available to your own citizens.

Motor vehicle parts that are imported into the United States are subject to a(n) ________, which is a tax imposed by the government.

tariff

What does the speaker consider invaluable as it pertains to roles in leadership and career positions?

the cultural experiences one gains firsthand from working in other countries

Which of the following is an example of protectionism?

the higher tariffs being imposed on Chinese solar panels

What does Professor Jared Diamond point to as the reason for the dominance of Euro-Asian cultures over American cultures in regard to superior technology?

the influence of geography

Measures the tolerance of ambiguity among members of society. Directly refers to the means of avoiding risk.

uncertainty avoidance

Predatory pricing is the practice whereby a foreign producer intentionally sells its products in a market for less than the cost of production to

undermine the competition and take control of the market.

Female buying power is on the rise, not only because there are more jobs for women, but also because

women have better, more influential jobs.