Int'l MKTG - Chapter 9

Wrigley, the U.S. chewing gum manufacturer, has not been interested in most Latin American markets because many of the local governments imposed ownership restrictions. This would be an example of _ in markets.

"weeding out"

All of the following are major external criteria for making a decision as to a mode of entry into a foreign market EXCEPT:

company leadership

In _, the company arranges with a local manufacturer to manufacture parts of the product or even the entire product. The marketing of the product, however, is still the responsibility of the international firm.

contract manufacturing

Advantages of wholly owned subsidiaries include all of the following EXCEPT:

control government relationships

One of the main advantages of direct exporting over indirect exporting is that the exporter has more:

control over its operations

_ are the prime motivation behind contract manufacturing.

cost savings

When marketers are making the decision to enter an international market or not, the final step in the decision process is generally to:

decide on a control system to monitor the performance to the entered market

Which of the following is a step in the market entry decision process

decide on a mode of entry

In global market entry, all of the following are entry decisions that must be made by management before entering an international market EXCEPT:

decide on the target budget

Which of the following most accurately describes the first step in the market entry decision process?

decided on the target product/market

_ means that the company sets up its own export organization within the company and relies on a middleman based in a foreign market

direct exporting

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following of those types can be used to build up an initial presence (such as through a liaison office)?

emerging countries

The chief reason that some firms choose acquisitions to enter a foreign market is that they can:

enter the market more quickly

One of the most popular entry modes in the international marketplace for service firms is:

franchising

Wholly owned subsidiaries give MNCs _ of their operations

full control

When a multinational company chooses to invest in foreign markets with wholly owned subsidiaries, these subsidiaries may be acquisitions or _ operations

greenfield

In contract manufacturing, because of "nurture-a-future competitor" threat, many companies prefer to make _ or products that involve proprietary design features in-house.

high-value items

A four-step procedure that can be employed for the initial screening process includes the following EXCEPT:

hire outside consultants to do a marketing audit

All of the following are considered benefits of forming joint ventures EXCEPT:

increased cost controls

When Colgate-Palmolive sees prospects in the counties with purchasing power as a major driver behind market opportunities and Coca-Cola looks at per capita income and the number of minutes that it would take someone to work to be able to afford a Coca-Cola product, they are following which of the following steps of the initial screening process for market entry?

indicator and data selection

_ has disadvantages. Chief among these are that the company has little to no control over the way their product is marketed in a foreign country, lack of adequate sales support can lead to poor sales, and bad decisions made by an intermediary can damage the corporate image.

indirect exporting

_ means that the firm uses a middleman based in its home market to do the exporting

indirect exporting

Nurturing a future competitor is the biggest danger in _

licensing

One way to address hostility to foreign acquisitions in the host country is by _ the firm's presence in the foreign market by hiring local managers, sourcing locally, and developing local brands.

localizing

Risks of exiting a foreign market may lead to all the following EXCEPT:

long-term opportunities

Markets can be classified in four types of countries based on their respective market attractiveness. All of the following are part of the classification scheme EXCEPT:

low-tech countries

The key determinant in the market entry choice decisions in the

market size and growth potential

One of the most popular franchise plans used in international marketing is _ where the franchiser gives the franchise to a local entrepreneur who in turn sells local franchises within a territory.

master franchise

Benefits of licensing include:

not very demanding on company resources

The goals of a preliminary screen to determine market opportunities are to minimize mistakes of ignoring countries that offer viable opportunities for the product and:

not wasting time on counties that offer little or not potential

The _ of a market refers to the country's distribution system, transportation network, and communication system.

physical infrastructure

There are no magic ingredients to foster the stability of joint ventures, however, all of the following are good guidelines EXCEPT:

pick a partner with which control can be maintained

One of the most popular forms of cooperative exporting is _. With this method, the company uses the overseas distribution network of another company (local or foreign) for selling its goods in the foreign market.

piggyback exporting

Markets can be classified in four types of countries based on their respective market attractiveness. Hong Kong and Singapore would fall into which of the types listed below (where the purpose would be to gather intelligence and establish a network)?

platform countries

To identify market opportunities for a given product or service, the international marketer usually starts off with a large pool of candidate countries. To narrow down this pool, the company typically do a _

preliminary screen

The partnership established by Coca-Cola and Nestle to market ready-to-drink coffees and teas under the Nescafe and Nestea brand names is an example of which of the following:

strategic alliance

With respect to joint ventures, the _ argument is illustrated by not only shared capital and risk but possible contributions brought in by the local partner in land, raw materials, expertise on the local environment, and access to local distribution networks

synergy

_ come about when multinational companies prefer to enter new markets with 100 percent ownership.

wholly owned subsidiaries