MKT 321 Test 1

When the makers of Red Bull, an energy drink, decided to go international with their marketing effort, a global approach was adopted. With which of the following factors did Red Bull most likely experience difficulty as the firm applied a global strategy for marketing?

Advertising

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

Exporting

Because firms have different resources and core competencies, their international marketing strategies will also be different. Nevertheless, any firm seeking to be successful in international markets must establish the right organizational structure for its core competencies and resources. Which of the following is a valid international organizational structure?

Geographic area structure

​The United States believes China is selling its steel products in the U.S. at unfairly low prices. For many years, domestic steelmakers have complained, saying that they cannot compete against the influx of Chinese steel entering the market. China denies that it is engaging in such behavior. However, the United States has announced that imports of Chinese steel products will now be more expensive—in some cases, by as much as 265.79%. American steelmakers believe this is the only way they will be able to compete against Chinese steel imports. ​ Refer to Scenario 9.3. The reason Chinese steel products will be expensive is because the U.S. government is levying __________ against them.

Import tariffs

Before the 1990s, most firms entered international markets

Incrementally and slowly

The Cooper Tire & Rubber Company has been searching for less expensive raw materials for manufacturing its bicycle tires. Cooper has found that there are less expensive sources in the country of Indonesia, but it needs to form a partnership with the government of Indonesia in order to gain access to the country's rubber. What type of partnership will need to be formed?

Joint venture

Firms that have operations or subsidiaries located in many countries are referred to as

Multinational enterprises

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

North American Free Trade Agreement (NAFTA)

The global technology company Apple received negative publicity related to allegations that its workforce at a ________ plant in China was overworking the employees who worked as many as 15 hours a day in poor factory conditions. Apple and other companies that participate in China's manufacturing industry have hired inspectors to ensure the contracted agreements are being followed and worker safety and rights are protected.

contract manufacturing

The Samsung Group sells several different product lines around the world through home appliance and electronics stores. Samsung appliances and electronics have been historically made in Korea, where the company is headquartered. Recently, Samsung has been investigating the possibility of buying land and building a production plant in Tennessee, in the United States. Samsung is now operating as a(an) ______; however, if the plant is built in Tennessee, it will be operating as a(an) ______.

exporter; multinational enterprise.