Exam 8: Tapping Into Global Markets

Finnish cellular phone giant Nokia customized its 6100 series mobile phone for every major market in which it is present. In Asia, for example, the series came with higher ring volume so that it could be heard on the crowded Asian streets. This is an example of ________.

Communication adaptation occurs when companies change marketing communications for each local market.

Services represent the fastest-growing sector of the global economy and account for two-thirds of global output.

A market survey by LG revealed that Indians preferred not to mix vegetarian and non-vegetarian food items. Hence, LG refrigerators in India include a special convertible box with separate compartments to store and control the temperature of vegetarian and non-vegetarian food. This is an example of customizing ________ to local needs.

What are the various risks that a company must consider before making a decision to enter foreign markets?

The first task of the internationalization process is moving a company from no regular exports to regular export activities.

Trends Inc. produces and markets casual wear for men and women. The company wants to be a global brand and is planning to enter a few chosen markets across Europe and Asia. To accommodate the differences in purchasing power and costs of shipping goods to the retailers, the company has decided to use cost-based pricing in each country. In order to ensure that this strategy is successful, Trends must first make sure that ________.

Indirect exports have two advantages for a firm: less investment and less ________.

Backward invention occurs when a firm ________.

The more favorable a country's image, the less prominently the "Made in…" label should be displayed.

Cisco had no presence in India before 2005, but it used a ________ approach and already opened a second headquarters in Bangalore to take advantage of opportunities in India and other locations such as Dubai.

________ agree to manage a company's export activities for a fee.

Product adaptation alters the product to meet local conditions or preferences. Identify four levels of adaptation.

If a company charges its subsidiary in a foreign country too low a transfer price, it can be accused of dumping.

Which of the following is NOT one of the ways direct exporting happens?

What are the choices available to companies when setting prices to avoid price escalation problems?

Define psychic proximity and explain why it is important for companies engaged in exporting products.

Luxury brands are usually not global because they target a niche market.

In a sprinkler approach to international expansion, ________.

Many US firms prefer to sell in Canada, England, and Australia - rather than in larger markets such as Germany and France - because they feel more comfortable with the languages, laws, and culture, which reflect the ________ between these countries and the United States.