Exam 21: Tapping Into Global Markets

Once a company decides to target a particular country,it must determine the best mode of entry.Its broad choices are indirect exporting,direct exporting,licensing,joint ventures,and direct investment.

The use of media may require international adaptation because media availability varies from country to country.

Although the world is becoming flatter,there is still some "roundedness." Discuss what is meant by this statement.

A company can carry on direct exporting in several ways.These include domestic- based export department or division,overseas sales branch or subsidiary,traveling export sales representatives,and ________.

A global firm is a firm that operates in more than one country and captures R&D,production,logistical,marketing,and financial advantages not available to purely domestic competitors.

In 2000,Canadian steelmaker Stelco successfully fought dumping changes against steelmakers in Brazil and other countries.Dumping is defined as or occurs when ________.

Global firms,because they are targeting such a large market,must abandon niche strategies.

When companies sell on the Internet,price becomes transparent,and price differentiation between countries declines.

Domestic-based export agents perform a valuable service for companies seeking to enter foreign markets.The primary function of these agents is to ________.

A company must decide on how many countries to enter and how fast to expand.A company's entry strategy typically follows one of two possible approaches.What are those approaches?

Smaller packaging and lower sales prices are often critical in markets where incomes are limited.

Regional free trade zones exist around the world.One of the oldest is the European Union,formed in 1957.Describe the purpose of the EU and discuss some of the benefits to firms engaged in trade within the European Union.

A global industry is an industry in which the strategic positions of competitors in major geographic or national markets are affected by their overall global positions.

Indirect export has two advantages for the firm.First in involves less investment for the firm and secondly it ________.

There are several variations of a licensing agreement.One of these that gives the licensee a complete brand concept and operating system is called franchising.

Attitudes toward country of origin are highly consistent over time and rarely change.

If a company adapts or changes both the product and the communications,the company engages in a process called ________.

When companies are setting prices in different countries,the problem with setting a market-based price in each country is that ________.

The ultimate form of foreign involvement is direct ownership of foreign-based assembly or manufacturing facilities.Advantages of direct ownership can include securing cost economies,creating jobs in the host country,and developing deeper relations with local suppliers;and the firm ________.

Before making a decision to enter foreign markets,the firm must weigh several risks.List these risks.