Exam 21: Tapping Into Global Markets

The "Trema" launch was a success! Now,a year later,you have been receiving calls from U.S.dealers complaining that "Trema" is available from international distributors at prices 50% less than the U.S.price.You are faced with a(n)________ problem due to the international success of your product.

The impact of country of origin is independent of the type of product.

When companies are setting prices in different countries,the problem with setting a uniform price everywhere is that ________.

The internationalization process has four stages.These stages include ________.

Multinationals are plagued by the gray market problem.The gray market consists of ________.

Companies can run the same marketing communications programs as used in the home market or change them for each local market,a process called ________.

Outline the major decisions that a firm must undergo in making a decision to market internationally.

Transfer prices can be set arbitrarily because,as an internal transaction,there are no financial implications to charging transfer prices that are too high or too low.

________ is one of the world's largest single markets,with 25 member countries,a common currency,and more than 454 million consumers.

A joint venture may be necessary or desirable for economic or political reasons.The foreign firm might lack the ________,or managerial resources to undertake the venture alone.

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

In an adapted marketing mix,the producers ________ the marketing programs to each target market.

A waterfall approach to entering foreign markets is described as entering countries gradually and sequentially.

As the EU standardizes its general trade regulations and currency,creating an economic community has created a homogeneous marketplace in Europe.

One of the best ways to initiate or extend export activities used to be to exhibit at an overseas trade show.With the Web,it is not even necessary to attend trade shows to show one's wares.Explain how marketers are using the Web for international business.

Product adaptation involves ________.

Matsushita,BMW,General Electric,Benetton,and The Body Shop followed the ________ approach to market entry,which allows firms to carefully plan expansion and is less likely to strain human and financial resources.

In choosing which countries to invest in,companies sometimes choose psychic proximity to their own country.Psychic proximity can best be defined as ________.

Once a company decides to target a particular country,it must determine the best mode of entry.Each of its market entry strategies involves more commitment,risk,control,and profit potential.List these market entry strategies in order from low risk to high risk.

A company can carry on direct exporting in several ways.A traveling export sales representative is ________.