Exam 19: The Global Marketplace

Which of the following characterizes indirect exporting?

When Tool Trade, an American company, uses qualified Brazilian manufacturers to produce many of the products it sells to retailers in South America, Tool Trade is using contract manufacturing.

Companies that go global confront several major risks. Describe three of these risks.

Trusted Wholesalers is a company that currently purchases products made in Mexico and sells them to companies based in the United States and Canada. Trusted Wholesalers is considering whether to also purchase products produced in Costa Rica and the Dominican Republic. To make their decision, members of management at Trusted Wholesalers will most likely evaluate the agreements made by ________.

Immediately after deciding which markets to enter, the company should determine ________.

Which of the following characterizes U.S. companies in the past?

Changing promotions to suit local markets is known as ________.

Trusted Wholesalers is a company that purchases products produced in Mexico and sells them to companies based in the United States and Canada. Management at Trusted Wholesalers would most likely be interested in becoming experts in the policies developed by the ________.

Firms that stay at home to play it safe ________.

Describe the political-legal factors that a company should consider before deciding to conduct business in a foreign country.

Demographic characteristics, geographic characteristics, economic factors, sociocultural factors, and political and legal factors all help a company ________.

When entering a foreign market, companies typically start with ________, working through independent intermediaries to sell products produced in the home country.

Which of the following is true of contract manufacturing?

Which of the following is a sociocultural factor that a company should consider before deciding to enter into a new country?

To overcome price escalation when selling to less-affluent consumers in developing countries, companies make simpler or smaller versions of their products that can be sold at lower prices.

Which of the following is a geographic factor that a company should consider before deciding to enter into a new country?

In 2005, the ________ established a free trade zone between the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.

Kellogg ads in the United States promote the taste and nutrition of Kellogg's cereals versus competitors' brands. In France, where consumers drink little milk and eat little for breakfast, Kellogg's ads must convince consumers that cereals are a tasty and healthful breakfast. Which marketing strategy is being followed by Kellogg?

A(n) ________ community is a group of nations organized to work toward common goals in the regulation of international trade.

Campbell Soup recently joined forces with Hong Kong-based Swire Pacific to form an entity called Campbell Swire-to better distribute the company's soups in China. This is an example of ________.