Exam 19: The Global Marketplace

Refer to the scenario below to answer the following questions. Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all. Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting. With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there." -If Selman & Saks allowed a French company to produce and market razors and trimmers carrying the company's brand in exchange for a royalty, Selman & Saks would be using the market entry strategy of ________.

Growing Green, a U.S. company that markets organic and environmentally friendly gardening and landscaping supplies and equipment, wants to expand the business internationally. Growing Green managers are currently examining the rules imposed by the WTO and the agreements made by NAFTA and the EU. In which stage of the international marketing process is Growing Green?

The simplest way to enter a foreign market is through ________.

In a subsistence economy, fast growth in manufacturing results in rapid overall economic growth.

Refer to the scenario below to answer the following questions. Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all. Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting. With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there." -What did Selman & Saks hope to gain by entering the French market?

Hilton helps others run their hotels by providing the management know-how. This type of joint venture is known as ________.

Think Ink is a growing company that sells a variety of inks for home and business printers. Management at Think Ink has decided to open a sales branch overseas to handle sales and distribution abroad. Think Ink is engaging in ________.

Lower costs in the form of cheaper labor or raw materials, foreign government investment incentives, freight savings, and the opportunity to improve the company image are the factors that would most likely lead a company to enter a foreign market using the market entry strategy of ________.

The biggest involvement in a foreign market comes through direct investment-the development of foreign-based assembly or manufacturing facilities.

Which of the following was a result of the Uruguay Round of global WTO trade talks?

________ involves entering a foreign market by developing foreign-based assembly or manufacturing facilities.

Oreos are less sweet or less bitter in certain countries. This is an example of straight product extension.

Which of the following industrial structures presents the fewest market opportunities?

Tariffs are limits on the amount of foreign imports that a country will accept in certain product categories.

Which of the following is a type of industrial structure?

Name two of the five indicators of market potential and provide an example of each.

A firm normally gets into international marketing by simply shipping out its goods. If its international sales expand, the company organizes a(n) ________.

Foreign businesses in China appear to receive unusually close scrutiny and harsh treatment from Chinese authorities, aimed at boosting the fortunes of local competitors. This is an example of a(n) ________.

Briefly explain why the European Union could be considered a threat to U.S. marketers that want to do business in Europe.

A(n) ________ is a limit on the amount of goods that an importing country will accept in certain product categories.