Exam 19: The Global Marketplace

A cell phone maker customized its cell phones for the Asian market by raising the ring volume so that phones could be heard on crowded streets. This is an example of product invention.

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 ________.

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.

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

________ means marketing a product in a foreign market without making any changes to the product.

The BRIC countries are ________.

GigaTalk, a U.S. based computer manufacturing company, found that Japanese commuters had difficulty using standard laptops on crowded rush-hour trains because while standing, commuters cannot use their laptops. So GigaTalk created a standing computer. This computer includes a touch screen and small keyboard that can be used while standing or on the move. This is an example of ________.

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

The United States and Norway are examples of ________ economies.

Describe the purpose, roles, and achievements of GATT and the WTO.

India needs more imports of raw materials such as textiles, steel, and heavy machinery and fewer imports of finished textiles, paper products, and automobiles. In the context of industrial structures, India is most likely a(n) ________ economy.

Which of the following was designed to help foster trade between nations?

Refer to the scenario below to answer the following question(s). 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." -Foreign firms are expanding aggressively into new international markets, and home markets are no longer as rich in opportunity.

Through ________, an organization in the foreign market buys the right to use a company's manufacturing process, trademark, patent, trade secret, or other item of value.

________ are major exporters of manufactured goods, services, and investment funds.

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?

________ are the first link between the seller and the final buyer. They move company products from points of production to the borders of countries within which they are sold.

Which of the following is a type of joint venturing?

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

Sears opened up department stores in Mexico and Spain, where it found qualified local manufacturers to produce many of the products it sells. This type of joint venture is known as ________.