Exam 19: The Global Marketplace

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

How is joint venturing more risky and complex than merely exporting?

What are two possible risks involved with licensing?

Which of the following is a risk associated with international trade?

Sellers might accept a(n) ________, one whose removal from the country is restricted by the buyer's government, if they can buy other goods in that country that they need themselves or can sell elsewhere for a needed currency.

Sellers must understand the ways that consumers in different countries think about and use certain products before planning a marketing program.

In 1994, ________ established a free trade zone among the United States, Canada, and Mexico.

Assume that a Gucci handbag sells for $60 in Italy and $240 in the United States because Gucci must add the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to its factory price. This information indicates that Gucci faces a ________ problem.

Compare and contrast the advantages and disadvantages of standardized global marketing and adapted global marketing.

What types of products would be successful with standardized global marketing?

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

Widespread adoption of the euro has decreased much of the currency risk associated with doing business in Europe, making member countries with previously weak currencies more attractive markets.

________ ventures consist of one company joining forces with foreign investors to create a local business in which they share ownership and control.

Why is a company unlikely to set a uniform price all around the world?

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 biggest involvement in a foreign market comes through exporting-entering foreign markets by selling goods produced in the company's home country.

Members of management at Growing Green, a company that markets organic and environmentally friendly gardening and landscaping supplies and equipment, are evaluating the benefits and disadvantages of indirect exporting, direct exporting, and licensing. In which stage of the international marketing process is Growing Green?

Which of the following is true of contract manufacturing?

If Audi develops a new low-priced model for entry-level consumers in Europe, it would be an example of straight product extension.

Formed in 1957, the ________ set out to create a single European market by reducing barriers to the free flow of products, services, finances, and labor among member countries and developing policies on trade with nonmember nations.