Exam 19: The Global Marketplace

A(n) ________ serves to limit the amount of foreign exchange and the exchange rate against other currencies.

Foreign businesses in India appear to receive unusually close scrutiny and special regulations, aimed at protecting the local businesses. This is an example of a(n) ________.

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." -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 ________.

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 ________.

Countries with ________ economies consist mostly of households with very low family incomes.

Many studies reveal that instead of "Americanizing" the world's cultures, the cultural exchange between America and other countries goes two ways. Give two examples of how America has been influenced culturally by foreign products or services.

Explain why some critics worry that American multinationals are causing countries around the globe to lose their individual identities. Give an example of the "Americanizing" of the world's cultures.

Which of the following is an example of a raw material exporting economy?

Dove body soaps are sold successfully in essentially the same form around the globe. This is an example of straight product extension.

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

International divisions can be organized as geographical organizations, world product groups, or international subsidiaries.

A(n) ________ economy is rich in one or more natural resources but poor in other ways and much of its revenue comes from exporting its natural resources.

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

The World Trade Organization established the The General Agreement on Tariffs and Trade, which replaced the WTO in 1995 and now oversees the original WTO provisions.

If Azerbaijan imported wheat from Romania in exchange for crude oil, and Vietnam exchanged rice for Philippine fertilizer and coconuts then these scenarios would be examples of ________.

Industrial economies are major importers of manufactured goods, services, and investment funds.

Which of the following characterizes emerging economies?

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

Which of the following is a type of industrial structure?

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