Exam 19: The Global Marketplace

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

Nokia created dustproof keypads,crucial in dry,hot countries with many unpaved roads,such as India.This is an example of .

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

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 just whether a company- wide global focus would be more profitable after all. Managers at Selman & Saks studied Wellman's licensing agreement in great detail.Though seeing first- hand the benefits Wellman found 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,the 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." -Based on the passage,Selman & Saks entered the French market to gain which of the following benefits of global trade?

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 all factors that would likely lead a company to in a foreign market.

Growing Green is a company that markets organic and environmentally friendly gardening and landscaping supplies and equipment.Members of management at Growing Green are examining the policies of GATT,actions undertaken by the WTO,and the agreements made by NAFTA and the EU.In which stage of the international marketing process is Growing Green?

What might drive a company to create international divisions or subsidiaries? Discuss the three ways these divisions can be organized.

It is important to understand how business norms vary from county to country.For example, like to sit or stand very close to each other when they talk business-in fact,almost nose- to- nose.

Which of the following is a factor that is likely to push a company to decide NOT to enter international markets?

Firms that play it safe and do not enter the global market are likely to lose their chances to enter other markets .

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

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 agreements made by .

Nontariff trade barriers include restrictive product standards that work against American product features.

Coca- Cola is less sweet or less carbonated in certain countries.This is known as standardized global marketing.

All of the following are strategies for adapting product and marketing communications to a global market EXCEPT which one?

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.

Bias against bids made by American companies is an example of a(n)_.

What are two possible reasons that management contracting is prevalent in the hotel industry?

Trusted Wholesalers is a company that currently purchases products produced 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 closely evaluate the agreements made by .

Which of the following is a political and legal factor that a company should consider before deciding to enter an international market?