Exam 19: The Global Marketplace

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.

Which type of business is LEAST likely to find it necessary to enter international markets in order to survive?

Economic communities are also known as .

Of the following,a company should make which major decision about international marketing first?

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

Describe the factors that might draw a company into the international arena.

When entering a foreign market,companies typically start with ,working through independent intermediaries to sell products produced in the home country.

UNASUR is the economic community of South American nations.

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

Joint venturing is when two or more U.S.companies jointly invest in distributing products to a foreign country.

What is the name of the single agreement that created a market of 452 million people and has eliminated trade barriers and investment restrictions among the United States,Mexico,and Canada?

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.

Discuss direct and indirect exporting.What are two advantages of exporting?

Which of the following involves the direct exchange of goods and services?

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

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." -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 which market entry strategy?

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.

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

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

The is a 62- year- old treaty designed to promote world trade by reducing tariffs and other international trade barriers.