Exam 7: Serving Global Markets

In order to gain access to some foreign markets, a firm may barter products rather than selling them for cash. What is this referred to as?

Match each item to the statement or sentence listed below. a.exporting b.World Trade Organization c.infrastructure d.exchange rate e.tariff f.import quota g.dumping h.ISO certification i.foreign licensing j.multinational corporation k.global marketing strategy l.multi-domestic marketing strategy m.countertrade n.joint venture o.exchange control p.customs union q.Free Trade Area of the Americas r.European Union s.importer t.embargo u.franchise -The practice of selling a product in another country at below cost is called _____.

Export-management companies provide a marketer with business advice and administrative services that might include working with the foreign government to ensure all of the regulations are met and the necessary paperwork is completed.

What term refers to a tax levied on imported goods?

Protective tariffs are established to raise funds for the importing country that levies them.

Offset agreements combine small firms with major international companies; the larger company acts as the primary contractor, and the smaller firm supports the larger with specialized exporting knowledge.

Tariffs and import quotas serve to restrict the importation of products, but embargoes completely ban the importation of the specified goods or the products of a particular country.

Both import/export and licensing strategies do not require capital outlays in the form of investment in the foreign markets that are being served.

What type of trade barrier is being used when governments try to protect the private domestic industries by providing them financial support?

The North American Free Trade Agreement removed trade restrictions between Canada, the United States, and Brazil.

Free trade areas have no integration of nations, just the removal of barriers to trade, whereas the common market attempts to integrate the political, social, and economic elements of nations, along with their infrastructures.

International direct investment can be achieved by a company acquiring an existing firm in a country where it wants to do business.

What is countertrade? Why would a country choose to countertrade?

The most common reason cited by Canadian marketers for going global is to find other markets for their products.

What is an organization called that provides first-time exporters with expertise in locating foreign buyers, handling paperwork, and conforming to local labelling and testing laws?

Technology has allowed small companies the opportunity to enter the global marketplace more quickly

Licensing has an advantage over exporting because the company enters the market with a known product, leases manufacturing space, hires foreign labour and, for a limited time, manufactures a product that has a high probability of success.

Which of the following is NOT a reason why Canada is an attractive market for international marketers?

Discuss some factors that can influence environmental marketing strategies.

What is a company called that buys products from domestic producers and resells them abroad?