Exam 15: The Global Marketplace 

Which of the following is true of exporting?

Exporting involves a company entering foreign markets by partnering with foreign companies to produce or market a product or service.

The two economic factors that reflect a country's attractiveness as a market are its industrial structure and import/export ratio.

A country's shapes its product and service needs, income levels, and employment levels.

Most of the retailing in Canada is done by small, independent retailers.

What are the factors that a company should consider when deciding which markets to enter?

Regardless of how companies go about pricing their products, their foreign prices will most likely be higher than their domestic prices for comparable products.

Barter involves the direct exchange of goods and services.

To overcome this problem when selling to less-affluent consumers in developing countries, many companies make simpler or smaller versions of their products that can be sold at lower prices. Others have introduced new, more affordable brands for global markets. This is known as a(n) problem.

Differentiate between industrializing economies and industrial economies. Give a few examples of each.

Which of the following is a type of joint venture?

In addition to joint ownership ventures in China, Intel has made substantial outlays in its own manufacturing and research facilities there. This is an example of .

Japan is a major exporter of manufactured goods, services, and investment funds. Japan also exports its goods to other types of economies for raw materials and semi-finished goods. This is an example of a(n) _ economy.

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

Management contracting is a low-risk method of getting into a foreign market.

Global companies recruit management from many countries, buy components and supplies where they cost the least, and invest where the expected returns are greatest.

The simplest way to enter a foreign market is through .

Which of the following is a disadvantage of straight product extension?

For a fee or royalty payments, a licensee buys the right to use the company's manufacturing process, trademark, patent, trade secret, or other item of value.

When adapting advertising messages, media may also need to be adapted internationally because media availability and regulations vary from country to country. This illustrates .