Exam 9: Reaching Global Markets

Which one of the following is likely to concentrate human resources into one unit and serve as the central point for all information flow related to international operations?

Domestic marketing involves marketing strategies aimed at markets within the home country.

Brand name, product characteristics, packaging, and media allocation are among the easiest marketing mix variables to standardize around the world.

What effect is NAFTA having on the international trade of the following countries: United States, Canada, and Mexico?

Maquiladoras are

Counterfeit luxury goods are a major problem in some Asian countries. Women that purchase counterfeit bags feel a thrill when they are able to fool others into believing they own a luxury brand. However, the major reason for the deception is that people in those cultures place high value on luxury brands. By showing off the brand, these women are demonstrating that they can afford the best. The emphasis and value placed on status is an example of a(n) _________________.

General Motors is a multinational company. In most countries in which it operates, General Motors opens facilities that give it total control over manufacturing and other processes. However, in China General Motors must partner with domestic companies due to legal and regulatory constraints. In these cases, GM owns part of the company, while the domestic firm owns the other part. In most countries, GM engages in ____________, but in China it engages in _______________.

Scenario 9.3 Use the following to answer the questions. The United States believes China is selling its steel products in the U.S. at unfairly low prices. For many years, domestic steelmakers have complained, saying that they cannot compete against the influx of Chinese steel entering the market. China denies that it is engaging in such behavior. However, the United States has announced that imports of Chinese steel products will now be more expensive-in some cases, by as much as 265.79%. American steelmakers believe this is the only way they will be able to compete against Chinese steel imports. Refer to Scenario 9.3. The reason Chinese steel products will be expensive is because the U.S. government is levying __________ against them.

Customs and taboos are culture-bound and should be taken into consideration when products are marketed in a foreign environment.

Baxter Publishing sought to reduce expenditures related to the printing of books in its trade and educational market and contracted with a printing company in China. However, the publishing company soon realized that China has weak enforcement of intellectual property laws and that gray market books began appearing in the marketplace, which greatly impacted Baxter's profits. The company found that they had little recourse against the contract manufacturer and learned a very difficult lesson in international marketing. This exemplifies the impact of _______ forces on international business.

The World Trade Organization was an important outcome of the unification of Europe.

A company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a

In relation to international marketing, which of the following best describes direct ownership?

Scenario 9.1 Use the following to answer the questions. Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America. " Refer to Scenario 9.1. One of Harley-Davidson's largest international markets is in Japan, where American brands are highly sought after. This is an example of ____ impacting the market.

A quota is the suspension, by a government, of trade in a particular product.

Customers who travel the globe expect to be able to buy the same product in most of the world's more than 200 countries.

If Germany, in an attempt to bolster the sales of its own auto manufacturers, decided to limit the number of automobiles that could be brought in from other countries, Germany would be using a(n)

____________________ involves developing and performing marketing activities across national boundaries.

Cultural relativism is the unconscious reference to one's own cultural values, experiences, and knowledge when traveling in other countries.

Because firms have different resources and core competencies, their international marketing strategies will also be different. Nevertheless, any firm seeking to be successful in international markets must establish the right organizational structure for its core competencies and resources. Which of the following is a valid international organizational structure?