Exam 9: Reaching Global Markets

U.S. marketers may engage in bribery to compete with foreign firms.

Two-thirds of the world's total purchasing power is outside the United States.

When Amway entered China, it opened up retail locations for the first time. Amway is a direct selling firm. This means that it sells almost exclusively through independent consultants. However, in China restrictions on direct selling required significant modifications in how consumers obtain these products. On the other hand, Amway has been able to sell many of its signature products to the Chinese market with little to no modification. In China, Amway was forced to ______________ the distribution variable and ___________ its product variable.

If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called

Sociocultural forces in international markets keep marketers busy trying to understand local preferences, tastes, customs, and idioms. The marketer's failure to understand these forces almost certainly leads to failures in the marketing strategies used. Which one of the following statements about the sociocultural forces in international markets is true?

Which of the following is used to help maintain a more favorable balance of trade by a country?

A ______________ links buyers and sellers in different countries, but it has no manufacturing capability. It most important function is ___________ to products and moving them from the domestic country to the foreign country.

A(n) ____ is an organization that links buyers and sellers in different countries but is not involved in manufacturing.

A subsidiary operating in a foreign country may have important tax, tariff, and other operating advantages over a licensing agreement or a joint venture.

Explain why the modes of entry into an international market are a major issue for managers to consider.

Sebastian Motors is a family-owned car dealership with two locations in central France. The car dealership markets BMWs and Mini Coopers and provides servicing. Recently, Sebastian Motors has been impacted by the economic climate in the ________ ,which has suffered recently due to a weakening of the currency and the poor financial conditions of several member countries including Portugal, Italy, Greece, and Spain-affectionately known as the PIGS of the Common Market.

XYZ Logistics was engaging in limited transportation of agricultural products overseas. However, it recently made the decision that it wanted to increase the exporting of products to Canada, Mexico, Argentina, Brazil, and other countries. To do this it created a new subunit of its marketing division that would specifically focus on these activities. XYZ Logistics has adopted a(n) __________ structure.

If a newly formed country wanted to increase its international trade and reduce worldwide tariffs, it would most likely try to become a part of

Special interest groups and regulatory bodies are ____ forces that must be taken into account in international marketing.

The internationally integrated structure is one type of organizational structure used by U.S. firms for their international operations. Which of the following statements is true about internationally integrated structures?

Media allocation, retail outlets, and price are among the easiest marketing mix variables to standardize.

What marketing and ethical problems can bribes create in international marketing transactions?

The North American Free Trade Agreement (NAFTA) ___________ tariffs on goods produced in and traded between Canada, Mexico, and the United States.

IKEA has opened stores in Beijing and Shanghai and hopes to capitalize on China's growing consumer economy, since the potential of China's consumer market is so vast that it is almost impossible to measure. IKEA and other global retailing giants operating in China are beneficiaries of the _____, which was established in 1989 to promote open trade and economic and technical cooperation among member nations. In addition, they are allowed to participate in a wide range of organizational activities and have become increasingly competitive regarding global business.

A trading company provides a link between buyers and sellers in different countries.