Exam 9: Reaching Global Markets

A positive balance of trade is considered good because it means that U.S. dollars are supporting foreign economies at the expense of U.S. companies and workers.

According to your text, ____ are small technology-based firms operating in international markets almost immediately after their establishment and realizing as much as 70% of their sales outside the domestic home market.

The degree to which a firm is able to "think globally, act locally" impacts the success of the firm's _________________ strategy as it goes international.

Scenario 9.2 Use the following to answer the questions. KFC opened its first franchised restaurant outside of North America in England in 1964. Now over a billion KFC chicken dinners are sold annually in more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu-items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries-to offer the customer passing by a preliminary view of their product. Refer to Scenario 9.2. Suppose that KFC's parent company experienced difficulty in opening its restaurants in China unless KFC was willing to pay the government a "bribe." If KFC were to resort to paying this bribe in China saying that "it's different doing business there," this would be an example of

Marketers of computer software, music CDs, and books are particularly affected by cultural differences in

When the American company Exxon purchases crude oil from Saudi Arabia, it is engaging in

When products are introduced from one nation into another, acceptance is more likely if the two cultures are different.

Government restrictions on the amount of a particular country's currency that can be bought or sold are known as

Which of the following lists the levels of involvement in global marketing from the lowest to the highest?

The World Trade Organization accomplishes all of the following except

Most European countries use a common currency, the _____, except for _____, which uses its own currency.

Levi Strauss markets its denim jeans in many countries and develops its marketing strategy as if the world were a single market. This approach to selling a standardized product in all countries represents which type of international marketing?

Tony&Guy is a global hairdressing and education business headquartered in England. It has recently opened salons in Mongolia, adding to its numerous salons worldwide. Tony&Guy allows foreign businesspeople to use its name, logo, methods of operation, advertising, and products. In exchange, Tony&Guy receives a financial commitment and an agreement to conduct business in accordance with its standard of operations. Tony&Guy is engaging in

Which of the following centralizes all of the responsibility for international operations?

_____________ are companies that were started with the knowledge and resources to compete in a global marketplace. They are usually small technology companies that quickly establish themselves in international markets. They reach a point where as much as ________% of their sales come from locations outside the United States.

Walmart is currently expanding its stores into Canada and Mexico. This expansion is being facilitated by the

Solar Sports is excited about expanding their export opportunities to Cuba, since the United States has renewed trade relations with Cuba, and plans to utilize a _______, which links buyers and sellers in different countries but is not involved in manufacturing and does not own assets related to manufacturing.

U.S. businesses are increasingly recognizing that international markets provide enormous opportunities for growth and profit. ___________companies are entering international markets and quickly realizing as much as 70% of their sales outside the domestic market within two years.

What is the greatest advantage to an organization of having a subsidiary in a foreign nation?

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. Harley-Davidson's practice of having manufacturers in China produce apparel items with the Harley logo is an example of