Exam 9: Reaching Global Markets

Signature Cycles creates sleek and modern bicycles for commuters and cycling enthusiasts using the latest materials such as carbon fiber frames. Signature Cycles are relatively expensive, but its urban customers routinely pay $800 to $1,000 for the hand-crafted bicycles. The owners are considering expanding their company's footprint outside the United States and are considering opportunities to export its products to Canada and Mexico. They have learned that _______ eliminated virtually all tariffs on goods produced and traded among Canada, Mexico, and the United States.

The unification of Europe permits virtually free trade among the member nations of the European Union.

In what ways can a nation restrict the flow of imported goods?

A major disadvantage of this type of international organizational structure is that employees tend to belong to two divisions and report to two managers in different hierarchies of the firm. This structure is known as a(n) _____________.

The study of the cultural environment is unnecessary in the foreign market because foreign consumers will accept anything that American marketers have to sell.

Many marketers claim that ____ will become the world's largest market.

An embargo occurs when a government suspends trade with a particular country.

The joint venture approach has little appeal to industries involved in extraction of natural resources.

In China, the price of imported Scotch is $30 per glass as opposed to Scotch from China, which is $3. Which of the following do you think accounts for the difference in price?

Globalization of markets requires developing marketing strategies as if the world were one market. Which of the following marketing mix variables is most difficult to standardize for globalization?

Firms with internationally integrated structures are the least likely to engage in direct ownership activities internationally.

Describe how economic and competitive forces affect international marketing strategies.

Brand name, product characteristics, packaging, and labeling are some of the ______________ marketing mix variables to standardize for international markets.

Today many firms are more interested in building marketing strategies around similarities that exist among countries rather than customizing around their differences.

The General Agreement on Tariffs and Trade was initially implemented to do which of the following?

While NAFTA eliminates many tariffs immediately, the tariffs on more sensitive goods, such as glassware, footwear, and some fruits and vegetables, were phased out over a 15-year period.

If a certain country considered handshakes in business transactions to be taboo and preferred to use nodding, this would be an example of differences in ____ forces.

If The Limited Company relies on hiring a foreign textile manufacturer to produce a designated amount of clothing for its Express, Limited, and other stores, it is using

Swiss-based Nestlé has taken a global approach to marketing its chocolate products. Which of the following is most easily standardized?

Toshiba Electronics is very interested in taking advantage of business opportunities in India but does not have access to India's market. Toshiba has the patent on a low-cost, quality computer system that could assist small businesses in India. Sony Computer, Toshiba's competitor, is experienced in India's small business market but does not have a computer comparable to Toshiba's. If Toshiba and Sony work together to utilize these strengths to seize this opportunity in India, what type of business structure would they likely use?