Exam 21: Tapping into Global Markets

Global marketers know that buyers hold distinct attitudes and beliefs about brands or products from different countries. These country-of-origin perceptions do not affect consumer decision making directly or indirectly.

There are several variations of a licensing agreement. One of these that gives the licensee a complete brand concept and operating system is called franchising.

Domestic-based export agents seek and negotiate foreign purchases and are paid a straight salary.

Starbucks Coffee, Tea and Spices opened its first store in Seattle in 1971. Now Starbucks has over 15 000 outlets worldwide. Why have so many marketers, such as Starbucks, embraced global marketing?

A global industry is an industry in which the strategic positions of competitors in major geographic or national markets are affected by their overall global positions.

The five models of entry into foreign markets generally flow by increasing commitment, risk, control, and profit potential as follows:

Your firm thinks the job is done once the product leaves the factory for the foreign country. If you want them to pay attention to how the product moves within the foreign country, you'll have explain the three major links between seller and ultimate buyer in the foreign country. Which link is where the export department or international division makes decisions about channels and other marketing activities?

Exports represent approximately ________ of our gross domestic product; the highest percentage of any of the G-8 economies.

Outline the major decisions that a firm must undergo in making a decision to market internationally.

One of the best ways to initiate or extend export activities used to be to exhibit at an overseas trade show. With the Web, it is not even necessary to attend trade shows to show one's wares. Explain how marketers are using the Web for international business.

Once a company decides to target a particular country, it has to determine the best mode of entry. Its broad choices are indirect exporting, direct exporting, licensing, joint ventures, and direct investment.

In choosing which countries to invest in, companies sometimes choose psychic proximity to their own country. Psychic proximity can best be defined as

Kraft uses different ads for Cheez Whiz in different countries, such as Peurto Rico, where the cheese is put on everything. This is an example of which of the following adaptation strategies?

In 2000 Stelco, a Canadian steelmaker, successfully fought dumping changes against steelmakers in Brazil and other countries. "Dumping" is defined or occurs when

Many Canadian firms will feel they have a psychic proximity to countries such as the United States, England, and Australia. Define psychic proximity and why is it important for companies exporting?

A "waterfall" approach to entering foreign markets is described as entering countries gradually and sequentially.

The developed nations account for 85 percent of the world's population.

The investment and risk of direct exporting are somewhat greater than indirect exporting but so is the potential return.

A "sprinkler" approach to international marketing is defined as

List some of the risks your company must weigh before making a decision to "go abroad."