Exam 21: Tapping into Global Markets

A joint venture may be necessary or desirable for economic or political reasons. Additionally, a foreign firm might lack the ________, or managerial resources to undertake the venture alone.

How has Quaker Oats used forward invention to adapt products and communications for a foreign market?

Domestic based export merchants buy the manufacturer's products and then sell them abroad.

If the company adapts both the product and the communications, the company engages in dual adaptation.

The use of a domestic-based export department or division, overseas sales branch or subsidiary, traveling export sales representatives, and foreign-based distributors or agents are all examples of how a company can carry on direct exporting on their own.

Domestic based export agents perform a valuable service for the companies seeking to enter foreign markets. The primary function of these agents is to

Management contracts offers foreign owners the opportunity to manage businesses for a fee.

Regional Free Trade Zones exist around the world. One of the oldest is the European Union formed in 1957. Describe the purpose of the EU and discuss some of the benefits to firms engaged in trade within the European Union.

Hofstede identifies four cultural differences, his first being "individualism versus collectivism." Briefly explain how this could affect the communications strategy of a brand that is closely associated with independence and a free spirit.

Many multinationals are plagued by the grey market problem. The grey market consists of

General Motors has invested billions of dollars in auto manufacturers around the world, such as Shanghai GM, Fiat Auto Holdings, and Fuji Heavy Industries. What form of foreign involvement does this represent. Briefly describe its advantages.

Product invention consists of creating something new. Backward invention is reintroducing earlier product forms that are well adapted to a foreign country's needs. Forward invention is

NAFTA established a free trade zone among the United States, Mexico, and Canada.

The concept of licensing contains many dimensions. From a simply license through management contracts, contract manufacturing, and franchising, the level of commitment by the firms involved increases. Define each of these forms and list some of the pros and cons for utilizing the particular form of licensing.

Business is easier and safer in the international arena.

An Ontario winery has plans to expand distribution beyond Canada. Explain how this firm must move through the internationalization process's four stages.

The internationalization process has six stages. The first stage is moving the company from no regular exports to regular export activities.

Factors that influence the "attractiveness" of a country to enter include which of the following?

Business can be "as usual" when selling in developing markets as consumers are "consumers" around the world.

Companies can run the same marketing communications programs as used in the home market or change them for each local market, a process called communication adaptation.