Exam 21: Tapping into Global Markets

A company can enter a foreign market through ________,which is a complete form of licensing in which the company offers a complete brand concept and operating system.In return,the ________invests in and pays certain fees to the company.

When forces for both global integration and national responsiveness prevail to some extent,a "glocal" strategy that standardizes certain elements and localizes other elements can be the way to go.

Contract manufacturing gives the company less control over the manufacturing process and risks loss of potential profits on manufacturing.However,it offers a chance to start faster,with the opportunity to form a partnership or buy out the local manufacturer later.

The "Trema" launch was a success! Now,a year later,you have been receiving calls from U.S.dealers complaining that "Trema" is available from international distributors at prices 50% less than the U.S.price.You are faced with a(n)________ problem due to the international success of your product.

Eighty percent of consumers in emerging markets buy their products from ________.

In an increasingly connected,highly competitive global marketplace,government officials and marketers are concerned with how attitudes and beliefs about their country affect consumer and business decision making.________is(are)the mental associations and beliefs triggered by a country.

Multinationals are plagued by the gray market problem.The gray market consists of ________.

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.

Indirect export has two advantages.First,it involves less investment; and second,it involves less risk.

Define psychic proximity and explain why is it important for companies engaged in exporting.

As the EU standardizes its general trade regulations and currency,creating an economic community has created a homogeneous marketplace in Europe.

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

U.S.manufacturers think their job is done once the product leaves the factory.These firms should pay attention to how the product moves within the foreign country.They should take a whole-channel view of the problem of distributing products to the final user.Describe the whole-channel concept.

Finnish cellular phone superstar Nokia customized its 6100 series phone for every major market in which it sells the product.In Asia,for example,the developers raised the ring volume so that it could be heard on the crowded Asian streets.This adaptation resulted in a ________.

Product adaptation involves altering the product to meet local conditions or preferences.

A firm that charges a price to another unit in the company sets the ________ price for goods that it ships to its foreign subsidiaries.

As required levels of distribution increase,so do customer prices relative to the importer's price.

Operating units within an international division may be ________,each with an international vice president responsible for worldwide sales of each product group.

When companies are setting prices in different countries,the problem with setting a uniform price everywhere is that ________.

Which of the following is most likely to be successful when introduced in foreign markets as a straight extension