Exam 21: Tapping into Global Markets

The main disadvantage of direct investment is that the firm exposes a large investment to risks such as blocked or devalued currencies,worsening markets,or expropriation.

When companies sell on the Internet,price becomes transparent,and price differentiation between countries declines.

Name the three choices that companies have for setting prices in different countries.

Many U.S.firms prefer to sell in Canada,England,and Australia-rather than in larger markets such as German and France-because they feel more comfortable with the languages,laws,and culture,which reflect the ________ between these countries and the United States.

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

Most firms initially work with a(n)________ and enter a nearby or similar country.

When forces for global integration are high and forces for national responsiveness are weak,a strategy that ________ makes sense.

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.

Most brands are adapted to some extent to reflect significant differences in ________,brand development,competitive forces,and the legal and political environment.

One advantage of global marketing is that it can ________.

For the launch of "Trema," your company's new pocket organizer/cell phone combination,the CMO has decided on no changes to either the marketing mix or the product.This introduction is described as a ________.

According to Hofstede,in collectivist societies,such as Japan,________.

A global firm is one ________.

According to Hofstede,cultures with weak uncertainty avoidance are best described as ________.

People are often ethnocentric and favorably predisposed to their own country's products,unless they come from a less developed country.

Once a company decides to target a particular country,it must 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 ________.

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

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

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