Exam 16: The Global Marketplace

Which of the following is an example of a nontariff trade barrier?

What type of transactions do most international trade involve?

Which of the following best characterizes a global firm?

________ ventures consist of one company collaborating with foreign investors to create a local business in which they share possession and control.

When companies fully adapt their advertising messages to local markets, they follow a strategy of ________.

I Design is a small Romanian designer and manufacturer of recyclable bags for women. The concept is simple: a customer buys the body of the bag, the straps, and the interior lining separately. Each component comes in several materials and colours, giving customers the option of customizing their bag and of making more than one look with the same body but different straps and interiors. Young customers really liked the concept! At first, the bags were only available in the Transylvanian hometown of the designer, Clij. Alexandreina was a graduate of the Art School and started her own small company. She found local manufacturers of the component parts and had them delivered to the back of her shop. There she assembled some examples for customers to see. Not long after opening her shop to local customers, people would telephone from Bucharest to find out how to buy the bag. They had seen people walking around with the bag and asked where they could get one. Alexandreina had to create a secure website where nonlocal customers could purchase the bag. Before long, she was receiving requests from all over western Europe, the United States, and even Brazil! This was good news but admittedly, Alexandreina was starting to feel a little overwhelmed and knew she would have to make some major decisions. She thought about opening additional shops in several European cities. -What are the factors Alexandreina needs to consider before going global?

Explain the whole-channel view of the distribution process.

A tax on an imported product designed to raise revenue or protect domestic firms is referred to as a(n)________.

To overcome the problem of price escalation when selling to less-affluent consumers in developing countries, many companies make simpler or smaller versions of their products that can be sold at lower prices.

Botsford, a U.S. firm, builds automotive transmissions in its manufacturing facility in Taiwan to capitalize on the availability of cheap labor. Botsford's involvement in foreign markets is most likely through ________.

A country's industrial structure is an economic factor that reflects its attractiveness as a market.

Which of the following is most likely a benefit of contract manufacturing?

________ means marketing a product in a foreign market without making any changes to the product.

Direct investment involves fewer changes in a company's product lines, organization, investments, or mission as compared to exporting.

Japanese and Asian business people find fast, tough face-to-face bargaining ________.

Which of the following is a disadvantage of licensing?

Management contracting is an unwise choice if a domestic firm can make greater profits by undertaking a whole venture.

Which of the following statements is true of industrial economies?

Which of the following is true about joint venturing?

Regardless of how companies go about pricing their products, their foreign prices probably will be higher than their domestic prices for comparable products. This is known as the ________ problem.