Exam 16: The Global Marketplace

Price escalation is caused by transportation costs, tariffs, importer margin, wholesaler margin, and retailer margin. As a result, foreign prices are typically lower than domestic prices for comparable products.

Which of the following is an advantage of direct investment?

Which of the following established a free trade zone between the United States, Mexico, and Canada?

Which of the following is true of joint ownership?

________ is a method of entering a foreign market by associating with foreign companies to produce or market products or services.

Give an account of the functions of the World Trade Organization (WTO)and the formation of WTO from GATT.

Social critics worry that large American internationals aren't just globalizing their brands, they are ________.

What are regional free trade zones? Explain the advantages and disadvantages of the European Union (EU).

Which of the following is an international division organized based on different merchandise categories?

________ consists of creating something new to meet the needs of consumers in a given country.

Which of the following is most likely a benefit of joint ownership?

Income distribution generally remains constant across different types of economies.

Which of the following is true of raw material exporting economies?

Briefly explain the three basic market entry strategies of entering a foreign market.

The difference between direct and indirect exporting is that indirect exporting involves ________.

Often, companies form joint ownership ventures to merge their complementary strengths in developing a global marketing opportunity.

Similar consumer needs around the world suggest that a strategy of adapted global marketing is appropriate for most international firms.

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. -To what extent should Alexandreina adapt her marketing program to foreign local conditions?

An emerging economy is one which ________.

One purpose of a quota is to ________.