Exam 16: The Global Marketplace

Which of the following is true of the Uruguay Round of the WTO?

Through which of the following routes do firms generally get into international marketing?

Straight product extension refers to marketing a product as is and finding customers for it.

Valdo, a cosmetic firm located in the United States, markets its products in Asian and European countries through independent international distributors. In this case, Valdo has entered international markets through ________.

Kimlee, a food manufacturer based in China, recognizes the immense demand for noodles in the Australian market. Kimlee forms a new business venture to manufacture instant noodles and decides to share possession and control of the new business with a local food processing company. In this case, Kimlee has entered a foreign market through ________.

________ is a method of going global in which a company makes agreements with producers in the foreign market to produce its product or provide its service.

Explain with examples how the political-legal environment of a country affects a global firm.

Jazz is a costume jewellery manufacturing company based in Canada. The company decides to sell its products abroad, but it faces the major problem of price escalation. What is price escalation? How can Jazz overcome this problem?

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

Explain joint ownership with an example. What are its advantages and disadvantages?

Regardless of how companies go about pricing their products, their foreign prices will most likely be higher than their domestic prices for comparable products.

Lemon N' Honey is a juice manufacturing company in the United States. It exports its products to Australia, licenses to China, has a joint ownership venture in France, and owns a subsidiary in Brazil. The firm will most likely need to create a(n)________ to handle all its worldwide activities.

A country in South America has large reserves of copper and tin. Mining forms the pillar of its economy. A major part of its revenue is generated from exporting these resources. This country is poor in many other ways. It is a good market for large equipment, tools, supplies, and trucks. Since there are many foreign residents in this country and a wealthy upper class, it is also a market for luxury goods. This country most likely has a(n)________ economy.

Collectively, global brands account for the overwhelming majority of consumers' purchases.

Operating domestically only is ________.

Companies that export goods to one country cannot have a subsidiary in another country because of international trade agreements.

Which of the following is a disadvantage of straight product extension?

Which of the following is a type of joint venture?

The Internet is forcing companies toward more standardized international pricing.

An emerging economy is also known as a(n)________ economy.