Exam 19: The Global Marketplace

Refer to the scenario below to answer the following question(s). Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all. Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting. With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there." -Selman & Saks offered the same razors and trimmers in France as in the United States. Selman & Saks is an example of a ________.

How is joint venturing more risky and complex than merely exporting?

Market size, market growth, the cost of doing business, competitive advantage, and risk level all help a company ________.

The two key economic factors reflecting a country's attractiveness as a market are its industrial structure and its ________.

________ involves changing the product to meet local requirements, conditions, or wants.

In a(n) ________, the vast majority of people engage in simple agriculture and consume most of their output.

Which of the following is true of contract manufacturing?

In 1994, ________ established a free trade zone among the United States, Canada, and Mexico.

BRICS countries are examples of ________ economies.

Widespread adoption of the euro has decreased much of the currency risk associated with doing business in Europe, making member countries with previously weak currencies more attractive markets.

Which of the following is a political and legal factor that a company should consider before deciding to enter into a new country?