Exam 6: Serving Global Markets

Even though the per-capita income in India and China is much lower than Canada or the United States, the sheer size of these markets makes them appealing to marketers.

A company that changes its product's package sizes, prices, and promotional messages to meet the local market's tastes is using a straight extension marketing strategy.

What have a group of nations created when they agree to the exchange of goods among themselves by abolishing tariffs and trade restrictions?

Which of the following is one of the major policy initiatives of the World Trade Organization?

Some of the largest direct investments by foreign companies in Canada have occurred in the automobile industry.

Which of the following is NOT considered a part of a nation's infrastructure?

The Republic of Eastern Africa imposes a duty on imported goods to pay for government services.What is this BEST described as?

Which of the following BEST describes the role of The Organization of Petroleum Exporting Countries as a marketing organization?

Compare a free trade area, an economic union, and a customs market.

In the international market, what does a product adaptation strategy combine?

Joint ventures might be a reasonable alternative to direct investment for a company that is restricted by the host nation from direct ownership of facilities within the country.

Who provides advice and assistance to Canadian businesses that want to enter foreign markets?

Subcontracting to a foreign company is a contractual agreement that allows avoidance of the import duties and regulations.

Assume China and Canada are involved in a trade dispute.Which organization will attempt to resolve the dispute?

The introduction of the euro as a standard form of currency in European countries was developed in order to strengthen Europe's competitiveness in the global marketplace.

ISO is a non-governmental body that establishes unique management system standards and certification processes that are tailored to meet the needs of individual companies and nations.

A Canadian cereal company has completed market research that indicates children from the United Kingdom enjoy the taste of the Canadian version of Snacky Cereal. However, they have a difficult time chewing it because the pieces are so large and are therefore eating less of it. Which of the following is MOST likely strategy?

Match each item to the statement or sentence listed below. a.exporting b.World Trade Organization c.infrastructure d.exchange rate e.tariff f.import quota g.dumping h.franchise i.foreign licensing j.multinational corporation k.global marketing strategy l.multi-domestic marketing strategy m.countertrade n.joint venture o.exchange control p.customs union q.Free Trade Area of the Americas r.European Union -is a form of exporting whereby goods and services are bartered rather than sold for cash. 2.is the sale of domestically produced products in other countries. 3.A standardized marketing mix with minimal modifications that a firm uses in all of its domestic and foreign markets is a(n) _____. 4.The _____ replaced General Agreement on Tarrifs and Trade and makes binding decisions in mediating disputes and reducing trade barriers. 5.A(n) _____ is an application of market segmentation to foreign markets by tailoring the firm's marketing mix to match specific target markets in each nation. 6.North American Free Trade Agreement was the first step toward creating _____, a proposed free trade area covering the entire western hemisphere. 7.A firm with significant marketing activities outside its own country is a(n) _____. 8.A(n) _____ is the price of one nation's currency in terms of another nation's currency. 9.An agreement that grants foreign marketers the right to distribute a firm's products in a specified geographic area is called a(n) _____ agreement. 10.A tax on imported goods is a(n) _____. 11.An agreement in which a wholesaler or retailer agrees to meet the operational requirements of a manufacturer is called a(n) _____ agreement. 12.means that firms that export must sell foreign currencies to the central bank or other foreign agencies, and importers must buy foreign currencies from the same organization. 13.A nation's basic system of transportation networks, communications systems, and energy facilities is known as its _____. 14.When a firm forms a _______ the risks, costs, and management of a foreign operation are shared with one or more partners. 15.The _____ is a multinational economic community that has adopted a common currency, removed trade restrictions, and permitted a free flow of goods and workers throughout the member nations. 16.An agreement to abolish tariffs for members and charge a uniform tariff for non-members is called a(n) _____. 17.The practice of selling a product in another country at below cost is called _____. 18.A(n) _____ is a trade restriction that limits the number of goods that can enter a country for resale.

Discuss the product and promotional strategies that might be applied in a specific foreign market.

A Canadian firm is considering marketing its products in another country.The new market is attractive, but the country's cultural and legal environments are different from those in Canada.Based only on the information provided, how should the firm proceed?