Exam 7: Understanding and Reaching Global Consumers and Markets

The appreciation of fashion, music, and a desire for novelty and trendier designs and images

In Latvia, only one six-lane highway exists, connecting Riga, its capital, with Moscow. Otherwise, the roads are two lanes and many are made of cobblestones or bricks. This limits the speed with which deliveries can be made and requires that delivery trucks be quite small. The road network in Latvia is an example of problems with a country's

Which of the following is an advantage inherent in the use of licensing?

U.S. appliance manufacturers find that different customs about shopping must be used to determine local product design. For instance, people in Northern Europe shop only once a week, so they need bigger refrigerators than Southern Europeans, who shop daily. Furthermore, Northern Europeans insist that freezers should be on the top just as firmly as Southern Europeans want them on the bottom. Based on this, U.S. appliance manufacturers would more likely be successful if they used __________ marketing strategy.

Foreign countries with very low per capita incomes may still be attractive markets for some goods. To get a more reliable picture of a country's purchasing power, a country's __________ must also be considered.

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. In which step of the distribution channel is it suggested that the channels can be very long or surprisingly short?

Yum! Brands, the restaurant division of PepsiCo, has 12,600 KFC restaurants abroad, with more than 3,700 restaurants in China. Many of the latter are locally owned and subject to a contractual agreement that allows the owners to operate the business under the established KFC brand name and according to specific rules. Yum! Brands is engaged in

What option for entering the global marketplace entails a domestic firm actually investing in and owning a foreign subsidiary or division?

A firm's profit potential and control over marketing activities __________ as it moves from exporting to direct investment as a global market entry strategy.

Which of the following is a disadvantage associated with licensing?

To eliminate the need to continually monitor currency exchange rates, __________ of the countries in the European Union (EU) have adopted a common currency called the euro.

The European Union is an economic and political union of __________ member countries that have eliminated most barriers to the free flow of products, services, capital, and labor across their borders.

What market entry option allows a company to make the least number of changes in terms of its product, its organization, and even its corporate goals?

In terms of the global marketplace, there are three primary types of companies: international firms, multinational firms, and transnational firms. The key factor that distinguishes one from another is

A global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as

Currency exchange rate refers to

The two global market entry strategies in which a company forgoes control of its product and governmental bureaucracy may bog down the effort are __________, respectively.

Starbucks and Tata Global Beverage have together formed TATA Starbucks Limited in order to bring Starbucks to India. The global market entry strategy is known as

Global companies have five strategies for matching products and their promotion efforts to global markets. The strategy of selling virtually the same product in other countries is referred to as

Identify and describe the factors a company should consider in order to do a thorough cross-cultural analysis. In your answer, define cross-cultural analysis.