Exam 19: The Global Marketplace

Joint venturing is when two or more North American companies jointly invest in distributing products to a foreign country.

Briefly explain why economic communities are formed.

Regardless of how companies go about pricing their products,their foreign prices will probably be ________ their domestic prices.

Prime Minister Stephen Harper expressed "serious concern" about the "Buy American" provisions that were put in place in the United States to stimulate its economy.This is an example of a(an)________

How do industrial economies differ from industrializing economies?

A Gucci handbag may sell for $60 in Italy and $240 in the United States.It must add the cost of transportation,tariffs,importer margin,wholesaler margin,and retailer margin to its factory price.Gucci faces a ________ problem.

The European Union acts as an umbrella organization that oversees GATT and mediates global disputes.

With the adoption of the euro,it is likely that the European Union (EU)will eventually go against 2000 years of tradition and become fully integrated.

Before going abroad,the company must weigh several risks and answer many questions about its ability to operate globally.

Why is it important for companies to understand cultural differences and nuances before entering a foreign country's market? Give two examples of cultural differences that would be important for a company to know.

Small companies like Cervélo Cycles can be highly successful international marketers if they carefully carve out a niche.

Sometimes a country's government will create a ____________ by restricting the export of that currency.Buyers may accept this currency if they can buy other goods in that country that they need themselves or can sell elsewhere for a needed currency.

Which of the following is a demographic factor that a company should consider before deciding to enter an international market?

When a U.S.-based industry says to "Buy American," this bias is an example of a(n)________.

Very few market opportunities are available in a(n)________ economy.

Not all companies need to venture into international markets to survive.

Demographic characteristics,geographic characteristics,economic factors,sociocultural factors,and political and legal factors all help a company ________.d

Lower costs in the form of cheaper labour or raw materials,foreign government investment incentives,freight savings,and the opportunity to improve the company image are all factors that would likely lead a company to ________ in a foreign market.

As an example of straight product extension,Coca-Cola calls its American low-calorie beverage Diet Coke by the name of Light in many foreign markets.

India needs more imports of raw materials,such as textiles,steel,and heavy machinery,and fewer imports of finished textiles,paper products,and automobiles.India is most likely a(n)________ economy.