Q&A Hero

Q: In the 1980s, Japanese computer chip manufacturers were accused of dumping in the United States. Explain what this means and discuss why a company would do this.

Q: Often it is difficult for a firm to obtain adequate global distribution. Compare and contrast the difficulties of distributing in Japan and China.

Q: Assume you are the promotions manager for a lingerie company. Your company has decided to market its product line in Brazil, Mexico, Italy, France, and Japan. Your company wishes to use a global marketing standardization strategy. In general terms, explain how your company would advertise in these different countries.

Q: Assume you are the marketing manager for a leading U.S. manufacturer of earth-moving equipment. Your company would like to become heavily involved in global marketing (especially in India) but has some capital limitations. Your job is to evaluate whether it should use contract manufacturing or direct investment. Compare and contrast these two options and make a recommendation.

Q: Briefly define licensing and joint ventures as means of engaging in global marketing. Be sure to demonstrate both the similarities of the two processes and how they differ.

Q: Define and describe exporting. Briefly describe the three types of export intermediaries.

Q: Assume you are a global marketing consultant for a U.S. manufacturer of light fixtures and have been asked to name the available options or methods of entry into the global marketplace. Name five methods of entry in the order of high risk/high return to low risk/low return for the lighting company.

Q: An important factor in the global external environment that has become more evident in the past decade is the shortage of natural resources. Choose two different natural resources and describe how shortages of each of these resources affect global trade.

Q: Global legal structures are designed to either encourage or limit trade. Name and define five of these legal structures.

Q: Assume you are the president of a company that manufactures wooden bowls, cutting boards, and spoons. Your company is considering marketing its kitchen items globally. List the five important external environmental factors that should be examined for each country you are considering for this global venture.

Q: Traditionally, marketing-oriented multinational corporations have operated differently in each country, with segmentation strategies that provided different marketing mixes. Today, there has been a trend toward global marketing standardization. What is global marketing standardization? Can companies truly follow the basic premise of the global marketing standardization concept?

Q: Describe the four stages of business globalization. Why do most companies stop when they reach the third stage?

Q: What is a multinational corporation (MNC)? Discuss two MNCs you are familiar with.

Q: Why is developing a global vision important for firms in the United States?

Q: NARRBEGIN: Wataniya MobileWataniya MobileWataniya Mobile is offering cellular service in the Palestinian territories. It is only the second cellphone carrier in the region and is significant because it is owned by foreign companies and investors like the Qatari royal family and the Palestine Investment Fund. The new service is aimed at increasing cellphone penetration, which is only 35%, in this economically challenged area. It has not been easy for Wataniya, though. It took two years to gain the required license from Israel, which controls the Palestinian territories' airwaves and bandwidth required for the service. Even though Wataniya is allowed bandwidth, it has only received 3.8 megahertz of bandwidth from Israel, which is not enough for it to offer 3G mobile services that enable Web browsing and email.NARRENDRefer to Wataniya Mobile. Wataniya Mobile has spent $100 million on infrastructure so far and will spend another $700 million over the next ten years. This is an example of which method of entering the global marketplace?a. exportingb. licensingc. contract manufacturingd. direct investmente. complete

Q: NARRBEGIN: Wataniya MobileWataniya MobileWataniya Mobile is offering cellular service in the Palestinian territories. It is only the second cellphone carrier in the region and is significant because it is owned by foreign companies and investors like the Qatari royal family and the Palestine Investment Fund. The new service is aimed at increasing cellphone penetration, which is only 35%, in this economically challenged area. It has not been easy for Wataniya, though. It took two years to gain the required license from Israel, which controls the Palestinian territories' airwaves and bandwidth required for the service. Even though Wataniya is allowed bandwidth, it has only received 3.8 megahertz of bandwidth from Israel, which is not enough for it to offer 3G mobile services that enable Web browsing and email.NARRENDRefer to Wataniya Mobile. Israel's control of licensing and the limitation on the amount of bandwidth allotted to Wataniya Mobile is part of which environment?a. culturalb. economicc. political and legald. demographice. resource

Q: NARRBEGIN: Wataniya MobileWataniya MobileWataniya Mobile is offering cellular service in the Palestinian territories. It is only the second cellphone carrier in the region and is significant because it is owned by foreign companies and investors like the Qatari royal family and the Palestine Investment Fund. The new service is aimed at increasing cellphone penetration, which is only 35%, in this economically challenged area. It has not been easy for Wataniya, though. It took two years to gain the required license from Israel, which controls the Palestinian territories' airwaves and bandwidth required for the service. Even though Wataniya is allowed bandwidth, it has only received 3.8 megahertz of bandwidth from Israel, which is not enough for it to offer 3G mobile services that enable Web browsing and email.NARRENDRefer to Wataniya Mobile. The need for greater bandwidth to be able to provide 3G mobile capabilities is part of which environment?a. culturalb. technologicalc. economicd. naturale. legal

Q: NARRBEGIN: Wataniya MobileWataniya MobileWataniya Mobile is offering cellular service in the Palestinian territories. It is only the second cellphone carrier in the region and is significant because it is owned by foreign companies and investors like the Qatari royal family and the Palestine Investment Fund. The new service is aimed at increasing cellphone penetration, which is only 35%, in this economically challenged area. It has not been easy for Wataniya, though. It took two years to gain the required license from Israel, which controls the Palestinian territories' airwaves and bandwidth required for the service. Even though Wataniya is allowed bandwidth, it has only received 3.8 megahertz of bandwidth from Israel, which is not enough for it to offer 3G mobile services that enable Web browsing and email.NARRENDRefer to Wataniya Mobile. Israel and the Palestinian territories have vastly different religious beliefs and are frequently at war. These differences would be attributed to which environmental factor?a. technologyb. culturec. demographicsd. economice. natural

Q: NARRBEGIN: Wataniya MobileWataniya MobileWataniya Mobile is offering cellular service in the Palestinian territories. It is only the second cellphone carrier in the region and is significant because it is owned by foreign companies and investors like the Qatari royal family and the Palestine Investment Fund. The new service is aimed at increasing cellphone penetration, which is only 35%, in this economically challenged area. It has not been easy for Wataniya, though. It took two years to gain the required license from Israel, which controls the Palestinian territories' airwaves and bandwidth required for the service. Even though Wataniya is allowed bandwidth, it has only received 3.8 megahertz of bandwidth from Israel, which is not enough for it to offer 3G mobile services that enable Web browsing and email.NARRENDRefer to Wataniya Mobile. In which stage of globalization is Wataniya Mobile?a. Stage oneb. Stage twoc. Stage threed. Stage foure. Stage five

Q: NARRBEGIN: Boeing Co.Boeing CompanyBoeing Company has spent more than $100 million to create a major presence in China, complete with a major office complex, a large spare-parts facility, extra training programs for Chinese air crews, and a deal to buy fuselage sections for the 737 from local manufacturers. Asia is the fastest-growing aircraft market in the world. Asian carriers have been a major part of Boeing's sales, and Boeing predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel, and it wants those passengers flying on Boeing jets. So, Boeing is jointly designing and building an American-Japanese-Chinese plane, all to lock out any European, South American, or even Asian threat to its market. To keep the fate of Asian aerospace in its hands, Boeing is steadily broadening its contractual relationship with Japan's three major players, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Fuji Heavy Industries. The Japanese "heavies" make part of the airframe of the Boeing 767 and 20 percent of one of Boeing's newest planes, the 777. This strategy should ensure Boeing's dominance in Japan.NARRENDRefer to Boeing Company. Boeing has chosen the _____ method of entry into the Chinese market.a. dumpingb. contract manufacturingc. licensingd. direct investmente. joint venture

Q: NARRBEGIN: Boeing Co.Boeing CompanyBoeing Company has spent more than $100 million to create a major presence in China, complete with a major office complex, a large spare-parts facility, extra training programs for Chinese air crews, and a deal to buy fuselage sections for the 737 from local manufacturers. Asia is the fastest-growing aircraft market in the world. Asian carriers have been a major part of Boeing's sales, and Boeing predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel, and it wants those passengers flying on Boeing jets. So, Boeing is jointly designing and building an American-Japanese-Chinese plane, all to lock out any European, South American, or even Asian threat to its market. To keep the fate of Asian aerospace in its hands, Boeing is steadily broadening its contractual relationship with Japan's three major players, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Fuji Heavy Industries. The Japanese "heavies" make part of the airframe of the Boeing 767 and 20 percent of one of Boeing's newest planes, the 777. This strategy should ensure Boeing's dominance in Japan.NARRENDRefer to Boeing Company. The new American-Japanese-Chinese plane Boeing plans to design and build gives partial ownership to the manufacturing partners involved in the project. This is an example of:a. direct investmentb. a joint venturec. buying-for-export agreementsd. market groupingse. a contract manufacturing agreement

Q: NARRBEGIN: Boeing Co.Boeing CompanyBoeing Company has spent more than $100 million to create a major presence in China, complete with a major office complex, a large spare-parts facility, extra training programs for Chinese air crews, and a deal to buy fuselage sections for the 737 from local manufacturers. Asia is the fastest-growing aircraft market in the world. Asian carriers have been a major part of Boeing's sales, and Boeing predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel, and it wants those passengers flying on Boeing jets. So, Boeing is jointly designing and building an American-Japanese-Chinese plane, all to lock out any European, South American, or even Asian threat to its market. To keep the fate of Asian aerospace in its hands, Boeing is steadily broadening its contractual relationship with Japan's three major players, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Fuji Heavy Industries. The Japanese "heavies" make part of the airframe of the Boeing 767 and 20 percent of one of Boeing's newest planes, the 777. This strategy should ensure Boeing's dominance in Japan.NARRENDRefer to Boeing Company. Boeing has chosen the _____ method of entering the Japanese market.a. dumpingb. contract manufacturingc. licensingd. direct investmente. joint venture

Q: NARRBEGIN: Boeing Co.Boeing CompanyBoeing Company has spent more than $100 million to create a major presence in China, complete with a major office complex, a large spare-parts facility, extra training programs for Chinese air crews, and a deal to buy fuselage sections for the 737 from local manufacturers. Asia is the fastest-growing aircraft market in the world. Asian carriers have been a major part of Boeing's sales, and Boeing predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel, and it wants those passengers flying on Boeing jets. So, Boeing is jointly designing and building an American-Japanese-Chinese plane, all to lock out any European, South American, or even Asian threat to its market. To keep the fate of Asian aerospace in its hands, Boeing is steadily broadening its contractual relationship with Japan's three major players, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Fuji Heavy Industries. The Japanese "heavies" make part of the airframe of the Boeing 767 and 20 percent of one of Boeing's newest planes, the 777. This strategy should ensure Boeing's dominance in Japan.NARRENDRefer to Boeing Company. The Boeing facility in China is only one branch of this huge organization. Boeing can be called a(n):a. domestic traderb. cultural traderc. multinational corporationd. export agente. localized corporation

Q: NARRBEGIN: Boeing Co.Boeing CompanyBoeing Company has spent more than $100 million to create a major presence in China, complete with a major office complex, a large spare-parts facility, extra training programs for Chinese air crews, and a deal to buy fuselage sections for the 737 from local manufacturers. Asia is the fastest-growing aircraft market in the world. Asian carriers have been a major part of Boeing's sales, and Boeing predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel, and it wants those passengers flying on Boeing jets. So, Boeing is jointly designing and building an American-Japanese-Chinese plane, all to lock out any European, South American, or even Asian threat to its market. To keep the fate of Asian aerospace in its hands, Boeing is steadily broadening its contractual relationship with Japan's three major players, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Fuji Heavy Industries. The Japanese "heavies" make part of the airframe of the Boeing 767 and 20 percent of one of Boeing's newest planes, the 777. This strategy should ensure Boeing's dominance in Japan.NARRENDRefer to Boeing Company. Boeing has utilized a global vision in marketing its planes in Asia. The company realizes different countries require different strategies but that effective global marketing is a key to success. Boeing is practicing:a. global marketingb. standard international marketingc. global marketing standardizationd. the foreign visione. international selling schemes

Q: NARRBEGIN: Breathe RightBreathe RightCNS, Inc. is the manufacturer of Breathe Right nasal strips, a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages. Since their introduction in the United States, Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow, snorers hoping for a sound night's sleep, and allergy and cold sufferers looking for relief from their stuffed noses. Because CNS is a small company, it initially had trouble promoting its product. Then San Francisco 49er Jerry Rice started regularly wearing one, and U.S. sales took off. Today, Breathe Right strips are marketed in more than 40 countries. When CNS decided to expand globally, its size made it look for a partner. It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.NARRENDRefer to Breathe Right. To market the nasal strips in countries outside the United States, CNS and 3M provided the strips to the national sports teams. For example, sales in South Africa took off when the entire South African rugby team wore the strips when they won the World Cup of rugby. This example primarily illustrates the use of which element of the global marketing mix?a. productionb. publicityc. promotiond. distributione. product

Q: Refer to Breathe Right. 3M and CNS entered into a: a. franchise b. licensing agreement c. direct countertrade d. joint venture e. contract manufacturing agreement

Q: NARRBEGIN: Breathe RightBreathe RightCNS, Inc. is the manufacturer of Breathe Right nasal strips, a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages. Since their introduction in the United States, Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow, snorers hoping for a sound night's sleep, and allergy and cold sufferers looking for relief from their stuffed noses. Because CNS is a small company, it initially had trouble promoting its product. Then San Francisco 49er Jerry Rice started regularly wearing one, and U.S. sales took off. Today, Breathe Right strips are marketed in more than 40 countries. When CNS decided to expand globally, its size made it look for a partner. It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.NARRENDRefer to Breathe Right. In the United States, one of the standard methods for introducing a new product is couponing, but many countries prohibit the issuing of coupons. This prohibition would represent a(n) _____ element of the global environment.a. culturalb. economicc. legald. technologicale. demographic

Q: NARRBEGIN: Breathe RightBreathe RightCNS, Inc. is the manufacturer of Breathe Right nasal strips, a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages. Since their introduction in the United States, Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow, snorers hoping for a sound night's sleep, and allergy and cold sufferers looking for relief from their stuffed noses. Because CNS is a small company, it initially had trouble promoting its product. Then San Francisco 49er Jerry Rice started regularly wearing one, and U.S. sales took off. Today, Breathe Right strips are marketed in more than 40 countries. When CNS decided to expand globally, its size made it look for a partner. It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.NARRENDRefer to Breathe Right. How people value a sound night's sleep is an example of which element of the global environment?a. cultureb. naturalc. socioeconomicd. technicale. regulatory

Q: NARRBEGIN: Breathe RightBreathe RightCNS, Inc. is the manufacturer of Breathe Right nasal strips, a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages. Since their introduction in the United States, Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow, snorers hoping for a sound night's sleep, and allergy and cold sufferers looking for relief from their stuffed noses. Because CNS is a small company, it initially had trouble promoting its product. Then San Francisco 49er Jerry Rice started regularly wearing one, and U.S. sales took off. Today, Breathe Right strips are marketed in more than 40 countries. When CNS decided to expand globally, its size made it look for a partner. It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.NARRENDRefer to Breathe Right. The same Breathe Right nasal strip you can buy in any pharmacy in the United States can also be purchased in 40 other countries. CNS used a _____ strategy.a. mass marketingb. product inventionc. market substitutiond. product adaptatione. global market standardization

Q: NARRBEGIN: Breathe RightBreathe RightCNS, Inc. is the manufacturer of Breathe Right nasal strips, a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages. Since their introduction in the United States, Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow, snorers hoping for a sound night's sleep, and allergy and cold sufferers looking for relief from their stuffed noses. Because CNS is a small company, it initially had trouble promoting its product. Then San Francisco 49er Jerry Rice started regularly wearing one, and U.S. sales took off. Today, Breathe Right strips are marketed in more than 40 countries. When CNS decided to expand globally, its size made it look for a partner. It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.NARRENDRefer to Breathe Right. 3M is an example of a(n):a. ethnocentric organizationb. standard international marketc. multinational corporationd. expatriated organizatione. organization with no domestic base

Q: All of the following statements about the use of the Internet in global marketing are true EXCEPT:a. Opening an e-commerce site on the Internet immediately puts a company in the international marketplace.b. The new Internet economy is being restrained by the old bricks-and-mortar rules, regulations, and habits.c. Consumers in some countries are reluctant to use credit cards to make purchases over the Internet.d. FedEx is a global shipper that helps solve international e-commerce distribution.e. Language barriers are limiting the potential of the Internet in international marketing.

Q: International trade does not always involve cash. Sometimes companies accept all or part of the payment for goods or services in the form of other goods or services. This is known as: a. export trading b. crossdocking c. exchange modification d. domestic barter e. countertrade

Q: In a newspaper release, Corning, Inc. announced it had received a favorable ruling from China's Ministry of Commerce on allegations that it was selling its fiber more cheaply in China than in other countries. Corning was falsely accused of: a. dumping b. offloading c. boycotting d. repatriating e. crossdocking

Q: The Canadian magazine industry accused U.S. magazine publishers of _____, selling the magazines in Canada at a lower price than in the United States. a. dumping b. offloading c. boycotting d. repatriating e. crossdocking

Q: The European Union accused South Korea of selling ships at a loss in an attempt to push its European rivals out of the market. In other words, South Korea was accused of: a. dumping b. illegal importing c. countertrading d. fiscal impropriety e. using an illegal cartel

Q: All of the following are reasons for dumping EXCEPT: a. lowering unit costs by exploiting large-scale productions b. attempting to avoid costly tariffs in the country to which the product is exported c. attempting to maintain stable prices during periods of exchange rate fluctuations d. temporarily distributing products in overseas markets to offset slack demand in the home market e. trying to increase an overseas market share

Q: _____ is generally defined as the sale of an exported product at a price lower than that charged for the same or a similar product in the home market of the exporter. a. Export reengineering b. Crossdocking c. Boycotting d. Dumping e. Countertrading

Q: Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency. This practice is called: a. countertrading b. floating exchange rates c. variable purchasing power d. flexible monetary policies e. purchasing power elasticity

Q: Once marketing managers have determined a global product and promotion strategy, they can select the remainder of the marketing mix. However, entry into many developing nations presents special pricing problems because: a. the rate of capital accumulation exceeds the rate of population growth b. exchange rates caps c. of price discrimination d. there is a lack of mass purchasing power e. advertising time on television is available for sale in all developed countries

Q: The pricing component of the global marketing mix is: a. the same in domestic and foreign markets b. fairly simplistic due to the strength of the U.S. dollar abroad c. the easiest element to implement successfully d. complicated by product penetration strategies e. a complex matter due to tariffs, exchange rates, and government regulations

Q: Which country is considered to have the most complicated distribution system? a. India b. Germany c. Canada d. United States e. Japan

Q: AFLAC has had to ditch the AFLAC duck in its Japanese commercials because the Japanese consumer does not like to be yelled at. Since Japan is the source of about 70 percent of the insurance company's business, it had no trouble adopting a _____ strategy. a. product substitution b. market differentiation c. promotion adaptation d. product invention e. market diversification

Q: Procter & Gamble's Vidal Sassoon shampoo smells the same worldwide, but the amount of scent used varies from country to country. This is an example of which type of marketing mix strategy? a. countertrading b. product invention c. global market standardization d. product licensing e. product adaptation

Q: Maybelline formulated cosmetics that were designed to complement the complexions of women with various skin types around the world. Which of the marketing mix strategies did Maybelline use? a. countertrading b. product invention c. global market standardization d. product licensing e. product adaptation

Q: When IKEA, the Swedish home furnishings retailer, first entered the Japanese market, it failed. It was more successful in its second try because it was aware of the need to adapt its furnishings to fit the smaller Japanese homes. It success on its second foray into Japan was based on its ability to give the Japanese consumer what he or she needed without abandoning its product strategy. IKEA had to adopt a _____ strategy. a. product substitution b. market differentiation c. message adaptation d. product invention e. product adaptation

Q: According to the text, which of the following is an example of a product strategy that would be appropriate for a global marketing company to implement? a. product adaptation b. product divestment c. product penetration d. market substitution e. product licensing

Q: In the context of global marketing, when a company either creates a new product for a market or dramatically changes an existing product, the company is using a _____ strategy a. product invention b. product extension c. market substitution d. product licensing e. market adaptation

Q: Apple Inc. used its Mac and PC guy ad in countries around the world. They simply modified the characters a bit to fit the culture. Apple is attempting to market the Mac using _____. a. standardized marketing practices b. mixed marketing c. character standardization d. global marketing standardization e. product invention

Q: The first step in creating the global marketing mix is to: a. create a new product b. select the method of promotion c. develop a thorough understanding of the global target market d. set pricing policies e. decide whether product modification is necessary

Q: To enter the German market, BDO, an international accounting company, purchased an existing accounting firm. BDO entered the German market through the use of: a. contract marketing b. direct investment c. franchising d. direct exporting e. countertrading

Q: _____ is a global marketing strategy that requires active ownership (either a controlling interest or large minority interest) of a foreign company or overseas manufacturing or marketing facilities. a. Market grouping b. Import brokering c. Export subsidizing d. Licensing e. Direct foreign investment

Q: Belgian Beer brewer InBev bought Anheuser-Bush for $52 billion. This is an example of a _____. a. export b. joint venture c. franchise d. licensed agreement e. direct foreign investment

Q: Caterpillar, Inc. is the world's largest manufacturer of earth-moving and construction equipment. Kirovsky is a large Russian manufacturer of the same type of products. The two companies entered into a(n) _____ and created NEVAMASH, a new company. a. import/export partnership b. countertrade c. disintermediation agreement d. joint venture e. franchise

Q: With _____, a domestic firm assumes an equity position (partial ownership) in a foreign firm to manufacture and/or market the domestic company's goods. a. direct investment b. a joint venture c. a buying-for-export agreement d. a contractual agreement e. a franchise relationship

Q: _____ takes place when a foreign company produces goods to specification set by a domestic company, with the domestic firm's brand name affixed to the goods. a. Importing b. Joint venturing c. Exporting d. Contract manufacturing e. Direct investing

Q: In Brooklyn, police seized a 40-foot tractor-trailer full of Sony DVD players, Gillette razors, Gucci sunglasses and a whole array of Yankees gear. All the items had company trademarks that its makers had no authority to use. The items seized were _____. a. counterfeit b. parallel imports c. third shift d. laundered e. stolen

Q: eBay has been fined $63.2 million in damages for allowing fake and unauthorized goods to be sold through the online retailer. A Paris commercial judge ruled that eBay had not done enough to ensure goods sold on its web site around the world were not _____. a. counterfeit b. knockoffs c. third shift d. laundered e. stolen

Q: Sony, Panasonic, and other Japanese manufacturers that build products to customer order instead of churning out products in anticipation of demand have decided to hire U.S. companies to produce electronics for them. The Japanese companies will handle the marketing of the products. Japanese electronics companies are using: a. contract manufacturing b. direct investment c. franchising d. direct exporting e. countertrading

Q: Mitsubishi Heavy Industries and Kawasaki Heavy Industries produce McDonnell Douglas's F-15 fighter planes in Japan. The two Japanese companies pay McDonnell Douglas royalties for use of its manufacturing processes and patents. This is an example of: a. contract manufacturing b. exporting c. joint venture d. licensing e. strategic investment

Q: Patch Products is an Australian company that has given permission to several Latin American companies to manufacture and market its patented Spanish/English children's frame tray puzzles. Because Patch uses licensing as its global marketing strategy, it: a. must only pay a minimal royalty to the licensed companies b. cannot control how the puzzles are manufactured c. has involved itself in the global marketing strategy that gives it the greatest amount of control d. cannot have any control over how the puzzles are promoted or distributed e. chose a method of global marketing that created minimal risk

Q: Disney sells the rights for an investment company to run a Disneyland theme park in Tokyo. The investment company gains most of the profits from the enterprise while paying Disney a percentage in royalties. This is an example of: a. a joint venture b. exporting c. direct investment d. licensing e. capital-intensive manufacturing

Q: A U.S. licensor can try to prevent a licensee from voiding its contract and using what it has learned to create a competitor by: a. using lawyers from both countries to write the licensing agreement. b. insisting that all licensees have a published code of ethics. c. having the licensee pay a fee for the use of the manufacturing process, trademark, patent, or other proprietary knowledge. d. locally registering patents and trademarks to the U.S. firm -- not the licensee. e. avoiding the use of any patents and trademarks.

Q: When Krispy Kreme decided to expand its operation internationally, it chose to first make its doughnuts available in Canada to minimize its risk. In accordance with the policy of risk minimization, the company sold the right to manufacture and sell its doughnuts to Canadians. In other words, Krispy Kreme used: a. contract manufacturing b. direct investment c. importing d. a strategic alliance e. licensing

Q: Franchising is a form of:a. contract marketingb. international exportingc. licensingd. direct exportinge. countertrading

Q: _____ is a legal process whereby a firm agrees to let another firm use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge in return for a fee or royalty. a. A joint venture b. Divestment c. Licensing d. A principal-agent agreement e. A contract manufacturing arrangement

Q: International Marketing, Inc. is a company located in Brazil and assists businesses that export products to Brazil. This company helps with financing, shipping, and any aspect of marketing a product from another country in Brazil. This company is an example of a(n): a. agent broker b. export agent c. export broker d. buyer for export e. import broker

Q: _____ are foreign sales agents-distributors who live in a foreign country and represent a domestic company in sales situations. They perform the same functions as domestic manufacturers' agents who help with financing and shipping. a. Export agents b. Export brokers c. Import broker d. Buyers for export e. Licensing agents

Q: DeLouis owns an agency that specializes in bringing international buyers in contact with U.S. companies to facilitate global trade. What type of intermediary is DeLouis? a. buyer for export b. export broker c. license agent d. import agent e. export agent

Q: A(n) _____ is a global intermediary that brings the buyer and seller together. a. buyer for export b. export agent c. license agent d. import agent e. export broker

Q: Carlos Hernandez owns a company in Miami that purchases products from U.S. manufacturers for export to several countries in Central and South America. Carlos is a(n): a. licensing agent b. buyer for export c. export broker d. export agent e. export importer

Q: The _____ is an intermediary in the global market who assumes all risks and sells globally for its own account. The domestic manufacturer usually treats it like a domestic customer. a. buyer for export b. export agent c. joint venturer d. contract manufacturer e. market group

Q: The role of a domestic company that sells to an export merchant (also called a buyer for export) is to: a. guide the marketing actions of the merchant as the goods are sold in foreign countries b. pay all transportation, warehousing, and marketing expenses c. sell the product to that merchant who resells the product in the foreign country without the aid or input of the original manufacturer d. broker a partnership agreement such as a joint venture e. dictate conditions of sale in foreign countries

Q: Which list correctly ranks the methods of entering the global marketplace in increasing order of risk? a. exporting, licensing and franchising, contract manufacturing, joint venture, and direct investment b. importing, contract manufacturing, licensing and franchising, joint venture, and direct investment c. licensing, franchising, contract manufacturing, joint venture, direct investment, and exporting d. franchising, contract manufacturing, joint venture, direct investment, importing, and licensing e. importing, contract manufacturing, joint venture, direct investment, and exporting

Q: The United States is selling more domestically produced products in other countries than any other country in the world. This means the United States is the world leader in: a. quota making b. exporting c. tariff trading d. dumping e. licensing

Q: Which method of entering the global marketplace would be most risky? a. licensing b. direct investment c. contract manufacturing d. joint ventures e. exporting

Q: Which method of entering the global marketplace would be LEAST risky? a. exporting b. licensing c. contract manufacturing d. joint ventures e. direct investment

Q: Vast differences in natural resources create all of the following EXCEPT: a. potential for military intervention b. shifts in wealth between nations c. inflation and recession d. global dependencies e. export opportunities for countries with no natural resources

Q: Zambia is internationally recognized as the world's second leading producer of cobalt, which is used to make high-speed and high-temperature cutting tools and dyes. A company that wanted to manufacture tools for shaping steel would be most attracted to which element of the Zambian environment? a. culture b. legal c. economic d. technological e. natural resources

Q: A multinational company that makes a labor-intensive product would be interested in the _____ makeup of countries. Factors such as median age, gender, and literacy rates would determine the success of its global expansion. a. demographic b. lifestyle c. natural d. cultural e. economic

Q: When developing countries began encouraging foreign investors and imports, companies like Black & Decker and Pillsbury offered a wide array of products to countries throughout the world. Because of enormous populations in developing countries, these companies predicted a potential for strong annual sales. However, in addition to total population, companies must not overlook _____ factors such as distribution of people within a country and household incomes. a. demographic b. political c. cultural d. educational e. country resource