Harran University - Yeniehir Campus

MGT 201 201

Chapter 5 Global Marketing

1)_is the outcome of cultures intermingling, sharing experiences, news, and commerce.

 

 

2.    includes all marketing activities conducted at an international level by individuals or businesses.

 

 

3. Which of the following is considered a BRIC country?

 

 

4. BRIC countries are driving forces behind globalization because of their         .

 

 

5. Which of the following is NOT a benefit a company would be likely to expect from engaging in global trade?

 

 

6. Extensive customization of a product offered in different international markets can defeat which of the following benefits of global trade?

 

 

7. A company with no investment outside its home country other than the direct purchase of products and services is referred to as a

(n)                    company.

 

 

8. A company with assets and operations in more than one country and that concentrates on penetrating multiple countries with a minimally customized marketing mix is referred to as a(n)      company.

 

 

9. Economies are typically classified by the country's           .

 

 

10. Which of the following has the largest total GDP?

 

11. Which of the following is generally reported at purchasing power parity (PPP)?

 

 

12. A (n)                     is a group of countries that has agreed to lower tariff barriers and promote trade among members.

 

 

13. The euro is the currency used by               .

 

 

14. NAFTA is a (n)                     .

 

 

 

 

15. Which of the following statements about the World Trade Organization (WTO) is ?

 

 

16. When a government adopts               , it enforces rules on foreign firms in order to give local companies an advantage over global competitors.

 

 

17. A (n)                     is a limit on the amount of product that can be imported into a country.

 

 

18. A (n)                     is a schedule of duties or fees applied to goods or services from foreign countries.

 

 

19. Many countries outlaw                , a practice in which a company prices its products lower than they are priced at home or lower than the cost to make the product.

 

 

20. A (n)                      is a government ban or restriction on the amount of a specific currency that is permitted to be traded or purchased.

 

 

21. When the value of a country's export exceeds the value of its imports, the country has a(n)    .

 

 

22. When the value of a country's import exceeds the value of its exports, the country has a(n)    .

 

 

23. Marketers need to understand the              factors of a country from two perspectives: the country's overall level of industrialization and its income distribution.

 

 

24. In most cases, which of the following is  about a subsistence economy?

 

 

25. Which of the following best describes a country that is actively engaged in international trade and has robust manufacturing, service, and financial sectors?

 

26. Which of the following is more characteristic of a post-industrial economy?

 

 

 

 

27. Which of the following are usually referred to as developing countries?

 

 

28. Nationalization occurs when a government             .

 

 

29. In a                    , a legislature selects the head of government, according to party strength as expressed in elections.

 

 

30. Which of the following is the form of government that seeks to control not only all political and economic matters, but also the attitudes, values, and beliefs of its population?

 

 

31. The power or right of a legal or political entity to exercise its authority over a specific geographic area is referred to as

                   .

 

 

32. Which of the following holds certain individuals, such as diplomats, accountable to the laws of their home country while exempting them from the laws of a foreign country in which they are operating?

 

 

33.                     occurs when someone voluntarily offers payment or something of financial value to get an illegal advantage.

 

 

34. The unauthorized copying of products, packaging, or other intellectual property of a registered brand is called    .

 

 

35. Trading firms that work out elaborate deals in which they trade or barter their products with one another or even supply goods in return for tax breaks from the local government are using             .

 

 

36. In a culture that values                , people tend to subordinate their personal goals to those of a stable group, family, or team.

 

 

37. In a culture that values                , people tend to have less formal relationships and stress the prominence of individual rights over group rights.

 

 

38. Which of the following cultural values refers to how comfortable individuals are by participating in decision making regardless of their position?

 

 

39. Which of the following is the first step a firm should take when deciding whether or not to go global?

 

40. Which of the following factors would most likely push a company to decide NOT to pursue a global marketing strategy?

 

 

41. The method of entering a foreign market that presents the least amount of risk for a company is   .

 

 

42. Firms that wish to use indirect exporting go through             who understand the local market.

 

 

43. Through                   , a partner firm in the foreign market buys the right to use a company's manufacturing process, patent, or brand.

 

 

44.                     ventures occur when a company joins forces with foreign investors to create a local business of its own.

 

 

45.                     involves entering a foreign market by establishing foreign-based manufacturing facilities.

 

 

46. Lower costs in the form of cheaper labor or raw materials and the opportunity to gain better first-hand knowledge of the wants and needs of consumers in the local market are factors that would likely lead a company to   in a foreign market.

 

 

47. Franchising is a form of                  .

 

 

48. Through                   , a local firm purchases the right to use a company's processes and brands in a service business.

 

 

49. Profit opportunities are greatest for marketers that use a (n)         strategy.

 

 

50. Which of the following is the distinguishing characteristic of a born global company?

 

 

51. U.S. sugar import quotas have existed for more than fifty years and preserve about half of the U.S. sugar market for domestic producers. Why does the United States continue to have these quotas?

 

 

52. On February 2000, the United States imposed a tax on imported steel in an effort to protect about 5,000 U.S. jobs. Another name for this levied tax is a (n)   .

 

 

 

53. Kyrgyzstan is a small, poor, mountainous country with a predominantly agricultural economy. Cotton, wool, and meat are the main agricultural products and exports. Fifty-one percent of the population lives in poverty. Kyrgyzstan is an example of a(n)

                   .

 

 

54. Which of the following is the best example of nationalization?

 

55. Azerbaijan imported wheat from Romania in exchange for crude oil and Vietnam exchanged rice for Philippine fertilizer and coconuts. Both scenarios are examples of which of the following?

 

 

 

 

 

56. Members of management at Growing Green, a company that markets, organic and environmentally friendly gardening and landscaping supplies and equipment, are evaluating the benefits and disadvantages of indirect exporting, direct exporting, and licensing. In which stage of the global marketing process is Growing Green?

 

 

57. Which of the following market entry strategies requires the lowest level of investment from a company?

 

 

58. Think Ink is a growing company that sells a variety of inks for home and business printers. Management at Think Ink has decided to open a sales branch overseas to handle sales and distribution abroad. Think Ink is engaging in        .

 

 

59. Coca-Cola markets globally by making

with the syrups needed to produce Coca-Cola products.

 

 

60. Sears opened up department stores in Mexico and Spain, where it found qualified local manufacturers to produce many of the

product it sells. This type of joint venture is known as             .

 

 

61. The Tim Hortons chain accounts for more than half of all the donut and coffee stores in Canada. The chain's red-and-white store banners are fixtures in many Canadian communities. In 2001, the first Tim Hortons appeared in the United States through a contractual agreement allowing an independent operation to adopt Tim Hortons' entire way of doing business. This agreement is an example of a (n)   .

 

 

62. When considering the marketing mix in international marketing, advocates of          would be most likely to focus on the similarities among cultures and argue that basic needs and wants are the same everywhere.

 

 

 

Refer to the passage below to answer the following questions.

 

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 just whether a company-wide global focus would be more profitable after all.

 

Managers at Selman & Saks studied Wellman’s licensing agreement in greater detail. Though seeing firsthand the benefits Wellman found 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, the 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."

63. Based on the passage, Selman & Saks entered the French market to gain which of the following benefits of global trade?

 

 

 

 

64. Which of the following best explains why Selman & Saks chose exporting as its entry method to the French market?

 

 

65. If Selman & Saks allowed a French company to produce and market razors and trimmers carrying the company's brand in exchange for a royalty, Selman & Saks would be used which market entry strategy?

 

 

66. A global firm can gain marketing, production, and financial advantages that are not available to purely domestic competitors.

 

 

 

67. BRIC countries accounted for more than one-third of world economic growth in the most recent decade.

 

 

 

68. Though the economies of the BRIC countries are significant, even combined they are unlikely to overtake the size and importance of the U.S. economy.

 

 

 

69. A glocal company is committed to using a combination of global and local marketing tactics in every foreign market it enters.

 

 

 

70. Offshoring is a type of outsourcing in which business activities are completed in another country.

 

 

 

71. The only member countries of the North American Free Trade Agreement (NAFTA) are the United States, Canada, and Mexico.

 

 

 

72. The main pursuit of the World Trade Organization (WTO) is to guarantee basic human rights in all markets.

 

 

 

73. An industrializing economy is characterized by increasing raw material exports and decreasing raw material imports.

 

 

 

74. A monarch, who usually reigns for life and by hereditary right, is the head of a parliamentary democracy.

 

 

 

75. Low masculinity societies have limited differentiation between genders.

 

 

 

76. In developed markets such as the United States, it has become more difficult for high rates of GDP growth to be sustained.

 

 

 

77. Indirect exporting is a market entry strategy with low costs but higher risks.

 

 

78. Some host countries require foreign companies entering a market to make a direct investment in the country.

 

 

 

79. Global marketing strategies are intended to create efficiencies.

 

 

 

80. Most businesses that operate globally tend to gravitate toward countries that are similar in language and commercial practices of their home country.

 

 

 

81. In the United States, the service and information sectors of the economy accounted for most of the nation's economic growth. Manufacturing makes an important but a decreasing contribution to the economy. The United States is best classified as a post- industrial economy.

 

 

 

82. A retail Web site where consumers can purchase goods from producers is an example of a market.

 

 

 

83. Joint venturing has occurred when two or more U.S. companies jointly invest in distributing products to a foreign country.

 

 

 

84. Explain how extensive customization from market to market may cancel out some of the benefits of global trade for a company.

 

 

85. Compare and contrast a multinational company and a global company.

 

 

86. Explain the distinction between outsourcing and offshoring.

 

 

87. Eastman Kodak accused Japanese rival Fujifilm of selling color photographic paper in the United States for as little as a quarter of what it charges in Japan. What unethical and often illegal practice was a Kodak accusing Fujifilm of implementing? Explain your answer.

 

 

88. Explain why businesses tend to like the idea of privatization.

 

 

89. What distinguishes a democracy from a parliamentary democracy?

 

 

 

 

90. Briefly explain the cultural value of uncertainty avoidance.

 

91. Why are marketers exploring more opportunities in emerging markets?

 

 

92. Name three things that marketers need to balance when selecting a market entry strategy.

 

 

93. What is a possible risk involved with licensing?

 

 

94. Describe the factors that might draw a company into global trade.

 

 

95. Is global marketing more challenging than single country marketing? In a brief essay, explain why or why not.

 

 

96. Describe the function of an economic community and a trade agreement. Explain why they are relevant to marketers. Give two examples of important economic communities.

 

 

 

 

 

 

 

 

 

 

 

 

97. What are trade barriers and why might a government adopt them as a policy? Explain how three examples of trade barriers function.