Exam 21: Tapping into Global Markets

Trends Inc. produces and markets casual wear for men and women. The company wants to be a global brand and is planning to enter a few chosen markets across Europe and Asia. To accommodate the differences in purchasing power and costs of shipping goods to the retailers, the company has decided to use cost-based pricing in each country. In order to ensure that this strategy is successful, Trends must first make sure that ________.

In an attempt to tailor its products to suit the requirements of consumers in India, LG introduced the aero-comfort system. A remote control is programed to regulate both the air-conditioning and the ceiling fan. Consumers can switch off the AC and increase the ceiling fan's flow once the desired temperature is achieved. This not only increases convenience, but also cuts down electricity charges. LG's aero comfort system is an example of which of the following?

Forces promoting national responsiveness include ________.

Outline the major decisions that a firm must undergo in making a decision to market internationally.

Hotel chains such as Hyatt sell a variation of the licensing agreement called ________ to the owners of foreign hotels to manage these businesses for a fee.

Name the three choices that companies have for setting prices in different countries.

Forward invention refers to reintroducing earlier product forms that are well adapted to a foreign country's needs.

The first task of the internationalization process is moving a company from no regular exports to regular export activities.

Companies can run the same marketing communications programs as used in the home market or change them for each local market, a process called ________.

Ajax Corp. is a multinational group that manufactures medical equipment and a variety of household electrical appliances. Kevin O'Brien is the head of the SBU that produces and markets medical equipment globally. The company's operating units appear to be a(n)________.

The New Zealand Way program was an initiative by the government of New Zealand to raise awareness and attract tourists by showing the dramatic landscapes featured in "The Lord of the Rings" film trilogy. This is an example of a government trying to strengthen its ________.

Satisfying different consumer needs and wants can require different marketing programs. Name the four cultural dimensions that differentiate countries, as identified by Hofstede.

People are often ethnocentric and favorably predisposed to their own country's products, unless they come from a less developed country.

If a company adapts or changes both the product and the communications, the company engages in a process called ________.

Gray market activities harm distributor relations, tarnish the manufacturer's brand equity, and undermine the integrity of the distribution channel.

The international division that is responsible for a firm's worldwide marketing activities is headed by a division president who sets goals and budgets and is in charge of the company's international growth.

Indirect exports are characterized by high investment, and therefore high risk.

When one unit charges another unit in the same company for goods it ships to its foreign subsidiaries, the charge is called a(n)________.

A Gucci bag sells for $120 in Italy and $240 in the United States due to the differences in the costs of distributing the product in the two countries. This phenomenon is called a(n)________.

Explain the country-of-origin effect.