Exam 5: Developing a Global Vision

Which of the following is the latest round of World Trade Organization (WTO)?

In the context of global marketing,product invention can be taken to mean either creating a new product for a market or drastically changing an existing product.

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.

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.

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.

Licensing agreements reduce the risk for manufacturers and sometimes even remove the requirement for a manufacturer to produce its own product.

With respect to global business,MFN stands for:

Which country is considered to have the most complicated distribution system?

The Patton Awning company produces tents,tarps,awning,and other canvas products.The firm is in stage one of creating its global business.This means that they:

Which list correctly ranks the methods of entering the global marketplace in increasing order of risk?

Kit Kat The popular Kit Kat chocolate bar was created by Rowntree's,a confectionary company in the United Kingdom,in 1935.By the 1940s,Rowntree's was exporting Kit Kats to Australia,New Zealand,South Africa,and Canada.The brand further expanded in the 1970s when Rowntree created a new distribution factory in Germany to meet European demand,and established agreements to distribute the brand in the USA and Japan,through the Hershey and Fujiya companies respectively.In June 1988,Nestlé acquired Kit Kat through the purchase of Rowntree's,giving Nestlé global control over the brand-except in North America,where it is made under license by the Hershey Company.Variants in the traditional chocolate bar began to appear in the mid-1990s and have continued to develop ever since.Kit Kat Japan,in particular,has many unique flavors such as mango-flavored,cucumber,and wasabi Kit Kats.Today,Nestlé produces Kit Kat bars are produced in 21 countries and has expanded its marketplace in Japan,Russia,Turkey,and South America in addition to markets throughout Europe. -Refer to Kit Kat.Nestlé has utilized a global vision in marketing Kit Kat bars throughout the world.The company realizes different countries require different strategies but that effective global marketing is a key to success.Nestlé is practicing:

The Group of Twenty is the largest free trade agreement in the world.

NAFTA is the New American Foreign Trade Amendment,which allows for balanced trade with the European Union (EU).

The fact that Russia's inflation rate has increased 15.1 percent since May of 2007 would be an important _____ factor for a company that wanted to do business in that country.

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:

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:

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):

The pricing component of the global marketing mix is:

Even though it is not actively involved in global marketing,Hennessey Enterprises,a U.S.-based business,agreed to sell two thousand of its stress-reducing products to a distribution company in Norway.This would be an example of direct investment.

The falling U.S.dollar makes the possibility of manufacturing in the United States more attractive than in the past.