Exam 5: Developing a Global Vision

Marketers typically target lower-income consumers when they enter global markets.

The _____ is the most ambitious global trade agreement ever negotiated;the agreement has reduced tariffs by one-third worldwide.

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.

If a country's currency appreciates,more of that currency will be needed to buy another country's currency.

Central to any society is a common set of values shared by its citizens that determines what is socially acceptable.Marketers refer to these values collectively as a country's:

_____ 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.

The Canadian magazine industry accused U.S.magazine publishers of _____,or selling the magazines in Canada at a lower price than in the United States.

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.

Breathe Right CNS,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. -Refer to Breathe Right.3M is an example of a(n):

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.

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.

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:

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:

H.J.Heinz,the ketchup company,gets over half of its revenue from international sales.This shows that:

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

Muslim countries are receptive to most Disney products,but they have asked Disney not to include Piglet when it sells its Winnie the Pooh characters because Muslims (as a part of their religious beliefs)contend that pork in any form is unclean.This is an example of a _____ factor that directly affects Disney's global operation.

Wataniya 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. -Refer to Wataniya Mobile.Israel and the Palestinian territories have vastly different religious believes and are frequently at war.The differences between these two are attributed to which environmental factor?

Who are the richest people in the world?

Which of the following statements about the political environment is true?

Breathe Right CNS,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. -Refer to Breathe Right.How people value a sound night's sleep is an example of which element of the global environment?