Exam 5: Developing a Global Vision

_____ 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.

Global trade has climbed to about $200 billion a year.

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

Consumers purchasing an automobile in Hong Kong must pay a 100 percent tax on it.This tax is imposed by the government on all automobiles entering the country and is called a(n):

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.When Rowntree's,the original manufacturer of Kit Kats,first decided to enter the global market,the company used which method?

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.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.

Globalization deserves credit for helping lift many nations out of poverty and for improving standards of living of low-wage families.

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

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.

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:

American firms should never try to do business in Europe in August because they will find that everyone has gone on vacation.Today,all European countries have laws requiring companies to provide employees with vacations of at least four to five weeks.This would be an important part of the European _____ environment that any multinational firm doing business there needs to be aware of.

Global marketing research is not any more difficult than domestic marketing research.

The United States sells more domestically produced products in other countries than any other country in the world.This means the United States is the world leader in:

The primary reason large U.S.companies send U.S.jobs abroad is because labor costs are higher here in the United States.They are engaging in _____.

The Victorinox Swiss Army Knife is found all over the world.It is manufactured and marketed similarly to all consumers.Victorinox uses a(n):

Vast differences in natural resources create all of the following EXCEPT:

Apple Inc.has partnerships with wireless carriers in Japan,Spain and a handful of other European countries.Apple Inc works with suppliers and retailers worldwide.This means that Apple is a:

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 _____.

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

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.The fact that many potential customers in Wataniya's market cannot afford a cellphone is part of which environment?