Exam 5: Developing a Global Vision

U.S.-based Procter & Gamble and Italian-based Fater agreed to produce and market diapers for the European market.This is an example of a joint venture.

Since 1953,the United States has limited the amount of raw peanuts that can be imported to 1.7 million pounds a year.This is only about one-tenth of 1 percent of all domestic edible peanut consumption in the United States.This limitation is an example of a(n):

Otis Elevators has entered into a strategic alliance with a company in France from which it gets its elevator door systems.It has a similar agreement with a manufacturer in Japan that provides it with special motor drives.A manufacturer in Spain has worked closely with Otis to create small geared parts necessary for the manufacture of elevators.The component parts are assembled at its plant in the United States.Otis elevators can be found in buildings all over the world.Otis Elevators is an example of a(n):

Who offers low-interest loans to developing nations?

Having a global vision means management recognizes and reacts to international marketing opportunities,uses effective global marketing strategies,and is aware of threats from foreign competitors in all markets.

Assume you are a global marketing consultant for a U.S.manufacturer of light fixtures and have been asked to name the available options or methods of entry into the global marketplace.Name five methods of entry in the order of high risk/high return to low risk/low return for the lighting company.

Often it is difficult for a firm to obtain adequate global distribution.Compare and contrast the difficulties of distributing in Japan and India.

The total market value of all final goods and services produced in a country for a given time period is called:

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.The _____ environment had the greatest influence on IKEA's first failure in Japan.

Explain the following statement: "The Internet economy is being restrained by the old bricks-and-mortar rules,regulations,and habits."

Belgian Beer brewer InBev bought Anheuser-Bush for $52 billion.This is an example of a(n):

The Uruguay Round of trade negotiations dramatically increased trade barriers worldwide.

Define and describe exporting.Briefly describe the three types of export intermediaries.

The _____ is an intermediary in the global market who assumes all risks and sells globally for its own account.The domestic manufacturer usually treats it like a domestic customer.

Franchising is a form of:

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.In which stage of globalization is Wataniya Mobile?

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.Wataniya Mobile has spent $100 million on infrastructure so far and will spend another $700 million over the next ten years.This is an example of which method of entering the global marketplace?

When a company or industry is taken over by the government,it has been:

A(n)_____ is a limit on the amount of a specific product that can enter a country.

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.To market the nasal strips in countries outside the United States,CNS and 3M provided the strips to the national sports teams.For example,sales in South Africa took off when the entire South African rugby team wore the strips when they won the World Cup of rugby.This example primarily illustrates the use of which element of the global marketing mix?