Exam 5: Developing a Global Vision

Even if all parties to a global business transaction are fluent in a common language,other cultural factors could interfere with the communication process.

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?

Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency.This practice is called:

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

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 and CNS entered into a:

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.

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

Sony,Panasonic,and other Japanese manufacturers that build products to customer order instead of churning out products in anticipation of demand have decided to hire U.S.companies to produce electronics for them.The Japanese companies will handle the marketing of the products.Japanese electronics companies are using:

Boeing Company Boeing Company has spent more than $100 million to create a major presence in China,complete with a major office complex,a large spare-parts facility,extra training programs for Chinese air crews,and a deal to buy fuselage sections for the 737 from local manufacturers.Asia is the fastest-growing aircraft market in the world.Asian carriers have been a major part of Boeing's sales,and Boeing predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel,and it wants those passengers flying on Boeing jets.So,Boeing is jointly designing and building an American-Japanese-Chinese plane,all to lock out any European,South American,or even Asian threat to its market.To keep the fate of Asian aerospace in its hands,Boeing is steadily broadening its contractual relationship with Japan's three major players,Mitsubishi Heavy Industries,Kawasaki Heavy Industries,and Fuji Heavy Industries.The Japanese "heavies" make part of the airframe of the Boeing 767 and 20 percent of one of Boeing's newest planes,the 777.This strategy should ensure Boeing's dominance in Japan. -Refer to Boeing Company.Boeing has chosen the _____ method of entering the Japanese market.

Forty million jobs may be shipped out of the country in the next decade or two according to Alan Blinder,former Federal Reserve Chairman.The key factor in this phenomenon is _____.

Global marketing standardization:

The first step in creating the global marketing mix is to:

Global trade has reached about $11 trillion a year.

Procter & Gamble's Vidal Sassoon shampoo smells the same worldwide,but the amount of scent used varies from country to country.This is an example of which type of marketing mix strategy?

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.

Cardiac Science,a U.S.manufacturer of defibrillators,heart monitoring devices,and other medical related devices,sells 85 percent of its products outside the United States.It sells basically the same product to a hospital in London,Tokyo,Pretoria,or Sydney.It uses the same promotional tactics in all of its markets.Cardiac Science:

Who are the richest people in the world?

The pricing component of the global marketing mix is:

DeLouis owns an agency that specializes in bringing international buyers in contact with U.S.companies to facilitate global trade.What type of intermediary is DeLouis?

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.Israel's control of licensing and the limitation on the amount of bandwidth allotted to Wataniya Mobile is part of which environment?