Exam 5: Developing a Global Vision

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

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

The U.S.government prohibits the importation of Havana cigars because of political differences with Cuba.This is an example of an import exchange control.

With respect to global business,MFN stands for:

A U.S.executive had no idea the Japanese go through a very elaborate ritual when exchanging business cards.When he arrived at a meeting in Tokyo,he sat down and tossed some of his business cards across the table at a group of stunned Japanese businesspeople.Due to the U.S.executive's rudeness,the multimillion dollar deal failed.The U.S.executive overlooked the importance of which environmental factor?

When Krispy Kreme decided to expand its operation internationally,it chose to first make its doughnuts available in Canada to minimize its risk.In accordance with the policy of risk minimization,the company sold the right to manufacture and sell its doughnuts to Canadians.In other words,Krispy Kreme used:

With a _____,a firm produces standardized products to be sold the same way all over the world.

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.The new American-Japanese-Chinese plane Boeing plans to design and build gives partial ownership to the manufacturing partners involved in the project.This is an example of:

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 _____.

A(n)_____ is a global intermediary that brings the buyer and seller together.

Mitsubishi Heavy Industries and Kawasaki Heavy Industries produce McDonnell Douglas's F-15 fighter planes in Japan.The two Japanese companies pay McDonnell Douglas royalties for use of its manufacturing processes and patents.This is an example of:

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

All of the following are reasons for dumping EXCEPT:

Defeet International creates its apparel in North Carolina and sells it domestically and abroad.The company is in which stage of global business?

The goal of the Central America Free Trade Agreement (CAFTA)is to:

Which method of entering the global marketplace would be LEAST risky?

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

Which of the following statements about multinational firms is true?

Franchising is a form of:

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.