Exam 5: Developing a Global Vision

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):

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:

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.

In 1764,the British Sugar and Currency Acts created such economic difficulty in the American colonies that soon-to-be Americans refused to buy British goods in protest.This refusal marked one of the first examples of the use of the:

To protect its local vodka industry,Russia allows foreign manufacturers to have only one percent of the Russian vodka market.This is an example of using tariffs to control foreign competition.

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

International trade does not always involve cash.Sometimes companies accept all or part of the payment for goods or services in the form of other goods or services.This is known as:

Licensing agreements reduce the risk for manufacturers and sometimes even remove the requirement for a manufacturer to produce its own product.

In which stage do multicultural companies operate when they set up foreign subsidiaries to handle sales in one country?

International Marketing,Inc.is a company located in Brazil and assists businesses that export products to Brazil.This company helps with financing,shipping,and any aspect of marketing a product from another country in Brazil.This company is an example of a(n):

In China,August 15 is "the Chinese Saint Valentine's Day" in memory of two ancient lovers who were separated by a goddess and only allowed to meet once a year on that date.Flower and candy sales typically increase that day as they do on February 14 in the United States.This would be an important part of the international _____ environment for a flower wholesaler or a confectionery company.

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):

The major disadvantage of licensing agreements is that international companies cannot maintain control over their licensees.

Even though it is not actively involved in global marketing,Hennessey Enterprises,a U.S.-based business,agreed to sell two thousand of its stress-reducing products to a distribution company in Norway.This would be an example of direct investment.

Negotiations (such as GATT or the Uruguay Round)between countries that are made to stimulate global exchange and remove barriers are called _____ agreements.

Apple Inc.used its Mac and PC guy ad in countries around the world.They simply modified the characters a bit to fit the culture.Apple is attempting to market the Mac using _____.

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.

A multinational company that makes a labor-intensive product would be interested in the _____ makeup of countries.Factors such as median age,gender,and literacy rates would determine the success of its global expansion.

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?

With _____,a domestic firm assumes an equity position (partial ownership)in a foreign firm to manufacture and/or market the domestic company's goods.