Exam 20: Developing a Global Vision

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;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 Boeing's newest plane,the 777.This strategy should ensure Boeing's dominance in Japan. -Refer to Boeing Company.Which method of entering the Japanese market has Boeing chosen?

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.What is this an example of?

The rules,regulations,and habits used for bricks-and-mortar stores tend to restrain and limit the success of those retailers engaged in e-commerce.

Basketball is played nearly everywhere in the world and is an easily understood sport.The National Basketball Association (NBA)finals reached more than 600 million televisions in 195 countries.From this information,what should you be able to infer about the NBA?

U.S.wine producers only export about 14 percent of their total annual production of wine.They would like to sell more to overseas markets,but do not want to tailor their wines to consumers' palates.For example,Californian wines are typically heartier and richer than Europeans like to drink. -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?

What was the most ambitious global trade agreement ever negotiated and has reduced tariffs by one-third worldwide?

Which method of entering the global marketplace is most risky?

After the fall of communism in the Czech Republic,the government privatized the brewing industry and created 71 new small breweries.In spite of the fact that Czechs consume more beer per person than the populations of most other nations of the world,the country still had overcapacity.The breweries were small and financially struggling. -Refer to Beer.Who could the breweries hire within the Czech Republic to serve as intermediaries and export Czech beer to foreign markets?

Multinational companies typically begin the development of their global business with direct investment and continue using this strategy throughout the company's life span.

A soft drink manufacturer that was thinking of investing in a bottling plant in the Czech Republic should know the nation is proud of the fact it is among the world's biggest beer drinkers.Czechs consume an average of one-half litre of beer a day for every man,woman,and child in the country.Which environment of this country could very easily prevent the soft-drink bottling company from succeeding?

A price war began in Japan in the personal computer market when Dell,Inc.introduced PCs at prices 25 to 60 percent lower than rivals.Dell targeted corporate customers from its Tokyo offices by "direct sales," the company's preferred name for mail order and its main avenue for PC sales in North America.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,which maintained a strong dealer network and had traditionally sold its computers at very high prices.Dell joined IBM and Compaq in targeting the Japanese market.Dell bet it could succeed in Japan by transplanting its North American method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to the customer.The company's success depended on its ability to sell PCs over the telephone.Analysts doubted this was possible in Japan because dealer networks are the key to the market,but Dell executives believed name recognition was the main hurdle.To familiarize its target market with the idea of buying a computer sight unseen,Dell launched a major ad campaign through direct mail and ads in computer-related magazines and newspapers. -Refer to Computer Sales.The fact that Japanese consumers do not buy through the methods typically used by Dell is an example of how the global marketing is influenced by which environmental influence?

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

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

Pillsbury has developed different products for its various global markets.Which of the following statements offers a likely reason for its use of product invention?

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.What is Otis Elevators an example of?

What is the term for an intermediary in the global market who assumes all risks and sells globally for its own account,and is treated by the domestic manufacturer like a domestic customer?

A major benefit of globalization is its creation of jobs and wealth.

A price war began in Japan in the personal computer market when Dell,Inc.introduced PCs at prices 25 to 60 percent lower than rivals.Dell targeted corporate customers from its Tokyo offices by "direct sales," the company's preferred name for mail order and its main avenue for PC sales in North America.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,which maintained a strong dealer network and had traditionally sold its computers at very high prices.Dell joined IBM and Compaq in targeting the Japanese market.Dell bet it could succeed in Japan by transplanting its North American method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to the customer.The company's success depended on its ability to sell PCs over the telephone.Analysts doubted this was possible in Japan because dealer networks are the key to the market,but Dell executives believed name recognition was the main hurdle.To familiarize its target market with the idea of buying a computer sight unseen,Dell launched a major ad campaign through direct mail and ads in computer-related magazines and newspapers. -Refer to Computer Sales.Dell is dedicated to entering the Japanese market.Company executives believe name recognition is the largest marketing issue.What should be the first step in creating the international marketing mix?

Which of the following best describes global marketing standardization?

Why do many people fear world trade?