Exam 20: Developing a Global Vision

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

Which of the following can be used to explain how Ford Motor Company benefited from investing $60 million in a Mexico City manufacturing plant to produce small cars?

Assume you are the promotions manager for a lingerie company.Your company has decided to market its product line in Brazil,Mexico,Italy,France,and Japan.Your company wishes to use a global marketing standardization strategy.In general terms,explain how your company would advertise in these different countries.

Just as mass marketing assumes a large market made up of consumers who are alike,global marketing assumes markets throughout the world are becoming more alike.

When European demand for a certain solvent declined,Dow Chemical instructed its German plant to switch to manufacturing a chemical that had been imported from Louisiana and Texas.How would Dow Chemical best be described?

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.What was the most logical method for the breweries to use in selling their beer in other nations?

The United States is selling more domestically produced products in other countries than any other country in the world.This means the United States is the world leader in which of the following?

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.Which method of entry has Dell chosen for the foreign market?

The Rice Millers' Association claims that if the Japanese government would remove the tax on imported North American rice,Japanese consumers would save $6 billion annually.What is this tax an example of?

According to research done by the World Bank,countries with the least amount of business regulation foster the strongest economies.

Three international legal structures designed to limit trade are tariffs,quotas,and boycotts.Define and differentiate these three structures.Give one specific example of each.

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. -Refer to IKEA.IKEA's 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 which of the following as a strategy?

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

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.

As a global marketing strategy,which of the following requires active ownership (either a controlling interest or large minority interest)of a foreign company or overseas manufacturing or marketing facilities?

A business thinking of expanding into global markets needs to examine all of the following external environments EXCEPT which of the following?

Which of the following is generally defined as the sale of an exported product at a price lower than that charged for the same or a similar product in the home market of the exporter?

Which of the following statements best describes global marketing?

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.What did this refusal mark one of the first examples of?

Foreign sales agents-distributors who live in a foreign country and represent a domestic company in sales situations perform the same functions as domestic manufacturers' agents who help with financing and shipping.What are they called?