Exam 8: Reaching Global Markets

Contract manufacturing occurs when a firm pays a commission or royalties on sales or supplies used in manufacturing.

The contracting of noncore operations or jobs from internal production within a business to an external entity that specializes in that operation is known as

Many marketers claim that ____ will become the world's largest market.

The gross domestic product is

Domestic marketing involves marketing strategies aimed at markets within the home country.

Franchising is an arrangement whereby a franchisee grants a franchiser the right to market its product, using its name, logo, methods of operation, advertising, products, and other elements of the franchising company's business, in return for a financial commitment and an agreement to conduct business in accordance with the franchisee's standard of operations.

The environmental forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a careful ____ a critical part of a successful international marketing strategy.

What is the greatest advantage to an organization of having a subsidiary in a foreign nation?

The job of the export agent is to bring together buyers and sellers from different countries.

In China, the price of imported Scotch is $30 per glass as opposed to Scotch from China which is $3. Which of the following do you think accounts for the difference in price?

The unification of Europe permits virtually free trade among the member nations of the European Union.

Nestlé Food Company is a Swiss-based company that operates several divisions in the United States and other countries. This classifies Nestlé as a(n)

NAFTA simplifies country-of-origin rules, hindering Japan's use of Mexico as a staging ground for further penetration into U.S. markets.

Describe how economic and technological forces affect marketing strategies.

Cultural differences do not affect marketing negotiations and decision-making behavior.

Scenario 8.2 Use the following to answer the questions. KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu¾items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries¾to offer the customer passing by a preliminary view of their product. -Refer to Scenario 8.2. Which of the following alliances will KFC most likely utilize to guide its business transactions in Japan and China?

A positive balance of trade is considered good because it means that U.S. dollars are supporting foreign economies at the expense of U.S. companies and workers.

Special interest groups and regulatory bodies are ____ forces that must be taken into account in international marketing.

What marketing and ethical problems can bribes create in international marketing transactions?

Which of the following describes a company hiring a foreign firm to produce a designated volume of its product to specification?