Exam 5: Developing a Global Vision

Wataniya Mobile Wataniya Mobile is offering cellular service in the Palestinian territories. It is only the second cellphone carrier in the region and is significant because it is owned by foreign companies and investors like the Qatari royal family and the Palestine Investment Fund. The new service is aimed at increasing cellphone penetration, which is only 35%, in this economically challenged area. It has not been easy for Wataniya, though. It took two years to gain the required license from Israel, which controls the Palestinian territories' airwaves and bandwidth required for the service. Even though Wataniya is allowed bandwidth, it has only received 3.8 megahertz of bandwidth from Israel, which is not enough for it to offer 3G mobile services that enable Web browsing and email. -Refer to Wataniya Mobile.Israel and the Palestinian territories have vastly different religious believes and are frequently at war. The differences between these two are attributed to which environmental factor?

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

Caterpillar,Inc.is the world's largest manufacturer of earth-moving and construction equipment.Kirovsky is a large Russian manufacturer of the same type of products.The two companies entered into a(n)_____ and created NEVAMASH,a new company.

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.

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

All of the following are countries included in the Central America Free Trade Agreement (CAFTA)EXCEPT:

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?

The fact that Russia's inflation rate has increased 15.1% since May of 2007 would be an important _____ factor for a company that wanted to do business in that country.

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 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.

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.In the United States,one of the standard methods for introducing a new product is couponing,but many countries prohibit the issuing of coupons.This prohibition would represent a(n)_____ element of the global environment.

A(n)_____ is a limit on the amount of a specific product that can enter a country.

When a company or industry is taken over by the government,it has been:

Zambia is internationally recognized as the world's second leading producer of cobalt,which is used to make high-speed and high-temperature cutting tools and dyes.A company that wanted to manufacture tools for shaping steel would be most attracted to which element of the Zambian environment?

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

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

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

To enter the German market,BDO,an international accounting company,purchased an existing accounting firm.BDO entered the German market through the use of:

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

Assume you are the marketing manager for a leading U.S.manufacturer of earth-moving equipment.Your company would like to become heavily involved in global marketing (especially in India)but has some capital limitations.Your job is to evaluate whether it should use contract manufacturing or direct investment.Compare and contrast these two options and make a recommendation.