Exam 5: Developing a Global Vision

Define and describe exporting.Briefly describe the three types of export intermediaries.

Which list correctly ranks the methods of entering the global marketplace in increasing order of risk?

Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency.This practice is called:

Muslim countries are receptive to most Disney products,but they have asked Disney not to include Piglet when it sells its Winnie the Pooh characters because Muslims (as a part of their religious beliefs)contend that pork in any form is unclean.This is an example of a _____ factor that directly affects Disney's global operation.

The _____ is the most ambitious global trade agreement ever negotiated; the agreement has reduced tariffs by one-third worldwide.

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.

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

Cooley Manufacturing is a multinational company selling plumbing components around the world. This company has progressed to the point that it operates an entire of line of business in several other countries. Which stage of multinational business does this represent?

Traditionally,marketing-oriented multinational corporations have operated differently in each country,with segmentation strategies that provided different marketing mixes.Today,there has been a trend toward global marketing standardization.What is global marketing standardization? Can companies truly follow the basic premise of the global marketing standardization concept?

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. Wataniya Mobile has spent $100 million on infrastructure so far and will spend another $700 million over the next ten years. This is an example of which method of entering the global marketplace?

Which country is considered to have the most complicated distribution system?

Apple Inc.has partnerships with wireless carriers in Japan,Spain and a handful of other European countries.Apple Inc works with suppliers and retailers worldwide.This means that Apple is a _____.

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

NAFTA is the New American Foreign Trade Amendment,which allows for balanced trade with the European Union (EU).

In a newspaper release,Corning,Inc.announced it had received a favorable ruling from China's Ministry of Commerce on allegations that it was selling its fiber more cheaply in China than in other countries.Corning was falsely accused of:

Boeing Company 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, and 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 one of Boeing's newest planes, the 777. This strategy should ensure Boeing's dominance in Japan. -Refer to Boeing Company.Boeing has chosen the _____ method of entering the Japanese market.

_____ is a trade agreement that includes Argentina,Bolivia,Brazil,Chile,Columbia,Ecuador,Paraguay,Peru,and Uruguay.This agreement eliminated the tariffs among these trading partners.

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

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:

The North American Free Trade Agreement (NAFTA)did all of the following EXCEPT: