Exam 5: Developing a Global Vision

The first step in creating the global marketing mix is to:

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.Otis Elevators is an example of a(n):

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.Dow Chemical would be best described as a(n):

Assume you are a global marketing consultant for a U.S.manufacturer of light fixtures and have been asked to name the available options or methods of entry into the global marketplace.Name five methods of entry in the order of high risk/high return to low risk/low return for the lighting company.

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

Cardiac Science,a U.S.manufacturer of defibrillators,heart monitoring devices,and other medical related devices,sells 85 percent of its products outside the United States.It sells basically the same product to a hospital in London,Tokyo,Pretoria,or Sydney.It uses the same promotional tactics in all of its markets.Cardiac Science:

With respect to global business,MFN stands for:

A soft drink manufacturer who 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 liter of beer a day for every man,woman,and child in the country.The _____ environment of this country could very easily prevent the soft drink bottling company from succeeding.

International Marketing,Inc.is a company located in Brazil and assists businesses that export products to Brazil. This company helps with financing,shipping,and any aspect of marketing a product from another country in Brazil. This company is an example of a(n):

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.The _____ environment had the greatest influence on IKEA's first failure in Japan.

Why is developing a global vision important for firms in the United States?

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.How people value a sound night's sleep is an example of which element of the global environment?

Many people fear world trade because it:

Explain the following statement: "The Internet economy is being restrained by the old bricks-and-mortar rules,regulations,and habits."

When Krispy Kreme decided to expand its operation internationally,it chose to first make its doughnuts available in Canada to minimize its risk.In accordance with the policy of risk minimization,the company sold the right to manufacture and sell its doughnuts to Canadians.In other words,Krispy Kreme used:

When developing countries began encouraging foreign investors and imports,companies like Black & Decker and Pillsbury offered a wide array of products to countries throughout the world.Because of enormous populations in developing countries,these companies predicted a potential for strong annual sales.However,in addition to total population,companies must not overlook _____ factors such as distribution of people within a country and household incomes.

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

Which of the following is a criticism of multinational corporations?

Sony,Panasonic,and other Japanese manufacturers that build products to customer order instead of churning out products in anticipation of demand have decided to hire U.S.companies to produce electronics for them.The Japanese companies will handle the marketing of the products.Japanese electronics companies are using:

In which stage do multicultural companies operate when they set up foreign subsidiaries to handle sales in one country?