Exam 9: Developing a Global Vision

A(n)_____ is a law that compels a company earning foreign currency from its exports to sell it to a central bank rather than sending the money out of the country.

Carlos Hernandez owns a company in Miami that purchases products from U.S.manufacturers for export to several countries in Central and South America.Carlos is a(n):

Assume that you are the president of a company that manufactures wooden bowls,cutting boards,and spoons.Your company is considering marketing its kitchen items globally.List the five important external environmental factors that should be examined for each country you are considering for this global venture.

American firms should never try to do business in Europe in August because they will find that everyone has gone on vacation.Today,all European countries have laws requiring companies to provide employees with vacations of at least four to five weeks.This would be an important part of the European _____ environment that any multinational firm doing business there needs to be aware of.

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

Disney sells the rights for an investment company to run a Disneyland theme park in Tokyo.The investment company gains most of the profits from the enterprise while paying Disney a percentage in royalties.This is an example of:

DeFeet International creates its apparel in North Carolina and sells it domestically and abroad.The company is in which stage of global business?

If a country's currency appreciates,more of that currency will be needed to buy another country's currency.

Central to any society is a common set of values shared by its citizens that determines what is socially acceptable.Marketers refer to these values collectively as a country's:

Kit Kat The popular Kit Kat chocolate bar was created by Rowntree's, a confectionary company in the United Kingdom, in 1935. By the 1940s, Rowntree's was exporting Kit Kats to Australia, New Zealand, South Africa, and Canada. The brand further expanded in the 1970s when Rowntree created a new distribution factory in Germany to meet European demand, and established agreements to distribute the brand in the USA and Japan, through the Hershey and Fujiya companies respectively. In June 1988, Nestlé acquired Kit Kat through the purchase of Rowntree's, giving Nestlé global control over the brand-except in North America, where it is made under license by the Hershey Company. Variants in the traditional chocolate bar began to appear in the mid-1990s and have continued to develop ever since. Kit Kat Japan, in particular, has many unique flavors such as mango-flavored, cucumber, and wasabi Kit Kats. Today, Nestlé produces Kit Kat bars in 21 countries and has expanded its marketplace in Japan, Russia, Turkey, and South America, in addition to markets throughout Europe. -Refer to Kit Kat.The Kit Kat manufacturing facilities in Egypt,Ukraine,Bulgaria,and 18 different countries are only small parts of the Nestlé organization.Nestlé can be called a(n):

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

In the wake of the global recession of 2008-2009,many countries have:

The _____ is an intermediary in the global market who assumes all risks and sells globally internationally for its own account.The domestic manufacturer usually treats it like a domestic customer.

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.It 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 a _____ strategy.

According to the text,which of the following is an example of a product strategy that would be appropriate for a global marketing company to implement?

_____ is a global marketing strategy that requires active ownership (either a controlling interest or large minority interest)of a foreign company or overseas manufacturing or marketing facilities.

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):

Global marketing standardization presumes that the markets throughout the world are becoming more alike.

Several Arab nations refuse to allow Coca-Cola products to be sold within their borders because of the company's distributorships in Israel.This is an example of a(n):

The same environmental factors that operate in the domestic market also exist internationally.These factors (culture,economic,political structure and actions,demographic makeup,and natural resources)should be examined regardless of the country.