Exam 4: Developing a Global Vision27

An English manufacturer of cricket equipment sells directly to Georgia-based Universal Sports,which markets the products in the United States.(Cricket is a popular sport that is a forerunner of the sport of baseball.)The English manufacturer uses:

Global legal structures are designed to either encourage or limit trade.Give five examples of these legal structures.Briefly define each example.

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

The Chinese government charges exorbitant taxes on imported steel in order to protect its state-owned steel corporation.This _____ China has also serves to hinder the growth of hundreds of privately held manufacturing companies in China that see imported steel as a way to make prices more competitive.

Which of the following statements about global marketing is true?

Assume you are a global marketing consultant for a domestic manufacturer of baby furniture 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 baby furniture company.

A(n)_____ is a company heavily engaged in a global trade that moves its resources,goods,services,and skills across national boundaries.

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):

The form of global organization that provides the highest potential for return on investment as well as the highest level of risk is contract manufacturing.

Many people fear world trade because it:

Distinguish between licensing and a joint venture.In your answer,be sure to briefly define and describe licensing and joint ventures.

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

Assume you are the promotions manager for a lingerie company.Your company has decided to market its product line in Brazil,Mexico,Italy,France,and Japan.Your company wishes to use a global marketing standardization strategy.In general terms,explain how your company would advertise in these different countries.

Some companies find it possible to create find a successful global marketing mix strategy through an altered communication strategy.Which of the following is an example of such a strategy?

Even though it is not actively involved in global marketing,Hennessey Enterprises,a U.S.-based business,agreed to sell two thousand of its stress-reducing products to a distribution company in Norway.This would be an example of exporting.

An English manufacturer of cricket equipment sells directly to Georgia-based Universal Sports,which markets the products in the United States and Canada.Universal Sports is an example of a(n):

SCENARIOS Computer Sales A price war began in Japan in the personal computer market when Dell Computer Corporation introduced PCs at prices 25 to 60 percent lower than rivals.Dell targeted corporate customers from its Tokyo offices by "direct sales," the company's preferred name for mail order,and its main avenue for PC sales in the United States.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,who maintained a strong dealer network and had traditionally sold its computers at very high prices.Dell joined IBM and Compaq in targeting the Japanese market.Dell bet it could succeed in Japan by transplanting its U.S.method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to Japan.The company's success depended on its ability to sell PCs over the telephone.Analysts doubted this was possible in Japan because dealer networks are the key to the market,but Dell executives believed that name recognition was the main hurdle.To familiarize its target market with the idea of buying a computer sight unseen,Dell launched a major ad campaign through direct mail and ads in computer-related magazines and newspapers. -Refer to Boeing Co.Boeing has chosen the _____ method of entering the Japanese market.

The United States government prohibits the importation of Havana cigars because of political differences with Cuba.This is an example of a boycott.

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

Which of the following statements about multinational firms is true?