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MKT 300 - Chapter 8

Terms in this set (25)

exporting
the marketing of domestically produced goods and services abroad
importing
the purchasing of foreign goods and services
World Trade Organization (WTO)
a 164-member organization that oversees trade agreements among its members, serves as a forum for trade negotiations, mediates trade disputes, monitors national trade policies, and works to reduce trade barriers throughout the world
free-trade area
where participating nations agree to the free trade of goods among themselves, abolishing tariffs and trade restrictions
tariffs
taxes levied against imported goods
North American Free Trade Agreement (NAFTA)
an agreement between Canada, the United States, and Mexico that created the world's then-largest free trade zone
European Union (EU)
28 countries make up the EU, which works to remove trade restrictions, permit the free flow of goods and workers throughout member nations, and promote human rights
exchange rate
the price of one nation's currency in terms of another country's currency
infrastructure
the underlying foundation for modern life that includes transportation, communications, banking, utilities, and public services.
foreign licensing
grants foreign marketers the right to distribute a firm's merchandise or to use its trademark, patent, or process in a specified geographic area
franchise
is a contractual arrangement where the franchisee agrees to meet the operating requirements of a manufacturer or a franchiser
political risk assessment (PRA)
when a company or business unit evaluates the political risks of the marketplaces in which they operate
international direct investment
financial investment in foreign firms or facilities
subcontracting
when the production of goods or services is assigned to local companies
joint ventures
when companies share the risks, costs, and management of the foreign operation with one or more partners
The United States places first in a number of categories of global marketing and trade opportunities. For example, the United States is the world's largest exporter of services and retailing. More than $600 billion is spent annually in U.S. service exports. Twenty percent of that $600 billion—more than $120 billion—comes from travel and tourism. Which of the following customer descriptions identifies a buyer of this U.S. service export?
Parisian Cecile, driving a convertible up the West Coast from California to Washington.
In your new marketing position with an international company making custom leather boots, you recognize the global environment offers a different set of challenges for you to navigate on behalf of your employer. You have been assigned to track product sales to Spain.
Which of the following information should you thoroughly familiarize yourself with, to respond to Spain's political-legal environment?
Import tariffs on leather goods.
You work for a digital timepiece company which started its entry into the global market a year ago. Your predecessor assumed that the company could use the same product and preexisting marketing campaign materials in nations that shared the same language. Sales never got off the ground. You were brought on board to make strategic changes and continue the fight for customers.
Which strategy are you most likely to change?
Straight extension.
After spending time in the marketing department of a cookware company based in Ohio, you've been told to prepare for a move to a new international division. Your boss hasn't specified its location—only that it will be outside the most mature markets for many U.S. consumer products.
Based on that information, you can assume the move will not take you to:
Canada.
You head a marketing team preparing to launch a revised global marketing campaign for a high-end jewelry and accessory company. You review the previous strategies your team has implemented:
You started with selling delicate, antique-looking jewelry across all international markets, with the same theme of "Looking Your Feminine Best."
Then your team experimented with some countries using the same jewelry, but with a theme of "Investing in Your Best Self."
For other countries, your team used the same theme of "Investing in Your Best Self" to sell jewelry-encrusted purses.
Buoyed by that success, your team plans a dramatic marketing change: An award-winning designer recrafted the profile of the jewelry to be chunky, rather than delicate. Your team came up with the slogan of "Be Visibly Lovely."
Choose the international product and promotional strategy that does not illustrate a form of adaptation.
You started with selling delicate, antique-looking jewelry across all international markets, with the same theme of "Looking Your Feminine Best."
Which of the following is not part of the international political-legal environment that affects U.S. firms operating abroad?
Cultural norms.
The North American Free Trade Agreement (NAFTA), the World Trade Organization (WTO), and the European Union (EU) were all formed to achieve the same purpose of removing trade restrictions between countries. However, there are important differences in the characteristics of these organizations.
Fill in the blanks with the word(s) from the drop-down list that would best complete the passage. Each word or term may be used more than once.
The _____ involves more than 150 countries.
NAFTA involves _____ countries.
The _____ is a monitor of trade policies and mediator of ______.
The _____ has adopted a common currency among its members.
The ____ promotes human rights.
World Trade Organization, three, World Trade Organization, trade disputes, European Union, European Union
Fill in the blanks with the word(s) from the drop-down list that would best complete the passage.
Free trade has not produced all of the economic impacts that were originally predicted. At the same time, it is known that global shifts in production and trade have generally ____ consumer costs, _____ company profits, and ______ product _____.
lowered, improved, increased, choice
You are browsing through job listings for global marketing-related jobs on Monster.com. One job catches your attention because it lists the following major responsibilities that closely match your experience:
The candidate will be involved in purchase decisions of robotic manufacturing firms in Asia.
The candidate will be involved in setting up an independent division with responsibility for robotic equipment production and marketing.
The candidate's major focus will be on evaluating the performance of robotic manufacturing activities and incorporating strategies for effectiveness and efficiency.
The candidate should have an international customer value orientation.
Which of the following terms best describes the focus of this job?
International direct investment.
Companies that decide to pursue global marketing efforts have a choice of several ways to initiate building international business organizations. These alternatives give ample choices for the firm to match financial resources, envisioned outcomes, and comfortable risks.
Which of the following descriptions of global marketing alternatives is(are)accurate?
d. An exporter markets domestically produced merchandise to customers in other countries.
a. In a joint venture, the company shares risks, costs, and management with partners.
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