Chapter 9 – Reaching Global Markets – Flashcards
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Before the 1990s, most firms entered international markets globally and quickly. incrementally and slowly. incrementally and quickly. domestically and slowly. regionally and quickly.
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incrementally and slowly.
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According to your text, ____ are small technology-based firms operating in international markets within two years of their establishment and realizing as much as 70 percent of their sales outside the domestic home market. "natural globals" "multinational corporations" "born globals" "born multinationals" "multinational enterprises"
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"born globals"
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Approximately ____ of the world's purchasing power is outside of the United States. 1/10 1/3 2/3 1/2 9/10
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2/3
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The environmental forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a careful _______ a critical part of a successful international marketing strategy. background check regulatory analysis social audit environmental analysis marketing statement analysis
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environmental analysis
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Differences in standards of living, credit, buying power, and income distribution are all examples of _____ forces that must be considered in international marketing efforts. economic cultural ethical technological legal
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economic
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A duty levied by a nation on goods bought outside its borders and brought inside is called a(n) import duty. embargo. quota. export tariff. import tariff.
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import tariff.
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Which of the following is often used to raise revenue for a country and/or to protect domestic products? Quota Warning label Embargo Import tariff Exchange control
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Import tariff
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If Tasmania levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Tasmania, its businesses and citizens would be paying a(n) embargo. import tariff. travelers' tax. export tax. foreign duty.
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import tariff.
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If Germany, in an attempt to bolster the sales of its own auto manufacturers, decided to limit the number of automobiles that could be brought in from other countries, Germany would be using a(n) embargo. boycott. exchange control. import tariff. quota
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quota
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A limit on the amount of goods an importing country will accept for certain product categories during a specified time period is called a(n) exchange control limit. embargo. quota. import tariff. balance limit.
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quota
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When a glove manufacturer in China is allowed to sell only a certain number of plastic gloves into Japan, that firm is facing a(n) tariff. embargo. restrictive product standard. quota. balance of trade restriction.
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quota
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The United States' prohibition against importing cigars from Cuba is an example of a(n) health control. quota. embargo. exchange control. import control.
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embargo.
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Government restrictions on the amount of a particular country's currency that can be bought or sold are known as embargoes. quotas. exchange controls. import controls. balance of trade controls.
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exchange controls.
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___________ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank. Embargoes Export tariffs Quotas Import tariffs Exchange controls
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Exchange controls
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Which of the following is used to help maintain a more favorable balance of trade by a country? Limiting imports Limiting exports Establishing exchange controls Increasing gross domestic product Changing political systems
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Limiting imports
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The ___________ is the difference in value between a nation's exports and its imports. net trade value export/import ratio gross domestic product balance of payments balance of trade
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balance of trade
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The gross domestic product is a) a measure of the profit made by all firms in a nation. b) the average annual earnings per person in a nation. c) a measure of the types of products produced by a nation. d) an overall measure of a nation's economic standing. e) a ratio of domestic products to products produced in foreign countries.
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d) an overall measure of a nation's economic standing.
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The country with the highest GDP is Japan. the United Kingdom. Brazil. the United States. China.
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the United States
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In considering the viability of potential international markets for Pepsi products, PepsiCo is advised to take into account __________, which provides insight into market potential. per capita gross domestic product gross domestic product the quantity of exports the quantity of imports total consumer income
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per capita gross domestic product
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The Mont Blanc Company plans to export expensive consumer gift items to Germany. The best overall economic measure of market potential would be Germany's gross domestic product. gross domestic product per capita. gross national product. balance of trade. unemployment rate.
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gross domestic product per capita.
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Caterpillar would like to better understand factors that would affect its ability to market construction equipment in various countries. Which of the following forces determine how trade barriers affect Caterpillar's marketing efforts? Political and legal Interpersonal Social Technological Industrial
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Political and legal
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Special interest groups and regulatory bodies are ______ forces that must be taken into account in international marketing. socioeconomic technological economic social and ethical political and legal
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political and legal
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Select the true statement. a) Legislation regulating marketing in many foreign countries is being eased. b) A government's attitude toward cooperation with importers has little impact on marketing to that country. c) Refusing to give payoffs and bribes in some foreign countries may put a marketer at a competitive disadvantage. d) Bribes and payoffs are considered unethical in all countries and cultures. e) Bribes and payoffs are supported by U.S. trade policies under certain
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c) Refusing to give payoffs and bribes in some foreign countries may put a marketer at a competitive disadvantage.
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The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to a) attempt to make large payments or bribes to influence policy decisions of foreign governments. b) offer foreign businesses any type of incentive for purchasing their company's products and services. c) change their ethical standards when dealing with foreign firms. d) give even small tips or gifts in countries where such gifts are customary business practices. e) introduce any type of corruption into foreign businesses that have higher ethical standards than those of the U.S. firm.
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a) attempt to make large payments or bribes to influence policy decisions of foreign governments.
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If a certain country considered handshakes in business transactions to be taboo and preferred to use nodding, this would be an example of differences in _____ forces. cultural political economic technological regulatory
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cultural
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When products are introduced into one nation from another, acceptance is far more likely a) if prices are set very low. b) when bribes are paid to local officials to aid distribution. c) if there are similarities between the two cultures. d) if packaging is adjusted to match local preferences. e) when retailers are given incentives to push the products
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c) if there are similarities between the two cultures.
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Marketers of computer software, music CDs, and books are particularly affected by cultural differences in socioeconomic status of citizens. advances in technology. differences in cross-cultural exchange behavior. ethical codes of conduct for businesses. standards regarding intellectual property.
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standards regarding intellectual property.
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Many companies choose to standardize their _____ across national boundaries to maintain a consistent and well-integrated corporate culture. technology ethical behavior language dress code products
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ethical behavior
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In many developing countries around the world, technology is enabling opportunities to "leapfrog" existing technology. What does this mean? a) These countries are able to forgo current technological advances in order to wait for even better technology to be developed. b) More advanced technology is reaching these countries even though they lack technological infrastructures. c) Technological advances are often offered at prices considerably lower than in well-developed countries. d) The technology in developing countries is rapidly surpassing the technology in well-developed countries. e) The existing technological infrastructures in these countries are rapidly being replaced by newer, more advanced technology.
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b) More advanced technology is reaching these countries even though they lack technological infrastructures.
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The unconscious reference to one's own cultural values, experiences, and knowledge when encountering new and different cultures is known as the "when-in-Rome" approach. the Fraedrich Principle. cultural relativism. the self-reference principle. the self-reference criterion.
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the self-reference criterion.
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____ refers to the idea that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures. The self-reference criterion Global ethics Economic relativism Cultural relativism Moral relativism
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Cultural relativism
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By 2009, NAFTA will create a totally free trade area between the United States, Canada, and Mexico. Japan, and China. Brazil, and Mexico. Cuba, and Panama. Panama, and Canada.
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Canada, and Mexico
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The agreement between the United States, Canada, and Mexico that merges these three countries into one marketplace is called EU. MERCOSUR. APEC. NAFTA. GATT.
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NAFTA.
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Wal-Mart is currently expanding its stores into Canada and Mexico. This expansion is being facilitated by the European Union. North American Free Trade Agreement. Pacific Rim Unification Act. International Retail Alliance Association. Latin American Free Trade Association.
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North American Free Trade Agreement.
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One of the effects of NAFTA is the simplification of country-of-origin rules. This will likely hinder the international trade activities of Canada. Japan. Brazil. Cuba. Panama.
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Japan.
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Which of the following is not true of NAFTA? a) The agreement has a long adjustment phase-in time period. b) Increased competition should lead to a more efficient market. c) It will provide additional opportunities for the United States in long-term affiliations with other countries in the Western hemisphere. d) It is controversial. e) Business licensing requirements have been increased.
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e) Business licensing requirements have been increased.
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Which of the following is true about NAFTA? a) It remains politically controversial. b) It will increase the total output of goods and services to foreign markets. c) It will decrease the total number of jobs in the United States. d) It eliminated all tariffs on goods traded between the United States, Canada, and Mexico. e) It will reduce the number of illegal aliens in the United States.
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a) It remains politically controversial.
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Another name for the European Union is the Common Market. the European Market. the Euro. NAFTA. AECO.
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the Common Market.
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The unification of Europe through the European Union (EU) a) produced the largest single market in the world. b) calls for greater customization of products and attention to regulations and restrictions of European countries. c) means that members of the EU have become more heterogeneous in their needs and wants. d) required the countries to be segmented into many different markets. e) permits virtually free trade among the member nations of the EU.
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e) permits virtually free trade among the member nations of the EU.
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The exchange rates of several European countries are linked together to a common currency, the lira. euro. dollar. peso. ropea.
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euro
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Johnston Chemicals' president is very excited about the possibility of the firm's British subsidiary having access to customers in the entire EU. He realizes that it will be some time before this area truly becomes one market, primarily because of differences in which of the following? Available advertising media Cultural factors Legal challenges Technological advances Economic environmental factors
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Cultural factors
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The trade alliance that includes Brazil, Argentina, Chile, and other countries is known as OPEC. APEC. MERCOSUR. NAFTA. the Common Market.
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MERCOSUR.
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Which of the following alliances/agreements is the United States not a part of? NAFTA APEC GATT WTO MERCOSUR
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MERCOSUR
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The Common Market of the Southern Cone (MERCOSUR) includes countries from Africa. Asia. Central America. South America. the Pacific Islands.
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South America
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Which of the following trade alliances differs from others in its commitment to facilitating business and its practice of allowing the private sector to participate in a wide range of activities? NAFTA EU MERCOSUR WTO APEC
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APEC
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Which of the following countries has made the greatest inroads into other world markets? Indonesia Philippines Malaysia Japan China
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Japan
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Many marketers claim that ____ will become the world's largest market. Japan the United States China Thailand India
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China
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Which of the following agreements provides a forum for tariff negotiations, reducing trade restrictions, resolution of international trade problems, and ground rules for international trade? The World Trade Organization The North American Free Trade Agreement The Latin American Free Trade Agreement The European Union Free Trade Agreement The General Agreement on Tariffs and Trade
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The World Trade Organization
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If a newly formed country wanted to increase its international trade and reduce worldwide tariffs, it would most likely try to become a part of NAFTA. WTO. MERCOSUR. APEC. EU.
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WTO.
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The term dumping refers to the sale of a) products sold in foreign markets that cannot be sold in the United States. b) products sold in foreign markets at prices above those charged in the United States. c) all discontinued U.S. products in foreign countries. d) products sold in foreign countries at unfairly low prices. e) products sold in foreign markets that cannot pass safety standards in the United States.
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d) products sold in foreign countries at unfairly low prices.
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If Hyundai, a Korean automobile manufacturing firm, started selling its cars at unfairly low prices to Germany, Hyundai would be engaging in quota-enforcing. embargoing. shoveling. dumping. dipping.
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dumping
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The World Trade Organization accomplishes all of the following except educating companies about international trade rules. lending money to businesses interested in developing international markets. serving as a forum for trade negotiations. helping settle trade disputes. providing legal ground rules for international commerce.
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lending money to businesses interested in developing
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At the heart of the ____ are agreements that provide legal ground rules for international commerce and trade policy. United Nations GATT MERCOSUR WTO APEC
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WTO
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When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in international marketing. global marketing. limited exporting. product licensing. unplanned exporting.
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limited exporting
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Miller's Home Furnishings uses marketing strategies aimed at markets within the United States, its home country. Miller's engages in domestic marketing. localized marketing. globalized marketing. limited exporting. international marketing.
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domestic marketing
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Which of the following lists the levels of involvement in global marketing from the lowest to the highest? a) International marketing, limited exporting, domestic marketing, globalized marketing b) Limited exporting, domestic marketing, globalized marketing, international marketing c) Globalized marketing, international marketing, limited exporting, domestic marketing d) Domestic marketing, globalized marketing, international marketing, limited exporting e) Domestic marketing, limited exporting, international marketing, globalized marketing
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e) Domestic marketing, limited exporting, international marketing, globalized marketing
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The purchase of products from a foreign source is called exporting. dumping. importing. licensing. venturing.
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importing
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When the American company Exxon purchases crude oil from Saudi Arabia, it is engaging in licensing. importing. free trade. exporting. dumping.
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importing
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Henderson Synthetics' management believes that several of the firm's products could have sizable markets in other countries. To maintain a low level of commitment with minimum effort and cost, Henderson should engage in international marketing through contract manufacturing. exporting. joint ventures. licensing. subsidiaries.
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exporting
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The extent of Raytheon's participation in global business is selling the batteries it manufactures to companies in Spain. In this case, Raytheon is a(n) trading company. importer. exporter. franchiser. contract manufacturer.
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exporter
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______ bring together buyers and sellers from different countries and collect a commission for arranging sales. Export agents Licensors Trading companies Import specialists Trade brokers
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Export Agents
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The role of export agents is to a) bring buyers and sellers from different countries together and collect a commission for arranging sales. b) purchase products from different companies and sell them to foreign countries. c) help a firm to make direct investments in foreign countries. d) contact domestic firms about the opportunities available in exporting. e) arrange for licensing agreements between domestic and foreign firms.
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a) bring buyers and sellers from different countries together and collect a commission for arranging sales.
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How does using an exporting intermediary limit the risk involved with global marketing? a) Most exporting intermediaries assume all financial risks on behalf of their clients. b) Exporting intermediaries are not subject to the same laws as companies, and therefore limit the legal risk involved. c) Using an exporting intermediary restricts a company to being involved with joint ventures and not direct ownership. d) Exporting intermediaries guarantee that the products a company is selling will be a good fit for the foreign markets they are entering. e) This approach involves limited risk because the company has no direct investment in the foreign country.
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e) This approach involves limited risk because the company has no direct investment in the foreign country.
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A company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a franchise. contract manufacturer. strategic intermediary. trading company. joint venture.
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trading company
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A large farming cooperative that focuses on the production of fruits and vegetables uses a business that sells the farmers' products in foreign countries and also provides consulting, insurance, legal assistance, and warehousing to the cooperative. This business would most likely be called a(n) trading company. export specialist. contract wholesaler. licensor. strategic partner.
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trading company
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A ___________ is an organization that links buyers and sellers in different countries but is not involved in manufacturing. trading company exporter joint venture strategic alliance licensee
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trading company
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Questor Corporation owns the Spalding brand name but does not produce a single golf club or tennis ball. This arrangement is an example of what type of involvement level for international marketing? Exporting Trading Joint venture Strategic alliance Licensing
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Licensing
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If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called licensing. exporting. a strategic alliance. a joint venture. contract manufacturing.
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licensing
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What level of commitment in international marketing may be most attractive when the political and economic stability of a foreign country is questionable? Joint ventures Direct ownership Exporting Limited exporting Licensing
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Licensing
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A special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called a joint venture. contract manufacturing. direct licensing. franchising. a strategic alliance.
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franchising
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In many countries, Wendy's allows foreign business people to use its name, logo, methods of operation, advertising, and products. In exchange, Wendy's receives a financial commitment and an agreement to conduct business in accordance with its standard of operations. Wendy's is engaging in contract manufacturing. licensing. franchising. exporting. direct investment.
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franchising
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Franchising offers all the following benefits for franchisers except a) franchise agreements require a certain standard of behavior from franchisees, which helps protect the franchise name. b) franchisers can retain control of their name while increasing global penetration of their products. c) the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties. d) the franchiser's revenue stream is fairly consistent because franchisees pay fixed fees and royalties. e) franchisers do not have to put up a large capital investment.
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c) the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties.
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Which of the following would be a benefit to a franchiser, such as Jiffy Lube, in expanding into international marketing? a) There are no risks involved with allowing a foreign franchisee. b) The franchiser does not have to put up a large capital investment. c) The franchiser does not have to share its name or operational procedures. d) The franchisee only pays a set fee every month to the franchiser. e) An equal partnership is formed between the franchiser and franchisee.
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b) The franchiser does not have to put up a large capital investment.
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Which of the following describes a company hiring a foreign firm to produce a designated volume of its product to specification? Licensing Contract manufacturing Exporting Importing Direct investment
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Contract Manufacturing
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If The Limited Company relies on hiring a foreign textile manufacturer to produce a designated amount of clothing for its Express, Limited, and other stores, it is using exporting. franchising. contract manufacturing. a joint venture. licensing.
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contract manufacturing
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The contracting of noncore operations or jobs from internal production within a business to an external entity that specializes in that operation is known as outsourcing. licensing. franchising. contract manufacturing. contract sourcing.
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outsourcing
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A business partnership between a domestic firm and a foreign firm is known as a joint venture. an international partnership. a multinational enterprise. licensing. exporting.
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a joint venture
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If a U.S. bicycle tire manufacturer has to form a partnership with the government of Indonesia in order to gain access to the country's rubber, a _____ has been formed. multinational enterprise contract manufacturing arrangement strategic alliance franchise joint venture
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joint venture
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Timex, a U.S. based watchmaker -- recently entered into a partnership agreement with the Australian government to make watches. What type of partnership agreement does this situation most likely represent? Trading company Licensing arrangement Strategic alliance Joint venture Direct ownership arrangement
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joint venture
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Sometimes business partnerships are formed between traditional rivals competing for market share in the same product class. These partnerships are known as trading companies. contract manufacturers. joint ventures. strategic alliances. licenses.
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strategic alliances
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Nuhitzu believes it has the technological expertise to produce communication systems that will be leaders around the globe. Boston Electronics is widely regarded as having excellent management systems and superior marketing programs. To utilize these strengths, the two firms might form a(n) ___________ to work together on a worldwide basis. licensing agreement export trading company joint agreement strategic alliance multinational enterprise
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strategic alliances
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Toshiba Electronics is very interested in taking advantage of business opportunities in India but does not have access to India's market. Toshiba has the patent on a low-cost, quality computer system that could assist small businesses in India. Sony Computer, Toshiba's competitor, is experienced in India's small business market but does not have a computer comparable to Toshiba's. If Toshiba and Sony work together to utilize these strengths to seize this opportunity in India, what type of business structure would they likely use? Trading company Strategic alliance Licensing Direct ownership Exporting
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Strategic alliance
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What is the primary distinction between a joint venture and a strategic alliance in international marketing? a) Strategic alliances are only formed between companies from well-developed countries whereas joint ventures are between companies from economically diverse countries. b) A joint venture involves only two companies whereas a strategic alliance is formed between three or more companies. c) A strategic alliance is formed by companies who have traditionally been rivals, which is not the case with a joint venture. d) A joint venture is formed between companies with dissimilar product offerings while a strategic alliance is formed between companies with similar product offerings. e) A joint venture is simply a financial investment in a foreign firm while a strategic alliance involves more than just financial support.
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c) A strategic alliance is formed by companies who have traditionally been rivals, which is not the case with a joint venture.
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An alliance between Honda and Ford would most likely be classified as a strategic alliance. a joint venture. direct ownership. a multinational enterprise. contract manufacturing.
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a strategic alliance
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Once a company makes a long-term commitment to a foreign market that has a promising political and economic environment, which of the following options then emerges as a possibility? Exporting Joint venture Limited exporting Direct ownership Licensing
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direct ownership
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In relation to international marketing, which of the following best describes direct ownership? a) A company owns its own manufacturing facilities. b) A company forms an alliance with a similar company in a foreign country. c) Foreign companies contract with manufacturers in other countries. d) A company owns subsidiaries or facilities in foreign countries. e) Two companies from different nations have interests in each other's facilities.
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d) A company owns subsidiaries or facilities in foreign countries.
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IKEA, a Swedish retailer of contemporary furniture, operates several stores in various Scandinavian countries, as well as in the United States and Canada. Which of the following describes IKEA's level of commitment to international marketing? Licensing Direct ownership Exporting A trading company A joint venture
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direct ownership
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Firms that have operations or subsidiaries located in many countries are referred to as multinational enterprises. strategic alliances. joint ventures. international marketers. export alliances.
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multinational enterprises
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Nestlé Food Company is a Swiss-based company that operates several divisions in the United States and other countries. This classifies Nestlé as a(n) strategic alliance. national marketer. international proprietorship. multinational enterprise. limited exporter.
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multinational enterprise.
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Southern Tier Industries has operations in more than 30 foreign countries. The headquarters in Atlanta controls the entire organization while offering subsidiaries the freedom necessary to achieve success in local markets. Southern Tier Industries is an example of a(n) strategic alliance. joint venture. export-driven corporation. multinational enterprise. trading company.
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multinational enterprise.
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Japan's Sony Corporation is a prime example of a multinational enterprise. With this in mind, which of the following would most accurately characterize Sony's operations? a) It follows a strategy of market globalization. b) It has operations or subsidiaries in many different countries. c) It places most of its emphasis on profits generated in foreign countries. d) It would not expect its foreign operations to share the same goals as the parent firm. e) It does not concern itself with differences in markets around the world.
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b) It has operations or subsidiaries in many different countries.
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A subsidiary in a foreign country generally operates under a) the laws of the parent company's home country. b) foreign management in order to develop a local identity. c) strict management control from the home country's executives. d) the regulations set forth by the International Trade Agreement. e) a team of managers from the distant parent company.
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b) foreign management in order to develop a local identity.
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What is the greatest advantage to an organization of having a subsidiary in a foreign nation? a) Avoidance of all U.S. laws b) Increase in cross-cultural approaches to management that allows subsidiaries to develop their own identity c) Increased trend toward nationalistic marketing approaches d) Greater amount of standardization of the marketing mix e) Greater amount of security from government nationalization and other anticompetitive measures
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b) Increase in cross-cultural approaches to management that allows subsidiaries to develop their own identity
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Exporting, licensing, and using trading companies are preferred modes of international market entry for firms with a(n) ________ structure. international division internationally integrated export department geographic area matrix
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export department
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Which of the following centralizes all of the responsibility for international operations? Product division structures Export department structures Internationally integrated structures International division structures Global matrix structures
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International division structures
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Which of the following is most likely to engage in direct ownership activities internationally? Internationally integrated structures International division structures Export department structures Import department structures Outsourcing structures
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Internationally integrated structures
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Globalization of marketing involves a) developing a set of marketing strategies for the entire world or major regions of the world. b) performing marketing activities across national boundaries. c) exporting goods and services to foreign countries. d) creating value and exchanging value between countries. e) locating operations or subsidiaries in many countries.
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a) developing a set of marketing strategies for the entire world or major regions of the world.
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When asked where Laser Tools, Inc., markets its products, company president and founder Roger Helms says that "the world is just one big market." He feels anyone not taking this stance is systematically passing up profitable business. Helms's international marketing strategy is best described as customization of marketing. globalization of marketing. limited exporting. full-scale international marketing. export agenting.
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globalization of marketing.
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Organizations that employ standardized products, promotion campaigns, and prices for all markets are practicing what is known as customization. internationalization. globalization. regionalization. nationalization.
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globalization.
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Selling products that are not in demand in all world markets, such as hand-powered washing machines for use in countries where electricity is not universally available, represents an international marketing strategy focusing on internationalization. culturalization. nationalization. globalization. customization.
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customization.
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Standardizing many Nike and Adidas shoe models worldwide is an example of globalization. customization. nationalization. culturalization. internationalization.
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globalization.
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Levi Strauss markets its denim jeans in many countries and develops its marketing strategy as if the world were a single market. This approach to selling a standardized product in all countries represents which type of international marketing? Exporting Accidental exporting Limited exporting Licensing Globalization of markets
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Globalization of markets
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Globalization of markets requires developing marketing strategies as if the world were one market. Which of the following marketing mix variables is most difficult to standardize for globalization? Brand name Package Media allocation Labels Product characteristics
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Media allocation
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Swiss-based Nestlé has taken a global approach to marketing its chocolate products. Which of the following is most easily standardized? Product Promotion Distribution Advertising Price
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product
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When Smithson Graphics decided to go international with its marketing effort, it adopted a global approach. Which factors did SG most likely experience difficulty as the firm applied a global strategy for marketing? Branding Product characteristics Packaging Labeling Advertising
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advertising
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Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America". Harley-Davidson's practice of having manufacturers in China produce apparel items with the Harley logo is an example of contract manufacturing globalization direct ownership joint venture exporting
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contract manufacturing
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Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America". One of Harley-Davidson's largest international markets is in Japan, where American brands are highly sought after. This is an example of _______ impacting the market. international forces economic forces domestic forces cultural forces environmental forces
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cultural forces
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Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America". If Harley-Davidson were to suddenly find its inventory building up in Japan, it might reduce inventory by selling the bikes at below cost prices. This practice is known as price skimming. market penetration. dumping. differential pricing. inventory compensation.
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dumping
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Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America". At what level of involvement in international marketing is Harley-Davidson with regard to its bikes? Answer Full-scale Globalization Joint venture Direct ownership Exporting
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exporting
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KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu -- items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries -- to offer the customer passing by a preliminary view of their product. KFC's establishment of international production/processing facilities is an example of direct ownership. franchising. strategic alliance. outsourcing. a trading company.
answer
direct ownership
question
KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu -- items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries -- to offer the customer passing by a preliminary view of their product. The practice of offering fried octopus and squid at Asian KFC's is best described as a strategy of standardization. a strategy of globalization. a strategy of some customization. competitive advantage. internationalizing the franchise.
answer
a strategy of some customization.
question
KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu -- items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries -- to offer the customer passing by a preliminary view of their product. Suppose that KFC's parent company experienced difficulty in opening its restaurants in China unless KFC was willing to pay the government a "bribe". If KFC were to resort to paying this bribe in China saying that "it's different doing business there" -- this would be an example of a licensing arrangement. the self-reference criterion. cultural relativism. balance of trade issues. exchange controls.
answer
cultural relativism
question
KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu -- items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries -- to offer the customer passing by a preliminary view of their product. Which of the following alliances will KFC most likely utilize to guide its business transactions in Japan and China? WTO MERCOSUR FTAA NAFTA APEC
answer
APEC
