Ch. 15 The Global marketplace

Question 1

Global firm

Answer 1

A firm that , by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.

Question 2

Economic community

Answer 2

A group of nations organized to work toward common goals in the regulation of international trade.

Question 3

Exporting

Answer 3

Entering foreign markets by selling goods produced in the company’s home country, often with little modification.

Question 4

Joint venturing

Answer 4

Entering foreign markets by joining with foreign companies to produce or market a product or service.

Question 5

Licensing

Answer 5

Entering foreign markets through developing an agreement with a licensee in the foreign market.

Question 6

Contract manufacturing

Answer 6

A joint venture in which a company contracts with manufacturers in a foreign market to produce the product or provide its service.

Question 7

Management contracting

Answer 7

A joint venture in which the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products.

Question 8

Joint ownership

Answer 8

A cooperative venture in which a company creates a local business with investors in a foreign market, who share ownership and control.

Question 9

Direct investment

Answer 9

Entering a foreign market by developing foreign-based assembly or manufacturing facilities.

Question 10

Standardized global marketing

Answer 10

An international marketing strategy that basically uses the same marketing strategy and mix in all of the company’s international markets.

Question 11

Adapted global marketing

Answer 11

An international marketing approach that adjusts the marketing strategy and mix elements to each international target market, which creates more costs but hopefully produces a larger market share and return.

Question 12

Straight product extension

Answer 12

Marketing a product in a foreign market without making an changes to the product.

Question 13

Product adaptation

Answer 13

Adapting a product to meet local conditions or wants in foreign markets.

Question 14

Product invention

Answer 14

Creating new products or services for foreign markets.

Question 15

Communication adaptation

Answer 15

A global communication strategy of fully adapting advertising messages to local markets.

Question 16

Whole-channel view

Answer 16

Designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network.