Chapter 3

Question 1

Domestic Marketing

Answer 1

• Focuses on customers in the firm’s home country.
• No language or cultural barriers
• Not in any other countries
• Don’t participate in joint ventures with companies in other countries

Question 2

International Marketing

Answer 2

EXPORTING products to one or more countries outside the domestic market while remaining invested in the domestic country

• headquarters are in the domestic country
• little to no investment outside the home country
• may participate in joint ventures with companies in other countries

Question 3

Global Marketing

Answer 3

selling or licensing products for sale in countries throughout the world.
- Adapting services and product characteristics to local markets.

Question 4

Four types of global market risks

Answer 4

Competitive risk
economic risk
legal risk
political risk

Question 5

Competitive risk

Answer 5

competitors’ responses to the new product’s entry into the local market

Question 6

Economic risk

Answer 6

potential mismanagement of a country’s economy as exhibited by inflation and government debt.

Question 7

Legal risk

Answer 7

inadequate protection of contracts and intellectual property.
Without appropriate legal safeguards, the probability of broken contracts and stolen intellectual property increase significantly.

Question 8

Political risk

Answer 8

associated with demonstrations, strikes, civil strife, abrupt government changes, violence, or terrorism, influences business performance

Question 9

Market entry strategies

Answer 9

Exporting= Low risk, low return
Licensing= low-medium risk, low-medium return
Joint venture= high-medium risk, high-medium return
Foreign direct investment= High risk, high return

Question 10

Exporting

Answer 10

shipping goods produced in the home country to a distributor or retailer in the foreign market.

Question 11

Licensing

Answer 11

Another country is allowed to use the Manufacturing, processing, trademark, know-how, patent, or some other skill or value. Most of the burden and risk goes to the licensee

Question 12

joint ventures

Answer 12

A company joins with a foreign market to create a local business where the company shares joint ownership and control

Question 13

Foreign Direct investment

Answer 13

build up wholly owned operations in other countries

Question 14

Standardization

Answer 14

Company uses the same standard marketing mix in all of its markets foreign or domestic

Question 15

Customization

Answer 15

adapt or modify the marketing mix to suit the local market.

Question 16

Glocal

Answer 16

“go global but act local.”This strategy based on a standard platform (global) combined with some modification for the market (local)