MidTerm Flashcards
The successful manager constructs a ________ designed for optimal adjustment to the uncertainty of the business climate.
marketing program
In a marketing program, The ___________ can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives.
controllable elements
Positive effects occur when changes in ________ offer countries favored treatment.
foreign policy
Abolition of apartheid in South Africa is an example of a ______ in an international marketing scenario.
positive uncontrollable element
Political and legal issues a business faces abroad are often ________ by the “alien status” of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate.
amplified
In dealing with unfamiliar markets, marketers must be aware of the _________ they are using in making their decisions or evaluating the potential of a market, because judgments are derived from experience that is the result of acculturation in the home country.
frames of reference
To avoid errors in business decisions, the knowledgeable marketer will conduct a cross-cultural analysis that _______ the SRC influences and maintain vigilance regarding _______.
isolates
ethnocentrism
(1) Companies
with either high-technology and/or marketing-based resources appear to be better equipped to internationalize than more traditional manufacturing kinds of companies; (2) smaller home markets and larger production capacities appear to favor internationalization; and (3) firms with key managers well networked internationally are able to accelerate the ___________.
internationalization process
At the global marketing stage of international marketing involvement, companies treat the world, including their home market, as ______.
one market
(1) the rapid growth of the World Trade Organization and regional free trade areas such as the North American Free Trade Area and the European Union; (2) the trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and eastern Europe; (3) the burgeoning impact of the Internet, mobile phones, and other global media on the dissolution of national borders; and (4) the mandate to manage the resources and global environment properly for the generations to come are examples of
four major trends affecting current global business strategies
__________ of all sizes and in all industries outperformed their strictly domestic U.S. counterparts. Furthermore, U.S. multinationals reduced their manufacturing employment, both at home and abroad, more than domestic companies.
Multinationals
For firms venturing into international marketing for the first time and for those already experienced, the requirement is generally the same:
a thorough and complete commitment to foreign markets and, for many, new ways of operating.
The __________ elements include product, price, promotion, distribution, and research activities.
controllable
Competitive forces, political/legal forces, and economic climate are the three ________ uncontrollable elements in marketing.
domestic
positive effects occur when changes in foreign policy offer countries favored treatment. ______and ______ encourage companies to invest in international markets. example is ______ imposing low tariffs and tax rates for manufacturing industries.
Low tariffs
lower interest rates
Paraguay
Which of the following is a possible outcome of the “alien status” of a company?
An increase in protectionist federal policies.
_______ is a controllable element in both domestic and international marketing.
Price
The _____ issues faced by a company are often amplified by the “alien status” of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate.
political/legal
The alien status of a foreign business has two dimensions: It is alien in that _______ and in that the culture of the host country is ________. The alien status of a business means that, when viewed as an outsider, it can be seen as an exploiter and receive prejudiced or unfair treatment at the hands of politicians, legal authorities, or both.
foreigners control the business
alien to management
Ex: A company being forced by the local government to share its core competencies in order to continue doing business.
The most effective way to control the influence of ethnocentrism and the SRC is to _______.
recognize their effects on our behavior.
Which of the following characterizes a globally aware manager?
allowing others to be different and equal.
_______ is understanding cultural differences and accepting and working with others whose behaviors may be different from yours. You do not have to accept as your own the cultural ways of another, but you must allow others to be different and equal.
tolerance
Which of the following firms has a better chance of accelerating the internationalization process?
OJO - better chance of accelerating
nternational regulatory bodies set export/import limits.
Though presented in a linear fashion, it cannot be inferred that a firm progresses from one stage to another; quite to the contrary, a firm may begin its international involvement at any one stage or be in _______.
more than one stage simultaneously
A company in this stage does not actively cultivate customers outside national boundaries; however, this company’s products may reach foreign markets. Sales may be made to trading companies as well as foreign customers who directly contact the firm.
no direct foreign marketing
Temporary surpluses caused by variations in production levels or demand may result in ______.
infrequent marketing overseas
Companies in the ________stage are fully committed to and involved in international marketing activities. Such companies seek markets all over the world and sell products that are a result of planned production for markets in various countries.
international marketing
At the ______ stage, companies treat the world, including their home market, as one market. Market segmentation decisions are no longer focused on national borders.
global marketing
Companies in the __________ marketing stage are fully committed to and involved in international marketing activities. Such companies seek markets all over the world and sell products that are a result of planned production for markets in various countries.
multidomestic/international
country by country basis
At the level of regular foreign marketing, firms have a permanent productive capacity devoted to the production of goods and services to be marketed in foreign markets. The primary focus of operations and production is to service _______.
domestic market needs
The first two stages of international marketing involvement are more _________ in nature and often do not represent _______ about international expansion.
reactive
careful strategic thinking
Companies in the international marketing stage are fully committed to and involved in international marketing activities. Such companies seek markets all over the world and sell products that are a result of planned production for markets in various countries. This planning generally entails not only the marketing but also the _______.
production of goods outside the home market
For a company at the _____ stage of internationalization, market segments are defined by income levels, usage patterns, or other factors that frequently span countries and regions.
global marketing
The international marketer’s task is more complicated than that of the domestic marketer because the international marketer must deal with at least _______ of uncontrollable uncertainty instead of one.
Uncertainty is created by the uncontrollable elements of all business environments, but each foreign country in which a company operates adds its own ______ of uncontrollable factors.
two levels
unique set
The following is: _____ Assuming the necessary overall corporate resources, structures, and competencies that can limit or promote strategic choice, the marketing manager blends price, product, promotion, channels-of- distribution, and research activities to capitalize on anticipated demand. These controllable elements can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives.
marketing program design for optimal adjustment of business climate
List the domestic environment uncontrollables that influence an international marketer
The aspects of the domestic environment uncontrollables include home-country elements that can have a direct effect on the success of a foreign venture: political and legal forces, economic climate, and competition. A political decision involving foreign policy can have a direct effect on a firm’s international marketing success. The domestic economic climate is another important home-based uncontrollable variable with far-reaching effects on a company’s competitive position in foreign markets. The capacity to invest in plants and facilities, either in domestic or foreign markets, is to a large extent a function of domestic economic vitality. Competition within the home country can also have a profound effect on the international marketer’s task.
domestic competition example
kodak vs fuji film
The aspects of the domestic environment uncontrollables include home-country elements that can have a direct effect on the success of a foreign venture: political and legal forces, economic climate, and competition. A political decision involving foreign policy can have a direct effect on a firm’s international marketing success. The domestic economic climate is another important home-based uncontrollable variable with far-reaching effects on a company’s competitive position in foreign markets. The capacity to invest in plants and facilities, either in domestic or foreign markets, is to a large extent a function of domestic economic vitality. Competition within the home country can also have a profound effect on the international marketer’s task.
Political and legal issues a business faces abroad are often amplified by the “alien status” of
the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate. The alien status of a foreign business has two dimensions: It is alien in that foreigners control the business and in that the culture of the host country is alien to management. The alien status of a business means that, when viewed as an outsider, it can be seen as an exploiter and receive prejudiced or unfair treatment at the hands of politicians, legal authorities, or both. Political activists can rally support by advocating the expulsion of the “foreign exploiters,” often with the open or tacit approval of authorities.
what are the primary obstacle to success in international marketing?
SRC and an associated ethnocentrism.
List the four steps that make up the framework for such a cross cultural analysis.
The steps are: (1) define the business problem or goal in home-country cultural traits, habits, or norms; (2) define the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country—make no value judgments; (3) isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem; and, (4) redefine the problem without the SRC influence and solve for the optimum business goal situation.
With the ratification of the Uruguay Round agreements, the ________ became part of the World Trade Organization (WTO) in 1995, and its 117 original members moved into a new era of free trade.
GATT
As part of the worldwide economic growth and rebuilding after World War II, countries once classified as less developed were reclassified as ______.
newly industrialized countries (NICs)
Between _____ and ______ , the United States sold more to other countries than it bought from them; that is, the United States had a favorable balance of trade. By 1971, however, the United States had a trade deficit of $2 billion that grew steadily until it peaked at $160 billion in 1987.
1888
1971
he Organization for Economic Cooperation and Development (OECD) estimates that the economies of member countries will expand an average of_________ for the next 25 years, the same the economies of the developing world will grow at faster rates—from an annual rate of 4 percent in the past quarter century to a rate of 6 percent for the next 25 years.
3% annually
A nation’s balance-of-payments statement records all financial transactions between its ______ and those of the _______ during a given period of time—usually one year.
residents
rest of the world
The ________ is a record of direct investment, portfolio investment, and short-term capital movements to and from countries.
capital account
As the U.S. trade deficit has grown, pressures have begun to push the value of the dollar to _____- levels.
lower
A case might be made for temporary protection of markets with excess _______ capacity or excess _______ when such protection could facilitate an orderly transition. Unfortunately such protection often becomes long term and contributes to industrial inefficiency while detracting from a nation’s realistic adjustment to its world situation.
productive
labor
In general, tariffs ______ inflationary pressures, special interests’ privileges, government control and political considerations in economic matters, and the number of tariffs (they beget other tariffs via reciprocity).
increase
Tariffs are often used as _______ against protectionist moves of trading partners.
reprisals
A VER is called voluntary because the exporting country sets the limits; however, it is generally imposed under the ______ of stiffer quotas and tariffs being set by the importing country if a VER is not established.
threat
A government boycott is an ______ restriction against the purchase and importation of certain goods and/or services from other countries. This restriction can even include travel bans, like the one currently in place for Chinese tourists; the Beijing government refuses to designate Canada as an approved tourism destination.
absolute
Importers who want to buy a foreign good must apply for an _______, that is, permission to exchange an amount of local currency for foreign currency.
exchange permit
The United States and other countries require some products (automobiles in particular) to contain a percentage of “local content” to gain admission to their markets. This is an example of how countries use ______ to protect domestic industry.
standards
Antidumping laws were designed to prevent foreign producers from _______ a practice whereby a foreign producer intentionally sells its products in the United States for less than the cost of production to undermine the competition and take control of the market.
“predatory pricing,”
Export controls, the Foreign Corrupt Practices Act (FCPA), and export promotion were specifically addressed in the export expansion section of the Omnibus Trade and Competitiveness Act. Export licenses could be obtained more _____ and more ______ for products on the export control list.
easily
quickly
GATT member nations seek to resolve their trade disputes ______; if that fails, special GATT panels are set up to recommend action. The panels are only advisory and have no _____ powers.
bilaterally
enforcement
The World Trade Organization sets many rules governing trade among its 157 members, provides a panel of experts to hear and rule on trade disputes among members, and, unlike GATT, issues _______.
binding decisions
The International Monetary Fund (IMF) was formed to overcome inadequate ______ and _______ currencies which were particularly vexing problems in global trade.
monetary reserves
unstable
Since both gold and the U.S. dollar have lost their utility as the basic medium of financial exchange, most monetary statistics relate to ______ rather than dollars. The _____ is in effect “paper gold”
and represents an average base of value derived from the value of a group of major currencies.
SDR
The _______ was developed after World War II, as a means to dampen the spread of communism, the United States set out to infuse the ideal of capitalism throughout as much of the world as possible.
Marshall Plan
The _____ to assist in rebuilding Europe, financial and industrial development assistance to rebuild Japan, and funds channeled through the Agency for International Development and other groups designed to foster economic growth in the underdeveloped world were used to help create a strong world economy.
Marshall Plan
Reciprocal impact of foreign economic assistance by US.
For every dollar the United States invested in the economic development and rebuilding of other countries after World War II, hundreds of dollars more returned in the form of purchases of U.S. _______
agricultural products, manufactured goods, and services.
The overseas demand created by the Marshall Plan and other programs was important to the U.S. economy because the vast manufacturing base built to supply World War II and the ________.
swelling labor supply of returning military created a production capacity well beyond domestic needs
Which of the following was the most significant move of the 1980s that contributed toward international cooperation among trading nations?
Negotiation of GATT
With the ratification of the Uruguay Round agreements, the GATT became part of the ______in 1995, and its 117 original members moved into a new era of free trade.
World Trade Organization (WTO)
The rapid growth of war-torn economies and previously underdeveloped countries, coupled with large-scale economic cooperation and assistance, led to new _______.
global marketing opportunities
At the close of the 1960s, U.S. ________ were facing major challenges on two fronts: resistance to direct investment and increasing competition in export markets.
multinational corporations (MNCs)
The post World War II era witnessed worldwide economic growth and countries once classified as less developed were reclassified as _______. such as Brazil, Mexico, South Korea, Taiwan, Singapore, and Hong Kong experienced rapid industrialization.
newly industrialized countries (NICs)
1950s- As a result of the expansionary trade measures led by the United States, ______ and ______ became more evenly distributed among countries than was the case when Servan-Schreiber warned Europe about U.S. multinational domination.
economic power
potential
Servan-Schreiber’s prediction did not come true for many reasons, but one of the more important was that American MNCs confronted a _______ of competition from all over the world.
resurgence
By the late ______, the United States was once again holding its own in capital goods, particularly with trade surpluses in the high-tech category.
1990s
By the year 1971, the United States was witnessing:
a huge trade deficit of 2B
In the late 1990s, most of the countries of the world saw a slow down in the unprecedented and precipitous growth of their economies. However, _____ remained unaffected by this trend.
china
The World Bank estimates that five countries—________ whose share of world trade is barely one third that of the European Union will, by 2020, have a 50 percent higher share than that of the European Union.
Brazil, China, India, Indonesia, and Russia—
As the balance-of-payments record is maintained on a double-entry bookkeeping system, it must always be in ______.
balance
A balance of payments is a record of condition, not a _______ of condition.
determinant
On the _____ side of the U.S. balance of payments are merchandise export sales; money spent by foreign tourists; payments to the United States for insurance, transportation, and similar services; payments of dividends and interest on investments abroad; return on capital invested abroad; new foreign investments in the United States; and foreign government payments to the United States.
plus
On the ___ side are the costs of goods imported, spending by American tourists overseas, new overseas investments, and the cost of foreign military and economic aid. A deficit results when international payments are greater than receipts.
minus
The _____ account is a record of all merchandise exports, imports, and services plus unilateral transfers of funds.
current
The ______ account is a record of direct investment, portfolio investment, and short-term capital movements to and from countries.
capital
The ______ account is a record of exports and imports of gold, increases or decreases in foreign exchange, and increases or decreases in liabilities to foreign central banks.
reserves
Economists in general recognize as valid only the arguments regarding (3):
infant industry, national defense, and industrialization of underdeveloped countries.
A _______ is a tax imposed by a government on goods entering at its borders. ______ may be used as revenue-generating taxes or to discourage the importation of goods, or for both reasons.
Tariffs
In general, tariffs ______ balance-of-payments positions, supply-and-demand patterns, and international relations (they can start trade wars).
weaken
In general, tariffs _____ inflationary pressures, special interests’ privileges, government control and political considerations in economic matters, and the number of tariffs.
increase
In general, tariffs ______ manufacturers’ supply sources, choices available to consumers, and competition.
restrict
Administrative fees, valuation systems, antidumping practices, tariff classifications, and documentation requirements are collectively classified as customs and administrative entry procedures which represent a sub-type of ________.
non-tariff barrier
Quotas, embargoes, import licensing requirements, minimum import price limits, and proportional restrictions of foreign to domestic goods are the non-tariff trade barriers that are classified under ______ on trade.
specific limitations
ontariff barriers, antidumping practices fall under the category of
customs and administrative entry procedures.
The fundamental difference between quotas and import licenses as a means of controlling imports is the greater _____ of import licenses over quotas.
flexibility
Exporting countries primarily agree to voluntary export restraints (VERs) to:
avoid the chances of stiffer quotas and tariffs.
hich of the following is a defining characteristic of VERs
The exporting country sets the limits on the quantity it will export.
The marketing manager for Grand Products wants to export the company’s range of beer products to a Gulf country. However, he discovers that there is a complete restriction on the import of any form of liquor into that country. This is an accurate example of _____.
A. OMAs
boycott
An _______ is a refusal to sell to a specific country. example is IRAN.
embargo
_______ is accomplished by refusing to allow an importer to exchange its national currency for the sellers’ currency. In effect, it cuts off all importing or all importing above a certain level.
Blockage
_____ to secure foreign exchange is often used by countries experiencing severe shortages of foreign exchange.
Government approval
Government approval requires that importers who want to buy a foreign good must apply for an _______, that is, permission to exchange an amount of local currency for foreign currency.
exchange permit
