d.
FedEx is a global shipper that helps solve international e-commerce distribution.
e.
Language barriers are limiting the potential of the Internet in international marketing.
NARRBEGIN: Breathe Right
Breathe Right
CNS, Inc. is the manufacturer of Breathe Right nasal strips, a spring-loaded adhesive device that can
be stuck on your nose to open up the nasal passages. Since their introduction in the United States,
Breathe Right strips have been used by athletes hoping to improve their performance through
increased oxygen flow, snorers hoping for a sound night’s sleep, and allergy and cold sufferers looking
for relief from their stuffed noses. Because CNS is a small company, it initially had trouble promoting
its product. Then San Francisco 49er Jerry Rice started regularly wearing one, and U.S. sales took off.
Today, Breathe Right strips are marketed in more than 40 countries. When CNS decided to expand
globally, its size made it look for a partner. It chose 3M because 3M already had a global market
distribution system and because the Breathe Right strips complemented the 3M first-aid product line.
NARREND
105. Refer to Breathe Right. 3M is an example of a(n):
a.
ethnocentric organization
b.
standard international market
c.
multinational corporation
d.
expatriated organization
e.
organization with no domestic base
106. Refer to Breathe Right. The same Breathe Right nasal strip you can buy in any pharmacy in the United
States can also be purchased in 40 other countries. CNS used a _____ strategy.
a.
mass marketing
b.
product invention
c.
market substitution
d.
product adaptation
e.
global market standardization
107. Refer to Breathe Right. How people value a sound night’s sleep is an example of which element of the
global environment?
a.
culture
b.
natural
c.
socioeconomic
d.
technical
e.
regulatory
108. Refer to Breathe Right. In the United States, one of the standard methods for introducing a new
product is couponing, but many countries prohibit the issuing of coupons. This prohibition would
represent a(n) _____ element of the global environment.
a.
cultural
b.
economic
c.
legal
d.
technological
e.
demographic
109. Refer to Breathe Right. 3M and CNS entered into a:
a.
franchise
b.
licensing agreement
c.
direct countertrade
d.
joint venture
e.
contract manufacturing agreement
110. Refer to Breathe Right. To market the nasal strips in countries outside the United States, CNS and 3M
provided the strips to the national sports teams. For example, sales in South Africa took off when the
entire South African rugby team wore the strips when they won the World Cup of rugby. This example
primarily illustrates the use of which element of the global marketing mix?
a.
production
b.
publicity
c.
promotion
d.
distribution
e.
product
NARRBEGIN: Boeing Co.
Boeing Company
Boeing Company has spent more than $100 million to create a major presence in China, complete with
a major office complex, a large spare-parts facility, extra training programs for Chinese air crews, and
a deal to buy fuselage sections for the 737 from local manufacturers. Asia is the fastest-growing
aircraft market in the world. Asian carriers have been a major part of Boeing’s sales, and Boeing
predicts 40 percent of future air-traffic growth will come from Asia-Pacific travel, and it wants those
passengers flying on Boeing jets. So, Boeing is jointly designing and building an American-Japanese-
Chinese plane, all to lock out any European, South American, or even Asian threat to its market. To
keep the fate of Asian aerospace in its hands, Boeing is steadily broadening its contractual relationship
with Japan’s three major players, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Fuji
Heavy Industries. The Japanese “heavies” make part of the airframe of the Boeing 767 and 20 percent
of one of Boeing’s newest planes, the 777. This strategy should ensure Boeing’s dominance in Japan.
NARREND
111. Refer to Boeing Company. Boeing has utilized a global vision in marketing its planes in Asia. The
company realizes different countries require different strategies but that effective global marketing is a
key to success. Boeing is practicing:
a.
global marketing
b.
standard international marketing
c.
global marketing standardization
d.
the foreign vision
e.
international selling schemes
112. Refer to Boeing Company. The Boeing facility in China is only one branch of this huge organization.
Boeing can be called a(n):
a.
domestic trader
b.
cultural trader
c.
multinational corporation
d.
export agent
e.
localized corporation
113. Refer to Boeing Company. Boeing has chosen the _____ method of entering the Japanese market.
a.
dumping
b.
contract manufacturing
c.
licensing
d.
direct investment
e.
joint venture
114. Refer to Boeing Company. The new American-Japanese-Chinese plane Boeing plans to design and
build gives partial ownership to the manufacturing partners involved in the project. This is an example
of:
a.
direct investment
b.
a joint venture
c.
buying-for-export agreements
d.
market groupings
e.
a contract manufacturing agreement
115. Refer to Boeing Company. Boeing has chosen the _____ method of entry into the Chinese market.
a.
dumping
b.
contract manufacturing
c.
licensing
d.
direct investment
e.
joint venture
NARRBEGIN: Wataniya Mobile
Wataniya Mobile
Wataniya Mobile is offering cellular service in the Palestinian territories. It is only the second
cellphone carrier in the region and is significant because it is owned by foreign companies and
investors like the Qatari royal family and the Palestine Investment Fund. The new service is aimed at
increasing cellphone penetration, which is only 35%, in this economically challenged area. It has not
been easy for Wataniya, though. It took two years to gain the required license from Israel, which
controls the Palestinian territories’ airwaves and bandwidth required for the service. Even though
Wataniya is allowed bandwidth, it has only received 3.8 megahertz of bandwidth from Israel, which is
not enough for it to offer 3G mobile services that enable Web browsing and email.
NARREND
116. Refer to Wataniya Mobile. In which stage of globalization is Wataniya Mobile?
a.
Stage one
b.
Stage two
c.
Stage three
d.
Stage four
e.
Stage five
117. Refer to Wataniya Mobile. Israel and the Palestinian territories have vastly different religious beliefs
and are frequently at war. These differences would be attributed to which environmental factor?
a.
technology
b.
culture
c.
demographics
d.
economic
e.
natural
118. Refer to Wataniya Mobile. The need for greater bandwidth to be able to provide 3G mobile
capabilities is part of which environment?
a.
cultural
b.
technological
c.
economic
d.
natural
e.
legal
119. Refer to Wataniya Mobile. Israel’s control of licensing and the limitation on the amount of bandwidth
allotted to Wataniya Mobile is part of which environment?
a.
cultural
b.
economic
c.
political and legal
d.
demographic
e.
resource
120. Refer to Wataniya Mobile. Wataniya Mobile has spent $100 million on infrastructure so far and will
spend another $700 million over the next ten years. This is an example of which method of entering
the global marketplace?
a.
exporting
b.
licensing
c.
contract manufacturing
d.
direct investment
e.
complete
ESSAY
1. Why is developing a global vision important for firms in the United States?
2. What is a multinational corporation (MNC)? Discuss two MNCs you are familiar with.
3. Describe the four stages of business globalization. Why do most companies stop when they reach the
third stage?
4. Traditionally, marketing-oriented multinational corporations have operated differently in each country,
with segmentation strategies that provided different marketing mixes. Today, there has been a trend
toward global marketing standardization. What is global marketing standardization? Can companies
truly follow the basic premise of the global marketing standardization concept?
5. Assume you are the president of a company that manufactures wooden bowls, cutting boards, and
spoons. Your company is considering marketing its kitchen items globally. List the five important
external environmental factors that should be examined for each country you are considering for this
global venture.
6. Global legal structures are designed to either encourage or limit trade. Name and define five of these
legal structures.
7. An important factor in the global external environment that has become more evident in the past
decade is the shortage of natural resources. Choose two different natural resources and describe how
shortages of each of these resources affect global trade.
8. Assume you are a global marketing consultant for a U.S. manufacturer of light fixtures and have been
asked to name the available options or methods of entry into the global marketplace. Name five
methods of entry in the order of high risk/high return to low risk/low return for the lighting company.
9. Define and describe exporting. Briefly describe the three types of export intermediaries.
10. Briefly define licensing and joint ventures as means of engaging in global marketing. Be sure to
demonstrate both the similarities of the two processes and how they differ.
11. Assume you are the marketing manager for a leading U.S. manufacturer of earth-moving equipment.
Your company would like to become heavily involved in global marketing (especially in India) but has
some capital limitations. Your job is to evaluate whether it should use contract manufacturing or direct
investment. Compare and contrast these two options and make a recommendation.
12. Assume you are the promotions manager for a lingerie company. Your company has decided to market
its product line in Brazil, Mexico, Italy, France, and Japan. Your company wishes to use a global
marketing standardization strategy. In general terms, explain how your company would advertise in
these different countries.
13. Often it is difficult for a firm to obtain adequate global distribution. Compare and contrast the
difficulties of distributing in Japan and China.
14. In the 1980s, Japanese computer chip manufacturers were accused of dumping in the United States.
Explain what this means and discuss why a company would do this.
15. Explain the following statement: “The Internet economy is being restrained by the old bricks-and-
mortar rules, regulations, and habits.”
