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103) The General Agreement on Tariffs and Trade established the World Trade Organization
(WTO), which replaced GATT in 1995 and now oversees the original GATT provisions.
104) The EU acts as an umbrella organization which oversees GATT and mediates global
disputes.
105) Widespread adoption of the euro has decreased much of the currency risk associated with
doing business in Europe, making member countries with previously weak currencies more
attractive markets.
106) In 1994, the North American Free Trade Agreement (NAFTA) established a free trade zone
among the the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala,
Honduras, and Nicaragua.
107) CAFTA-DR has eliminated all trade barriers and investment restrictions among the United
States, Canada, and Mexico.
108) UNASUR is the economic community of South American nations.
109) In a subsistence economy, fast growth in manufacturing results in rapid overall economic
growth.
110) Industrial economies are major exporters of manufactured goods, services, and investment
funds.
111) The exchange of U.S. wheat for Russian vodka would be an example of barter.
112) As more developed markets stagnate and become increasingly competitive, many marketers
are now targeting growth opportunities in emerging markets.
113) The simplest way to enter a foreign market is through direct investment.
114) Sellers must understand the ways that consumers in different countries think about and use
certain products before planning a marketing program.
115) When Tool Trade, an American company, uses qualified Brazilian manufacturers to
produce many of the products it sells to retailers in South America, Tool Trade is using contract
manufacturing.
116) The biggest involvement in a foreign market comes through direct investment—the
development of foreign-based assembly or manufacturing facilities.
117) Dove body soaps are sold successfully in essentially the same form around the globe. This
is an example of straight product extension.
118) Oreos are less sweet or less bitter in certain countries. This is an example of straight product
extension.
119) A cell phone maker customized its cell phones for the Asian market by raising the ring
volume so that phones could be heard on crowded streets. This is an example of product
invention.
120) If Audi develops a new low-priced model for entry-level consumers in Europe, it would be
an example of straight product extension.
121) The whole-channel view recognizes that to compete internationally a company must
effectively design and manage a standardized global marketing plan.
122) To overcome price escalation when selling to less-affluent consumers in developing
countries, companies make simpler or smaller versions of their products that can be sold at lower
prices.
123) The Internet is making global price differences more obvious, forcing companies toward
more standardized international pricing.
124) If a firm moves into joint ventures and direct investments, it will eventually need to create
an export department.
125) International divisions can be organized as geographical organizations, world product
groups, or international subsidiaries.
126) Describe the purpose, roles, and achievements of GATT and the World Trade Organization.
127) Companies that go global confront several major risks. Describe three of these risks.
128) Compare and contrast a tariff and a quota.
129) Briefly explain why economic communities are formed.
130) Briefly explain why the European Union could be considered a threat to U.S. marketers that
want to do business in Europe.
131) Describe the political-legal factors that a company should consider before deciding to
conduct business in a foreign country.
132) Compare the four different types of industrial structures.
133) Why is it important for companies to understand cultural differences and nuances before
entering a foreign country's market? Give two examples of cultural differences that would be
important for a company to know.
134) Describe the factors that might draw a company into the international arena.
135) Explain why some critics worry that American multinationals are causing countries around
the globe to lose their individual identities. Give an example of the "Americanizing" of the
world's cultures.
136) Many studies reveal that instead of "Americanizing" the world's cultures, the cultural
exchange between America and other countries goes two ways. Give two examples of how
America has been influenced culturally by foreign products or services.
137) Discuss the international marketing objectives and policies a company should try to define
before going abroad.
138) Name two of the five indicators of market potential and provide an example of each.
139) How is joint venturing more risky and complex than merely exporting?
140) What are two possible risks involved with licensing?
141) What are two possible reasons that management contracting is prevalent in the hotel
industry?
142) Discuss direct and indirect exporting. What are the advantages of exporting?
143) Compare and contrast the advantages and disadvantages of standardized global marketing
and adapted global marketing.
144) What types of products would be successful with standardized global marketing?
145) Explain why a global company would need to make adjustments to a highly standardized
promotion campaign for different markets.
146) Why is a company unlikely to set a uniform price all around the world?
147) How has the Internet affected how companies set prices on global products?
148) Identify and describe the three product strategies a company entering a foreign market can
use.
149) What might drive a company to create international divisions or subsidiaries? Discuss the
three ways these divisions can be organized.
150) Identify the three major ways a company can manage its international marketing.
