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international marketing
Questions and Answers of
International Marketing
What distinguishes a short-term plan from a long-term plan? What sorts of activities are appropriate for inclusion in a short-term plan? LO.1
What is a marketing audit? How might such an audit be useful in interna- tional markets? LO.1
What are the components of a global information system? How do such systems fit in with international market planning? LO.1
As discussed in this chapter, international marketing is a complex task, and highly differentiated from domestic marketing. Using Table 1-1 as a guide, discuss the international marketing strategic
What is the basis for IKEA’s success globally? LO.1
Discuss the issues IKEA faced when expanding into the United States. How did it address these challenges? What evidence is there today that it continues to incorporate these issues into its U.S.
Of the international marketing trends discussed in this chapter, which are the issues most likely to have an impact on IKEA as it continues its global growth? LO.1
IKEA expanded into China in the late 1990s. Research IKEA’s efforts in China.How has the company’s strategy been different from that in other countries?What have been its challenges in
How does IKEA’s experience in China illustrate issues in international marketing? LO.1
What are common mistakes made by companies and individuals involved in export controls as indicated in the preceding examples? LO.1
Research the web to find recent examples of companies that have violated U.S.export controls. LO.1
What are best practices a firm should follow to better ensure compliance with U.S. export controls? LO.1
What are examples of export controls enforced in other countries? LO.1
Prepare a table showing the scoring for these 13 countries on the four criteria suggested. LO.1
What are some measurements that could be useful in controlling the marketing activities of a multinational's subsidiary? LO.1
What is control? How is control related to multinational planning? LO.1
How can headquarters influence the implementation of plans? Under what conditions will headquarters be more or less directive? LO.1
How should a marketing plan be integrated with other aspects of the firm—for example, technology and manufacturing? LO.1
What elements would you include in a firm’s operating plans for international markets? LO.1
What is the appropriate relationship between a local subsidiary’s marketing plans and headquarters’ broad goals? LO.1
Why should headquarters’ broad plans be adapted uniquely to individual country markets? LO.1
Why should future scenarios be incorporated into a firm’s long-term marketing plan? LO.1
How does competition affect international marketing planning? LO.1
Why would a firm consider forming a partnership with competitors? LO.1
How is a firm’s organizational structure relevant to its international market planning? LO.1
Explain this statement: Organizational structure is essentially a choice between headquarters’ centralization and local autonomy. LO.1
What are examples of staffing challenges for a firm as it grows internationally? LO.1
What is the role of the country manager and how is it changing? LO.1
What are the various organizational options for a firm as it grows internationally?Discuss the pros and cons of each. LO.1
Research the organizational structure of a multinational company. What type of structure has it implemented? What evidence is there that this structure is a good fit for the firm? What organizational
Which five countries would you choose as offering the best possibilities for promoting Unicola’s products? Explain and defend your choices. LO.1
What other information would you need about these countries? How would you get it? LO.1
Roadnet is not alone in providing these types of technologies and services. Find another transportation tracking provider. Research its products and services that compete with Roadnet. How are the
Would increased sales to Mexico help alleviate some of the uncertainty that Davila-Bond was experiencing? LO.1
To develop an international expansion strategy, Davila-Bond would need to complete a situational analysis. What types of questions should be asked? What might be some of the answers to those
What were the benefits and drawbacks of getting involved in manufacturing in Mexico, possibly through one of the Mexican maquilas? LO.1
Did it make sense for Davila-Bond to outsource some part of production to Mexico? LO.1
What is Davila-Bond’s primary competitive advantage? LO.1
Which of the three strategic perspectives in this chapter would you:recommend for Davila-Bond? LO.1
Use macro indicators to evaluate the country attractiveness of the two proposed options. LO.1
Which factors should the company watch? LO.1
Evaluate competition in each country (use Porter 5 Forces framework). LO.1
Construct a SWOT analysis for expansion in each of the two countries considered. LO.1
Estimate Jabwood’s maximum potential market share in Saudi Arabia and China. Provide estimates in U.S. dollars and in cubic meters (CBM); then forecast sales for the next three years in U.S.
Identify the possible modes of entry (exporting, joint ventures, licensing, foreign direct investment) that Jabwood should consider when expanding internationally.Out of the possible entry modes,
Roadnet Technologies is part of Omnitracs Enterprise (www.omnitracsenterprise.com). Visit the Omnitracs website and research the products and solutions of one of the other Omnitracs companies. How
Visit www.roadnet.com and research other products and solutions. What additional services does Roadnet provide? How would a company use this technology in support of its supply chain? LO.1
Visit www.roadnet.com and navigate to the case studies section. What are other examples of companies using Roadnet technology? How has the technology assisted with Roadnet’s supply-chain
List what each party is offering and what it hopes to receive. LO.1
Identify the elements in each list that are “musts” and those where flexibility may be shown, and state why. LO.1
Describe negotiating tactics or ploys each party used, or could have used. LO.1
Compute net cash flows for each party under several scenarios.For example:a. SCENARIO 1 (Very Pessimistic)—Licensee fails to get a single order.b. SCENARIO 2 (Conservative Scenario)—Licensee gets
Compute the share of net present value of profits that each of the two parties will capture under various market scenarios. (Use a 10% discount rate for your NPV calculations). LO.1
What do you think of the “rule of thumb,” encountered in licensing literature, that licensors should settle for roughly one-quarter to one-half of the licensee’s incremental profit? LO.1
a. Are sunk costs relevant here?b. What, if any, are the opportunity costs to Metro?c. In computing the licensor’s cash flows, remember that in addition to the direct costs of implementing an
Why did the licensee accept the offer (with small changes) without “batting an eyelid”? (Hint: Calculate break-even sales for both parties.). LO.1
Should the licensor have threatened to pull out when the government limited the agreement life to five years? (Hint: Recalculate question 5 under a five-year limit.) LO.1
Do you think the licensee knew all along that the Peruvian government would limit the agreement to five years? LO.1
Discuss the role of government intervention in licensing negotiations in general. LO.1
In general, what costs should a technology-owning company consider when opening a negotiation with a prospective ally? Are development costs relevant?If so, how does one calculate them? (It took only
What problems di d tation Suite?UPS and Roadnet address in creating the Roadnet Transpor- LO.1
In light of the previous analysis, what should Fayez Jabado do? Discuss the sequence of expansion and resources allocation. LO.1
How would a firm use the services of a 3PL provider internationally? LO.1
Are there reasons why export prices should be higher than domestic prices? If so, what are the marketing implications of international price escalation? LO.1
How might government policies affect international pricing strategies in a foreign market? LO.1
What is gray marketing, and what is the implication for international pricing? LO.1
Provide an example when a firm would likely use market share pricing as its international pricing strategy for a particular foreign market. What are examples for other pricing strategies such as
Discuss the pressure for uniform pricing in international markets. Provide examples illustrating when uniform pricing would not be justified. LO.1
What is transfer pricing? Why is it a consideration in international pricing? What are some useful formulas in setting transfer prices? LO.1
What is gray marketing? How does it affect international marketing and price setting? LO.1
Discuss what a seller wants as an international payment method. Contrast that with what the buyer wants. LO.1
For each of the four most common international payment methods, provide an example of an international transaction that would be appropriate for each payment method. LO.1
Refer to Table 12-2. Discuss the implications for a Mexican exporter selling products to a U.S. buyer during the years 2007 through 2015. LO.1
How do exchange rates affect international pricing? Why might a firm with an appreciating currency not raise its export prices? LO.1
Is quoting export prices only in a firm’s domestic currency a viable strategy to avoid the impact of exchange rates? LO.1
What are the different risks that a firm marketing its products internationally faces because of exchange rate fluctuations? LO.1
What are the consequences of charging an export price below the domestic market price? LO.1
What should be the relationship between export and domestic prices? LO.1
What are some of the major factors affecting international pricing? In particular, how are prices influenced by a firm's strategy, a firm's competi- tion, consumers' ability to buy, a firm's cost and
What variables affect global sourcing decisions? Pick a well-known mul- tinational company and assume it is operating in a foreign country. How would the variables affecting global sourcing affect
Refer to Figure 11-2. What are the implications from that figure? How might a firm decide between either scenario? LO.1
What is the purpose of the commercial invoice in an international transaction? LO.1
What are bills of lading, and how are they used? LO.1
What is the EEI? When is it required? LO.1
Discuss the statement "A product covered by export controls may still be exported." LO.1
What are examples of factors that impact packaging and labeling in inter- national markets? LO.1
How might a firm decide between having standardized warranty and service policies versus localized policies? LO.1
How can your client use best practices in supply chain management to be more competitive internationally? LO.1
What role might 3PL providers have to support your client? LO.1
How important will global sourcing be for your client? LO.1
What role will distribution and warehousing play in supporting the global activities? LO.1
Are there packaging, labeling, warranty and service policy, or after-sales service issues that may have an important effect on your client? LO.1
For each of the three most common foreign exchange hedging tools, provide an example illustrating when a firm might use each tool. LO.1
What basic elements should be included in a company’s international marketing planning? LO.1
What is the value-added chain? How is it relevant to a firm in formulating a global strategy? LO.1
What are some goals that a firm might set for itself in individual country markets? LO.1
What are the three fundamental strategies to compete? LO.1
Select a well-known company that operates globally. Describe its competitive advantage. Discuss examples of how it has leveraged that advantage in world markets. LO.1
Using Porter’s five forces, describe the attractiveness of the fast-food industry in the United States. Contrast that with the fast-food industry in China.How would such an analysis assist in a
What factors affect strategy implementation? How are these factors further complicated for a global firm? LO.1
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