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global marketing
Questions and Answers of
Global Marketing
Do demographic variables have universal meanings? Is there a chance that they may be interpreted differently in different cultures?
In forecasting sales in international markets, to what extent can the past be used to predict the future?
How should the firm decide whether to gather its own intelligence or to buy it from outside?
Identify different types of barriers to the free movement of goods and services.
Explain the importance of a common European currency to firms selling goods to the European market.
How useful is GNP when undertaking a comparative analysis of world markets? What other approaches would you recommend?
Discuss the limitations of per-capita income in evaluating market potential.
Distinguish between: (a) Free trade area, (b) Customs union, (c) Common market,(d) Economic and monetary union and (e) Political union.
Why are international marketers interested in the age distribution of the population in a market?
Describe the ways in which foreign exchange fluctuations affect (a) Trade, (b) Investments (c) Tourism.
Why is political stability so important for international marketers? Find some recent examples from the press to underline your points.
How can the change of major political goals in a country have an impact on the potential for success of an international marketer?
A country’s natural environment influences its attractiveness to an international marketer of industrial products. Discuss.
Explain why a country’s balance of trade may be of interest to an international marketer.
As English is the world language of business, is it necessary for UK managers to learn a foreign language?
According to Hofstede and Hall, Asians are (a) more group-oriented, (b) more family oriented and (3) more concerned with social status. How might such orientations affect the way you market
Do you think that cultural differences between nations are more or less important than cultural variations within nations? Under what circumstances is each important?
Identify some constraints in marketing to a traditional Muslim society. Use some of the examples in the chapter.
What layers of culture have the strongest influence on business people’s behaviour?
The focus of this chapter has mainly been the influence of culture on international marketing strategies. Try also to discuss the potential influences of marketing on cultures.
What role does the self-reference criterion play in international business ethics?
Compare the role of women in your country to their role in other cultures. How do the different roles affect women’s behaviour as consumers and as business people?
Why is screening of foreign markets important? Outline the reasons why many firms do not systematically screen countries/markets.
Explore the factors which influence the international market selection process.
Discuss the advantages and disadvantages of using only secondary data as screening criteria in the IMS process.
What are the advantages and disadvantages of an opportunistic selection of international markets?
What are the differences between a global market segment and a national market segment? What are the marketing implications of these differences for a firm serving segments on a worldwide basis?
Discuss the possible implications that the firm’s choice of geographic expansion strategy may have on the ability of a local marketing manager of a foreign subsidiary to develop and implement
Why is choosing the most appropriate market entry and development strategy one of the most difficult decisions for the international marketer?
Do you agree with the view that LSEs use a rational analytic approach (strategy rule) to the entry mode decision, while SMEs use a more pragmatic/opportunistic approach?
Use Figure 9.1 to identify the most important factors affecting the choice of foreign entry mode. Prioritize the factors.
Why is exporting frequently considered the simplest way of entering foreign markets and thus favoured by SMEs?
What procedures should a firm follow in selecting a distributor?What procedures should a firm follow in selecting a distributor?
Why is it difficult – financially and legally – to terminate a relationship with overseas intermediaries? What should be done to prevent or minimize such difficulties?
Identify the ways to reach foreign markets by making a domestic sale.
What is the difference between direct and indirect exporting?
Discuss the financial and pricing techniques for motivating foreign distributors.
Which marketing tasks should be handled by the exporter and which ones by its intermediaries in foreign markets?
How can the carrier and the rider both benefit from a piggyback arrangement?
When a firm begins direct exporting, what tasks must it perform?
Discuss the various ways of communicating with foreign distributors.
When exporting to a market, you’re only as good as your intermediary there’. Discuss.
The international marketer and the intermediary will have different expectations concerning the relationship. Why should these expectations be spelled out and clarified in the contract?
Why are joint ventures preferred by host countries as an entry strategy for foreign firms?
Why are strategic alliances used in new product development?
Under what circumstances should franchising be considered? How do these circumstances vary from those leading to licensing?
Do you believe that licensing in represents a feasible long-term product development strategy for a company? Discuss in relation to in-house product development.
Why would a firm consider forming partnerships with competitors?
Apart from the management fees involved, what benefits might a firm derive from entering into management contracts overseas?
By what criteria would you judge a particular foreign direct investment activity to have succeeded or failed?
What are a firm’s major motives in the decision to establish manufacturing facilities in a foreign country?
Is the establishment of wholly owned subsidiaries abroad an appropriate international market development mode for SMEs?
What is the idea behind appointing a ‘lead country’ in a region?
What are the key problems associated with profit repatriation from subsidiaries?
What are the reasons for the increasing level of outsourcing to international subcontractors?
Describe the typology of subcontractors based on the differences in the contractor/subcontractor relationship.
Explain the shift from seller to buyer initiative in subcontracting.
Explain the main differences between the US and the Japanese subsupplier systems.
How are project exports/turnkey projects different from general subcontracting in the industrial market?
Project export is often characterized by a complex and time-consuming decisionmaking process. What are the marketing implications of this for the potential subcontractor?
How would you distinguish between services and products? What are the main implications of this difference for the global marketing of services?
What implications does the product life cycle theory have for international product development strategy?
To what degree should international markets be offered standardized service and warranty policies that do not differ significantly from market to market?
Why is the international product policy likely to be given higher priority in most firms than other elements of the global marketing mix?
Describe briefly the PLC (IPLC) theory and its marketing implications.
What are the requirements that must be met so that a commodity can effectively be transformed into a branded product?
Discuss the factors that need to be taken into account when making packaging decisions for international product lines.
When is it appropriate to use multiple brands in (a) A single market (b) Several markets/countries?
What is the importance of 'country of origin' in international product marketing?
What are the distinguishing characteristics of services? Explain why these characteristics make it difficult to sell services in foreign markets.
Discuss the decision to add or drop products to or from the product line in international markets.
Why should customer-service levels differ internationally? Is it, for example, ethical to offer a lower customer-service level in developing countries than in industrialized countries?
What are the characteristics of a good international brand name?
What are the major causes of international price escalation? Suggest possible courses of action to deal with this problem.
Explain how exchange rates and inflation affect the way you price your product.
In order to protect themselves, how should marketers price their product in a country with high inflation?
International buyers and sellers of technology frequently disagree on the appropriate price of knowledge. Why?
What methods can be used to compute a transfer price (for transactions between affiliated companies)?
What relevance has the international product life cycle theory for pricing strategy in international firms?
Why is it often difficult to compute fair arm's-length transfer prices?
Explain these terms of sale: EXW, FAS, FOB, CFR, CIF, DEQ and DDP. Which factors will determine the terms of sale?
Name some of the financing sources for exporters.
How does inflation affect a country's currency value? Is it a good idea to borrow or obtain finance in a country with high inflation?
How and why are export credit financing terms and conditions relevant to international pricing?
What is counter-trade? Why should firms be willing to consider counter-trade arrangements in their global marketing efforts?
Discuss current distribution trends in world markets.
What are the factors that affect the length, width and number of marketing channels?
In attempting to optimize global marketing channel performance, which of the following should an international marketer emphasize: training, motivation or compensation? Why?
Do grey marketers serve useful marketing functions for consumers and manufacturers?
Why is physical distribution important for the success of global marketing?
What are the main advantages and disadvantages of following a Multiple Distribution Channel Strategy?
Discuss the implications for the international marketer of the trend towards crossborder retailing.
Many markets have relatively large numbers of small retailers. How does this constrain the international marketer?
How is retailing know-how transferred internationally?
What services would the manufacturer like to receive from the retailer?
What are the advantages and disadvantages of global online distribution compared to the physical distribution?
This chapter suggests that the development of a firm's international organization can be divided into different stages. Identify these stages and discuss their relationship to the international
Compare domestic communication with international communication. Explain why 'noise' is more likely to occur in the case of international communication processes.
Why don't more companies standardize advertising messages worldwide? Identify the environmental constraints that act as barriers to the development and implementation of standardized global
Explain how personal selling may differ between the overseas and home markets. Personal selling often has to be especially localized to fit conditions of individual markets.
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