Chapter 16

Question 1

Global Firm

Answer 1

Global Firm: a firm that, by operating in more that one country, gains R&D, production,
marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors

Question 2

Major International Marketing Decisions (steps only)

Answer 2

STEP 1: The Global Marketing Environment

STEP 2: Deciding Whether to Go Global

STEP 3: Deciding Which Markets to Enter

STEP 4: Deciding How to Enter the Market

STEP 5: Deciding on the Global Marketing Program

Question 3

STEP 1: The Global Marketing Environment

The

E

• • 1.
    
• 2.
  
  • I

P

C

Answer 3

The International Trade System

• When selling to another country, a firm may face restrictions on trade between nations.
• Government may charge:
  
  • Tariffs or dutie/Quotas/Exchange controls/Nontariff trade barriers:
• The World Trade Organization (WTO): promotes trade by reducing tariffs and other international trade barriers.
• Regional Free Trade Zones (or economic communities): a group of nations organized to work toward common goals in the regulation of international trade.
  
  • European Union (EU) North American Free Trade Agreement (NAFTA)

Question 4

STEP 4: Deciding How to Enter the Market

Answer 4

STEP 4: Deciding How to Enter the Market

• Exporting: simplest way to enter foreign market
  
  • Indirect: working through independent international marketing intermediaries.
  • Direct: they handle their own exports.
• Join Venturing: entering foreign markets by joining with foreign companies to produce or market a product or service.
• Direct Investment: entering a foreign market by developing foreign-based assembly or manufacturing facilities

Question 5

STEP 5: Deciding on the Global Marketing Program

• • • Product
• Promotion
  
  • c
• Price:

Distribution Channels

Deciding on the Global Marketing Organization

*

Answer 5

STEP 5: Deciding on the Global Marketing Program

• Standardized global marketing: an international marketing strategy that basically uses the same marketing strategy and mix in all of the company’s international markets.
• Adapted global marketing: an international marketing approach that adjusts the marketing strategy and mix elements to each international target market, which creates more costs but hopefully produces a larger market share and return
• Make modifications in marketing mix
  
  • Product
    
    • Straight product extension /Product adaptation/Product invention
  • Promotion
    
    • communication adaptation
  • Price