Question 1

Differentiate between industrializing economies and industrial economies.Give a few examples of each.

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Question 2

Strawberry Fizz is a renowned bottled juice manufacturer in the United States.It exports its products to Mexico,has a joint venture in Hong Kong,and owns a subsidiary in South Africa.The company has organized an export department to manage its international marketing activities.Do you think it has made the right decision? Justify your answer.

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Question 3

Explain management contracting with an example.What are its advantages and disadvantages?

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Question 4

Give an account of the functions of the World Trade Organization (WTO)and the formation of WTO from GATT.

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Question 5

What are the factors that a company should consider when deciding which markets to enter?

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Question 6

Jazz is a costume jewelry manufacturing company based in the United States.The company decides to sell its products abroad,but it faces the major problem of price escalation.What is price escalation? How can Jazz overcome this problem?

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Question 7

Companies that export goods to one country cannot have a subsidiary in another country because of international trade agreements.

Accepted Answer

There is no restriction on companies having subsidiaries in other countries while exporting goods to one country. However, there may be certain legal and regulatory considerations while establishing a subsidiary in another country.

Question 8

Explain with examples how the political-legal environment of a country affects a global firm.

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Question 9

Differentiate between straight product extension and product adaptation.Give a few examples of each.

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Question 10

Channels of distribution within countries are similar across nations.

Accepted Answer

Channels of distribution can vary across countries due to differences in market structures, regulations, transportation infrastructure, and cultural factors. For example, some countries may have a more fragmented retail sector with many small independent shops, while others may have more dominant supermarket chains. Similarly, some countries may rely more on e-commerce for sales, while others may have a strong tradition of in-person shopping.

Question 11

What is the North American Free Trade Agreement (NAFTA)?

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Question 12

Explain joint ownership with an example.What are its advantages and disadvantages?

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Question 13

What are regional free trade zones? Explain the advantages and disadvantages of the European Union (EU).

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Question 14

Most of the retailing in the United States is done by small,independent retailers.

Accepted Answer

According to the National Retail Federation, in 2019, only 25% of retail businesses in the United States were independently owned, while the majority (75%) were operated by larger corporations and chains.

Question 15

Global companies recruit management from many countries,buy components and supplies where they cost the least,and invest where the expected returns are greatest.

Accepted Answer

This statement is true as globalization has enabled companies to operate on a global scale, allowing them to recruit management from various countries, source components and supplies from low-cost regions, and invest money where it is expected to provide the greatest returns.

Question 16

Briefly explain the three basic market entry strategies of entering a foreign market.

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Question 17

Explain the whole-channel view of the distribution process.

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Question 18

Explain product invention with the help of suitable examples.

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Question 19

In the global value delivery network,the second link between the sellers and the final buyers moves products from points of production to the borders of countries within which they are sold.

Accepted Answer

The second link in the global value delivery network typically involves moving products from the borders of the countries where they are produced to the final buyers within those countries, not from points of production to the borders.

Question 20

Differentiate between standardized global marketing and adapted global marketing.Describe the advantages and disadvantages of each strategy.

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Quiz 15: The Global Marketplace