Marketing Final Exam

Model international perspective cbe model strategy

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Unformatted text preview: create a new entity. a. direct investment b. a joint venture c. a buying-for-export agreement d. a contractual agreement e. a franchise relationship ANS: B This is the definition of joint venture. PTS: 1 REF: 67 OBJ: 05-4 TOP: AACSB Reflective Thinking KEY: CB&E Model International Perspective | CB&E Model Strategy MSC: BLOOMS Knowledge 76. Caterpillar, Inc. is the world’s largest manufacturer of earthmoving and construction equipment. Kirovsky is a large Russian manufacturer of the same type of products. The two companies entered into a(n) _____ and created NEVAMASH, a new company. a. import/export partnership b. countertrade c. disintermediation agreement d. joint venture e. franchise ANS: D A joint venture occurs when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity . PTS: 1 REF: 67 OBJ: 05-4 TOP: AACSB Reflective Thinking KEY: CB&E Model International Perspective | CB&E Model Strategy MSC: BLOOMS Application 77. Belgian Beer brewer InBev bought Anheuser-Busch for $52 billion. This is an example of a(n): a. export b. joint venture c. franchise d. licensed agreement e. direct foreign investment ANS: E Active ownership of a foreign company or of overseas manufacturing or marketing facilities is direct foreign investment. InBev has invested in the United States through its purchase of Anheuser-Busch. PTS: 1 REF: 68 OBJ: 05-4 TOP: AACSB Reflective Thinking KEY: CB&E Model International Perspective | CB&E Model Strategy MSC: BLOOMS Application 78. _____ is a global marketing strategy that requires active ownership (either a controlling interest or large minority interest) of a foreign company or overseas manufacturing or marketing facilities. a. Market grouping b. Import brokering c. Export subsidizing d. Licensing e. Direct foreign investment ANS: E This is the definition of direct foreign investment. PTS: 1 REF: 68 OBJ: 05-4 TOP: AACSB Reflective Thinking KEY: CB&E Model International Perspective | CB&E Model Strategy MSC: BLOOMS Knowledge 79. To enter the German market, BDO, an international accounting company, purchased an existing accounting firm. BDO entered the German market through the use of: a. contract marketing b. direct foreign investment c. franchising d. direct exporting e. countertrading ANS: B Active ownership (either a controlling interest or large minority interest) of a foreign company or overseas manufacturing or marketing facilities is an example of direct foreign investment. PTS: 1 REF: 68 OBJ: 05-4 TOP: AACSB Reflective Thinking KEY: CB&E Model International Perspective |CB&E Model Strategy MSC: BLOOMS Application 80. The first step in creating the global marketing mix is to: a. create a new product b. select the method of promotion c. develop a thorough understanding of the global target market d. set pricing policies e. decide whether product modification is necessary ANS: C Developing an understanding of the global target marke...
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