Marketing Final Exam

Perspective cbe model strategy msc blooms synthesis 9

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Unformatted text preview: manufacturer of light fixtures and have been asked to name the available options or methods of entry into the global marketplace. Name five methods of entry in the order of high risk/high return to low risk/low return for the lighting company. ANS: The five methods of entering the global marketplace from high risk/high return to low risk/low return are direct investment, joint venture, contract manufacturing, licensing, and exporting. PTS: 1 REF: 66 OBJ: 05-4 TOP: AACSB Communication KEY: CB&E Model International Perspective | CB&E Model Strategy MSC: BLOOMS Synthesis 9. Define and describe exporting. Briefly describe the three types of export intermediaries. ANS: Exporting is selling domestically produced products in other countries. It is the least complicated and least risky alternative for entering the global market. A company deciding to export may sell directly to foreign importers or buyers, or it may sell to independent exporting intermediaries located in its domestic market. The most common intermediary is the export merchant, or a buyer for export. This intermediary is treated like a domestic customer; the buyer assumes all risks and sells globally for its own account. Export brokers play the traditional broker’s role by bringing buyer and seller together. The manufacturer still retains the title and assumes all the risks. Export agents include foreign sales agentsdistributors. They live in the foreign country and perform the same functions as domestic manufacturers’ agents, helping with international financing, shipping, and so on. PTS: 1 REF: 66-67 OBJ: 05-4 TOP: AACSB Communication KEY: CB&E Model International Perspective | CB&E Model Strategy MSC: BLOOMS Synthesis 10. Briefly define licensing and joint ventures as means of engaging in global marketing. Be sure to demonstrate both the similarities of the two processes and how they differ. ANS: Both are effective methods for a firm to move into the global market. LICENSING is the legal process whereby a licensor allows another firm to use its manufacturing processes, trademarks, patents, trade secrets, or other knowledge of a proprietary nature. The licensee then agrees to pay the licensor a royalty or fee. This method has lower risk than direct or contract manufacturing. Franchising is one form of licensing that has grown rapidly in global markets in recent years. JOINT VENTURES are somewhat similar to licensing agreements, except that the domestic firm buys part of a foreign company or joins with a foreign company to create a new entity. This is more risky but gives management a voice in company affairs that it might not have under licensing. PTS: 1 REF: 67-68 OBJ: 05-4 TOP: AACSB Communication KEY: CB&E Model International Perspective | CB&E Model Strategy MSC: BLOOMS Synthesis 11. Assume that you are the marketing manager for a leading U.S. manufacturer of earthmoving equipment. Your company would like to become heavily involved in global marketing (especiall...
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This document was uploaded on 09/29/2013.

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