Marketing Final Exam

Involved itself in the global marketing strategy that

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: d Spanish/English children’s frame tray puzzles. Because Patch uses licensing as its global marketing strategy, it: a. must only pay a minimal royalty to the licensed companies b. cannot control how the puzzles are manufactured c. d. e. has involved itself in the global marketing strategy that gives it the greatest amount of control cannot have any control over how the puzzles are promoted or distributed chose a method of global marketing that created minimal risk ANS: E A licensing company has control over all of the marketing activities associated with making its product. The licensed company pays the royalty to Patch. PTS: 1 REF: 67 OBJ: 05-4 TOP: AACSB Reflective Thinking KEY: CB&E Model International Perspective | CB&E Model Strategy MSC: BLOOMS Application 72. Mitsubishi Heavy Industries and Kawasaki Heavy Industries produce McDonnell Douglas F-15 fighter planes in Japan. The two Japanese companies pay McDonnell Douglas royalties for use of its manufacturing processes and patents. This is an example of: a. contract manufacturing b. exporting c. joint venture d. licensing e. strategic investment ANS: D A firm can do business internationally with relatively low risk by selling a license to manufacture its product to someone in a foreign country. For a royalty or fee, the selling firm agrees to let the buying firm use its manufacturing processes, trademarks, patents, trade secrets, and so on. PTS: 1 REF: 67 OBJ: 05-4 TOP: AACSB Reflective Thinking KEY: CB&E Model International Perspective | CB&E Model Strategy MSC: BLOOMS Application 73. Sony, Panasonic, and other Japanese manufacturers that build products to customer order instead of churning out products in anticipation of demand have decided to hire U.S. companies to produce electronics for them. The Japanese companies will handle the marketing of the products. Japanese electronics companies are using: a. contract manufacturing b. direct investment c. franchising d. direct exporting e. countertrading ANS: A Contract manufacturing takes place when a foreign company produces goods to specification set by a domestic company, with the domestic firm’s brand name affixed to the goods. In this case, the “domestic” companies are in Japan selling in a foreign market for them––the United States. PTS: 1 REF: 67 OBJ: 05-4 TOP: AACSB Reflective Thinking KEY: CB&E Model International Perspective | CB&E Model Strategy MSC: BLOOMS Application 74. _____ takes place when a foreign company produces goods to specification set by a domestic company, with the domestic firm’s brand name affixed to the goods. a. Importing b. Joint venturing c. Exporting d. Contract manufacturing e. Direct investing ANS: D Contract manufacturing is private-label manufactured by a foreign company. PTS: 1 REF: 67 Thinking KEY: CB&E Model Strategy OBJ: 05-4 TOP: AACSB Reflective MSC: BLOOMS Knowledge 75. With _____, a domestic firm buys part of a foreign company or joins with a foreign company to...
View Full Document

This document was uploaded on 09/29/2013.

Ask a homework question - tutors are online