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CHAPTER 9- Market Entry and Expansion 1. Why do firms enter the global market?

Proactive Stimuli: -Profit advantage -Unique products -Technological advantage -Economies of scale -Market Size -Exclusive information about the market you are entering Reactive Stimuli: -Competitive pressures-have to go to that market because your competition does -Overproduction -Declining domestic sales-may have a recession -Excess capacity -Saturated domestic markets -Proximity to customers and ports 2. What is meant by the term born global? -Companies with initial international thought -Founded for the explicit purpose of marketing abroad 3. What relationships exist between governments and foreign investors? Why are foreign investors important? -Love/hate relationship Foreign investors -They bring economic vitality and jobs to their host countries -Pay higher wages than the average domestically oriented firms -Bring imports on an ongoing basis -Bring technology and expertise Government 1. Financial: provide special funding for properties and subsidies 2. Fiscal: specific tax measurestax support 3. Non-financial -Protect from competition -Guarantee government purchases -Investments in infrastructure facilities 4. Discuss the impact of the Internet and e-commerce in marketing a firm global. -Makes it easier to break into a new market -The Internet connects people everywhere and makes it easier to access new customers

-Allows information to be accessed easiermore cultures more accessible and understandable as a result -24 hour service/order-taking 5. Discuss the various advantages and disadvantages of full ownership versus joint ventures. Full Ownership -Desirable but not necessary for success internationally -A major concern is the fairness of profit repatriation, or transfer of profits, and the extent to which firms reinvest into their foreign operations. Joint Ventures= Collaboration of two or more organization for more than a transitory period -Partners share assets, risk, and profits, through equality of partners is not necessary Advantages: -Pooling of resources -Better relationships with local organizations -The partners knowledge of the local market -Minimize exposure to political risk -Tap local capital markets Disadvantages: -Different levels of control are required -Difficulty in maintaining the relationship -Disagreements over business decisions -Disagreements over profit accumulation and distribution (profit repatriation) 6. What is the difference between proactive and reactive motivators that spur a company to go international? Proactive Motivator: -Stimuli to attempt strategic change Reactive Motivator: -Influence firms that respond to environmental shifts by changing their activities over time 7. List and describe the key corporate export stages -Awareness -Interest -Trial -Evaluation -Demand -Adaptation 8. Describe 3 types of ownership in foreign direct investment. 1. Full Ownership 2. Joint Ventures--Strategic Alliances 3. Franchise

Derived demand: Results when businesses move abroad and encourage their suppliers to follow them, creating a chain or pattern of direct investment in a market. Example: Paddles are a derived demand for canoes Categories of Firms Resource seekers: search for natural or human resources Market seekers: Search for better opportunities to enter and expand within markets Efficiency seekers: Attempts to obtain the most economic sources of production CHAPTER 10-Marketing Organization, Implementation and Control 1. Firms differ, often substantially, in their organizational structure even within the same industry. What accounts for these differences in their approaches? -Size -Management (who makes decisions/how decisions are made) -Location (country operated in)Geographical (local, regional, global) -Value System -Service/product orientated -Degree of internationalization 2. Discuss the benefits gained in adopting a matrix approach in terms of organizational structure. -Allow managers to have specializations -Product approach -Area approach -Functional approach (who is doing what) -Financial approach -Organizational approach -R&D approach -Customer approach 3. Is there more to the not-invented-here syndrome than simply hurt feelings on part of those who believe they are being dictated to by headquarters? NIV syndrome: local resistance or decline in morale caused by the perception that headquarters is not sensitive to local needs -Allowed to input -Generate idea -Use product portfolio 4. How can systems that are built for global knowledge transfer to be used as control tools? -Can save a company a lot of money because you dont have to invent different policies/techniques to act like a control too. -Learn from other companies or other people that have already identified the information 5. Implementers are the most important country organizations in terms of buy-in for effective global marketing strategy implementation. Comment.

6. What are the three organizational designs that make up international organizational structures? 1. Little or no formal organization 2. International Division 3. Global Organizations -Product -Area -Function -Customer -Mixed (hybrid) 7. Describe the different types of centers of excellence. 1. Charismatic: individuals who are internationally recognized for their expertise in a functional or an area 2. Focused: single area of expertise 3. Virtual: live and work all over the world and keep in touch through electronic means and meetings 8. Differentiate between bureaucratic and cultural controls. Bureaucratic controls: consist of a limited and explicit set of regulations and rules that outline desired levels of performance -Budgets -Plans Cultural controls: are much less formal and are the result of shared beliefs and expectations among the members of an organization CHAPTER 11-Product Management and Global Brands 1. Are standards like those promoted by the International Organization of Standardization a hindrance or an opportunity for exporters? 2. How can marketers satisfy the 4 Rs of environmentally correct practice? -Redesign -Reuse -Reduce -Recycle 3. What factors should be considered when deciding on the location of research and development facilities. (good exam question)***4. What are the benefits of a coordinated global product launch? What factors will have to be taken into consideration before the actual launch? 5. Argue for and against the use of the corporate name in global branding.

6. What are the factors affecting adaptation? 7. What are the reasons for making investments on R&D abroad? 8. Explain how counterfeiting has become a problem in foreign markets.