SOLVED

91) Assume that a Gucci handbag sells for $60 in Italy and $240 in the United States because Gucci must add the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to its factory price. This information indicates that Gucci faces a ________ problem. A) dumping B) tariff C) licensing D) product adaptation E) price escalation 92) The two major links between the seller and the final buyer-channels between nations and channels within nations—make up a ________. A) whole-channel view B) direct-distribution channel C) large-scale channel D) transportation network E) retail channel 93) ________ are the first link between the seller and the final buyer and they move company products from points of production to the borders of countries within which they are sold. A) Channels between nations B) Channels within nations C) Retail channels D) Large-scale channels E) Value chain channels 94) A firm normally gets into international marketing by simply shipping out its goods. If its international sales expand, the company organizes a(n) ________. A) indirect exporting venture B) joint ownership C) export department D) international division E) standardized global marketing strategy 95) World product groups, geographical organizations, and international subsidiaries are all options for organizing a(n)________. A) export department B) indirect exporting venture C) joint ownership D) international division E) standardized global marketing strategy 96) In a(n) ________, executives are trained in worldwide operations, not just domestic or international operations. A) direct exporting company B) joint venture C) international division D) international subsidiary E) global organization 97) At Comfort Homes, a manufacturer of furniture and home accessories, the global operating units report directly to the chief executive instead of a head of an international division. The company recruits management from many countries and buys components and supplies where they cost the least. Comfort Homes is most accurately classified as a(n) ________. A) direct exporter B) geographical organization C) international subsidiary D) global organization E) world product group Refer to the scenario below to answer the following questions. Selman & Saks, a maker of men’s and women’s razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women’s hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all. Managers at Selman & Saks studied Wellman’s licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting. With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. “Who knows the local market better than people who live there?” was a comment heard throughout Selman & Saks. “Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there.” 98) What did Selman & Saks hope to gain by entering the French market? A) access to new consumer markets B) access to less expensive labor C) access to less expensive materials D) access to foreign investment incentives E) the ability to offset domestic economic cycles 99) If Selman & Saks allowed a French company to produce and market razors and trimmers carrying the company’s brand in exchange for a royalty, Selman & Saks would be using the market entry strategy of ________. A) exporting B) franchising C) licensing D) contract manufacturing E) joint ownership