国际营销期末复习Short Answer

Short Answer:

1. Describe three types of ownership in foreign direct investing?

A corporation’s ownership choice can range from 100 percent ownership to a minority interest. Full ownership is to have 100 percent ownership. However, a major concern is the fairness of profit repatriation. Another type of ownership is joint venture, which is a collaboration of two or more organizations for more than a transitory period. The partners share assets, risks, and profits, though equality of partners is not necessary. Lastly is strategic alliance. This is an arrangement between two or more companies with a common business objective. The great advantage of strategic alliances is their ongoing flexibility, since they can be formed, adjusted, and dissolved rapidly in response to changing conditions.

2. What is the difference between proactive and reactive motivators that spur a company to go international?

Proactive motivations represent stimuli to attempt strategic change. Reactive motivations influence firms that respond to environmental shifts by changing their activities overtime. In other words proactive firms go international because they want to while reactive ones go international because they have to.

3. Is any product ever the same everywhere it is sold?

Products are not the same everywhere they are sold. Even if the physical product is the same the differences in customer perceptions change the positioning of the product as a complete cluster of value perceptions. Differences in perception occur as a result of cultural factors such as the impact of colors of the packaging and country-of-origin effects and differences in promotion advertising and distribution. The availability of service and warranties also make products different.

4. Explain how counterfeiting has become a problem in foreign markets..

Counterfeiting problems occur in three ways and depending on the origin of the product and where they are marketed require different courses of action. Enforcement has been problematic because of the lack of adequate personnel and the increasingly high-tech character of the products. The theft of intellectual property is a critical problem for many industries and countries accelerating with the pace of market globalization. Governments have long argued about intellectual property protection but the lack of results in some parts of the world has forced companies themselves to take action on this front.

5. Briefly named 4 elements of Products

1. Core product- Product or service in its simplest generic state other tangible and augmented features may be added to distinguish a core product or service from its competitors.

2. Tangible product- Brand name Packaging Aesthetics Quality

3. Intangible product- Country-of-Origin positioning

4. Augmented product- Elements added to a core product or service that serve to distinguish it from competing products of services. Such as installation after sale service warranty delivery and credit.