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Chapter01-TheScopeandChallengeofInternationalMarketing
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Chapter01TheScopeandChallengeofInternationalMarketing
True/FalseQuestions
Globalcommercethrivesduringpeacetime.
TRUE
(p.4)Todate,thelessonforinternationalcommerceinthe21stcenturyis"expecttheunexpected."
TRUE
Difficulty:EasyType:Knowledge
(p.5)Today,everyAmericanbusinessisinternational.
TRUE
Difficulty:ModerateType:Comprehension
(p.5)OneeventthatwillinfluencetheshapeofinternationalbusinessasthefutureunfoldsistherapidgrowthoftheWorldTradeOrganization,NAFTA,andtheEuropeanUnion.
TRUE
(p.5)OneeventthatwillinfluencetheshapeofinternationalbusinessasthefutureunfoldsistheunprecedentedacceptanceofcommunismandsocialisminLatinAmerica.
FALSE
Difficulty:ModerateType:Comprehension
(p.5)Atrendthatwillimpactinternationalbusinessinthefutureisamandatetoproperlymanagetheresourcesandglobalenvironment.
TRUE
Difficulty:ModerateType:Comprehension
(p.5)Today,mostbusinessactivitiesarelocalorregionalinscope.
FALSE
Difficulty:ModerateType:Knowledge
(p.6,CrossingBorders1.1)WhatdoFrenchfarmers,Chinesefishermen,andRussianhackershaveincommon--theycanallreceivesubsidypaymentsfromtheU.S.government.
FALSE
(p.6)Foreign-madeproductsremainasmallportionofallconsumerproductssoldintheUnitedStates.
FALSE
(p.8)U.S.companiescompetewithglobalcompetitorsinforeignmarketsandhavelittlecompetitionindomesticmarketsfromglobalcompetitors.
FALSE
Difficulty:EasyType:Knowledge
(p.9,Exhibit1.2)TheleadingU.S.multinationalwithforeignrevenuesof$345billionplusannuallyisWal-Mart.
TRUE
Difficulty:HardType:Knowledge
(p.9)Internationalmarketingistheperformanceofbusinessactivitiesdesignedtoplan,price,promote,anddirecttheflowofacompany'sgoodsandservicestoconsumersorusersinmorethanonenationforaprofit.
TRUE
Difficulty:ModerateType:Knowledge
(p.9-10)Agoodillustrationofanuncontrollablevariablethatmightimpactinternationalbusinessisamarketingdecisionwithrespecttoresearch.
FALSE
Difficulty:HardType:Application
(p.11,Exhibit1.3)Theforeignuncontrollableenvironmentisthesameasthedomesticuncontrollableenvironment.
FALSE
Difficulty:HardType:Comprehension
(p.12)Theleveloftechnologyisanuncontrollableelementforinternationalmarketers.
TRUE
Difficulty:ModerateType:Knowledge
(p.14)Thepoliticalandlegalenvironmentisacontrollableelementforinternationalmarketersbecauseoftheabilitytolobbyandinfluencelegislation.
FALSE
Difficulty:ModerateType:Knowledge
(p.14)Inabroadsense,theuncontrollableelementsoftheforeignbusinessenvironmentconstitutetheculture.
TRUE
Difficulty:HardType:Comprehension
(p.15)JohnrefusestobuyJapaneseproductsbecauseheseesthemasawayofsellingouttonationknownforitsaggressivebehavior.Johnisusingaself-referencecriteriontomakehisdecision.
TRUE
Difficulty:ModerateType:Application
(p.15)Aself-referencecriterioniscloselyrelatedtoethnocentrism.
TRUE
Difficulty:ModerateType:Comprehension
(p.15)SamWatkinsjustrecentlyateand,therefore,feelsjustifiedinrefusingfoodfromhisMiddleEasternhost.Inthisinstance,Sam'sself-referencecriterionhasjustsavedhimfrommakingaculturalblunder.
FALSE
Difficulty:HardType:Application
(p.16)Toavoiderrorsinbusinessdecisions,itisnecessarytoconductacross-culturalanalysisthatemphasizestheneedforethnocentrism.
FALSE
Difficulty:ModerateType:Comprehension
(p.17)Tobegloballyaware,youshouldbetolerantofculturaldifferences.
TRUE
Difficulty:Easy
Type:Comprehension
(p.17)Tobegloballyaware,youshouldrequirethatallofyourinternationalcustomersknowaboutyourculturalrulesandadherestrictlytoeachone.
FALSE
Difficulty:ModerateType:Comprehension
(p.18)Ifacompanyisinastagedesignatedasbeingonewith"nodirectforeignmarketing,"thecompanydoesnotactivelycultivatecustomersoutsidenationalboundaries.
TRUE
Difficulty:EasyType:Knowledge
(p.20)Ofallthestagesininternationalbusiness,astagecalled"regularforeignmarketing"producesthemostprofoundchangeintheorientationofthecompanytowardmarketsandassociatedplanningactivities.
FALSE
Difficulty:ModerateType:Knowledge
(p.22)Ifacompanyusesastrategicorientationcalleddomesticmarketextension,itviewsitsinternationaloperationsassecondarytoandanextensionofitsdomesticoperations.
TRUE
Difficulty:ModerateType:Knowledge
(p.22-23)Theglobalmarketingconceptviewsthemarketplaceasconsistingofoneprimarydomesticmarketthatiscomplimentedbyseveralsmallerregionalmarkets.
FALSE
Difficulty:HardType:Knowledge
MultipleChoiceQuestions
(p.3)International playanimportantroleinpromotingglobalpeaceandprosperity.
foreignaidandtreaties
competitionandconsumerspending
tradeandmarketing
consumerandindustrialservices
Difficulty:EasyType:Knowledge
(p.4)Accordingtothetext,allofthefollowingeventshaveimpactedinternationalbusinessEXCEPT:
theIndianOceantsunamiin2004
thehigh-techbustof2001.
thesteroidsinmajorleaguesportsscandal
2003SARSoutbreakinAsia.
September11,2001disasters.
Difficulty:Easy
Type:Comprehension
(p.5)Ofalltheeventsandtrendsaffectingglobalbusinesstoday,fourstandoutasthemostdynamic.Whichofthefollowingwouldbeoneofthoseevents?
ThetrendtowardbuyingAmericancarsinEurope.
ThetrendtowardtheacceptanceofthefreemarketsystemamongdevelopingcountriesinLatinAmerica,Asia,andEasternEurope.
ThetrendtowardusingEnglishasthegloballanguage.
Thetrendtowardestablishingaworldcurrency.
Thetrendtowardworldwideinstantcommunication.
Difficulty:ModerateType:Comprehension
(p.5)AllofthefollowingeventsandtrendsareamongthefourmajortrendsdescribedinthechapterashavingamajorimpactoreffectonglobalbusinessEXCEPT:
thetrendtowardtheacceptanceofthefreemarketsystemamongdevelopingcountriesinLatinAmerica,Asia,andEasternEurope.
therapidgrowthoftheWorldTradeOrganizationandregionalfreetradeareassuchasNAFTAandtheEuropeanUnion.
theburgeoningimpactoftheInternetandotherglobalmediaonthedissolutionofnationalborders.
thetrendtowarddecreasingOPECprofitsasoilreservesdeclineinthe21stcentury.
themandatetoproperlymanagetheresourcesandglobalenvironmentforthegenerationstocome.
Difficulty:HardType:Comprehension
(p.5-6)Strategicplansthatarecompetitiveinglobalmarketsare .
thechallengeofinternationalmarketing
expandeddomesticmarketingplans
notnecessaryforsmallfirms
multilingualandmulticulturalinscope
Difficulty:EasyType:Knowledge
(p.5)EveryAmericancompanyisinternational,atleasttotheextentthat:
Federallawrequiresallcorporationstooutsourcewheneveritiscost-effective.
theInternetgeneratesordersforallAmericanbusinessesfromabroad.
itsbusinessperformanceisaffectedbyeventsthatoccurabroad.
naturaldisasterscreateagreaterglobalcommunity.
alloftheabove.
Difficulty:HardType:Knowledge
(p.5)SimiKhanwantstomovehisbusinessintotheinternationalarenaasquicklyaspossible;however,tobesuccessfulhemustconsideravarietyoffactorsthathaveglobaldimensions.WhichofthefollowingfactorswouldbemostimportanttoSimiKhan'scomputertechnologybusinessashemovesforwardwithhisglobalexpansionplans?
Electricityusagearoundtheworld.
Thedrivetowardamoreergonomicworkplace.
Communicationandtechnologynetworksinthird-worldcountries.
RestrictionsonadvertisinginRussia.
IncreasinglicensingfeesinSpainandPortugal.
Difficulty:ModerateType:Application
(p.7)ForeigninvestmentintheUnitedStatesisgrowingyearly.Atpresent,foreigninvestmentintheUnitedStatesisinexcessof$16.3 .
trillion
million
billion
thousand
cannotbedetermined.Thegovernmentdoesnottrackforeigninvestment.
Difficulty:ModerateType:Knowledge
(p.7)Companiesfrom leadinforeigninvestmentintheUnitedStates:
KingdomofSaudiArabia
Russia
China
UnitedKingdom
Canada
Difficulty:HardType:Knowledge
(p.7)Foreigninvestmentisatwo-waystreet.Anorganization(throughinvestmentandacquisition)fromwhichofthefollowingcountriesnowcontrolsallUnitedKingdomrailfreightbusinessandrunsthequeen'sprivatetrainviaitsEnglish,Welsh,&ScottishRailwayunit?
Germany
Switzerland
UnitedStates
Canada
Netherlands
Difficulty:HardType:Knowledge
(p.9,Exhibit1.2)ManyU.S.firmsdoexceedinglywellintheglobalarena.WhichofthefollowingorganizationsisconsideredtobetheU.S.leaderwithglobalrevenuesapproximatedat$345billionannually?
IBM
ExxonMobil
FordMotor
Wal-Mart
Hewlett-Packard
Difficulty:ModerateType:Knowledge
(p.9)Forfirmsventuringintointernationalmarketingforthefirsttime,thefirstrequirementis:
employmentofforeignnationalsintargetforeignmarkets.
athoroughandcompletecommitmenttoforeignmarkets.
obtainmarketdatafromconsulateofthecountrybeingtargeted.
anassessmentofthecostofdoingbusinessintheforeignmarket.
performancereviewsofallpotentialsalespeoplebeingconsideredforforeignassignment.
Difficulty:ModerateType:Knowledge
40.(p.9)
istheperformanceofbusinessactivitiesdesignedtoplan,price,promote,
anddirecttheflowofacompany'sgoodsandservicestoconsumersorusersinmorethanonenationforaprofit.
Globalmanagement
Globalbusiness
Marketing
Internationalmarketing
Globalmarketingconcept
Difficulty:ModerateType:Knowledge
(p.9)Theperformanceofbusinessactivitiesdesignedtoplan,price,promote,anddirecttheflowofacompany'sgoodsandservicestoconsumersorusersinmorethanonenationforaprofitiscalled:
globalmanagement.
globalbusiness.
marketing.
theglobalmarketingconcept.
internationalmarketing.
Difficulty:ModerateType:Knowledge
(p.9)Theonlydifferencebetweenthedefinitionsofdomesticmarketingandinternationalmarketingisthatmarketingactivities:
focusonconsumersindomesticmarketsandbarterersinforeignmarkets.
takeplaceinmorethanonecountry.
followtraditionalcommunicationpathsindomesticmarkets.
focusondistributioninthedomesticmarket.
areusuallynon-regulatedinforeignmarkets.
Difficulty:ModerateType:Comprehension
(p.9)Accordingtothetext,theprimarydifferenceinthepracticeofmarketingatthedomesticversustheinternationallevelis:
theenvironmentwithinwhichthemarketingplansmustbeimplemented.
therevenuesnecessarytobesuccessful.
thedemandchartsavailabletothemarketer.
thecontroloverthebudget.
theaccountabilityofboardofdirectors.
Difficulty:HardType:Comprehension
(p.9)Withrespecttotheenvironmentinwhichabusinessoperates,suchfactorsascompetition,legalrestrains,governmentcontrols,andtheweatherwouldallbeexamplesofwhatarecalled:
controllableelements.
uncontrollableelements.
predictableelements.
demographicelements.
culturalelements.
Difficulty:EasyType:Knowledge
(p.9-10)AllofthefollowingwouldbeconsideredtobecontrollableelementsofmarketingdecisionsEXCEPT:
product.
price.
promotion.
research.
governmentregulations.
Difficulty:EasyType:Knowledge
(p.11,Exhibit1.3)Consideringthemodeloftheinternationalmarketingtaskdisplayedinthetext,whichofthefollowingreasonsdemonstratesthemostimportantdifferencebetweentheinternationalmarketer'staskandthatofthedomesticmarketer?
Theinternationalmarketermustdealwithatleasttwolevelsofuncontrollableuncertaintyinsteadofone.
Theinternationalmarketermustrelyonatleasttwolevelsofcontrollablecertaintyinsteadofone.
Theinternationalmarketerisnevercertainaboutsupplyordemand.
Theinternationalmarketerisnevercertainabouttotalmarketsize.
Theinternationalmarketermustbeawareofinternationalmonetaryexchangerates.
Difficulty:ModerateType:Comprehension
(p.11,Exhibit1.3)RobertJonasisinchargeofanewmarketingeffortdirectedtowardPeru.InorderforhiscompanytoeffectivelymarketanddistributetoallofPeru'smajorcities,Mr.JonasmustdevisealogisticsplanforcrossingtheAndesMountainsonadailybasis.WhichofthefollowingforeignenvironmentuncontrollablevariableswouldbeachiefconcernasMr.Jonas
deviseshisplan?
Competitiveforces
Culturalforces
Geographyandinfrastructure
Economicforces
Political/legalforces
Difficulty:ModerateType:Application
(p.11,Exhibit1.3)Comparedtotheforeignenvironmentuncontrollablevariables,whichofthefollowingelementsisexcludedfromthedomesticmarketer'slistofuncontrollablevariables?
Politicalforces
Competitivestructure
Economicclimate
Culturalforces
Legalforces.
Difficulty:HardType:Comprehension
(p.11,Exhibit1.3)Allofthefollowingwouldbeamongthedomesticmarketer'scontrollableenvironmentalvariablesEXCEPT:
research.
price.
product.
channelsofdistribution.
economicclimate.
Difficulty:ModerateType:Comprehension
(p.11,Exhibit1.3)AllofthefollowingappearasaforeignenvironmentuncontrollablevariableinthemodeloftheinternationalmarketingtaskshowninthetextEXCEPT:
economicforces.
competitiveforces.
productdemandforces.
culturalforces.
political/legalforces.
Difficulty:EasyType:Knowledge
(p.10)AmySimshasbeenassignedthetaskofpreparingamarketingplanforcompanyforthenextyear'sbusinessactivities.Sheknowsthatsheshouldbeginherplanbyexaminingthevariablesthatshehassomecontrolover.Thesecontrollablevariableswouldincludeprice,product,channels-of-distribution,and:
demand.
supply.
competition.
economicclimate.
promotion.
Difficulty:EasyType:Knowledge
(p.10)Apoliticaldecisioninvolving wouldmostlikelyhaveadirecteffectonafirm'sinternationalmarketingsuccess.
domesticforeignpolicy
immigrationreform
oilexplorationpolicy
FCCsatelliteregulations
FAAairlineregulations
Difficulty:ModerateType:Knowledge
(p.11)WhichofthefollowingwouldbeachiefwaythatU.S.companiesattempttoinfluencedomesticforeignpolicy?
Acompanycouldlobbywithrespecttoitsowninterests.
Acompanycouldattempttobribeelectedofficialstoinfluencepolicydecisions.
AcompanycouldaskaforeigngovernmenttobringpressureonU.S.legislativebodies.
Acompanycouldthreatentowithdrawoperationsfromforeignmarkets.
Acompanycouldthreatentomoveitscorporateheadquarterstoaforeignmarket.
Difficulty:HardType:Comprehension
(p.12)Competitionwithinthehomecountrycanhaveaprofoundeffectontheinternationalmarketer'stask.WhichofthefollowingBESTillustratesthisstatement?
Boeingrecentlyopenedtalkswithitsprimarytradeuniontoavoidaforecastedstrike.
MicrosoftandDellhavejointlyinvested$700millioninanewventuretoinvestigatehightechnologyofthefuture.
Fujiopeneda$300millionplantintheU.S.andnowcommandsa12percentshareofthelucrativeU.S.filmmarket.
SeveralnamecompaniesarestillunderinvestigationbecauseoftheEnronscandal.
DeclarationofindependencebyBalticStatesafterthecollapseoftheSovietUnion.
Difficulty:ModerateType:Application
(p.12)Withrespecttochallengesfacedbytheinternationalmarketer,asignificantsourceofuncertaintyisthenumberoffactorsinthe:
foreignenvironmentcontrollables.
foreignenvironmentuncontrollables.
domesticenvironmentcontrollables.
parallelenvironmentuncontrollables.
parallelenvironmentcontrollables.
Difficulty:Easy
Type:Comprehension
(p.12)RalphWaitehasjustbeenassignedthetaskofreviewinghiscompany'sinternationalinvestmentopportunities.Heknowsthathisviewofthelistofopportunitiesshouldbetemperedbyforeignenvironmentuncontrollablesthatmightbeencountered.WhichofthefollowingwouldbetheBESTillustrationofaforeignenvironmentaluncontrollablethatMr.
Waiteshouldinvestigate?
Acountry'sleveloftechnology.
Pricingpoliciesintheforeigncountry.
Theabilitytodoresearchintheforeigncountry.
Manufacturingcapabilitiesintheforeigncountry.
Theabilitytodoadvertisingintheforeigncountry.
Difficulty:HardType:Application
(p.12)The isanuncontrollableelementthatcanoftenbemisreadbecauseofthevastdifferencesthatmayexistbetweendevelopedandundevelopedcountries.
Structureofdistribution
competitiveforces
economicforces
political/legalforces
leveloftechnology
Difficulty:HardType:Knowledge
(p.13)The andissuesabroadareoftenamplifiedbythe"alienstatus"ofthecompany,whichincreasesthedifficultyofproperlyassessingandforecastingthedynamicinternationalbusinessclimate.
structureofdistribution
competitiveforces
economicforces
political/legalforces
leveloftechnology
Difficulty:ModerateType:Knowledge
(p.13)WhichofthefollowingwouldbetheBESTillustrationofthe"alienstatus"foundinthepoliticalandlegalarenathatsometimescauseproblemsforinternationalmarketersastheyattempttodobusinessinforeigncountries?
AcompanyintheU.K.recentlypurchasedBen&Jerry'sicecreamoperations.
TheIndiangovernmenttoldCoca-Colathatitmustrevealits"secretformula"ifitwishedtocontinuedobusinessinIndia.
RichardBranson'sVirginColawasnotwidelyacceptedintheUnitedStates.
FrenchCanadianspreferFrenchtoEnglishwhenconductingbusinessinCanada.
BritishAirlinesandJapanAirlinesjoinAmericanAirlinestoformOneWorldAlliance.
Difficulty:ModerateType:Application
(p.14)Globalbusinessesmustbewillingtoadjustandadaptamarketingprogramtoaforeignmarket.Inabroadsense,theenvironmentaluncontrollableelementsconstitutethe:
problem.
opportunity.
culture.
marketplace.
commercelandscape.
Difficulty:HardType:Comprehension
(p.14)Thetaskof isthemostchallengingandimportantoneconfrontinginternationalmarketers.
carefortheenvironment
dealingwithpolitics
internationalstandardization
culturaladjustment
internationalbranding
Difficulty:ModerateType:Comprehension
(p.14)WhichofthefollowingwouldbetheBESTexampletoillustratethefactthatinternationalmarketersneedtomakeculturaladjustmentsastheyseektodobusinessabroad?
InAmerica,whiteisanacceptedcolorforweddinggowns;inAsiaitisthecolorofmourning.
Manyteensearnextraincomebyworking.
WomenoutnumbermenintheUnitedStates.
MostMiddleEasternwomendonotworkoutsidethehome.
ManyEuropeannationsrequireaperiodofnationalserviceforyouth.
Difficulty:HardType:Application
63.(p.15)
istheconsciouseffortonthepartoftheinternationalmarketerto
anticipatetheinfluencesofboththeforeignanddomesticuncontrollablefactorsonamarketingmixandthenadjustthemarketingmixtominimizetheeffects.
Standardization
Adaptation
Segregation
Segmentation
Projection
Difficulty:ModerateType:Knowledge
(p.15)Theprimaryobstaclestosuccessininternationalmarketingareaperson's
andanassociatedethnocentrism.
regionalism
holism
self-referencecriterion
segregation
integration
Difficulty:Easy
Type:Comprehension
65.(p.15)
isanunconsciousreferencetoone'sownculturalvalues,experiences,
andknowledgeasabasisfordecisions.
Regionalism
Holism
Self-referencecriterion
Segregation
Xenophobia
Difficulty:ModerateType:Knowledge
(p.15)IntheUnitedStates,unrelatedindividualskeepacertainphysicaldistancebetweenthemselvesandotherswhentalkingoringroups.Wedonotconsciouslythinkaboutthatdistance;wejustknowwhatfeelsrightwithoutthinking.Someonefromanotherculturewould
notnecessarilyunderstandthisandwouldapplytheirownrulesforcontactwhenspeaking.Theprecedingisanillustrationofwhatiscalledapplyinga whenreviewingthementionedsocialcustomofcontact.
self-space
segregation
integration
spacecommandtheory
self-referencecriterion(SRC)
Difficulty:ModerateType:Application
(p.15)Your canpreventyoufrombeingawarethatthereareculturaldifferencesorfromrecognizingtheimportanceofthosedifferences.
self-space
personality
demographiccharacter
self-referencecriterion(SRC)
conceptofintegration
Difficulty:Easy
Type:Comprehension
(p.16)Themosteffectivewaytocontroltheinfluenceofethnocentrismand istorecognizetheireffectsonourbehavior.
theself-referencecriterion(SRC)
regionalism
tunnelvision
standardization
xenophobia
Difficulty:ModerateType:Knowledge
(p.17)Toavoiderrorsinbusinessdecisions,itisnecessarytoconductacross-culturalanalysisthatisolatestheself-referencecriterioninfluences.WhichofthefollowingwouldbetheBESTfirst-steptotaketoavoidtheaforementionederrors?
RedefinetheproblemwithouttheSRCinfluence.
Solvetheproblemfortheoptimumbusinessgoalsituation.
IsolatetheSRCinfluenceintheproblemandexamineitcarefullytoseehowitcomplicatestheproblem.
Definethebusinessproblemorgoalinhome-countryculturaltraits,habits,ornorms.
Definethebusinessproblemorgoalinforeign-countryculturaltraits,habits,ornormsthroughconsultationwithnativesofthetargetcountry.
Difficulty:HardType:Application
(p.17)Whichofthefollowingstepsinacross-culturalanalysistoisolateself-referencecriterioninfluenceswouldfinalizetheprocessandleadtoasolutionoftheproblem?
RedefinetheproblemwithouttheSRCinfluenceandsolvetheproblemfortheoptimalbusinessgoalsituation.
IsolatetheSRCinfluenceintheproblemandexamineitcarefullytoseehowitcomplicatestheproblem.
Definethebusinessproblemorgoalinhome-countryculturaltraits,habits,ornorms.
Definethebusinessproblemorgoalinforeign-countryculturaltraits,habits,ornormsthroughconsultationwithnativesofthetargetcountry.
Thelaststepisnotindicatedinthelistofalternatives.
Difficulty:EasyType:Application
(p.17)Tobegloballyaware,aninternationalmarketermusthaveallthefollowingEXCEPT:
atoleranceofculturaldifferences.
aknowledgeofcultures.
aknowledgeofhistory.
aknowledgeofmicroeconomics.
aknowledgeofworldmarketpotential.
Difficulty:EasyType:Knowledge
(p.17)Successfulbusinesspeopleinthetwenty-firstcenturyhave andaframeofreferencethatgoesbeyondaregionorevenacountryandencompassestheworld.
asenseoffashion
globalawareness
anintimateknowledgeofecologicalproblems
aconsumermind-set
apronouncedskillinpromotion
Difficulty:ModerateType:Knowledge
(p.18)Thereareavarietyofstagesintheprocessofbecominginvolvedininternationalmarketing.Whichofthefollowingbestdescribesthestageofdevelopmentwherethecompany'sproductsreachaforeignmarketthroughnoconsciouseffortonthepartofthemarketer?
Infrequentforeignmarketing
Regularforeignmarketing
Nodirectforeignmarketing
Internationalmarketing
Globalmarketing
Difficulty:Easy
Type:Comprehension
(p.18)Ifamarketerismotivatedtoenterintoaninternationalmarketingeffortbecauseoftemporarysurplusesinthedomesticmarket,whichofthefollowingstagesBESTcharacterizesthestageofinternationalmarketinginvolvemen
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