Instruction:

Answer all eight questions. Your response to each question will be judged on completeness, correctness, clarity of presentation, and freedom from errors in spelling and grammar. Do not write more than eight double-spaced typed pages for all eight questions, using 11- or 12-point font (Arial or Times New Roman).

1. The America-First Corporation was one of the innovators of videotape recorders and compact disc technology. Now, however, the firm no longer produces or sells either product. In light of the international product cycle concept, what is the explanation for the firm's situation? Is this pattern, which is not uncommon, inevitable?

2. The America-First Corporation, a manufacturer of videotape recorders and compact disc, is preparing to enter several foreign markets as part of its new venture into international marketing. The firm does not want to risk large capital investments in this effort, but strongly feels that it must maintain control of at least the marketing, sales, and distribution of its products in foreign markets. Which entry strategy should the firm employ? Defend your choice.

3. Sears, the American retailing giant, routinely contracts with foreign manufacturers to produce products to be sold under the Sears family of brands. What entry strategy are these suppliers using? What advantages and disadvantages are associated with this entry strategy for the foreign supplier?

4. Samsung Corporation traditionally relied upon foreign direct investments in foreign countries to protect the firm's technological lead in the dynamic computer industry. In recent years, however, the firm has been favoring the use oflicensing in its foreign entry activities. Why would Samsung make such a dramatic change?

5. When asked to explain its success in international marketing, Heinz Corporation often says that although it may sell the same products in many of its foreign markets, it rarely sells them as if they were the same product. Use the concept of core benefits to explain the firm's strategy.

6. GM-Daewoo Corporation has targeted the Philippines as the test market for an automobile it plans to launch for developing nations characterized by a weak infrastructure. Briefly describe the marketing mix the firm should employ in this venture.

7. Briefly distinguish between "global" and "regional" products. Why may services be more difficult to standardize than goods?

8. Timex Corporation is faced with a gray market in several of its foreign markets. Briefly describe the firm's problem and outline the conditions that cause it. What pricing options are available to deal with gray market problem?