Concept explainers
Case summary:
Company N, a video streaming service is expanding all over the globe. By the end of 2016, Company N currently has services in 50 countries and wants to expand its services to 200 countries. Company N tends to face many challenges such as inadequate household income and lesser percentage of households with high-speed internet connections. It also faces language challenges in Country F. The next countries to have Company N are Country I, Country S, and Country P. The offerings of Company N services will be at a price of €7.99 per month, which is converted to $8.97 during the period of expansion.
To determine: The market sales potential using current exchange rate between euros and dollars.
Introduction:
Market demand refers to the total volume a group of consumers buys in a defined time. Defined geographical area defines
To discuss: Whether the dollar is strong or weak when compared to euro.
To discuss: The reason why companies based in Country U is concerned when dollar is stronger than other currencies.
Want to see the full answer?
Check out a sample textbook solutionChapter 15 Solutions
Marketing: An Introduction (13th Edition)
- Use the DD-AA model to show how the European Central Bank implementing expansionary monetary policy can impact the US. Does the change abroad impact the goods market, asset market or both? Illustrate and explain. Is the result conclusive? Why or why not?arrow_forwardQuestions - answer both 1 and 2 Reserve CurrenciesA. Which currencies does the IMF currently designate as "reserve currencies”?B. What is meant by "reserve currency" and why are reserve currencies important?C. Identify and explain two advantages related to international trade or the US economy, that the US has because the dollar is a reserve currency. D. Identify and explain one disadvantage related to international trade or the US economy, that the US has because the dollar is a reserve currency. The EuroA. How many countries are members of the European Union? (Since the EU is changing and growing, the textbook could be out of date. Be sure to find the current number of countries.)B. Currently, how many of those European Union members have adopted the euro as their currency? (Be sure your answer reflects current data. The textbook may be out of date.)C. Identify and explain two benefits that the Eurozone brings to its businesses and consumers. D. Identify and explain one…arrow_forwardAssume that the export price of a Sony Smartphone from Nagoya, Japan is ¥15,000. The exchange rate is ¥87.60/S. The forecast rate of inflation in the United States is 2.2% year and is 1,5% per year in Japan. Use this data to answer the following questions on exchange rate pass through. a. What was the export price for the Sony Smartphone at the beginning of the year expressed in U.S. dollars? per b. Assuming purchasing power parity holds, what should the exchange rate be at the end of the year? c. Assuming 100% pass-through of exchange rate, what will the dollar price of a Sony Smartphone be at the end of the year? SFS oi oninnigsh 001 X d. Assuming 80% pass-through, what will the dollar price of a Sony Smartphone be at the end of the year?arrow_forward
- Real and anticipated volatility in currency valuation increases the risk of doing business outside of one's own currency.From June 2003 to June 2013,the chinese yuan strengthened by 35% against the U.S dollar. What kind of repercussions does this fluctuation represent to the international logistics industry. Give one solution to mitigate this risk.arrow_forwardSelect any ONE organisation with which you are familiar or can research from publiclyavailable sources.Drawing upon appropriate sources of information, critically evaluate how increasingcompetitive and broader economic pressures created by the growth of the E7Emerging Economic Powers* impact upon its strategic business decision-making andoperations and assess the effectiveness of its current response.*(N.B: The E7 Emerging Economic Powers are – China, India, Brazil, Mexico, Russia,Indonesia and Turkey.) Please note the following instructions for the assignment: You will need to undertake some secondary research andto develop the evidence base to support your conclusions. Evaluate and provide a critical review of theevidence - i.e., to assess the value and reliability of different sources before drawingtheir conclusions. You may select any country or organisation upon which to base yourresearch, but you are strongly recommended to select an organisation that you haveworked for or one…arrow_forwardprovide financial services, such as checking and savings accounts, mortgages, credit cards and auto loans for individuals, families and small businesses receive, transfer and lend money to individuals, businesses and government offer financial services such as checking and savings accounts, debit and credit cards, mortgage and auto loans and lines of credit at an affordable rate for its members organizations which accept deposits and provide loans : Depository Financial Institutions :: Retail Banks : Credit Unions :: Commercial Banks 2 3. 6 7 8 Next n/SharedContent?code=PILJACKS164&lessonID=11761&assetID=CEV70948_Vocab&activityType=3&courselD=33868458599&studentAccountld-Da7b42895-f22c-49be-bc63-c7cc84a Sign outarrow_forward
- 2.Political risk is among the most important factors facing international investors. In many emerging and frontier markets, the political situation is affected by more than influences within the country being considered. Conflicts in the Middle East, Chinese debt problems, American policies and disputes over resources around the globe directly affect international investment opportunities. A common example of political risk is countries that are in political upheaval. Many countries are experiencing changes in social attitudes and perspectives as of late, causing unrest, changes in politics and political movements that are disrupting economies. Hence, as a wise marketing manager, what are the strategies would you consider minimizing political risk from your international business operation in any foreign country? Describe any FIVE (5) strategies with an appropriate justification.arrow_forwardHow does the development of the world trading system changed over a period of several centuries? Just a really brief explanation please, like just a paragraph. Thank you.arrow_forwardFor Incomediary model Qatar Vodafone company Give an international example (company, or website) that demonstrates this model.arrow_forward
- What are the differences between digital euro (central bank digital currency) and other forms of digital payment solutions like PayPal, credit cards, ApplePay, etc.?arrow_forwardThe two most important aspects of economic globalization relate to the changing nature of the production process and the liberalization and internationalization of financial transactions. Indeed, many analysts consider the emergence of a transnational financial system the most fundamental economic feature of our time. Its key components include the 1. deregulation of interest rates, 2. the removal of credit controls, 3. and the privatization of government-owned banks and financial institutions. Take a look at the Philippine economy, to what extent has economic globalization made an impact in the lives of Filipinos. (information is very much accessible due to globalization use it properly...always indicate your references, make your work scholarly not just a mere opinion) (negative and positive impact of neoliberal policies)arrow_forwardFind out the Money Supply M1, M2 and M3, CPI, inflation rates and nominal interest rates for the 1990-2000-2010-2020 period (Use the internet, e.g., World Bank or IMF sites). 3. Use the data obtained from (2), calculate the real interest rates for your assigned country, and make the table as shown below. Comment on how inflation rate changes over time. If your chosen country conducted inflation targeting, please comment about whether this country achieved to decrease inflation over time or not. Note: Handwritten homework will not be accepted. If your data has missing values and does not cover the period what I request from you, you can put just available data in the homework. If you do not find data for desired periods you can put the nearest data which I want to from you. For example, if you do not find the data of 2020, you can put the 2018 data when you can reach for the latest time.arrow_forward
- Principles Of MarketingMarketingISBN:9780134492513Author:Kotler, Philip, Armstrong, Gary (gary M.)Publisher:Pearson Higher Education,MarketingMarketingISBN:9781259924040Author:Roger A. Kerin, Steven W. HartleyPublisher:McGraw-Hill EducationFoundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
- Marketing: An Introduction (13th Edition)MarketingISBN:9780134149530Author:Gary Armstrong, Philip KotlerPublisher:PEARSONContemporary MarketingMarketingISBN:9780357033777Author:Louis E. Boone, David L. KurtzPublisher:Cengage Learning