Question 1

What is a global firm?

Accepted Answer

A)  A firm that operates in one country and exports its goods and services to foreign countries. 
B)  A firm that operates in more than one country and has a sales and marketing staff in those countries. 
C)  A firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages not available to purely domestic competitors. 
D)  A firm that sells its products and services across the world but restricts manufacturing to the home country. 
E)  A firm that operates in more than one country but restricts the sale of its products to the home country. 
A)  A firm that operates in one country and exports its goods and services to foreign countries. 
B)  A firm that operates in more than one country and has a sales and marketing staff in those countries. 
C)  A firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages not available to purely domestic competitors. 
D)  A firm that sells its products and services across the world but restricts manufacturing to the home country. 
E)  A firm that operates in more than one country but restricts the sale of its products to the home country.

Question 2

Dumping occurs when a company ________.

Accepted Answer

A)  entering a foreign market charges either less than its costs or less than it charges at home 
B)  entering a foreign market charges more than the price in its home market 
C)  entering a foreign market charges prices that are lower than those charged by its competitors in this market 
D)  sets its price equal to its average cost of production 
E)  exports its products to a foreign country to increase its revenue in spite of excess demand in the home country 
A)  entering a foreign market charges either less than its costs or less than it charges at home 
B)  entering a foreign market charges more than the price in its home market 
C)  entering a foreign market charges prices that are lower than those charged by its competitors in this market 
D)  sets its price equal to its average cost of production 
E)  exports its products to a foreign country to increase its revenue in spite of excess demand in the home country

Question 3

Companies enter the international market only when their domestic markets are saturated.

Accepted Answer

A) True 
 B)False

Question 4

NAFTA is a free trade zone comprising of which of the following countries?

Accepted Answer

A)  Canada, Mexico, and South America 
B)  Canada, Mexico, and Peru 
C)  Mexico, South America, and the United States 
D)  Canada, Mexico, and the United States 
E)  Canada, Japan, and the United States 
A)  Canada, Mexico, and South America 
B)  Canada, Mexico, and Peru 
C)  Mexico, South America, and the United States 
D)  Canada, Mexico, and the United States 
E)  Canada, Japan, and the United States

Question 5

For the launch of "Trema," your company's new pocket organizer that can also be used as a cell phone, the CMO has decided that the product can be launched in international markets without any changes in its features or the marketing strategy. This introduction can be described as a ________.

Accepted Answer

A)  dual adaptation 
B)  straight extension 
C)  product adaptation 
D)  forward invention 
E)  backward invention 
A)  dual adaptation 
B)  straight extension 
C)  product adaptation 
D)  forward invention 
E)  backward invention

Question 6

Companies typically start their international foray with ________, which involves working through independent intermediaries who sell their products abroad.

Accepted Answer

A)  indirect exporting 
B)  licensing 
C)  franchising 
D)  direct exporting 
E)  joint ventures 
A)  indirect exporting 
B)  licensing 
C)  franchising 
D)  direct exporting 
E)  joint ventures

Question 7

Domestic-based export merchants seek and negotiate foreign purchases for a commission.

Accepted Answer

A) True 
 B)False

Question 8

Define the gray market.

Accepted Answer

The gray market consists of br

Question 9

Which of the following is NOT true about Tata Nano?

Accepted Answer

A)  Its cost is three times India's annual per capita income. 
B)  It targets the 7 million Indians who buy scooters and motorcycles every year. 
C)  It has a negative stigma attached to it because it is considered a "cheap" car. 
D)  It has received positive feedback for reminding people of the tuk-tuk. 
E)  Some target customers were intimidated by Tata's showrooms. 
A)  Its cost is three times India's annual per capita income. 
B)  It targets the 7 million Indians who buy scooters and motorcycles every year. 
C)  It has a negative stigma attached to it because it is considered a "cheap" car. 
D)  It has received positive feedback for reminding people of the tuk-tuk. 
E)  Some target customers were intimidated by Tata's showrooms.

Question 10

WayToGrow Inc. is one of the most popular brands of toys in its home market. The company decides to expand its business abroad and its board of directors feel that instead of trying to establish its presence all at once in multiple markets, it is better to expand one country at a time. This would limit their risk and allow them to analyze customer response, after which they could expand to other similar countries. WayToGrow is following a ________ approach.

Accepted Answer

A)  shotgun 
B)  continuous 
C)  born global 
D)  sprinkler 
E)  waterfall 
A)  shotgun 
B)  continuous 
C)  born global 
D)  sprinkler 
E)  waterfall

Question 11

Toshiba, Hitachi, and other Japanese television manufacturers use ________ to service the Eastern European market.

Accepted Answer

A)  contract manufacturing 
B)  management contracts 
C)  direct investment 
D)  joint venture production 
E)  greenfield venturing 
A)  contract manufacturing 
B)  management contracts 
C)  direct investment 
D)  joint venture production 
E)  greenfield venturing

Question 12

A waterfall approach to entering foreign markets is described as entering countries simultaneously.

Accepted Answer

A) True 
 B)False

Question 13

When first-mover advantage is crucial and a high degree of competitive intensity prevails, the ________ approach is better.

Accepted Answer

A)  waterfall 
B)  born global 
C)  rifle 
D)  sprinkler 
E)  franchisee 
A)  waterfall 
B)  born global 
C)  rifle 
D)  sprinkler 
E)  franchisee

Question 14

Gray market activities harm distributor relations, tarnish the manufacturer's brand equity, and undermine the integrity of the distribution channel.

Accepted Answer

A) True 
 B)False

Question 15

Explain how marketers are using the Web for international business.

Accepted Answer

Marketers are using the Web to attract n

Question 16

Product adaptation involves ________.

Accepted Answer

A)  altering the product to meet local preferences with no change in communication strategy 
B)  altering the product to meet minimum acceptable standards 
C)  altering both the product and the communication strategy to meet local preferences 
D)  altering neither the product nor the communication strategy while entering a new market 
E)  developing a new product and adapting the communication strategy to enter a new market 
A)  altering the product to meet local preferences with no change in communication strategy 
B)  altering the product to meet minimum acceptable standards 
C)  altering both the product and the communication strategy to meet local preferences 
D)  altering neither the product nor the communication strategy while entering a new market 
E)  developing a new product and adapting the communication strategy to enter a new market

Question 17

Outline the major decisions that a firm must undergo in making a decision to market internationally.

Accepted Answer

The first step is deciding whether to go

Question 18

A2Z Inc. is a producer of a wide variety of consumer goods in Brazil. It has successfully captured a huge share of the domestic market and has been able to create a very strong brand. It is now considering a foray into foreign markets. Its board of directors decides to first try out some of its products in the neighboring country of Argentina. A2Z plans to eventually expand its presence in other countries, after they analyze the impact of their entry into the Argentine market. A2Z Inc. is following a ________ approach.

Accepted Answer

A)  born global 
B)  waterfall 
C)  sprinkler 
D)  franchisee 
E)  shotgun 
A)  born global 
B)  waterfall 
C)  sprinkler 
D)  franchisee 
E)  shotgun

Question 19

Which of the following can induce a firm to expand into the international arena?

Accepted Answer

A)  Consumer preferences in the domestic market vary widely. 
B)  Average income level of domestic consumers is high. 
C)  The firm operates in an industry that caters to the mass market. 
D)  The firm finds that the domestic market is almost saturated. 
E)  The firm is yet to achieve economies of scale even though the domestic market has potential. 
A)  Consumer preferences in the domestic market vary widely. 
B)  Average income level of domestic consumers is high. 
C)  The firm operates in an industry that caters to the mass market. 
D)  The firm finds that the domestic market is almost saturated. 
E)  The firm is yet to achieve economies of scale even though the domestic market has potential.

Question 20

Once a company decides to target a particular country, it must determine the best mode of entry. Each of its market entry strategies involves more commitment, risk, control, and profit potential. List these market entry strategies in order from low risk to high risk.

Accepted Answer

The five modes of entry into foreign mar

Exam 8: Tapping Into Global Markets

What is a global firm?

Dumping occurs when a company ________.

Companies enter the international market only when their domestic markets are saturated.

NAFTA is a free trade zone comprising of which of the following countries?

For the launch of "Trema," your company's new pocket organizer that can also be used as a cell phone, the CMO has decided that the product can be launched in international markets without any changes in its features or the marketing strategy. This introduction can be described as a ________.

Companies typically start their international foray with ________, which involves working through independent intermediaries who sell their products abroad.

Domestic-based export merchants seek and negotiate foreign purchases for a commission.

Define the gray market.

Which of the following is NOT true about Tata Nano?

Toshiba, Hitachi, and other Japanese television manufacturers use ________ to service the Eastern European market.

A waterfall approach to entering foreign markets is described as entering countries simultaneously.

When first-mover advantage is crucial and a high degree of competitive intensity prevails, the ________ approach is better.

Gray market activities harm distributor relations, tarnish the manufacturer's brand equity, and undermine the integrity of the distribution channel.

Explain how marketers are using the Web for international business.

Product adaptation involves ________.

Outline the major decisions that a firm must undergo in making a decision to market internationally.

Which of the following can induce a firm to expand into the international arena?

Once a company decides to target a particular country, it must determine the best mode of entry. Each of its market entry strategies involves more commitment, risk, control, and profit potential. List these market entry strategies in order from low risk to high risk.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long-Term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Crafting the Brand Positioning

Creating Brand Equity

Addressing Competition and Driving Growth

Setting Product Strategy

Designing and Managing Services

Introducing New Market Offerings

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Managing a Holistic Marketing Organization for the Long Run

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