Question 1

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 2

Dumping occurs when ________.

Accepted Answer

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

Question 3

James Foo lives in Malaysia. He buys local products from manufacturers in Malaysia and sells them abroad, mainly to Caribbean nations. Mr. Foo is a(n) ________.

Accepted Answer

A)  domestic-based export merchant 
B)  domestic-based export agent 
C)  cooperative agent 
D)  export-management agent 
E)  direct exporting agent 
A)  domestic-based export merchant 
B)  domestic-based export agent 
C)  cooperative agent 
D)  export-management agent 
E)  direct exporting agent

Question 4

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 5

Management contracts offer foreign owners the opportunity to manage businesses for a fee.

Accepted Answer

A) True 
 B)False

Question 6

If Kellogg's offered different varieties of breakfast cereals in India as compared to Australia, and also positioned its products differently in the two countries, then Kellogg's would be engaging in dual adaptation.

Accepted Answer

A) True 
 B)False

Question 7

When forces for global integration are high and forces for national responsiveness are weak, which of the following strategies makes most sense?

Accepted Answer

A)  segment consumers on a regional basis 
B)  tailor the product on a city-by-city basis 
C)  treat the world as a heterogeneous market 
D)  treat the world as a single market 
E)  treat the world as a portfolio of national opportunities 
A)  segment consumers on a regional basis 
B)  tailor the product on a city-by-city basis 
C)  treat the world as a heterogeneous market 
D)  treat the world as a single market 
E)  treat the world as a portfolio of national opportunities

Question 8

Which of the following is likely if the distribution channel for a product in the foreign country is long?

Accepted Answer

A)  the foreign country buyers pay a high price 
B)  the consumer will pay arms-length price 
C)  the profit margin of the sellers increase 
D)  the intermediaries are motivated to reship the product to another country to earn higher profits 
E)  the seller can increase profit margins by charging a uniform price 
A)  the foreign country buyers pay a high price 
B)  the consumer will pay arms-length price 
C)  the profit margin of the sellers increase 
D)  the intermediaries are motivated to reship the product to another country to earn higher profits 
E)  the seller can increase profit margins by charging a uniform price

Question 9

Forward invention is ________.

Accepted Answer

A)  creating a new product to meet a need in another country 
B)  creating a new product to meet the need in the home country 
C)  inventing products that are superior to competing offerings 
D)  taking an existing product into a new market 
E)  inventing something that as yet has no "market" 
A)  creating a new product to meet a need in another country 
B)  creating a new product to meet the need in the home country 
C)  inventing products that are superior to competing offerings 
D)  taking an existing product into a new market 
E)  inventing something that as yet has no "market"

Question 10

When companies are setting prices in different countries, the problem with setting a market-based price in each country is that ________.

Accepted Answer

A)  it allows intermediaries in low-price countries to reship their products to high-price countries 
B)  the company would earn the same profits everywhere, regardless of the cost structure 
C)  this strategy might price the product out of the market in countries where costs are high 
D)  this strategy would make the price too high in poor countries and not high enough in rich countries 
E)  it prevents the company from differentiating its products 
A)  it allows intermediaries in low-price countries to reship their products to high-price countries 
B)  the company would earn the same profits everywhere, regardless of the cost structure 
C)  this strategy might price the product out of the market in countries where costs are high 
D)  this strategy would make the price too high in poor countries and not high enough in rich countries 
E)  it prevents the company from differentiating its products

Question 11

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 company wants to reduce its dependence on any one market. 
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 company wants to reduce its dependence on any one market. 
E)  The firm is yet to achieve economies of scale even though the domestic market has potential.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Country-of-origin effects refer to the attitude anything produced by the home country is better than imported goods.

Accepted Answer

A) True 
 B)False

Question 14

Straight extension of the product means ________.

Accepted Answer

A)  introducing the product to the foreign market without any changes to the product 
B)  introducing the product to the foreign market with minor changes to the product 
C)  introducing the product to the foreign market with major changes to the product 
D)  introducing a customized product to the foreign market with a new marketing strategy 
E)  introducing a customized product to the foreign market with existing marketing strategy 
A)  introducing the product to the foreign market without any changes to the product 
B)  introducing the product to the foreign market with minor changes to the product 
C)  introducing the product to the foreign market with major changes to the product 
D)  introducing a customized product to the foreign market with a new marketing strategy 
E)  introducing a customized product to the foreign market with existing marketing strategy

Question 15

Many manufacturers think their job is done once the product leaves the factory. They should instead pay attention to how the product moves within the foreign country.

Accepted Answer

A) True 
 B)False

Question 16

Forces promoting national responsiveness include ________.

Accepted Answer

A)  strong local preferences 
B)  homogeneous demand 
C)  strong global preferences 
D)  strong consumer liking towards foreign goods 
E)  capital-intensive production 
A)  strong local preferences 
B)  homogeneous demand 
C)  strong global preferences 
D)  strong consumer liking towards foreign goods 
E)  capital-intensive production

Question 17

Explain the country-of-origin effect.

Accepted Answer

Country-of-origin perceptions are the me

Question 18

Straight extension means using an established product's brand name for a new item in the same product category.

Accepted Answer

A) True 
 B)False

Question 19

Once a firm decides to enter the international market, what is the next step in the decision-making process?

Accepted Answer

A)  deciding on the marketing organization 
B)  deciding on the marketing program 
C)  deciding how to enter the market 
D)  deciding how to adapt the product to the new market 
E)  deciding which markets to enter 
A)  deciding on the marketing organization 
B)  deciding on the marketing program 
C)  deciding how to enter the market 
D)  deciding how to adapt the product to the new market 
E)  deciding which markets to enter

Question 20

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

Exam 21: Tapping Into Global Markets

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

Dumping occurs when ________.

James Foo lives in Malaysia. He buys local products from manufacturers in Malaysia and sells them abroad, mainly to Caribbean nations. Mr. Foo is a(n) ________.

Product adaptation involves ________.

Management contracts offer foreign owners the opportunity to manage businesses for a fee.

If Kellogg's offered different varieties of breakfast cereals in India as compared to Australia, and also positioned its products differently in the two countries, then Kellogg's would be engaging in dual adaptation.

When forces for global integration are high and forces for national responsiveness are weak, which of the following strategies makes most sense?

Which of the following is likely if the distribution channel for a product in the foreign country is long?

Forward invention is ________.

When companies are setting prices in different countries, the problem with setting a market-based price in each country is that ________.

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

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

Country-of-origin effects refer to the attitude anything produced by the home country is better than imported goods.

Straight extension of the product means ________.

Many manufacturers think their job is done once the product leaves the factory. They should instead pay attention to how the product moves within the foreign country.

Forces promoting national responsiveness include ________.

Explain the country-of-origin effect.

Straight extension means using an established product's brand name for a new item in the same product category.

Once a firm decides to enter the international market, what is the next step in the decision-making process?

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

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Gathering Information and Scanning the Environment

Conducting Marketing Research and Forecasting Demand

Creating Customer Value, Satisfaction, and Loyalty

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Marketing Channels and Value Networks

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

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

Managing Personal Communications: Direct Marketing and Personal Selling

Introducing New Market Offerings

Managing a Holistic Marketing Organization for the Long Run

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