Question 1

What are the choices available to companies when setting prices to avoid price escalation problems?

Accepted Answer

The three choices that companies have to

Question 2

When companies sell their goods abroad, they face a price escalation problem. Define price escalation.

Accepted Answer

A firm must add the costs of transportat

Question 3

Your firm has decided to enter the international market with your product called "Trema," a new pocket organizer that can also be used as a cell phone. While discussing the marketing plans, your CMO decides that no changes will be necessary in either the marketing mix or the product for export. What form of marketing strategy is the CMO advocating?

Accepted Answer

A)  distributive marketing program 
B)  leveraged marketing program 
C)  adapted marketing program 
D)  engineering-driven marketing program 
E)  standardized marketing program 
A)  distributive marketing program 
B)  leveraged marketing program 
C)  adapted marketing program 
D)  engineering-driven marketing program 
E)  standardized marketing program

Question 4

Shanghai Baosteel Group has a $1.4-billion steel mill in Brazil with Companhia Vale do Rio Doce, the world's largest producer of iron ore. This is an example of a ________.

Accepted Answer

A)  straight extension 
B)  joint venture 
C)  contract manufacturing agreement 
D)  licensing agreement 
E)  franchising agreement 
A)  straight extension 
B)  joint venture 
C)  contract manufacturing agreement 
D)  licensing agreement 
E)  franchising agreement

Question 5

Zodiac Inc. is one of the leading producers of designer bags in its country. The company is considering shifting some of its production to India. Which of the following could have prompted this move?

Accepted Answer

A)  People in India prefer imported designer bags. 
B)  Zodiac can target a niche market of high-profile consumers who have a high income. 
C)  Zodiac needs a larger customer base to achieve economies of scale. 
D)  People in the home country have an ethnocentric approach. 
E)  Market research indicates that Indian consumers have a low per-capita income. 
A)  People in India prefer imported designer bags. 
B)  Zodiac can target a niche market of high-profile consumers who have a high income. 
C)  Zodiac needs a larger customer base to achieve economies of scale. 
D)  People in the home country have an ethnocentric approach. 
E)  Market research indicates that Indian consumers have a low per-capita income.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Some types of products travel better across borders than others. What types of products are most likely to be successful as straight extensions.

Accepted Answer

Straight extension introduces

Question 8

A company can enter a foreign market through ________, which is a complete form of licensing in which the company offers a complete brand concept and operating system.

Accepted Answer

A)  contract manufacturing 
B)  cooperative agreement 
C)  management contract 
D)  joint venture 
E)  franchising 
A)  contract manufacturing 
B)  cooperative agreement 
C)  management contract 
D)  joint venture 
E)  franchising

Question 9

Define the gray market.

Accepted Answer

The gray market consists of br

Question 10

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 11

Your firm has decided to enter the international market with your product called "Trema," a combination of a pocket organizer and cell phone. Even though the product has been a huge success in the home country, market research suggests some changes may be required before it can be introduced in Europe. Your CMO is of the opinion that the product requires certain extra features and the product will also have to be marketed differently. Your CMO is advocating ________.

Accepted Answer

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

Question 12

Which of the following is one of Hofstede's four cultural dimensions that differentiate countries?

Accepted Answer

A)  customer relationship management versus power distance 
B)  strategic management versus marketing management 
C)  weak versus strong uncertainty avoidance 
D)  total quality management versus JIT deliveries 
E)  marketing management versus customer relationships 
A)  customer relationship management versus power distance 
B)  strategic management versus marketing management 
C)  weak versus strong uncertainty avoidance 
D)  total quality management versus JIT deliveries 
E)  marketing management versus customer relationships

Question 13

The first task of the internationalization process is moving a company from no regular exports to regular export activities.

Accepted Answer

A) True 
 B)False

Question 14

Forward invention refers to reintroducing earlier product forms that are well adapted to a foreign country's needs.

Accepted Answer

A) True 
 B)False

Question 15

A2Z Inc. is a producer of a wide variety of consumer goods in Malaysia. 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 decide to first try out some of its products in the neighboring country of Indonesia. A2Z plans to eventually expand its presence in other countries, after they analyze the impact of their entry into the Indonesian market. A2Z Inc. is following a ________.

Accepted Answer

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

Question 16

Existence of gray markets lead to which of the following outcomes?

Accepted Answer

A)  They make the distribution channel stronger. 
B)  They create a free-rider problem making legitimate distributors' investments in supporting a manufacturer's product less productive. 
C)  Goods sold in grey markets are always counterfeit. 
D)  Goods sold in grey markets come with standard product warranties. 
E)  Taxes imposed on grey market products are very high. 
A)  They make the distribution channel stronger. 
B)  They create a free-rider problem making legitimate distributors' investments in supporting a manufacturer's product less productive. 
C)  Goods sold in grey markets are always counterfeit. 
D)  Goods sold in grey markets come with standard product warranties. 
E)  Taxes imposed on grey market products are very high.

Question 17

The New Zealand Way program was an initiative by the government of New Zealand to raise awareness and attract tourists by showing the dramatic landscapes featured in "The Lord of the Rings" film trilogy. This is an example of a government trying to strengthen its ________.

Accepted Answer

A)  country-of-origin perceptions 
B)  international subsidiaries 
C)  internationalization 
D)  contract manufacturing 
E)  distributor relationships 
A)  country-of-origin perceptions 
B)  international subsidiaries 
C)  internationalization 
D)  contract manufacturing 
E)  distributor relationships

Question 18

When one unit charges another unit in the same company for goods it ships to its foreign subsidiaries, the charge is called a(n) ________.

Accepted Answer

A)  original price 
B)  transfer price 
C)  margin price 
D)  break-even price 
E)  customer value price 
A)  original price 
B)  transfer price 
C)  margin price 
D)  break-even price 
E)  customer value price

Question 19

Which of the following causes a difference between marketing in the developed countries and marketing in the developing countries?

Accepted Answer

A)  The cost of production varies substantially between the developed and the developing world. 
B)  The disparity between the rich and the poor in the developing world is reducing. 
C)  There are substantial cultural differences between the developed and the developing world. 
D)  Marketing in developing countries is far more expensive than in the developed world. 
E)  The developing countries have more trade barriers in place than the developed countries. 
A)  The cost of production varies substantially between the developed and the developing world. 
B)  The disparity between the rich and the poor in the developing world is reducing. 
C)  There are substantial cultural differences between the developed and the developing world. 
D)  Marketing in developing countries is far more expensive than in the developed world. 
E)  The developing countries have more trade barriers in place than the developed countries.

Question 20

Forces promoting global integration include ________.

Accepted Answer

A)  strong local preferences 
B)  heterogeneous demand 
C)  local standards and barriers 
D)  strong consumer resistance to foreign goods 
E)  capital-intensive production 
A)  strong local preferences 
B)  heterogeneous demand 
C)  local standards and barriers 
D)  strong consumer resistance to foreign goods 
E)  capital-intensive production

What are the choices available to companies when setting prices to avoid price escalation problems?

When companies sell their goods abroad, they face a price escalation problem. Define price escalation.

Shanghai Baosteel Group has a $1.4-billion steel mill in Brazil with Companhia Vale do Rio Doce, the world's largest producer of iron ore. This is an example of a ________.

Zodiac Inc. is one of the leading producers of designer bags in its country. The company is considering shifting some of its production to India. Which of the following could have prompted this move?

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

Some types of products travel better across borders than others. What types of products are most likely to be successful as straight extensions.

A company can enter a foreign market through ________, which is a complete form of licensing in which the company offers a complete brand concept and operating system.

Define the gray market.

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

Which of the following is one of Hofstede's four cultural dimensions that differentiate countries?

The first task of the internationalization process is moving a company from no regular exports to regular export activities.

Forward invention refers to reintroducing earlier product forms that are well adapted to a foreign country's needs.

Existence of gray markets lead to which of the following outcomes?

The New Zealand Way program was an initiative by the government of New Zealand to raise awareness and attract tourists by showing the dramatic landscapes featured in "The Lord of the Rings" film trilogy. This is an example of a government trying to strengthen its ________.

When one unit charges another unit in the same company for goods it ships to its foreign subsidiaries, the charge is called a(n) ________.

Which of the following causes a difference between marketing in the developed countries and marketing in the developing countries?

Forces promoting global integration include ________.

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

Filters

Exam 21: Tapping Into Global Markets

What are the choices available to companies when setting prices to avoid price escalation problems?

When companies sell their goods abroad, they face a price escalation problem. Define price escalation.

Shanghai Baosteel Group has a $1.4-billion steel mill in Brazil with Companhia Vale do Rio Doce, the world's largest producer of iron ore. This is an example of a ________.

Zodiac Inc. is one of the leading producers of designer bags in its country. The company is considering shifting some of its production to India. Which of the following could have prompted this move?

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

Some types of products travel better across borders than others. What types of products are most likely to be successful as straight extensions.

A company can enter a foreign market through ________, which is a complete form of licensing in which the company offers a complete brand concept and operating system.

Define the gray market.

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

Which of the following is one of Hofstede's four cultural dimensions that differentiate countries?

The first task of the internationalization process is moving a company from no regular exports to regular export activities.

Forward invention refers to reintroducing earlier product forms that are well adapted to a foreign country's needs.

Existence of gray markets lead to which of the following outcomes?

The New Zealand Way program was an initiative by the government of New Zealand to raise awareness and attract tourists by showing the dramatic landscapes featured in "The Lord of the Rings" film trilogy. This is an example of a government trying to strengthen its ________.

When one unit charges another unit in the same company for goods it ships to its foreign subsidiaries, the charge is called a(n) ________.

Which of the following causes a difference between marketing in the developed countries and marketing in the developing countries?

Forces promoting global integration include ________.

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

Filters