Question 1

Product adaptation not only involves altering the product to meet local preferences, but also calls for a change in the communication strategy.

Accepted Answer

A) True 
 B)False

Question 2

When companies sell on the Internet, price becomes transparent, and price differentiation between countries declines.

Accepted Answer

A) True 
 B)False

Question 3

"BRIC" is an acronym for ________.

Accepted Answer

A)  Brazil, Russia, India, and China 
B)  Bolivia, Russia, Indonesia, and China 
C)  Brazil, Russia, Indonesia, and China 
D)  Bolivia, Russia, India, and Canada 
E)  Bolivia, Russia, Indonesia, and Canada 
A)  Brazil, Russia, India, and China 
B)  Bolivia, Russia, Indonesia, and China 
C)  Brazil, Russia, Indonesia, and China 
D)  Bolivia, Russia, India, and Canada 
E)  Bolivia, Russia, Indonesia, and Canada

Question 4

Although the opportunities to enter and compete in international markets are significant, the risks can also be low.

Accepted Answer

A) True 
 B)False

Question 5

Domestic-based export agents perform a valuable service for companies seeking to enter foreign markets. The primary function of these agents is to ________.

Accepted Answer

A)  carry on exporting activities on behalf of several producers 
B)  buy the manufacturer's products and then sell them abroad 
C)  buy foreign products and sell them in the domestic country 
D)  seek and negotiate foreign purchases for a commission 
E)  produce and export products to foreign countries 
A)  carry on exporting activities on behalf of several producers 
B)  buy the manufacturer's products and then sell them abroad 
C)  buy foreign products and sell them in the domestic country 
D)  seek and negotiate foreign purchases for a commission 
E)  produce and export products to foreign countries

Question 6

________ is one of the world's largest single markets, with 25 member countries, a common currency, and more than 454 million consumers.

Accepted Answer

A)  NAFTA 
B)  MERCOSUR 
C)  The European Union 
D)  APEC 
E)  ASEAN 
A)  NAFTA 
B)  MERCOSUR 
C)  The European Union 
D)  APEC 
E)  ASEAN

Question 7

Define a joint venture and list some of the advantages and disadvantages.

Accepted Answer

In a joint venture, foreign investors an

Question 8

MERCOSUR is a free trade zone linking which of the following countries?

Accepted Answer

A)  Mexico, Japan, Brazil, Paraguay, and Venezuela 
B)  Mexico, Canada, and the United States 
C)  Brazil, Argentina, Paraguay, and Venezuela 
D)  Canada, Brazil, and the United States 
E)  Brazil, Argentina, Paraguay, Uruguay, and Venezuela 
A)  Mexico, Japan, Brazil, Paraguay, and Venezuela 
B)  Mexico, Canada, and the United States 
C)  Brazil, Argentina, Paraguay, and Venezuela 
D)  Canada, Brazil, and the United States 
E)  Brazil, Argentina, Paraguay, Uruguay, and Venezuela

Question 9

Which of the following countries is a member of ASEAN?

Accepted Answer

A)  Indonesia 
B)  Japan 
C)  United States 
D)  India 
E)  Brazil 
A)  Indonesia 
B)  Japan 
C)  United States 
D)  India 
E)  Brazil

Question 10

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 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 11

Name the three choices that companies have for setting prices in different countries.

Accepted Answer

Companies have three choices for setting

Question 12

When deciding where to operate internationally, it often makes sense to operate in fewer countries, with a deeper commitment and penetration in each. Mention some of the criteria that a country should possess in order to be a viable and attractive investment destination.

Accepted Answer

Companies prefer to enter coun

Question 13

A Gucci bag sells for $120 in Italy and $240 in the United States due to the differences in the costs of distributing the product in the two countries. This phenomenon is called a(n) ________.

Accepted Answer

A)  opportunity cost problem 
B)  market pricing problem 
C)  tactical pricing problem 
D)  price escalation problem 
E)  transfer pricing problem 
A)  opportunity cost problem 
B)  market pricing problem 
C)  tactical pricing problem 
D)  price escalation problem 
E)  transfer pricing problem

Question 14

Global firms plan, operate, and coordinate their activities on a worldwide basis.

Accepted Answer

A) True 
 B)False

Question 15

The problem with setting a uniform global price for a product 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 can price the product out of the market in countries where costs are high 
D)  this strategy makes the price too high in poor countries and not high enough in rich countries 
E)  it is ineffective for products that are homogeneous 
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 can price the product out of the market in countries where costs are high 
D)  this strategy makes the price too high in poor countries and not high enough in rich countries 
E)  it is ineffective for products that are homogeneous

Question 16

Indirect exports are characterized by high investment, and therefore high risk.

Accepted Answer

A) True 
 B)False

Question 17

A company that has the regional vice presidents for North America, Latin America, Europe, and Africa reporting to the international division president is said to be a(n) ________.

Accepted Answer

A)  international subsidiary 
B)  geographical organization 
C)  world product group 
D)  export department 
E)  hierarchical organization 
A)  international subsidiary 
B)  geographical organization 
C)  world product group 
D)  export department 
E)  hierarchical organization

Question 18

A risk averse attitude is associated with ________.

Accepted Answer

A)  high uncertainty avoidance 
B)  high femininity 
C)  high power distance 
D)  high individualism 
E)  high collectivism 
A)  high uncertainty avoidance 
B)  high femininity 
C)  high power distance 
D)  high individualism 
E)  high collectivism

Question 19

The use of media may require international adaptation because media availability varies from country to country.

Accepted Answer

A) True 
 B)False

Question 20

The ultimate form of foreign investment is direct ownership of foreign-based assembly or manufacturing facilities.

Accepted Answer

A) True 
 B)False

Exam 21: Tapping Into Global Markets

Product adaptation not only involves altering the product to meet local preferences, but also calls for a change in the communication strategy.

When companies sell on the Internet, price becomes transparent, and price differentiation between countries declines.

"BRIC" is an acronym for ________.

Although the opportunities to enter and compete in international markets are significant, the risks can also be low.

Domestic-based export agents perform a valuable service for companies seeking to enter foreign markets. The primary function of these agents is to ________.

________ is one of the world's largest single markets, with 25 member countries, a common currency, and more than 454 million consumers.

Define a joint venture and list some of the advantages and disadvantages.

MERCOSUR is a free trade zone linking which of the following countries?

Which of the following countries is a member of ASEAN?

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 described as a ________.

Name the three choices that companies have for setting prices in different countries.

When deciding where to operate internationally, it often makes sense to operate in fewer countries, with a deeper commitment and penetration in each. Mention some of the criteria that a country should possess in order to be a viable and attractive investment destination.

A Gucci bag sells for $120 in Italy and $240 in the United States due to the differences in the costs of distributing the product in the two countries. This phenomenon is called a(n) ________.

Global firms plan, operate, and coordinate their activities on a worldwide basis.

The problem with setting a uniform global price for a product is that ________.

Indirect exports are characterized by high investment, and therefore high risk.

A company that has the regional vice presidents for North America, Latin America, Europe, and Africa reporting to the international division president is said to be a(n) ________.

A risk averse attitude is associated with ________.

The use of media may require international adaptation because media availability varies from country to country.

The ultimate form of foreign investment is direct ownership of foreign-based assembly or manufacturing facilities.

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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