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

Backward invention occurs when a firm ________.

Accepted Answer

A)  creates a new product to meet a need in another country 
B)  reintroduces earlier product forms adapted to suit another country's needs 
C)  invents products that are similar to competing offerings 
D)  takes an existing product into a new market 
E)  produces its own raw materials 
A)  creates a new product to meet a need in another country 
B)  reintroduces earlier product forms adapted to suit another country's needs 
C)  invents products that are similar to competing offerings 
D)  takes an existing product into a new market 
E)  produces its own raw materials

Question 3

People are often ethnocentric and favorably predisposed to their own country's products, unless they come from a less developed country.

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

Identify a benefit of using joint ventures to enter a foreign market.

Accepted Answer

A)  It entails minimum risk. 
B)  It provides access to an established distribution network in the host country. 
C)  It yields the highest returns. 
D)  It retains full control of its investment in the host country. 
E)  It is the best strategy for countries with psychic proximity. 
A)  It entails minimum risk. 
B)  It provides access to an established distribution network in the host country. 
C)  It yields the highest returns. 
D)  It retains full control of its investment in the host country. 
E)  It is the best strategy for countries with psychic proximity.

Question 6

________ agree to manage a company's export activities for a fee.

Accepted Answer

A)  Cooperative organizations 
B)  Domestic-based export agents 
C)  Export-management companies 
D)  Domestic-based export merchants 
E)  Contract manufacturing organizations 
A)  Cooperative organizations 
B)  Domestic-based export agents 
C)  Export-management companies 
D)  Domestic-based export merchants 
E)  Contract manufacturing organizations

Question 7

Once a company decides to target a particular country, it must determine the best mode of entry. Its broad choices are indirect exporting, direct exporting, licensing, joint ventures, and direct investment.

Accepted Answer

A) True 
 B)False

Question 8

BestFoods Inc., a well-known producer of breakfast cereals, has decided to hire producers in different countries so that the cereals marketed under their brand are locally produced in the respective countries. This would not only appeal more to consumers who preferred domestically produced goods, but would also create jobs in the host-country enhancing the brand's image further. This is an example of ________.

Accepted Answer

A)  management contracting 
B)  franchising 
C)  greenfield venturing 
D)  contract manufacturing 
E)  straight extension 
A)  management contracting 
B)  franchising 
C)  greenfield venturing 
D)  contract manufacturing 
E)  straight extension

Question 9

Most companies would prefer to remain domestic if their domestic market were large enough. Yet several factors are drawing more and more companies into the international arena. List some of these factors.

Accepted Answer

Some of the factors are: (1) Some foreig

Question 10

When innovation at Siemens enables the company to offer solutions that can make the generation of hydroelectricity more environment-friendly, the company will want to reap the benefits of being the first to introduce such a product across countries. In this case, which of the following approaches is likely to be the best approach to entering foreign markets?

Accepted Answer

A)  the rifle approach 
B)  the continuous approach 
C)  the born global approach 
D)  the sprinkler approach 
E)  the waterfall approach 
A)  the rifle approach 
B)  the continuous approach 
C)  the born global approach 
D)  the sprinkler approach 
E)  the waterfall approach

Question 11

Indirect exports have two advantages for a firm: they involve less investment and ________.

Accepted Answer

A)  less paperwork 
B)  less intrusion by the government 
C)  less risk 
D)  less competition 
E)  less customer suits 
A)  less paperwork 
B)  less intrusion by the government 
C)  less risk 
D)  less competition 
E)  less customer suits

Question 12

Explain how marketers are using the Web for international business.

Accepted Answer

Marketers are using the Web to attract n

Question 13

Satisfying different consumer needs and wants can require different marketing programs. Name the four cultural dimensions that differentiate countries, as identified by Hofstede.

Accepted Answer

Hofstede identified four cultural dimens

Question 14

How do multinationals try to prevent gray markets?

Accepted Answer

Multinationals try to prevent gray marke

Question 15

Communication adaptation occurs when companies change marketing communications for each local market.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is most likely to be successful when introduced in foreign markets as a straight extension?

Accepted Answer

A)  laundry detergent 
B)  khaki pants 
C)  dessert mixes 
D)  digital camera 
E)  condensed soup 
A)  laundry detergent 
B)  khaki pants 
C)  dessert mixes 
D)  digital camera 
E)  condensed soup

Question 17

Which of the following can cause a firm to choose joint ventures as a mode of expansion into foreign markets?

Accepted Answer

A)  excellent managerial resources 
B)  lack of sufficient finances 
C)  lack of redtapism in the host country 
D)  preferences of target consumers in the host country 
E)  psychic proximity of the host country 
A)  excellent managerial resources 
B)  lack of sufficient finances 
C)  lack of redtapism in the host country 
D)  preferences of target consumers in the host country 
E)  psychic proximity of the host country

Question 18

As people in developing countries often prefer to buy in smaller quantities, ________ is one of the most important functions of intermediaries in developing countries and helps perpetuate the long channels of distribution, which are a major obstacle to the expansion of retailing.

Accepted Answer

A)  product adaptation 
B)  breaking bulk 
C)  diversification 
D)  transfer pricing 
E)  dual adaptation 
A)  product adaptation 
B)  breaking bulk 
C)  diversification 
D)  transfer pricing 
E)  dual adaptation

Question 19

Product adaptation alters the product to meet local conditions or preferences. Identify four levels of adaptation.

Accepted Answer

There are several levels of ad

Question 20

You work for a company that produces and markets apparel for men and women, and is planning to enter the Chinese market. If you were asked if the company should opt for a straight extension or a product adaptation, what would you choose, and why?

Accepted Answer

As a company looking to enter the Chines

What is a global firm?

Backward invention occurs when a firm ________.

People are often ethnocentric and favorably predisposed to their own country's products, unless they come from a less developed country.

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

Identify a benefit of using joint ventures to enter a foreign market.

________ agree to manage a company's export activities for a fee.

Once a company decides to target a particular country, it must determine the best mode of entry. Its broad choices are indirect exporting, direct exporting, licensing, joint ventures, and direct investment.

Most companies would prefer to remain domestic if their domestic market were large enough. Yet several factors are drawing more and more companies into the international arena. List some of these factors.

Indirect exports have two advantages for a firm: they involve less investment and ________.

Explain how marketers are using the Web for international business.

Satisfying different consumer needs and wants can require different marketing programs. Name the four cultural dimensions that differentiate countries, as identified by Hofstede.

How do multinationals try to prevent gray markets?

Communication adaptation occurs when companies change marketing communications for each local market.

Which of the following is most likely to be successful when introduced in foreign markets as a straight extension?

Which of the following can cause a firm to choose joint ventures as a mode of expansion into foreign markets?

As people in developing countries often prefer to buy in smaller quantities, ________ is one of the most important functions of intermediaries in developing countries and helps perpetuate the long channels of distribution, which are a major obstacle to the expansion of retailing.

Product adaptation alters the product to meet local conditions or preferences. Identify four levels of adaptation.

You work for a company that produces and markets apparel for men and women, and is planning to enter the Chinese market. If you were asked if the company should opt for a straight extension or a product adaptation, what would you choose, and why?

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 is a global firm?

Backward invention occurs when a firm ________.

People are often ethnocentric and favorably predisposed to their own country's products, unless they come from a less developed country.

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

Identify a benefit of using joint ventures to enter a foreign market.

________ agree to manage a company's export activities for a fee.

Once a company decides to target a particular country, it must determine the best mode of entry. Its broad choices are indirect exporting, direct exporting, licensing, joint ventures, and direct investment.

Most companies would prefer to remain domestic if their domestic market were large enough. Yet several factors are drawing more and more companies into the international arena. List some of these factors.

Indirect exports have two advantages for a firm: they involve less investment and ________.

Explain how marketers are using the Web for international business.

Satisfying different consumer needs and wants can require different marketing programs. Name the four cultural dimensions that differentiate countries, as identified by Hofstede.

How do multinationals try to prevent gray markets?

Communication adaptation occurs when companies change marketing communications for each local market.

Which of the following is most likely to be successful when introduced in foreign markets as a straight extension?

Which of the following can cause a firm to choose joint ventures as a mode of expansion into foreign markets?

As people in developing countries often prefer to buy in smaller quantities, ________ is one of the most important functions of intermediaries in developing countries and helps perpetuate the long channels of distribution, which are a major obstacle to the expansion of retailing.

Product adaptation alters the product to meet local conditions or preferences. Identify four levels of adaptation.

You work for a company that produces and markets apparel for men and women, and is planning to enter the Chinese market. If you were asked if the company should opt for a straight extension or a product adaptation, what would you choose, and why?

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