Question 1

When forces for global integration are low and forces for national responsiveness are high, a strategy that ________ makes sense.

Accepted Answer

A)  treats the world as a single market 
B)  views the marketplace as completely homogeneous 
C)  treats the world as a portfolio of national opportunities 
D)  standardizes all elements of the marketing mix 
E)  facilitates a straight extension 
A)  treats the world as a single market 
B)  views the marketplace as completely homogeneous 
C)  treats the world as a portfolio of national opportunities 
D)  standardizes all elements of the marketing mix 
E)  facilitates a straight extension

Question 2

According to Hofstede, cultures with low power distance are ________.

Accepted Answer

A)  collectivist 
B)  assertive 
C)  egalitarian 
D)  risk-averse 
E)  risk-tolerant 
A)  collectivist 
B)  assertive 
C)  egalitarian 
D)  risk-averse 
E)  risk-tolerant

Question 3

The impact of country of origin is independent of the type of product.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is the first stage of the internationalization process that can induce firms to enter the international arena?

Accepted Answer

A)  no regular export activities 
B)  export via independent representatives (agents) 
C)  establishment of one or more sales subsidiaries 
D)  establishment of production facilities abroad 
E)  adoption of a flexible exchange rate regime 
A)  no regular export activities 
B)  export via independent representatives (agents) 
C)  establishment of one or more sales subsidiaries 
D)  establishment of production facilities abroad 
E)  adoption of a flexible exchange rate regime

Question 5

Which of the following modes of entry into a foreign market involves the maximum commitment and risk?

Accepted Answer

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

Question 6

Domestic-based export merchants ________.

Accepted Answer

A)  buy manufacturers' products and then sell them abroad 
B)  manage a company's export activities for a fee 
C)  buy foreign products and sell them in the domestic country 
D)  seek and negotiate foreign purchases 
E)  carry on exporting activities on behalf of several producers 
A)  buy manufacturers' products and then sell them abroad 
B)  manage a company's export activities for a fee 
C)  buy foreign products and sell them in the domestic country 
D)  seek and negotiate foreign purchases 
E)  carry on exporting activities on behalf of several producers

Question 7

Describe the whole-channel concept of international marketing.

Accepted Answer

Many manufacturers think their job is do

Question 8

A firm normally gets into international marketing simply by shipping out its goods.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a risk that firms must consider prior to expanding abroad?

Accepted Answer

A)  The domestic consumers prefer low-priced products. 
B)  The market in the foreign country may be too similar to the domestic market. 
C)  Consumers in the foreign country are very particular about the quality of the goods they consume. 
D)  The foreign country has very low pollution control standards. 
E)  The foreign country's business culture may be too different from the domestic country. 
A)  The domestic consumers prefer low-priced products. 
B)  The market in the foreign country may be too similar to the domestic market. 
C)  Consumers in the foreign country are very particular about the quality of the goods they consume. 
D)  The foreign country has very low pollution control standards. 
E)  The foreign country's business culture may be too different from the domestic country.

Question 10

If a company charges its subsidiary in a foreign country too low a transfer price, it can be accused of dumping.

Accepted Answer

A) True 
 B)False

Question 11

For its first global ad campaign for Infiniti luxury cars, Nissan chose to tap into its Japanese roots and association with Japanese-driven art and engineering. This is an example of ________.

Accepted Answer

A)  anchoring effect 
B)  target market impact 
C)  regiocentrism 
D)  country-of-origin effect 
E)  cognitive dissonance 
A)  anchoring effect 
B)  target market impact 
C)  regiocentrism 
D)  country-of-origin effect 
E)  cognitive dissonance

Question 12

While choosing countries to invest in, companies sometimes choose psychic proximity to their own country. Psychic proximity can best be defined as ________.

Accepted Answer

A)  countries in which the company feels comfortable with the language, laws, and culture 
B)  countries that are located close 
C)  countries that the home country's management team have visited 
D)  countries that have no trade barriers 
E)  countries with good infrastructure and stable political environment 
A)  countries in which the company feels comfortable with the language, laws, and culture 
B)  countries that are located close 
C)  countries that the home country's management team have visited 
D)  countries that have no trade barriers 
E)  countries with good infrastructure and stable political environment

Question 13

What is the main disadvantage of direct investment?

Accepted Answer

The main disadvantage of direct investme

Question 14

Smaller packaging and lower sales prices are often critical in markets where incomes are limited.

Accepted Answer

A) True 
 B)False

Question 15

Regional free trade zones exist around the world. One of the oldest is the European Union, formed in 1957. Describe the purpose of the EU and discuss some of the benefits to firms engaged in trade within the European Union.

Accepted Answer

The EU creates a single European market

Question 16

Which of the following is true about direct investment as a mode of international expansion?

Accepted Answer

A)  It allows a firm to retain full control over its investment. 
B)  It yields the lower returns than joint ventures. 
C)  It involves the least amount of risk. 
D)  It involves the least cost. 
E)  It does not allow the firm to diversify. 
A)  It allows a firm to retain full control over its investment. 
B)  It yields the lower returns than joint ventures. 
C)  It involves the least amount of risk. 
D)  It involves the least cost. 
E)  It does not allow the firm to diversify.

Question 17

Which of the following statements is true about licensing?

Accepted Answer

A)  It is one of the most complex ways to engage in international marketing. 
B)  The licensor gains entry into the new market at low risk. 
C)  The licensee has no access to proprietary information. 
D)  The licensee receives a fee or royalty. 
E)  The only benefit for a licensee is the production expertise it gains. 
A)  It is one of the most complex ways to engage in international marketing. 
B)  The licensor gains entry into the new market at low risk. 
C)  The licensee has no access to proprietary information. 
D)  The licensee receives a fee or royalty. 
E)  The only benefit for a licensee is the production expertise it gains.

Question 18

If a company adapts or changes both the product and the communications, the company engages in a process called ________.

Accepted Answer

A)  straight extension 
B)  product reinvention 
C)  product adaptation 
D)  dual adaptation 
E)  full adaptation 
A)  straight extension 
B)  product reinvention 
C)  product adaptation 
D)  dual adaptation 
E)  full adaptation

Question 19

Ajax Corp. is a multinational group that manufactures medical equipment and a variety of household electrical appliances. Kevin Oi is the head of the SBU that produces and markets medical equipment globally. The company's operating units appear to be a(n) ________.

Accepted Answer

A)  internal subsidiary 
B)  geographical organization 
C)  world product group 
D)  export department 
E)  regional headquarters 
A)  internal subsidiary 
B)  geographical organization 
C)  world product group 
D)  export department 
E)  regional headquarters

Question 20

Web-crawling technology searches for counterfeit storefronts and sales by detecting domain names similar to legitimate brands.

Accepted Answer

A) True 
 B)False

Exam 21: Tapping Into Global Markets

When forces for global integration are low and forces for national responsiveness are high, a strategy that ________ makes sense.

According to Hofstede, cultures with low power distance are ________.

The impact of country of origin is independent of the type of product.

Which of the following is the first stage of the internationalization process that can induce firms to enter the international arena?

Which of the following modes of entry into a foreign market involves the maximum commitment and risk?

Domestic-based export merchants ________.

Describe the whole-channel concept of international marketing.

A firm normally gets into international marketing simply by shipping out its goods.

Which of the following is a risk that firms must consider prior to expanding abroad?

If a company charges its subsidiary in a foreign country too low a transfer price, it can be accused of dumping.

For its first global ad campaign for Infiniti luxury cars, Nissan chose to tap into its Japanese roots and association with Japanese-driven art and engineering. This is an example of ________.

While choosing countries to invest in, companies sometimes choose psychic proximity to their own country. Psychic proximity can best be defined as ________.

What is the main disadvantage of direct investment?

Smaller packaging and lower sales prices are often critical in markets where incomes are limited.

Regional free trade zones exist around the world. One of the oldest is the European Union, formed in 1957. Describe the purpose of the EU and discuss some of the benefits to firms engaged in trade within the European Union.

Which of the following is true about direct investment as a mode of international expansion?

Which of the following statements is true about licensing?

If a company adapts or changes both the product and the communications, the company engages in a process called ________.

Ajax Corp. is a multinational group that manufactures medical equipment and a variety of household electrical appliances. Kevin Oi is the head of the SBU that produces and markets medical equipment globally. The company's operating units appear to be a(n) ________.

Web-crawling technology searches for counterfeit storefronts and sales by detecting domain names similar to legitimate brands.

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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