Question 1

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 C

Question 2

Define the gray market.

Accepted Answer

The gray market consists of branded products diverted from normal or authorized distribution channels in the country of product origin or across international borders.

Question 3

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. D

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

Cooperative organizations carry on exporting activities on behalf of several producers and are partly under their administrative control.

Accepted Answer

A) True 
 B)False

Question 7

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 8

A company that is planning to go global must decide on how many countries to enter and how fast to expand.A company's entry strategy typically follows one of two possible approaches.What are those approaches?

Accepted Answer

The approaches are waterfall approach an

Question 9

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 10

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 11

In licensing,the licensor issues a license to a foreign company to use an item of value for a fee or royalty.

Accepted Answer

A) True 
 B)False

Question 12

The main disadvantage of direct investment is that the firm loses access to the market in case the government of that country insists locally purchased goods have domestic content.

Accepted Answer

A) True 
 B)False

Question 13

If a society is collectivist,it would imply that the self-worth of the people is rooted in individual achievements.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 17

Explain the country-of-origin effect.

Accepted Answer

Country-of-origin perceptions are the me

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Your company manufactures travel bags and is keen on establishing its presence in the Indian market.If you were given the responsibility to decide the pricing strategy the company should use,what would you decide? Explain your answer.

Accepted Answer

Student answers can vary.However,they mu

Question 20

A standardized marketing program involves ________.

Accepted Answer

A) adopting the strategy that best fits a given target market 
B) consistently using the communication and distribution channels that entail the lowest costs 
C) adjusting the product to suit market preferences 
D) changing the features of the product to accommodate the host country 
E) changing only the communication message to suit the different target markets 
A) adopting the strategy that best fits a given target market 
B) consistently using the communication and distribution channels that entail the lowest costs 
C) adjusting the product to suit market preferences 
D) changing the features of the product to accommodate the host country 
E) changing only the communication message to suit the different target markets

Exam 22: Tapping Into Global Markets

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

Define the gray market.

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

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

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

Cooperative organizations carry on exporting activities on behalf of several producers and are partly under their administrative control.

A company that is planning to go global must decide on how many countries to enter and how fast to expand.A company's entry strategy typically follows one of two possible approaches.What are those approaches?

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

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

In licensing,the licensor issues a license to a foreign company to use an item of value for a fee or royalty.

The main disadvantage of direct investment is that the firm loses access to the market in case the government of that country insists locally purchased goods have domestic content.

If a society is collectivist,it would imply that the self-worth of the people is rooted in individual achievements.

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

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 ________.

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)________.

Explain the country-of-origin effect.

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

Your company manufactures travel bags and is keen on establishing its presence in the Indian market.If you were given the responsibility to decide the pricing strategy the company should use,what would you decide? Explain your answer.

A standardized marketing program involves ________.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Gathering Information and Forecasting Demand

Conducting Marketing Research

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 Digital Communications: Online, social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Introducing New Market Offerings

Managing a Holistic Marketing Organization

Filters