Question 1

Which of the following is likely if the distribution channel for a product in the foreign country is long?

Accepted Answer

A)  the foreign country buyers pay a high price 
B)  the consumer will pay arms-length price 
C)  the profit margin of the sellers increase 
D)  the intermediaries are motivated to reship the product to another country to earn higher profits 
E)  the seller can increase profit margins by charging a uniform price 
A)  the foreign country buyers pay a high price 
B)  the consumer will pay arms-length price 
C)  the profit margin of the sellers increase 
D)  the intermediaries are motivated to reship the product to another country to earn higher profits 
E)  the seller can increase profit margins by charging a uniform price A

Question 2

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 3

As required levels of distribution increase, so do customer prices relative to the importer's price.

Accepted Answer

A) True 
 B)False  True

Question 4

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 5

Country-of-origin perceptions, once formed, are very difficult to change.

Accepted Answer

A) True 
 B)False

Question 6

Straight extension means using an established product's brand name for a new item in the same product category.

Accepted Answer

A) True 
 B)False

Question 7

________ 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 8

A market survey by LG revealed that Indians preferred not to mix vegetarian and non-vegetarian food items. Hence, LG refrigerators in India include a special convertible box with separate compartments to store and control the temperature of vegetarian and non-vegetarian food. This is an example of customizing ________ to local needs.

Accepted Answer

A)  advertising media 
B)  product features 
C)  packaging 
D)  brand name 
E)  labeling 
A)  advertising media 
B)  product features 
C)  packaging 
D)  brand name 
E)  labeling

Question 9

Once a company decides to target a particular country, it must determine the best mode of entry. Each of its market entry strategies involves more commitment, risk, control, and profit potential. List these market entry strategies in order from low risk to high risk.

Accepted Answer

The five modes of entry into foreign mar

Question 10

What are the various risks that a company must consider before making a decision to enter foreign markets?

Accepted Answer

These risks are: (1) The company might n

Question 11

Once a firm decides to enter the international market, what is the next step in the decision-making process?

Accepted Answer

A)  deciding on the marketing organization 
B)  deciding on the marketing program 
C)  deciding how to enter the market 
D)  deciding how to adapt the product to the new market 
E)  deciding which markets to enter 
A)  deciding on the marketing organization 
B)  deciding on the marketing program 
C)  deciding how to enter the market 
D)  deciding how to adapt the product to the new market 
E)  deciding which markets to enter

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

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

Define the internationalization process' four stages.

Accepted Answer

Some companies don't act until events th

Question 17

What are global organizations?

Accepted Answer

Several firms have become truly global o

Question 18

A standardized marketing mix 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

Question 19

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 20

A company can enter a foreign market through a ________, 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 arrangement 
A)  contract manufacturing 
B)  cooperative agreement 
C)  management contract 
D)  joint venture 
E)  franchising arrangement

Exam 21: Tapping into Global Markets

Which of the following is likely if the distribution channel for a product in the foreign country is long?

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

As required levels of distribution increase, so do customer prices relative to the importer's price.

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

Country-of-origin perceptions, once formed, are very difficult to change.

Straight extension means using an established product's brand name for a new item in the same product category.

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

Once a company decides to target a particular country, it must determine the best mode of entry. Each of its market entry strategies involves more commitment, risk, control, and profit potential. List these market entry strategies in order from low risk to high risk.

What are the various risks that a company must consider before making a decision to enter foreign markets?

Once a firm decides to enter the international market, what is the next step in the decision-making process?

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.

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

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?

Define the internationalization process' four stages.

What are global organizations?

A standardized marketing mix involves ________.

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

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

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long-Term Loyalty Relationships

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 Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Introducing New Market Offerings

Managing a Holistic Marketing Organization for the Long Run

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