Question 1

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 2

When forces for global integration are high and forces for national responsiveness are weak, which of the following strategies makes most sense?

Accepted Answer

A)  segment consumers on a regional basis 
B)  tailor the product on a city-by-city basis 
C)  treat the world as a heterogeneous market 
D)  treat the world as a single market 
E)  treat the world as a portfolio of national opportunities 
A)  segment consumers on a regional basis 
B)  tailor the product on a city-by-city basis 
C)  treat the world as a heterogeneous market 
D)  treat the world as a single market 
E)  treat the world as a portfolio of national opportunities

Question 3

Define the gray market.

Accepted Answer

The gray market consists of br

Question 4

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

Question 5

How do multinationals try to prevent gray markets?

Accepted Answer

Multinationals try to prevent gray marke

Question 6

Nash & Associates is a firm that takes care of all export procedures on behalf of its clients. In exchange for a fee, the firm acts as the liaison between domestic manufacturers and prospective foreign buyers. It has access to established distribution networks in other countries that domestic small-scale producers are unlikely to have, and facilitates communication between foreign importers and domestic producers. Nash & Associates is most likely a(n)________.

Accepted Answer

A)  domestic-based export merchant 
B)  domestic-based export agent 
C)  cooperative organization 
D)  export-management company 
E)  direct exporter 
A)  domestic-based export merchant 
B)  domestic-based export agent 
C)  cooperative organization 
D)  export-management company 
E)  direct exporter

Question 7

Existence of gray markets lead to which of the following outcomes?

Accepted Answer

A)  They make the distribution channel stronger. 
B)  They create a free-rider problem making legitimate distributors' investments in supporting a manufacturer's product less productive. 
C)  Goods sold in grey markets are always counterfeit. 
D)  Goods sold in grey markets come with standard product warranties. 
E)  Taxes imposed on grey market products are very high. 
A)  They make the distribution channel stronger. 
B)  They create a free-rider problem making legitimate distributors' investments in supporting a manufacturer's product less productive. 
C)  Goods sold in grey markets are always counterfeit. 
D)  Goods sold in grey markets come with standard product warranties. 
E)  Taxes imposed on grey market products are very high.

Question 8

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 9

Finnish cellular phone giant, Nokia, customized its 6100 series mobile phone for every major market in which it is present. In Asia, for example, the series came with higher ring volume so that it could be heard on the crowded Asian streets. This is an example of ________.

Accepted Answer

A)  straight extension 
B)  forward invention 
C)  regional version 
D)  city version 
E)  country version 
A)  straight extension 
B)  forward invention 
C)  regional version 
D)  city version 
E)  country version

Question 10

When forces for both global integration and national responsiveness prevail to some extent, a "global" strategy that standardizes certain elements and localizes other elements can be the way to go.

Accepted Answer

A) True 
 B)False

Question 11

Companies typically start their international foray with ________, which involves working through independent intermediaries who sell their products abroad.

Accepted Answer

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

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Define psychic proximity and explain why it is important for companies engaged in exporting products.

Accepted Answer

It is sometimes seen that companies dete

Question 14

A global firm is 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.

Accepted Answer

A) True 
 B)False

Question 15

Companies can manage their international marketing activities in three ways: export departments, international divisions, or ________.

Accepted Answer

A)  global organization 
B)  fixed corporate headquarters 
C)  strong marketing department in the "host" country 
D)  local marketing efforts 
E)  strategic business units 
A)  global organization 
B)  fixed corporate headquarters 
C)  strong marketing department in the "host" country 
D)  local marketing efforts 
E)  strategic business units

Question 16

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 17

In collectivist societies, ________.

Accepted Answer

A)  all property is owned by the government 
B)  the self-worth of the individual is rooted more in the social system than in individual achievement 
C)  the culture is dominated by the need to maintain low power distance and reduce income inequality 
D)  the culture is dominated by a nurturing attitude as opposed to an assertive attitude 
E)  people are highly risk-averse 
A)  all property is owned by the government 
B)  the self-worth of the individual is rooted more in the social system than in individual achievement 
C)  the culture is dominated by the need to maintain low power distance and reduce income inequality 
D)  the culture is dominated by a nurturing attitude as opposed to an assertive attitude 
E)  people are highly risk-averse

Question 18

Discuss three advantages of standardizing the marketing mix worldwide.

Accepted Answer

Standardizing the marketing mix (1) help

Question 19

Forward invention is ________.

Accepted Answer

A)  creating a new product to meet a need in another country 
B)  creating a new product to meet the need in the home country 
C)  inventing products that are superior to competing offerings 
D)  taking an existing product into a new market 
E)  inventing something that as yet has no "market" 
A)  creating a new product to meet a need in another country 
B)  creating a new product to meet the need in the home country 
C)  inventing products that are superior to competing offerings 
D)  taking an existing product into a new market 
E)  inventing something that as yet has no "market"

Question 20

More than 90% of future population growth is projected to occur in the less developed countries.

Accepted Answer

A) True 
 B)False

Exam 21: Tapping into Global Markets

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

When forces for global integration are high and forces for national responsiveness are weak, which of the following strategies makes most sense?

Define the gray market.

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.

How do multinationals try to prevent gray markets?

Existence of gray markets lead to which of the following outcomes?

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)________.

Finnish cellular phone giant, Nokia, customized its 6100 series mobile phone for every major market in which it is present. In Asia, for example, the series came with higher ring volume so that it could be heard on the crowded Asian streets. This is an example of ________.

When forces for both global integration and national responsiveness prevail to some extent, a "global" strategy that standardizes certain elements and localizes other elements can be the way to go.

Companies typically start their international foray with ________, which involves working through independent intermediaries who sell their products abroad.

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

Define psychic proximity and explain why it is important for companies engaged in exporting products.

A global firm is 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.

Companies can manage their international marketing activities in three ways: export departments, international divisions, or ________.

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

In collectivist societies, ________.

Discuss three advantages of standardizing the marketing mix worldwide.

Forward invention is ________.

More than 90% of future population growth is projected to occur in the less developed countries.

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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