Question 1

Luxury brands are usually not global because they target a niche market.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Which of the following countries is a member of ASEAN?

Accepted Answer

A)  Indonesia 
B)  Japan 
C)  United States 
D)  India 
E)  Brazil 
A)  Indonesia 
B)  Japan 
C)  United States 
D)  India 
E)  Brazil

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

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 mix 
B)  leveraged marketing mix 
C)  adapted marketing mix 
D)  engineering-driven marketing mix 
E)  standardized marketing mix 
A)  distributive marketing mix 
B)  leveraged marketing mix 
C)  adapted marketing mix 
D)  engineering-driven marketing mix 
E)  standardized marketing mix

Question 6

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 7

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 8

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

Student answers may vary. If a foreign a

Question 9

Dumping occurs when ________.

Accepted Answer

A)  a company entering a foreign market charges either less than its costs or less than it charges at home 
B)  a company entering a foreign market charges more than the price in its home market 
C)  a company entering a foreign market charges prices that are lower than those charged by its competitors in this market 
D)  a company sets its price equal to its average cost of production 
E)  a company exports its products to a foreign country to increase its revenue in spite of excess demand in the home country 
A)  a company entering a foreign market charges either less than its costs or less than it charges at home 
B)  a company entering a foreign market charges more than the price in its home market 
C)  a company entering a foreign market charges prices that are lower than those charged by its competitors in this market 
D)  a company sets its price equal to its average cost of production 
E)  a company exports its products to a foreign country to increase its revenue in spite of excess demand in the home country

Question 10

Country-of-origin effects refer to the attitude anything produced by the home country is better than imported goods.

Accepted Answer

A) True 
 B)False

Question 11

Briefly describe the advantages of direct investment.

Accepted Answer

In direct investment, the firm: (1) secu

Question 12

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 13

Forces promoting global integration include ________.

Accepted Answer

A)  strong local preferences 
B)  heterogeneous demand 
C)  local standards and barriers 
D)  strong consumer resistance to foreign goods 
E)  capital-intensive production 
A)  strong local preferences 
B)  heterogeneous demand 
C)  local standards and barriers 
D)  strong consumer resistance to foreign goods 
E)  capital-intensive production

Question 14

When first-mover advantage is crucial and a high degree of competitive intensity prevails, the ________ approach is better.

Accepted Answer

A)  waterfall 
B)  born global 
C)  rifle 
D)  sprinkler 
E)  franchisee 
A)  waterfall 
B)  born global 
C)  rifle 
D)  sprinkler 
E)  franchisee

Question 15

________ 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 16

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 17

When the licensor provides the licensee with a complete brand concept and operating system, the arrangement is called contract manufacturing.

Accepted Answer

A) True 
 B)False

Question 18

Discuss three disadvantages of standardizing the marketing mix worldwide.

Accepted Answer

Standardizing the marketing mix (1) igno

Question 19

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 20

Zodiac Inc. is one of the leading producers of designer bags in its country. The company is considering shifting some of its production to India. Which of the following could have prompted this move?

Accepted Answer

A)  People in India prefer imported designer bags. 
B)  Zodiac can target a niche market of high-profile consumers who have a high income. 
C)  Zodiac can improve its market share if it can offer better prices than its competitors. 
D)  People in the home country have an ethnocentric approach. 
E)  Market research indicates that Indian consumers have a low per-capita income. 
A)  People in India prefer imported designer bags. 
B)  Zodiac can target a niche market of high-profile consumers who have a high income. 
C)  Zodiac can improve its market share if it can offer better prices than its competitors. 
D)  People in the home country have an ethnocentric approach. 
E)  Market research indicates that Indian consumers have a low per-capita income.

Luxury brands are usually not global because they target a niche market.

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

Which of the following countries is a member of ASEAN?

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

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.

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

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?

Dumping occurs when ________.

Country-of-origin effects refer to the attitude anything produced by the home country is better than imported goods.

Briefly describe the advantages of direct investment.

Forces promoting global integration include ________.

When first-mover advantage is crucial and a high degree of competitive intensity prevails, the ________ approach is better.

________ 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.

When the licensor provides the licensee with a complete brand concept and operating system, the arrangement is called contract manufacturing.

Discuss three disadvantages of standardizing the marketing mix worldwide.

Domestic-based export merchants ________.

Zodiac Inc. is one of the leading producers of designer bags in its country. The company is considering shifting some of its production to India. Which of the following could have prompted this move?

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

Filters

Exam 21: Tapping into Global Markets

Luxury brands are usually not global because they target a niche market.

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

Which of the following countries is a member of ASEAN?

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

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.

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

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?

Dumping occurs when ________.

Country-of-origin effects refer to the attitude anything produced by the home country is better than imported goods.

Briefly describe the advantages of direct investment.

Forces promoting global integration include ________.

When first-mover advantage is crucial and a high degree of competitive intensity prevails, the ________ approach is better.

________ 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.

When the licensor provides the licensee with a complete brand concept and operating system, the arrangement is called contract manufacturing.

Discuss three disadvantages of standardizing the marketing mix worldwide.

Domestic-based export merchants ________.

Zodiac Inc. is one of the leading producers of designer bags in its country. The company is considering shifting some of its production to India. Which of the following could have prompted this move?

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

Filters