Question 1

The PRS Group maintains a website that can be used to determine

Accepted Answer

A)  changing demographic and psychographic data for each country in the registry. 
B)  a country's political risk ratings that are useful in comparing global marketing locations. 
C)  the tariffs of each country and their relative effect on product and services sales. 
D)  the rankings of American products relative to domestic equivalents in each country. 
E)  changing social trends within different segments of the economy. 
A)  changing demographic and psychographic data for each country in the registry. 
B)  a country's political risk ratings that are useful in comparing global marketing locations. 
C)  the tariffs of each country and their relative effect on product and services sales. 
D)  the rankings of American products relative to domestic equivalents in each country. 
E)  changing social trends within different segments of the economy.

Question 2

To eliminate the need to continually monitor currency exchange rates, 16 of the countries in the European Union (EU) have adopted a common currency, which is called the

Accepted Answer

A)  pound. 
B)  franc. 
C)  euro. 
D)  mark. 
E)  dollar. 
A)  pound. 
B)  franc. 
C)  euro. 
D)  mark. 
E)  dollar.

Question 3

A country's communications, transportation, financial, and distribution systems are considered to be its

Accepted Answer

A)  capital improvements. 
B)  fixed-asset base. 
C)  economic infrastructure. 
D)  geopolitical wealth. 
E)  asset wealth. 
A)  capital improvements. 
B)  fixed-asset base. 
C)  economic infrastructure. 
D)  geopolitical wealth. 
E)  asset wealth.

Question 4

The belief that aspects of one's culture are superior to another's is referred to as

Accepted Answer

A)  cultural ethnocentricity. 
B)  consumer ethnocentrism. 
C)  cultural commitment. 
D)  cross-cultural bias. 
E)  cultural imperialism. 
A)  cultural ethnocentricity. 
B)  consumer ethnocentrism. 
C)  cultural commitment. 
D)  cross-cultural bias. 
E)  cultural imperialism.

Question 5

Foreign countries with very low per capita incomes may still be attractive markets for some goods. To get a more reliable picture of a country's purchasing power, a country's ________ must also be considered.

Accepted Answer

A)  total income 
B)  total area 
C)  geographical location 
D)  culture 
E)  income distribution 
A)  total income 
B)  total area 
C)  geographical location 
D)  culture 
E)  income distribution

Question 6

What is considered normal and expected about the way people do things in a specific country is referred to as

Accepted Answer

A)  morals. 
B)  ethics. 
C)  values. 
D)  customs. 
E)  beliefs. 
A)  morals. 
B)  ethics. 
C)  values. 
D)  customs. 
E)  beliefs.

Question 7

Figure 7-5
-Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 7-5 above, Box D refers to which type of strategy?

Accepted Answer

A)  product extension strategy 
B)  product adaptation strategy 
C)  dual adaptation strategy 
D)  product invention strategy 
E)  communication adaptation strategy 
A)  product extension strategy 
B)  product adaptation strategy 
C)  dual adaptation strategy 
D)  product invention strategy 
E)  communication adaptation strategy

Question 8

Which of the following examples best demonstrates a company's appreciation of another country's values?

Accepted Answer

A)  American companies in Germany encourage the use of all types of credit cards. 
B)  In Brazil, American companies are extremely careful to keep to a strict agenda and time schedule, even though an informal structure is preferred. 
C)  Bath products are advertised by portraying intimate scenes between husbands and wives in countries where personal privacy is important. 
D)  McDonald's restaurants in India sell the Maharaja Mac with chicken patties rather than beef. 
E)  Vogue Italia published a feature with a model wearing "slave earrings," which it said were "worn by women of color during the slave trade." 
A)  American companies in Germany encourage the use of all types of credit cards. 
B)  In Brazil, American companies are extremely careful to keep to a strict agenda and time schedule, even though an informal structure is preferred. 
C)  Bath products are advertised by portraying intimate scenes between husbands and wives in countries where personal privacy is important. 
D)  McDonald's restaurants in India sell the Maharaja Mac with chicken patties rather than beef. 
E)  Vogue Italia published a feature with a model wearing "slave earrings," which it said were "worn by women of color during the slave trade."

Question 9

Nescafé coffee is marketed using different coffee blends and promotional campaigns to match consumer preferences in different countries. For example, Nescafé generally emphasizes the taste, aroma, and warmth of shared moments in its advertising around the world. However, in Thailand, Nescafé is advertised as a way to relax from the pressures of daily life. This is an example of which type of global marketing product and promotion strategy?

Accepted Answer

A)  product extension 
B)  product customization 
C)  product adaptation 
D)  dual adaptation 
E)  dual integration 
A)  product extension 
B)  product customization 
C)  product adaptation 
D)  dual adaptation 
E)  dual integration

Question 10

Which global market entry strategy involves slightly more risk than indirect exporting for a company but also opens the door to increased profits?

Accepted Answer

A)  direct exporting 
B)  licensing 
C)  cooperative 
D)  joint venture 
E)  direct investment 
A)  direct exporting 
B)  licensing 
C)  cooperative 
D)  joint venture 
E)  direct investment

Question 11

When German car maker Mercedes-Benz owns and operates a factory in Vance, Alabama, that makes the M-Class sport-utility vehicle, this global market entry strategy is known as ________ and represents the greatest commitment a company can make to international sales.

Accepted Answer

A)  licensing 
B)  local assembly 
C)  a joint venture 
D)  direct investment 
E)  local manufacturing 
A)  licensing 
B)  local assembly 
C)  a joint venture 
D)  direct investment 
E)  local manufacturing

Question 12

Generally, as the proportion of middle-income households in a country increases, the nation's purchasing power

Accepted Answer

A)  levels off. 
B)  decreases. 
C)  increases. 
D)  becomes less of an economic priority. 
E)  becomes progressively unstable. 
A)  levels off. 
B)  decreases. 
C)  increases. 
D)  becomes less of an economic priority. 
E)  becomes progressively unstable.

Question 13

Yum! Brands, the parent company of KFC, has pursued an aggressive growth strategy in China. There are now more than 3,700 restaurants in 650 Chinese cities, and KFC has a 40 percent market share of the entire fast-food industry there. Yum! Brands China owns and directly manages about 90 percent of its Chinese stores, so it appears that the company prefers ________ in this market.

Accepted Answer

A)  licensing 
B)  local assembly 
C)  a joint venture 
D)  direct investment 
E)  local manufacturing 
A)  licensing 
B)  local assembly 
C)  a joint venture 
D)  direct investment 
E)  local manufacturing

Question 14

The strategy transnational firms employ that standardizes marketing activities when there are cultural similarities and adapts them when cultures differ is referred to as

Accepted Answer

A)  a global marketing strategy. 
B)  an integrated marketing strategy. 
C)  a transnational marketing strategy. 
D)  a subsidiary marketing strategy. 
E)  an international marketing strategy. 
A)  a global marketing strategy. 
B)  an integrated marketing strategy. 
C)  a transnational marketing strategy. 
D)  a subsidiary marketing strategy. 
E)  an international marketing strategy.

Question 15

Which type of exporting has the least amount of commitment and risk but will probably return the least profit?

Accepted Answer

A)  direct 
B)  indirect 
C)  licensing 
D)  joint 
E)  unilateral 
A)  direct 
B)  indirect 
C)  licensing 
D)  joint 
E)  unilateral

Question 16

The Foreign Corrupt Practices Act

Accepted Answer

A)  makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country. 
B)  has different levels of punishment based upon the relative economic power of the host nation. 
C)  regulates only the behavior of U.S. businesses conducting business within the United States. 
D)  makes the theft of trade secrets by foreign entities a federal crime in the United States. 
E)  is a unilateral agreement the United States made with several developing nations. 
A)  makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country. 
B)  has different levels of punishment based upon the relative economic power of the host nation. 
C)  regulates only the behavior of U.S. businesses conducting business within the United States. 
D)  makes the theft of trade secrets by foreign entities a federal crime in the United States. 
E)  is a unilateral agreement the United States made with several developing nations.

Question 17

Licensing refers to

Accepted Answer

A)  offering the right to a trademark, patent, trade secret, or other similarly valued items of intellectual property in return for a royalty or a fee. 
B)  contracting with a foreign firm to manufacture products according to certain specifications. 
C)  a foreign country and a local firm investing together to create a local business. 
D)  having a company handle its own exports directly without intermediaries. 
E)  exporting through an intermediary, which often has the knowledge and means to succeed in selling a firm's product abroad. 
A)  offering the right to a trademark, patent, trade secret, or other similarly valued items of intellectual property in return for a royalty or a fee. 
B)  contracting with a foreign firm to manufacture products according to certain specifications. 
C)  a foreign country and a local firm investing together to create a local business. 
D)  having a company handle its own exports directly without intermediaries. 
E)  exporting through an intermediary, which often has the knowledge and means to succeed in selling a firm's product abroad.

Question 18

Describe the elements in a global channel of distribution.

Accepted Answer

Figure 7-6 outlines the channel through

Question 19

Indirect exporting refers to

Accepted Answer

A)  offering the right to a trademark, patent, trade secret, or similarly valued item of intellectual property in return for a royalty or fee. 
B)  selling a firm's domestically produced products in a foreign country without interference by that government. 
C)  contracting with a foreign firm to manufacture products according to stated specifications. 
D)  avoiding the use of additional parties when a firm sells its domestically produced products in another country. 
E)  selling a firm's domestically produced products in a foreign country through an intermediary. 
A)  offering the right to a trademark, patent, trade secret, or similarly valued item of intellectual property in return for a royalty or fee. 
B)  selling a firm's domestically produced products in a foreign country without interference by that government. 
C)  contracting with a foreign firm to manufacture products according to stated specifications. 
D)  avoiding the use of additional parties when a firm sells its domestically produced products in another country. 
E)  selling a firm's domestically produced products in a foreign country through an intermediary.

Question 20

When firms originate, produce, and market their products and services worldwide, it is referred to as

Accepted Answer

A)  acculturation. 
B)  free trade. 
C)  international branding. 
D)  global competition. 
E)  transactional exchange. 
A)  acculturation. 
B)  free trade. 
C)  international branding. 
D)  global competition. 
E)  transactional exchange.

Exam 7: Understanding and Reaching Global Consumers and Markets

The PRS Group maintains a website that can be used to determine

To eliminate the need to continually monitor currency exchange rates, 16 of the countries in the European Union (EU) have adopted a common currency, which is called the

A country's communications, transportation, financial, and distribution systems are considered to be its

The belief that aspects of one's culture are superior to another's is referred to as

Foreign countries with very low per capita incomes may still be attractive markets for some goods. To get a more reliable picture of a country's purchasing power, a country's ________ must also be considered.

What is considered normal and expected about the way people do things in a specific country is referred to as

Figure 7-5 -Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 7-5 above, Box D refers to which type of strategy?

Which of the following examples best demonstrates a company's appreciation of another country's values?

Which global market entry strategy involves slightly more risk than indirect exporting for a company but also opens the door to increased profits?

When German car maker Mercedes-Benz owns and operates a factory in Vance, Alabama, that makes the M-Class sport-utility vehicle, this global market entry strategy is known as ________ and represents the greatest commitment a company can make to international sales.

Generally, as the proportion of middle-income households in a country increases, the nation's purchasing power

The strategy transnational firms employ that standardizes marketing activities when there are cultural similarities and adapts them when cultures differ is referred to as

Which type of exporting has the least amount of commitment and risk but will probably return the least profit?

The Foreign Corrupt Practices Act

Licensing refers to

Describe the elements in a global channel of distribution.

Indirect exporting refers to

When firms originate, produce, and market their products and services worldwide, it is referred to as

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Successful Products, Services, and Brands

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: the Strategic Marketing Proces

Building an Effective Marketing Plan

Financial Aspects of Marketing

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