Question 1

Define a currency exchange rate and discuss its importance to global companies.

Accepted Answer

Fluctuations in exchange rates among the

Question 2

A New York car wash owner wanted to open a car wash in Quebec, Canada. He hired a U.S. translator to create signage for the new venture and to design some simple advertising. It was not until the business was opened that he realized he should have used ________. His French signs actually said "car bath" instead of "car wash."

Accepted Answer

A)  Esperanto 
B)  back translation 
C)  semiotics 
D)  semantic symbolism 
E)  linguistic exchange 
A)  Esperanto 
B)  back translation 
C)  semiotics 
D)  semantic symbolism 
E)  linguistic exchange

Question 3

Since 1963, the guiding principle of Mary Kay, Inc., has been based on

Accepted Answer

A)  the Consumer Bill of Rights. 
B)  the Golden Rule. 
C)  caveat emptor. 
D)  the American Marketing Association Statement of Ethics. 
E)  maximizing profits so long as the firm stays within the rules. 
A)  the Consumer Bill of Rights. 
B)  the Golden Rule. 
C)  caveat emptor. 
D)  the American Marketing Association Statement of Ethics. 
E)  maximizing profits so long as the firm stays within the rules.

Question 4

Which of the following statements concerning currency exchange rates is most accurate?

Accepted Answer

A)  Short-term exchange-rate fluctuations can have a significant effect on the profits of global companies. 
B)  Fluctuations in exchange rates among the world's currencies occur, but multinational companies are insulated from the effects because of direct investment. 
C)  Exchange rate fluctuations are relatively rare, and when they occur, their effects are minimal. 
D)  Exchange rate fluctuations are now almost nonexistent due in great part to the stability of the euro. 
E)  Exchange rate fluctuations may affect the financial sector but rarely reach the consumer. 
A)  Short-term exchange-rate fluctuations can have a significant effect on the profits of global companies. 
B)  Fluctuations in exchange rates among the world's currencies occur, but multinational companies are insulated from the effects because of direct investment. 
C)  Exchange rate fluctuations are relatively rare, and when they occur, their effects are minimal. 
D)  Exchange rate fluctuations are now almost nonexistent due in great part to the stability of the euro. 
E)  Exchange rate fluctuations may affect the financial sector but rarely reach the consumer.

Question 5

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 6

A global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as

Accepted Answer

A)  licensing. 
B)  a joint venture. 
C)  direct exporting. 
D)  contract assembly. 
E)  dual adaptation. 
A)  licensing. 
B)  a joint venture. 
C)  direct exporting. 
D)  contract assembly. 
E)  dual adaptation.

Question 7

A firm's profit potential and control over marketing activities ________ as it moves from exporting to direct investment as a global market entry strategy.

Accepted Answer

A)  becomes more stable 
B)  increases 
C)  levels off 
D)  decreases 
E)  becomes more unpredictable 
A)  becomes more stable 
B)  increases 
C)  levels off 
D)  decreases 
E)  becomes more unpredictable

Question 8

Figure 6-5
-Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-5, E 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 9

Another term for a gray market is

Accepted Answer

A)  equivalent exporting. 
B)  back-channel market. 
C)  mature marketing. 
D)  parallel importing. 
E)  transparent market. 
A)  equivalent exporting. 
B)  back-channel market. 
C)  mature marketing. 
D)  parallel importing. 
E)  transparent market.

Question 10

What are the product and promotion strategies available to a company seeking to enter the global marketplace? How do they relate to each other in terms of the same or adapted product and promotion?

Accepted Answer

There are five global marketing product

Question 11

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

Question 12

Figure 6-5
-Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-5, 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 13

One disadvantage of direct investment when entering a new global market is

Accepted Answer

A)  intermediaries have the potential to harm the brand. 
B)  the firm entering the foreign market must pay royalties to the government. 
C)  the company forgoes control over its product. 
D)  the financial commitments involved. 
E)  this method is likely to provide the fewest cost savings relative to the other global market entry options. 
A)  intermediaries have the potential to harm the brand. 
B)  the firm entering the foreign market must pay royalties to the government. 
C)  the company forgoes control over its product. 
D)  the financial commitments involved. 
E)  this method is likely to provide the fewest cost savings relative to the other global market entry options.

Question 14

All of the following are disadvantages of licensing except which?

Accepted Answer

A)  The licensor has reduced potential profits compared to direct investment. 
B)  The licensor incurs higher costs for product manufacturing in the foreign country. 
C)  The licensor forgoes control of its product. 
D)  Should the licensee prove to be a poor choice, the name or reputation of the company may be harmed. 
E)  The licensor may be creating its own competition. 
A)  The licensor has reduced potential profits compared to direct investment. 
B)  The licensor incurs higher costs for product manufacturing in the foreign country. 
C)  The licensor forgoes control of its product. 
D)  Should the licensee prove to be a poor choice, the name or reputation of the company may be harmed. 
E)  The licensor may be creating its own competition.

Question 15

The North American Free Trade Agreement was designed to encourage free trade between

Accepted Answer

A)  North America, Central America, and South America. 
B)  the United States and the European Union. 
C)  member countries originally from NATO (North Atlantic Treaty Organization). 
D)  the United States, Canada, and Mexico. 
E)  the United States, Canada, and the United Kingdom. 
A)  North America, Central America, and South America. 
B)  the United States and the European Union. 
C)  member countries originally from NATO (North Atlantic Treaty Organization). 
D)  the United States, Canada, and Mexico. 
E)  the United States, Canada, and the United Kingdom.

Question 16

Which of the following issues raises concerns about the ethics of protectionism?

Accepted Answer

A)  Competitive advantage grows out of continuous improvement. 
B)  Small firms succeed in foreign niche markets. 
C)  Tariffs have declined from an average of 40 percent to less than 5 percent. 
D)  Regional trade agreements may provide preferential treatment for member nations. 
E)  Pan-European marketing strategies are possible due to greater uniformity in packaging standards. 
A)  Competitive advantage grows out of continuous improvement. 
B)  Small firms succeed in foreign niche markets. 
C)  Tariffs have declined from an average of 40 percent to less than 5 percent. 
D)  Regional trade agreements may provide preferential treatment for member nations. 
E)  Pan-European marketing strategies are possible due to greater uniformity in packaging standards.

Question 17

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

Accepted Answer

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

Question 18

The prominent global market entry strategy among small- and medium-sized companies is

Accepted Answer

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

Question 19

Mars, America's second-largest candy company, began doing business in Russia in the late 1980s. The Snickers bar is one of the top-selling candies in Russia and is marketed in much the same way as it is in the United States. What type of global company is Mars?

Accepted Answer

A)  an international firm 
B)  a multidomestic firm 
C)  a transnational firm 
D)  a meganational firm 
E)  a multinational firm 
A)  an international firm 
B)  a multidomestic firm 
C)  a transnational firm 
D)  a meganational firm 
E)  a multinational firm

Question 20

Five developments in the past decade have significantly influenced the landscape of global marketing. One of them is

Accepted Answer

A)  the presence of a networked global marketspace. 
B)  an elimination worldwide of tariff and quotas. 
C)  a more aggressive attitude toward regulating international banking. 
D)  a sharp decline in economic espionage. 
E)  a gradual dissolution of unpopular trade agreements. 
A)  the presence of a networked global marketspace. 
B)  an elimination worldwide of tariff and quotas. 
C)  a more aggressive attitude toward regulating international banking. 
D)  a sharp decline in economic espionage. 
E)  a gradual dissolution of unpopular trade agreements.

Define a currency exchange rate and discuss its importance to global companies.

Since 1963, the guiding principle of Mary Kay, Inc., has been based on

Which of the following statements concerning currency exchange rates is most accurate?

A global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as

A firm's profit potential and control over marketing activities ________ as it moves from exporting to direct investment as a global market entry strategy.

Figure 6-5 -Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-5, E refers to which type of strategy?

Another term for a gray market is

What are the product and promotion strategies available to a company seeking to enter the global marketplace? How do they relate to each other in terms of the same or adapted product and promotion?

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

Figure 6-5 -Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-5, D refers to which type of strategy?

One disadvantage of direct investment when entering a new global market is

All of the following are disadvantages of licensing except which?

The North American Free Trade Agreement was designed to encourage free trade between

Which of the following issues raises concerns about the ethics of protectionism?

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

The prominent global market entry strategy among small- and medium-sized companies is

Mars, America's second-largest candy company, began doing business in Russia in the late 1980s. The Snickers bar is one of the top-selling candies in Russia and is marketed in much the same way as it is in the United States. What type of global company is Mars?

Five developments in the past decade have significantly influenced the landscape of global marketing. One of them is

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

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

Pricing Products and Services

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Implementing Interactive and Multichannel Marketing

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

Filters

Exam 6: Understanding and Reaching Global Consumers and Markets

Define a currency exchange rate and discuss its importance to global companies.

Since 1963, the guiding principle of Mary Kay, Inc., has been based on

Which of the following statements concerning currency exchange rates is most accurate?

A global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as

A firm's profit potential and control over marketing activities ________ as it moves from exporting to direct investment as a global market entry strategy.

Figure 6-5 -Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-5, E refers to which type of strategy?

Another term for a gray market is

What are the product and promotion strategies available to a company seeking to enter the global marketplace? How do they relate to each other in terms of the same or adapted product and promotion?

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

Figure 6-5 -Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-5, D refers to which type of strategy?

One disadvantage of direct investment when entering a new global market is

All of the following are disadvantages of licensing except which?

The North American Free Trade Agreement was designed to encourage free trade between

Which of the following issues raises concerns about the ethics of protectionism?

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

The prominent global market entry strategy among small- and medium-sized companies is

Mars, America's second-largest candy company, began doing business in Russia in the late 1980s. The Snickers bar is one of the top-selling candies in Russia and is marketed in much the same way as it is in the United States. What type of global company is Mars?

Five developments in the past decade have significantly influenced the landscape of global marketing. One of them is

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

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

Pricing Products and Services

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Implementing Interactive and Multichannel Marketing

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

Filters