Deck 1: Introduction to international marketing

Question 1

International marketing creates an interdependence that makes a country like Australia more affluent but also more vulnerable.

Answer 1

True

Question 2

According to the text, the environment is broken down into four major components: economic, trade institutions and trade policy, political and legal, and cultural.

Answer 2

True

Question 3

The four BRIC countries are Brazil, Russia, Indonesia and China.These countries had their first formal meeting in 2009.

Answer 3

False

Question 4

International marketing is the process of planning and conducting transactions across national borders to create exchanges that satisfy the objectives of individuals and organisations.

Question 5

In the international areas of social responsibility and ethics, the international marketer is faced with a multicultural environment with differing expectations and often inconsistent legal systems when it comes to monitoring environmental pollution, maintaining safe working conditions, copying technology or trademarks or paying bribes.

Question 6

Firms increasingly understand that many of the key difficulties encountered in doing business internationally are marketing problems.

Question 7

The global market imposes increasingly tight limits on national economic regulation and sovereignty.

Question 8

Currency flows and exchange rates have a greater effect on trade than do government monetary policies.

Question 9

International marketing is a tool used to obtain improvement of one's present position and retains the basic marketing tenets of 'satisfaction' and 'exchange'.

Question 10

Merchandise trade statistics, in particular, overemphasise production and understate intellectual property from design to brand.

Question 11

All of the key difficulties encountered in doing business internationally are marketing problems.

Question 12

While Asia has grown in importance as an export market for Australia, the UK still remains the most important export market for this country.

Question 13

In international marketing, the basic principles of marketing still apply, but their applications, complexity and intensity may vary substantially.

Question 14

In the definition of international marketing, the major foundation of this process is the planning and conducting of transactions across national borders to create exchanges that satisfy the objectives of individuals and organisations.

Question 15

The binding effect of the global linkages created by world trade (on countries, institutions and individuals)was first widely recognised during the Second World War.

Question 16

Trading blocs encourage trade relations between their members, but through their rules and standards, and the incentives they provide for mutual trade, they also affect the trade and investment flows of non-member countries.

Question 17

A firm can only build and strengthen its competitive position in the international marketplace if it does not transfer its knowledge around the globe.

Question 18

A differentiation strategy takes advantage of the marketer's real or perceived uniqueness in elements such as design or after-sales service.

Question 19

Chinese consumers tend to be less demanding and are not willing to pay more for higher-quality products.Thus, this leads to serious differences between Westerners and Chinese consumers.

Question 20

Even though a firm operates in the international marketplace, it still cannot separate its activities by content and context.

Question 21

Which of the following is not one of the forms of international marketing defined in the text?

A)Government-owned operations
B)Licensing
C)Joint ventures
D)Wholly owned subsidiaries

Question 22

Which of the following statements is not true when describing international transactions?

A)Marketing internationally needs to be pursued, often aggressively.
B)Those who do not participate in the transaction are still exposed to the changing influences of international marketing.
C)International marketing can be as much art as science.
D)The international marketer recognises the changing nature of transactions but is not part of the exchange.

Question 23

By erecting barriers, charging tariffs, designing quotas and implementing other import regulations, governments have attempted to:

A)popularise bureaucratic movement and entice more individuals into government service.
B)restrict the impact of global trade and financial flows.
C)increase income into the government.
D)capitalise on technology and enforce worldwide standards.

Question 24

It has been proposed that markets that reflect a high degree of __________ with respect to marketing mix variables could be grouped into segments and thereby targeted with a largely __________ marketing strategy.

A)heterogeneity; standardised
B)differentiation; stable
C)homogeneity; standardised
D)instability; variable

Question 25

The emergence of technology has created new markets for companies.Which of the following represents an example of this new market tendency?

A)The construction of convenience stores that replace service stations.
B)Listing of ingredients on the side panel labels of products distributed worldwide.
C)Newspapers being distributed online as opposed to physically on newsprint.
D)Storage facilities rented just on time.

Question 26

Which country has had the most dramatic growth in exports in the period 1990-2004?

A)Japan
B)India
C)USA
D)China

Question 27

Firms and industries that are not participating in the world market:

A)recognise that isolation is possible.
B)will become participants in global business affairs anyway.
C)will be better able to react to competition from abroad in the domestic market.
D)are only reactive participants in the domestic market.

Question 28

__________________has long been the mantra in the marketing world.

A)'Think locally, act globally'
B)'Think globally, act locally'
C)'Think globally, act globally'
D)'Think regionally, act globally'

Question 29

Generally, the strategic business unit (SBU)is the unit around which decisions are based.In practice, SBUs represent groupings organised around market similarities based on:

A)needs or wants to be met.
B)end-user customers to be targeted.
C)the product or service used to meet the needs of specific customers.
D)All of these choices

Question 30

All of the following are characteristics of the first stage of the global marketing evolution of a company, except:

A)Entry is constrained by a lack of funding (domestic growth still priority investment), so entry is low-cost
B)The risk tends to be minimised by entering close markets (geographically, culturally and economically)
C)The entry is based on core products with technical superiority
D)The objective is to achieve economies of scope

Question 31

In regards to Australian exporters, which of the following is incorrect?

A)Ninety per cent of Australian exporters have fewer than 50 employees.
B)There is a relatively even spread between Australian export firms involved in consumer and industrial markets.
C)Approximately half of Australian exporters operate in fewer than five export markets.
D)Australian SMEs are responsible for 30% of Australian exports.

Question 32

Which of the following trading blocs does not exist?

A)NAFTA in North America
B)European Union in Europe
C)ASEAN Free Trade Area (AFTA)in Asia
D)Bilateral trade agreements between China and India

Question 33

A _________ is a local company that has assets that gives it a competitive advantage only in its home market.

A)extender
B)dodger
C)contender
D)defender

Question 34

Which of the following events helped identify global linkages, causing the world to realise that the systems of product development, distribution and consumption are intertwined and related?

A)The worldwide oil crisis of 1970
B)Gulf War One and Gulf War Two
C)The Second World War
D)The opening of the Suez Canal

Question 35

The marketing manager's task is to plan and execute programs that will ensure a long-term competitive advantage for the company.This includes determining of a specific target market and:

A)developing a uniform currency worldwide.
B)marketing management.
C)looking at occupants, objects, occasions and objectives.
D)testing markets.

Question 36

One way to guard against market saturation of a product is to:

A)lower interest rates.
B)delay introduction of a new product.
C)personalise the message to the customer.
D)lengthen or rejuvenate product life cycles in other countries.

Question 37

A ___________ is defined by its emphasis on a single industry segment, within which the orientation may be toward either low cost or differentiation.________ is characterised by a company offering products or services at a lower cost than the competition.A _____________ is industry-wide or focused on a single segment and takes advantage of the marketer's real or perceived uniqueness in elements such as design or after-sales service.

A)differentiation strategy; cost leadership; focus strategy
B)differentiation strategy; low-price leadership; focus strategy
C)focus strategy; cost leadership; differentiation strategy
D)price leadership; cost leadership; differentiation strategy

Question 38

Which of the following has traditionally been a domestic issue and is now an international issue?

A)Geographic boundaries of cities
B)The flow of water through dam diversion tunnels
C)Applications for government subsidies
D)Agriculture and farm policies affecting imports and exports

Question 39

____________refers to the capability of attracting and influencing all stakeholders, whether through energetic brands, heroic missions, distinctive talent development or an inspirational corporate culture.

A)Hard power
B)Soft power
C)Influential power
D)Media power

Question 40

Traditionally, trade flow determined currency flows and therefore the level of the exchange rate.The exchange rate is now determined by:

A)currency flows.
B)trade levels.
C)domestic policy.
D)wholesalers who take possession of the product prior to sale.

Question 41

Many of the characteristics of a place relate to four natural attributes; namely:

A)geological characteristics, terrain, hydrology and climate.
B)time, environment, water and population.
C)position, context, rotogravure and agriculture.
D)prehistoric, historic, post-genealogical and genealogical.

Question 42

All of the following statements are correct, except:

A)Observing changes and analysing how best to incorporate them in the international marketing mission are the bread and butter of the international marketer.
B)The frequent changes are precisely what make international marketing so fascinating to those who are active in the field.
C)If the international environment were constant, there would be little challenge.
D)In thinking about marketing objectives, plans, and programs, marketers will have to prioritise the international market over the domestic market.

Question 43

Production has become more efficient as a result of:

A)'just on time' warehousing.
B)the internet.
C)cross-sourcing.
D)newly created niche markets.

Question 44

A lowering of interest rates will cause:

A)domestic consumers to be happier.
B)national capital account creation.
C)an outflow of money from the country.
D)domestic consumers to be happier and an outflow of money from the country.

Question 45

The role of advanced technology and its effect on international marketing is even more apparent:

A)with respect to advances in communications systems.
B)in the need for places to adapt to changing transportation systems.
C)when a city is favourably located along transportation lines.
D)when movement provides a structure for different places to relate to each other.

Question 46

For a long time, _________, ________, ________, ________, and very occasionally Japan, have been the only serious builders in the world to produce large cruise ships.

A)Italy; France; Germany; Finland
B)Italy; Greece; Spain; Portugal
C)United States; Canada; Germany; Norway
D)Norway, Finland; Italy; France

Question 47

Halting destruction of forests in the Amazon Basin, selective harvesting of hardwoods and other products from natural forest, and a restaurant refusing to purchase beef raised on pastures that are established by clearing forests are all examples of what?

A)Concerns about the viability of environmental constructs
B)Concerns about environmental quality
C)The clustering of people-centred incidents in the natural environment
D)Global companies taking advantage of social responsibility awareness

Question 48

What is your understanding of 'Think globally, act locally'?

Question 49

According to the text, which groups of the Australian population generally move out of cities to coastal strips for a 'sea change'?

A)Double income families with no children
B)Double income families with at least two children
C)Professionals, managers, executives and directors
D)Wealthier residents and the 'baby boomers'

Question 50

Why is international marketing important to the growth of global and domestic companies?

Question 51

Briefly describe the four processes of marketing.

Question 52

World trade has made:

A)information easier to gather, manipulate, analyse and disseminate.
B)the pressure to gather information lessen.
C)information easier to gather and disseminate.
D)the price of information more easily manipulated.

Question 53

All of the following are part of the BRIC countries, except:

A)China
B)Russia
C)Brazil
D)Indonesia

Question 54

According to the text, the factors of the population that also play a role in determining how a place fits into global economic affairs include:

A)skills and qualifications.
B)culture, race and religion.
C)natural resources, skills and qualifications.
D)traditions, history and culture.

Question 55

To achieve success in the art of international marketing, it is necessary for a firm to be firmly grounded in:

A)the language and aesthetics of any cultural group targeted.
B)the cultural differences in the expanded client base.
C)the six 'p's of international marketing.
D)the scientific aspects of international marketing.

Question 56

What types of hydrology affect terrain?

A)Rainfall, snowfall and hail
B)Rivers, lakes and other bodies of water
C)Canals, sewer systems and reservoirs
D)Precipitation, weather and climate

Question 57

In the past two decades:

A)the role of primary commodities in world trade has dropped.
B)the volume of services in world trade has stabilised.
C)the importance of manufactured goods in world trade has decreased.
D)there has been a decrease in world trade.