Question 1

In a waterfall approach to international expansion, ________.

Accepted Answer

A)  firms enter countries gradually in a sequence 
B)  firms enter those countries first where the demand for the product is greatest 
C)  countries are entered based upon the availability of government subsidies 
D)  firms enter those countries first where the supply of raw material is greatest 
E)  countries are entered based upon ease of entry 
A)  firms enter countries gradually in a sequence 
B)  firms enter those countries first where the demand for the product is greatest 
C)  countries are entered based upon the availability of government subsidies 
D)  firms enter those countries first where the supply of raw material is greatest 
E)  countries are entered based upon ease of entry

Question 2

The World Trade Organization, consisting of 158 countries, works to erect entry barriers or regulations that limit free trade.

Accepted Answer

A) True 
 B)False

Question 3

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

As the person responsible for deciding t

Question 4

When companies are setting prices in different countries, the problem with setting a market-based price in each country 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 might price the product out of the market in countries where costs are high 
D)  this strategy would make the price too high in poor countries and not high enough in rich countries 
E)  it prevents the company from differentiating its products 
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 might price the product out of the market in countries where costs are high 
D)  this strategy would make the price too high in poor countries and not high enough in rich countries 
E)  it prevents the company from differentiating its products

Question 5

Various governments force companies to charge the ________ price, which is charged by other competitors for the same or a similar product.

Accepted Answer

A)  gray market 
B)  implicit 
C)  arm's-length 
D)  authorized 
E)  contingent 
A)  gray market 
B)  implicit 
C)  arm's-length 
D)  authorized 
E)  contingent

Question 6

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

Question 7

Smaller packaging and lower sales prices are often critical in markets where incomes are limited.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following can cause a firm to choose joint ventures as a mode of expansion into foreign markets?

Accepted Answer

A)  excellent managerial resources 
B)  lack of sufficient finances 
C)  lack of conflicting regulations in the host country 
D)  preferences of target consumers in the host country 
E)  psychic proximity of the host country 
A)  excellent managerial resources 
B)  lack of sufficient finances 
C)  lack of conflicting regulations in the host country 
D)  preferences of target consumers in the host country 
E)  psychic proximity of the host country

Question 9

Briefly describe the advantages of direct investment.

Accepted Answer

In direct investment, the firm:
• secure

Question 10

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 11

Define a joint venture and list some of the advantages and disadvantages.

Accepted Answer

In a joint venture, foreign investors an

Question 12

If Kellogg's offered different varieties of breakfast cereals in India as compared to Australia, and also positioned its products differently in the two countries, then Kellogg's would be engaging in dual adaptation.

Accepted Answer

A) True 
 B)False

Question 13

James Franks lives in Miami. He buys local products from manufacturers in Miami and other parts of Florida and sells them abroad, mainly to Caribbean nations. Mr. Franks is a(n) ________.

Accepted Answer

A)  domestic-based export merchant 
B)  domestic-based export agent 
C)  cooperative agent 
D)  export-management agent 
E)  direct exporting agent 
A)  domestic-based export merchant 
B)  domestic-based export agent 
C)  cooperative agent 
D)  export-management agent 
E)  direct exporting agent

Question 14

In an adapted marketing program, the company ________.

Accepted Answer

A)  ensures that uniform practices are adopted across countries 
B)  focuses more on brand image than consumer preferences 
C)  ignores differences in the legal environment 
D)  ensures the lowest cost marketing program is adopted 
E)  tailors the marketing programs to each target market 
A)  ensures that uniform practices are adopted across countries 
B)  focuses more on brand image than consumer preferences 
C)  ignores differences in the legal environment 
D)  ensures the lowest cost marketing program is adopted 
E)  tailors the marketing programs to each target market

Question 15

Services account for nearly 40 percent of global trade.

Accepted Answer

A) True 
 B)False

Question 16

When one unit charges another unit in the same company for goods it ships to its foreign subsidiaries, the charge is called a(n) ________ price.

Accepted Answer

A)  original 
B)  transfer 
C)  margin 
D)  break-even 
E)  customer value 
A)  original 
B)  transfer 
C)  margin 
D)  break-even 
E)  customer value

Question 17

A global profile is essential for firms like Prada, Gucci, and Louis Vuitton to profitably grow because the addressable market is small.

Accepted Answer

A) True 
 B)False

Question 18

Straight extension means using an established product's brand name for a new item in the same product category.

Accepted Answer

A) True 
 B)False

Question 19

Hotel chains such as Hyatt and Marriott sell a variation of the licensing agreement called ________ to the owners of foreign hotels to manage these businesses for a fee.

Accepted Answer

A)  greenfield venturing 
B)  management contracts 
C)  strategic alliance 
D)  indirect exporting 
E)  direct exporting 
A)  greenfield venturing 
B)  management contracts 
C)  strategic alliance 
D)  indirect exporting 
E)  direct exporting

Question 20

Product adaptation not only involves altering the product to meet local preferences, but also calls for a change in the communication strategy.

Accepted Answer

A) True 
 B)False

Exam 8: Tapping Into Global Markets

In a waterfall approach to international expansion, ________.

The World Trade Organization, consisting of 158 countries, works to erect entry barriers or regulations that limit free trade.

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.

When companies are setting prices in different countries, the problem with setting a market-based price in each country is that ________.

Various governments force companies to charge the ________ price, which is charged by other competitors for the same or a similar product.

Smaller packaging and lower sales prices are often critical in markets where incomes are limited.

Which of the following can cause a firm to choose joint ventures as a mode of expansion into foreign markets?

Briefly describe the advantages of direct investment.

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

Define a joint venture and list some of the advantages and disadvantages.

If Kellogg's offered different varieties of breakfast cereals in India as compared to Australia, and also positioned its products differently in the two countries, then Kellogg's would be engaging in dual adaptation.

James Franks lives in Miami. He buys local products from manufacturers in Miami and other parts of Florida and sells them abroad, mainly to Caribbean nations. Mr. Franks is a(n) ________.

In an adapted marketing program, the company ________.

Services account for nearly 40 percent of global trade.

When one unit charges another unit in the same company for goods it ships to its foreign subsidiaries, the charge is called a(n) ________ price.

A global profile is essential for firms like Prada, Gucci, and Louis Vuitton to profitably grow because the addressable market is small.

Straight extension means using an established product's brand name for a new item in the same product category.

Hotel chains such as Hyatt and Marriott sell a variation of the licensing agreement called ________ to the owners of foreign hotels to manage these businesses for a fee.

Product adaptation not only involves altering the product to meet local preferences, but also calls for a change in the communication strategy.

Defining Marketing for the New Realities

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

Crafting the Brand Positioning

Creating Brand Equity

Addressing Competition and Driving Growth

Setting Product Strategy

Designing and Managing Services

Introducing New Market Offerings

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 Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Managing a Holistic Marketing Organization for the Long Run

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