Question 1

Identify a benefit of using joint ventures to enter a foreign market.

Accepted Answer

A) It entails minimum risk. 
B) It provides access to an established distribution network in the host country. 
C) It yields the highest returns. 
D) It retains full control of its investment in the host country. 
E) It is the best strategy for countries with psychic proximity. 
A) It entails minimum risk. 
B) It provides access to an established distribution network in the host country. 
C) It yields the highest returns. 
D) It retains full control of its investment in the host country. 
E) It is the best strategy for countries with psychic proximity.

Question 2

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 3

"BRIC" is an acronym for ________.

Accepted Answer

A) Brazil,Russia,India,and China 
B) Bolivia,Russia,Indonesia,and China 
C) Brazil,Russia,Indonesia,and China 
D) Bolivia,Russia,India,and Canada 
E) Bolivia,Russia,Indonesia,and Canada 
A) Brazil,Russia,India,and China 
B) Bolivia,Russia,Indonesia,and China 
C) Brazil,Russia,Indonesia,and China 
D) Bolivia,Russia,India,and Canada 
E) Bolivia,Russia,Indonesia,and Canada

Question 4

A2Z Inc.is a producer of a wide variety of consumer goods in Malaysia.It has successfully captured a huge share of the domestic market and has been able to create a very strong brand.It is now considering a foray into foreign markets.Its board of directors decide to first try out some of its products in the neighboring country of Indonesia.A2Z plans to eventually expand its presence in other countries,after they analyze the impact of their entry into the Indonesian market.A2Z Inc.is following a ________.

Accepted Answer

A) born global approach 
B) waterfall approach 
C) sprinkler approach 
D) franchisee approach 
E) shotgun approach 
A) born global approach 
B) waterfall approach 
C) sprinkler approach 
D) franchisee approach 
E) shotgun approach

Question 5

Global firms plan,operate,and coordinate their activities on a worldwide basis.

Accepted Answer

A) True 
 B)False

Question 6

Although the opportunities to enter and compete in international markets are significant,the risks can also be low.

Accepted Answer

A) True 
 B)False

Question 7

A risk averse attitude is associated with ________.

Accepted Answer

A) high uncertainty avoidance 
B) high femininity 
C) high power distance 
D) high individualism 
E) high collectivism 
A) high uncertainty avoidance 
B) high femininity 
C) high power distance 
D) high individualism 
E) high collectivism

Question 8

WayToGrow Inc.is one of the most popular brand of toys in its home market.The company decides to expand its business abroad and its board of directors feel that instead of trying to establish its presence all at once in multiple markets,it is better to expand one country at a time.This would limit their risk and allow them to analyze customer response,after which they could expand to other similar countries.WayToGrow is following a ________.

Accepted Answer

A) shotgun approach 
B) continuous approach 
C) born global approach 
D) sprinkler approach 
E) waterfall approach 
A) shotgun approach 
B) continuous approach 
C) born global approach 
D) sprinkler approach 
E) waterfall approach

Question 9

Companies can run the same marketing communications programs as used in the home market or change them for each local market,a process called ________.

Accepted Answer

A) product communications 
B) market development 
C) dual adaptation 
D) diversification 
E) communication adaptation 
A) product communications 
B) market development 
C) dual adaptation 
D) diversification 
E) communication adaptation

Question 10

Domestic-based export agents perform a valuable service for companies seeking to enter foreign markets.The primary function of these agents is to ________.

Accepted Answer

A) carry on exporting activities on behalf of several producers 
B) buy the manufacturer's products and then sell them abroad 
C) buy foreign products and sell them in the domestic country 
D) seek and negotiate foreign purchases for a commission 
E) produce and export products to foreign countries 
A) carry on exporting activities on behalf of several producers 
B) buy the manufacturer's products and then sell them abroad 
C) buy foreign products and sell them in the domestic country 
D) seek and negotiate foreign purchases for a commission 
E) produce and export products to foreign countries

Question 11

People are often ethnocentric and favorably predisposed to their own country's products,unless they come from a less developed country.

Accepted Answer

A) True 
 B)False

Question 12

When companies sell their goods abroad,they face a price escalation problem.Define price escalation.

Accepted Answer

A firm must add the costs of transportat

Question 13

Describe the whole-channel concept of international marketing.

Accepted Answer

Many manufacturers think their job is do

Question 14

Existence of gray markets lead to which of the following outcomes?

Accepted Answer

A) They make the distribution channel stronger. 
B) They create a free-rider problem making legitimate distributors' investments in supporting a manufacturer's product less productive. 
C) Goods sold in grey markets are always counterfeit. 
D) Goods sold in grey markets come with standard product warranties. 
E) Taxes imposed on grey market products are very high. 
A) They make the distribution channel stronger. 
B) They create a free-rider problem making legitimate distributors' investments in supporting a manufacturer's product less productive. 
C) Goods sold in grey markets are always counterfeit. 
D) Goods sold in grey markets come with standard product warranties. 
E) Taxes imposed on grey market products are very high.

Question 15

Indirect exports are characterized by high investment,and therefore high risk.

Accepted Answer

A) True 
 B)False

Question 16

The New Zealand Way program was an initiative by the government of New Zealand to raise awareness and attract tourists by showing the dramatic landscapes featured in "The Lord of the Rings" film trilogy.This is an example of a government trying to strengthen its ________.

Accepted Answer

A) country-of-origin perceptions 
B) international subsidiaries 
C) internationalization 
D) contract manufacturing 
E) distributor relationships 
A) country-of-origin perceptions 
B) international subsidiaries 
C) internationalization 
D) contract manufacturing 
E) distributor relationships

Question 17

Once a company decides to target a particular country,it must determine the best mode of entry.Each of its market entry strategies involves more commitment,risk,control,and profit potential.List these market entry strategies in order from low risk to high risk.

Accepted Answer

The five modes of entry into foreign mar

Question 18

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 19

What is the main disadvantage of direct investment?

Accepted Answer

The main disadvantage of direct investme

Question 20

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

Exam 22: Tapping Into Global Markets

Identify a benefit of using joint ventures to enter a foreign market.

Dumping occurs when ________.

"BRIC" is an acronym for ________.

Global firms plan,operate,and coordinate their activities on a worldwide basis.

Although the opportunities to enter and compete in international markets are significant,the risks can also be low.

A risk averse attitude is associated with ________.

Companies can run the same marketing communications programs as used in the home market or change them for each local market,a process called ________.

Domestic-based export agents perform a valuable service for companies seeking to enter foreign markets.The primary function of these agents is to ________.

People are often ethnocentric and favorably predisposed to their own country's products,unless they come from a less developed country.

When companies sell their goods abroad,they face a price escalation problem.Define price escalation.

Describe the whole-channel concept of international marketing.

Existence of gray markets lead to which of the following outcomes?

Indirect exports are characterized by high investment,and therefore high risk.

The New Zealand Way program was an initiative by the government of New Zealand to raise awareness and attract tourists by showing the dramatic landscapes featured in "The Lord of the Rings" film trilogy.This is an example of a government trying to strengthen its ________.

Once a company decides to target a particular country,it must determine the best mode of entry.Each of its market entry strategies involves more commitment,risk,control,and profit potential.List these market entry strategies in order from low risk to high risk.

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

What is the main disadvantage of direct investment?

In an adapted marketing program,the company ________.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Gathering Information and Forecasting Demand

Conducting Marketing Research

Creating Customer Value,satisfaction,and Loyalty

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 Marketing Channels and Value Networks

Managing Retailing,wholesaling,and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, sales Promotions, events, and Public Relations

Managing Digital Communications: Online, social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Introducing New Market Offerings

Managing a Holistic Marketing Organization

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