Question 1

How do multinationals try to prevent gray markets?

Accepted Answer

Multinationals try to prevent gray marke

Question 2

"No matter which nation a person belongs to,people's inherent needs and requirements are essentially the same."-Do you agree with this statement? How relevant is this statement in the context of marketing?

Accepted Answer

Student answers will vary.The statement

Question 3

Gray market activities harm distributor relations,tarnish the manufacturer's brand equity,and undermine the integrity of the distribution channel.

Accepted Answer

A) True 
 B)False

Question 4

Trends Inc.produces and markets casual wear for men and women.The company wants to be a global brand and is planning to enter a few chosen markets across Europe and Asia.To accommodate the differences in purchasing power and costs of shipping goods to the retailers,the company has decided to use cost-based pricing in each country.In order to ensure that this strategy is successful,Trends must first make sure that ________.

Accepted Answer

A) all the countries it is planning to enter have similar laws and regulations 
B) competing offerings in the different markets are not priced lower 
C) all competitors follow cost-based pricing 
D) its marketing communication targets rival firms in the respective markets to prove its superiority 
E) its transfer prices are high 
A) all the countries it is planning to enter have similar laws and regulations 
B) competing offerings in the different markets are not priced lower 
C) all competitors follow cost-based pricing 
D) its marketing communication targets rival firms in the respective markets to prove its superiority 
E) its transfer prices are high

Question 5

When the licensor provides the licensee with a complete brand concept and operating system,the arrangement is called contract manufacturing.

Accepted Answer

A) True 
 B)False

Question 6

Straight extension of the product means ________.

Accepted Answer

A) introducing the product to the foreign market without any changes to the product 
B) introducing the product to the foreign market with minor changes to the product 
C) introducing the product to the foreign market with major changes to the product 
D) introducing a customized product to the foreign market with a new marketing strategy 
E) introducing a customized product to the foreign market with existing marketing strategy 
A) introducing the product to the foreign market without any changes to the product 
B) introducing the product to the foreign market with minor changes to the product 
C) introducing the product to the foreign market with major changes to the product 
D) introducing a customized product to the foreign market with a new marketing strategy 
E) introducing a customized product to the foreign market with existing marketing strategy

Question 7

In a sprinkler approach to international expansion,________.

Accepted Answer

A) countries are entered when competition is limited 
B) countries are gradually entered sequentially 
C) countries in which the supply of raw material is greatest are entered first 
D) countries in which the demand for the product is greatest are entered first 
E) many countries are entered simultaneously 
A) countries are entered when competition is limited 
B) countries are gradually entered sequentially 
C) countries in which the supply of raw material is greatest are entered first 
D) countries in which the demand for the product is greatest are entered first 
E) many countries are entered simultaneously

Question 8

Backward invention occurs when a firm ________.

Accepted Answer

A) creates a new product to meet a need in another country 
B) reintroduces earlier product forms adapted to suit another country's needs 
C) invents products that are similar to competing offerings 
D) takes an existing product into a new market 
E) produces its own raw materials 
A) creates a new product to meet a need in another country 
B) reintroduces earlier product forms adapted to suit another country's needs 
C) invents products that are similar to competing offerings 
D) takes an existing product into a new market 
E) produces its own raw materials

Question 9

Forward invention is ________.

Accepted Answer

A) creating a new product to meet a need in another country 
B) creating a new product to meet the need in the home country 
C) inventing products that are superior to competing offerings 
D) taking an existing product into a new market 
E) inventing something that as yet has no "market" 
A) creating a new product to meet a need in another country 
B) creating a new product to meet the need in the home country 
C) inventing products that are superior to competing offerings 
D) taking an existing product into a new market 
E) inventing something that as yet has no "market"

Question 10

Zodiac Inc.is one of the leading producers of designer bags in its country.The company is considering shifting some of its production to India.Which of the following could have prompted this move?

Accepted Answer

A) People in India prefer imported designer bags. 
B) Zodiac can target a niche market of high-profile consumers who have a high income. 
C) Zodiac needs a larger customer base to achieve economies of scale. 
D) People in the home country have an ethnocentric approach. 
E) Market research indicates that Indian consumers have a low per-capita income. 
A) People in India prefer imported designer bags. 
B) Zodiac can target a niche market of high-profile consumers who have a high income. 
C) Zodiac needs a larger customer base to achieve economies of scale. 
D) People in the home country have an ethnocentric approach. 
E) Market research indicates that Indian consumers have a low per-capita income.

Question 11

A company that has the regional vice presidents for North America,Latin America,Europe,and Africa reporting to the international division president is said to be a(n)________.

Accepted Answer

A) international subsidiary 
B) geographical organization 
C) world product group 
D) export department 
E) hierarchical organization 
A) international subsidiary 
B) geographical organization 
C) world product group 
D) export department 
E) hierarchical organization

Question 12

Nash & Associates is a firm that takes care of all export procedures on behalf of its clients.In exchange for a fee,the firm acts as the liaison between domestic manufacturers and prospective foreign buyers.It has access to established distribution networks in other countries that domestic small-scale producers are unlikely to have,and facilitates communication between foreign importers and domestic producers.Nash & Associates is most likely a(n)________.

Accepted Answer

A) domestic-based export merchant 
B) domestic-based export agent 
C) cooperative organization 
D) export-management company 
E) direct exporter 
A) domestic-based export merchant 
B) domestic-based export agent 
C) cooperative organization 
D) export-management company 
E) direct exporter

Question 13

Companies can manage their international marketing activities in three ways: export departments,international divisions,or ________.

Accepted Answer

A) global organization 
B) fixed corporate headquarters 
C) strong marketing department in the "host" country 
D) local marketing efforts 
E) strategic business units 
A) global organization 
B) fixed corporate headquarters 
C) strong marketing department in the "host" country 
D) local marketing efforts 
E) strategic business units

Question 14

Forces promoting global integration include ________.

Accepted Answer

A) strong local preferences 
B) heterogeneous demand 
C) local standards and barriers 
D) strong consumer resistance to foreign goods 
E) capital-intensive production 
A) strong local preferences 
B) heterogeneous demand 
C) local standards and barriers 
D) strong consumer resistance to foreign goods 
E) capital-intensive production

Question 15

Some types of products travel better across borders than others.What types of products are most likely to be successful as straight extensions.

Accepted Answer

Straight extension introduces

Question 16

Which of the following is most likely to be successful when introduced in foreign markets as a straight extension?

Accepted Answer

A) laundry detergent 
B) khaki pants 
C) dessert mixes 
D) digital camera 
E) condensed soup 
A) laundry detergent 
B) khaki pants 
C) dessert mixes 
D) digital camera 
E) condensed soup

Question 17

Which of the following is the first stage of the internationalization process that can induce firms to enter the international arena?

Accepted Answer

A) no regular export activities 
B) export via independent representatives (agents) 
C) establishment of one or more sales subsidiaries 
D) establishment of production facilities abroad 
E) adoption of a flexible exchange rate regime 
A) no regular export activities 
B) export via independent representatives (agents) 
C) establishment of one or more sales subsidiaries 
D) establishment of production facilities abroad 
E) adoption of a flexible exchange rate regime

Question 18

As people in developing countries often prefer to buy in smaller quantities,________ is one of the most important functions of intermediaries in developing countries and helps perpetuate the long channels of distribution,which are a major obstacle to the expansion of retailing.

Accepted Answer

A) product adaptation 
B) breaking bulk 
C) diversification 
D) transfer pricing 
E) dual adaptation 
A) product adaptation 
B) breaking bulk 
C) diversification 
D) transfer pricing 
E) dual adaptation

Question 19

According to Hofstede,cultures with low power distance are ________.

Accepted Answer

A) collectivist 
B) assertive 
C) egalitarian 
D) risk-averse 
E) risk-tolerant 
A) collectivist 
B) assertive 
C) egalitarian 
D) risk-averse 
E) risk-tolerant

Question 20

Which of the following is true about direct investment as a mode of international expansion?

Accepted Answer

A) It allows a firm to retain full control over its investment. 
B) It yields the lower returns than joint ventures. 
C) It involves the least amount of risk. 
D) It involves the least cost. 
E) It does not allow the firm to diversify. 
A) It allows a firm to retain full control over its investment. 
B) It yields the lower returns than joint ventures. 
C) It involves the least amount of risk. 
D) It involves the least cost. 
E) It does not allow the firm to diversify.

Exam 22: Tapping Into Global Markets

How do multinationals try to prevent gray markets?

"No matter which nation a person belongs to,people's inherent needs and requirements are essentially the same."-Do you agree with this statement? How relevant is this statement in the context of marketing?

Gray market activities harm distributor relations,tarnish the manufacturer's brand equity,and undermine the integrity of the distribution channel.

When the licensor provides the licensee with a complete brand concept and operating system,the arrangement is called contract manufacturing.

Straight extension of the product means ________.

In a sprinkler approach to international expansion,________.

Backward invention occurs when a firm ________.

Forward invention is ________.

Zodiac Inc.is one of the leading producers of designer bags in its country.The company is considering shifting some of its production to India.Which of the following could have prompted this move?

A company that has the regional vice presidents for North America,Latin America,Europe,and Africa reporting to the international division president is said to be a(n)________.

Companies can manage their international marketing activities in three ways: export departments,international divisions,or ________.

Forces promoting global integration include ________.

Some types of products travel better across borders than others.What types of products are most likely to be successful as straight extensions.

Which of the following is most likely to be successful when introduced in foreign markets as a straight extension?

Which of the following is the first stage of the internationalization process that can induce firms to enter the international arena?

As people in developing countries often prefer to buy in smaller quantities,________ is one of the most important functions of intermediaries in developing countries and helps perpetuate the long channels of distribution,which are a major obstacle to the expansion of retailing.

According to Hofstede,cultures with low power distance are ________.

Which of the following is true about direct investment as a mode of international expansion?

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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