Question 1

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

Accepted Answer

In a joint venture,foreign investors and

Question 2

The problem with setting a uniform global price for a product 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 can price the product out of the market in countries where costs are high 
D) this strategy makes the price too high in poor countries and not high enough in rich countries 
E) it is ineffective for products that are homogeneous 
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 can price the product out of the market in countries where costs are high 
D) this strategy makes the price too high in poor countries and not high enough in rich countries 
E) it is ineffective for products that are homogeneous

Question 3

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 redtapism 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 redtapism in the host country 
D) preferences of target consumers in the host country 
E) psychic proximity of the host country

Question 4

Commonwealth countries such as Hong Kong,Malaysia,and Singapore often choose the U.K.as their springboard into the European market: they feel more comfortable with its language,laws,and culture,which reflect the ________ between these countries and the U.K.

Accepted Answer

A) self-serving bias 
B) coincident development 
C) psychic proximity 
D) cognitive dissonance 
E) backward invention 
A) self-serving bias 
B) coincident development 
C) psychic proximity 
D) cognitive dissonance 
E) backward invention

Question 5

What are the various risks that a company must consider before making a decision to enter foreign markets?

Accepted Answer

These risks are: (1)The company might no

Question 6

After successfully exporting its products through export merchants,Boyes Inc.decides to take control of its exports.It sets up its own unit in the home country that takes care of all export-related activities.Boyes Inc.is most likely using ________.

Accepted Answer

A) foreign-based distributors or agents 
B) domestic-based export department 
C) export merchants in foreign countries 
D) export-management companies 
E) traveling export sales representatives 
A) foreign-based distributors or agents 
B) domestic-based export department 
C) export merchants in foreign countries 
D) export-management companies 
E) traveling export sales representatives

Question 7

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 8

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 9

James Foo lives in Malaysia.He buys local products from manufacturers in Malaysia and sells them abroad,mainly to Caribbean nations.Mr.Foo 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 10

Most brands are adapted to some extent to reflect significant differences in consumer behavior,brand development,competitive forces,and the legal or political environment.Identify the five international product and communication strategies available to firms that expand their businesses to foreign countries.

Accepted Answer

The five internation

Question 11

Indirect exports have two advantages for a firm: they involve less investment and ________.

Accepted Answer

A) less paperwork 
B) less intrusion by the government 
C) less risk 
D) less competition 
E) less customer suits 
A) less paperwork 
B) less intrusion by the government 
C) less risk 
D) less competition 
E) less customer suits

Question 12

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 13

Country-of-origin perceptions,once formed,are very difficult to change.

Accepted Answer

A) True 
 B)False

Question 14

According to Hofstede,cultures with weak uncertainty avoidance are best described as ________.

Accepted Answer

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

Question 15

Country-of-origin effects refer to the attitude anything produced by the home country is better than imported goods.

Accepted Answer

A) True 
 B)False

Question 16

When deciding where to operate internationally,it often makes sense to operate in fewer countries,with a deeper commitment and penetration in each.Mention some of the criteria that a country should possess in order to be a viable and attractive investment destination.

Accepted Answer

Companies prefer to enter coun

Question 17

Regional economic integration has intensified in recent years,which makes it more difficult for marketers to expand globally.

Accepted Answer

A) True 
 B)False

Question 18

Contract manufacturing is one mode of licensing that allows a company to start faster,with the opportunity to form a partnership or buy out the local manufacturer later.

Accepted Answer

A) True 
 B)False

Question 19

Your firm has decided to enter the international market with your product called "Trema," a combination of a pocket organizer and cell phone.Even though the product has been a huge success in the home country,market research suggests some changes may be required before it can be introduced in Europe.Your CMO is of the opinion that the product requires certain extra features and the product will also have to be marketed differently.Your CMO is advocating ________.

Accepted Answer

A) product invention 
B) dual adaptation 
C) straight extension 
D) forward adaptation 
E) product standardization 
A) product invention 
B) dual adaptation 
C) straight extension 
D) forward adaptation 
E) product standardization

Question 20

The impact of country of origin is independent of the type of product.

Accepted Answer

A) True 
 B)False

Exam 22: Tapping Into Global Markets

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

The problem with setting a uniform global price for a product is that ________.

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

Commonwealth countries such as Hong Kong,Malaysia,and Singapore often choose the U.K.as their springboard into the European market: they feel more comfortable with its language,laws,and culture,which reflect the ________ between these countries and the U.K.

What are the various risks that a company must consider before making a decision to enter foreign markets?

After successfully exporting its products through export merchants,Boyes Inc.decides to take control of its exports.It sets up its own unit in the home country that takes care of all export-related activities.Boyes Inc.is most likely using ________.

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

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 Foo lives in Malaysia.He buys local products from manufacturers in Malaysia and sells them abroad,mainly to Caribbean nations.Mr.Foo is a(n)________.

Indirect exports have two advantages for a firm: they involve less investment and ________.

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

Country-of-origin perceptions,once formed,are very difficult to change.

According to Hofstede,cultures with weak uncertainty avoidance are best described as ________.

Country-of-origin effects refer to the attitude anything produced by the home country is better than imported goods.

When deciding where to operate internationally,it often makes sense to operate in fewer countries,with a deeper commitment and penetration in each.Mention some of the criteria that a country should possess in order to be a viable and attractive investment destination.

Regional economic integration has intensified in recent years,which makes it more difficult for marketers to expand globally.

Contract manufacturing is one mode of licensing that allows a company to start faster,with the opportunity to form a partnership or buy out the local manufacturer later.

The impact of country of origin is independent of the type of product.

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

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Managing Personal Communications: Direct and Database Marketing and Personal Selling

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