Question 1

A firm that finds itself unexpectedly exporting its products without much planning is:

Accepted Answer

A) lucky. 
B) an accidental exporter. 
C) subject to heavy competitive scrutiny in the long term. 
D) unlikely to succeed in the long term. 
A) lucky. 
B) an accidental exporter. 
C) subject to heavy competitive scrutiny in the long term. 
D) unlikely to succeed in the long term.

Question 2

International marketing activities can often provide a good reason for international travel.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not required to be stipulated in the licensing agreement?

Accepted Answer

A) Licensee's marketing strategies 
B) Export control regulations 
C) Confidentiality of the intellectual property and technology provided 
D) Record keeping and provisions for licensor audits 
A) Licensee's marketing strategies 
B) Export control regulations 
C) Confidentiality of the intellectual property and technology provided 
D) Record keeping and provisions for licensor audits

Question 4

Which type of intermediaries are typically organised along product lines and provide the international marketer with complete marketing services?

Accepted Answer

A) Agents 
B) Direct exporters 
C) Distributors 
D) Indirect distributors 
A) Agents 
B) Direct exporters 
C) Distributors 
D) Indirect distributors

Question 5

The issue of profit repatriation and accumulation may cause discontent.

Accepted Answer

A) True 
 B)False

Question 6

Agents have less freedom of movement than distributors.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a disadvantage of licensing?

Accepted Answer

A) It may leave the international marketing functions to the licensee. 
B) Transfer costs. 
C) The initial toehold in the foreign market may not be a foot in the door. 
D) The licensor may create its own competitors. 
A) It may leave the international marketing functions to the licensee. 
B) Transfer costs. 
C) The initial toehold in the foreign market may not be a foot in the door. 
D) The licensor may create its own competitors.

Question 8

Explain the three major types of foreign investment that governments offer to FDI.

Accepted Answer

Fiscal incentives are specific tax measu

Question 9

All of the following options are disadvantages of joint ventures, except:

Accepted Answer

A) Relationships are hard to maintain in partnerships. 
B) In some cases, managers are interested in launching the venture but have little concern with actually running the enterprise. 
C) Joint ventures permit better relationships with local organisations - government, local authorities or labour unions. 
D) Reconciling conflicts of loyalty is one of the greatest human resource challenges for joint ventures. 
A) Relationships are hard to maintain in partnerships. 
B) In some cases, managers are interested in launching the venture but have little concern with actually running the enterprise. 
C) Joint ventures permit better relationships with local organisations - government, local authorities or labour unions. 
D) Reconciling conflicts of loyalty is one of the greatest human resource challenges for joint ventures.

Question 10

Many of the problems encountered by joint ventures stem from a lack of careful, advance consideration of how to manage the new endeavour.

Accepted Answer

A) True 
 B)False

Question 11

Conditions used to be such that the first entrant into a foreign market could count on being the leader for years, but in today's marketplace, the competitive edge is not as great because:

Accepted Answer

A) of competing technology and frequent lack of intellectual property rights protection. 
B) competing domestic firms were there first. 
C) globalisation and the internet do not allow there to be a 'first firm'. 
D) most countries do not allow the first entrant to be a foreign firm. 
A) of competing technology and frequent lack of intellectual property rights protection. 
B) competing domestic firms were there first. 
C) globalisation and the internet do not allow there to be a 'first firm'. 
D) most countries do not allow the first entrant to be a foreign firm.

Question 12

Which of the following statements is incorrect?

Accepted Answer

A) Exporting permits a broader and quicker coverage of world markets with the ability to respond to changes.Risks are lower, but costs tend to be higher because of transhipment and transaction expenses. 
B) An increase will occur in the trend towards strategic alliances, or partnering, permitting the formation of collaborative arrangements between firms. 
C) FDI reflects the long-term nature of a firm's objectives and makes use of local advantages. 
D) The least visible and powerful players in the FDI field are larger-sized firms and multinational corporations. 
A) Exporting permits a broader and quicker coverage of world markets with the ability to respond to changes.Risks are lower, but costs tend to be higher because of transhipment and transaction expenses. 
B) An increase will occur in the trend towards strategic alliances, or partnering, permitting the formation of collaborative arrangements between firms. 
C) FDI reflects the long-term nature of a firm's objectives and makes use of local advantages. 
D) The least visible and powerful players in the FDI field are larger-sized firms and multinational corporations.

Question 13

An international distributor:

Accepted Answer

A) does not purchase the products. 
B) is organised along product lines. 
C) operates exclusively for one international marketer. 
D) None of the above 
A) does not purchase the products. 
B) is organised along product lines. 
C) operates exclusively for one international marketer. 
D) None of the above

Question 14

Firms that are only psychologically distant from customers and ports tend to be more active in exporting.

Accepted Answer

A) True 
 B)False

Question 15

Why is licensing so popular with many potential international marketers?

Accepted Answer

As an entry strategy, licensing may requ

Question 16

Which of the following is not a cost the licensor wants to cover?

Accepted Answer

A) Transfer costs 
B) R&D costs 
C) Opportunity costs 
D) Remuneration 
A) Transfer costs 
B) R&D costs 
C) Opportunity costs 
D) Remuneration

Question 17

A motivator for a company to begin international marketing of products is stable domestic sales.

Accepted Answer

A) True 
 B)False

Question 18

Integrated distribution requires dealing with another domestic firm that acts as a sales intermediary for the marketer, often taking over the international side of the marketer's operations.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is considered a reactive motivation to go international?

Accepted Answer

A) Profit advantage 
B) Saturated domestic markets 
C) Managerial urge 
D) Technological advantage 
A) Profit advantage 
B) Saturated domestic markets 
C) Managerial urge 
D) Technological advantage

Question 20

Historically, during downturns in the domestic business cycle, markets abroad provided an ideal outlet for high inventories.Such international market expansion does not represent full commitment by management, but rather a temporary _______________ designed for short-term activities

Accepted Answer

A) investment 
B) psychic distance 
C) safety valve activity 
D) production 
A) investment 
B) psychic distance 
C) safety valve activity 
D) production

A firm that finds itself unexpectedly exporting its products without much planning is:

International marketing activities can often provide a good reason for international travel.

Which of the following is not required to be stipulated in the licensing agreement?

Which type of intermediaries are typically organised along product lines and provide the international marketer with complete marketing services?

The issue of profit repatriation and accumulation may cause discontent.

Agents have less freedom of movement than distributors.

Which of the following is not a disadvantage of licensing?

Explain the three major types of foreign investment that governments offer to FDI.

All of the following options are disadvantages of joint ventures, except:

Many of the problems encountered by joint ventures stem from a lack of careful, advance consideration of how to manage the new endeavour.

Conditions used to be such that the first entrant into a foreign market could count on being the leader for years, but in today's marketplace, the competitive edge is not as great because:

Which of the following statements is incorrect?

An international distributor:

Firms that are only psychologically distant from customers and ports tend to be more active in exporting.

Why is licensing so popular with many potential international marketers?

Which of the following is not a cost the licensor wants to cover?

A motivator for a company to begin international marketing of products is stable domestic sales.

Integrated distribution requires dealing with another domestic firm that acts as a sales intermediary for the marketer, often taking over the international side of the marketer's operations.

Which of the following is considered a reactive motivation to go international?

Historically, during downturns in the domestic business cycle, markets abroad provided an ideal outlet for high inventories.Such international market expansion does not represent full commitment by management, but rather a temporary _______________ designed for short-term activities

Introduction to international marketing

The economic environment

Trade institutions and trade policy

The political and legal environment

The cultural environment

Building the knowledge base

Channels of distribution and logistics

Product policy and adaptation in international markets

Product and brand management in international markets

Services marketing

Pricing in international markets

International marketing communications

Social Networking and Communications

Filters

Exam 7: Foreign market entry

A firm that finds itself unexpectedly exporting its products without much planning is:

International marketing activities can often provide a good reason for international travel.

Which of the following is not required to be stipulated in the licensing agreement?

Which type of intermediaries are typically organised along product lines and provide the international marketer with complete marketing services?

The issue of profit repatriation and accumulation may cause discontent.

Agents have less freedom of movement than distributors.

Which of the following is not a disadvantage of licensing?

Explain the three major types of foreign investment that governments offer to FDI.

All of the following options are disadvantages of joint ventures, except:

Many of the problems encountered by joint ventures stem from a lack of careful, advance consideration of how to manage the new endeavour.

Conditions used to be such that the first entrant into a foreign market could count on being the leader for years, but in today's marketplace, the competitive edge is not as great because:

Which of the following statements is incorrect?

An international distributor:

Firms that are only psychologically distant from customers and ports tend to be more active in exporting.

Why is licensing so popular with many potential international marketers?

Which of the following is not a cost the licensor wants to cover?

A motivator for a company to begin international marketing of products is stable domestic sales.

Integrated distribution requires dealing with another domestic firm that acts as a sales intermediary for the marketer, often taking over the international side of the marketer's operations.

Which of the following is considered a reactive motivation to go international?

Historically, during downturns in the domestic business cycle, markets abroad provided an ideal outlet for high inventories.Such international market expansion does not represent full commitment by management, but rather a temporary _______________ designed for short-term activities

Introduction to international marketing

The economic environment

Trade institutions and trade policy

The political and legal environment

The cultural environment

Building the knowledge base

Channels of distribution and logistics

Product policy and adaptation in international markets

Product and brand management in international markets

Services marketing

Pricing in international markets

International marketing communications

Social Networking and Communications

Filters