Question 1

The internationalisation process can be driven by external forces such as:

Accepted Answer

A) enlightened management, domestic distributors and export intermediaries. 
B) the researchers and product developers. 
C) demand, other firms and banks. 
D) the marketing department. 
A) enlightened management, domestic distributors and export intermediaries. 
B) the researchers and product developers. 
C) demand, other firms and banks. 
D) the marketing department.

Question 2

Export management companies and trading companies are firms that assist other firms in marketing products abroad.What are these international broker-like companies called?

Accepted Answer

A) Export intermediaries 
B) Export agents 
C) Trading agents and distributors 
D) Product representatives 
A) Export intermediaries 
B) Export agents 
C) Trading agents and distributors 
D) Product representatives

Question 3

Which of the following is not a specialisation market intermediaries bring?

Accepted Answer

A) External cultural understanding 
B) Detailed information about the competitive conditions in certain markets 
C) Evaluation of credit risk 
D) Personal contacts with potential buyers abroad 
A) External cultural understanding 
B) Detailed information about the competitive conditions in certain markets 
C) Evaluation of credit risk 
D) Personal contacts with potential buyers abroad

Question 4

Which of the following statements is correct?

Accepted Answer

A) There is a love-hate relationship between governments and foreign direct investors. 
B) Particularly in developed countries, the knowledge advantage of foreign investors may offer opportunities for exploitation. 
C) Governments criticise foreign direct investors for bringing capital and employment. 
D) None of the above 
A) There is a love-hate relationship between governments and foreign direct investors. 
B) Particularly in developed countries, the knowledge advantage of foreign investors may offer opportunities for exploitation. 
C) Governments criticise foreign direct investors for bringing capital and employment. 
D) None of the above

Question 5

_____________ allows companies to improve their sustainability and be seen by consumers and stakeholders as more environmentally friendly.

Accepted Answer

A) Foreign direct investment 
B) Exporting 
C) Franchising 
D) Licensing 
A) Foreign direct investment 
B) Exporting 
C) Franchising 
D) Licensing

Question 6

New management is the primary external change agent in the internationalisation process.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not an external change agent in the internationalisation process?

Accepted Answer

A) Demand 
B) Domestic distributors 
C) Export management companies 
D) New management 
A) Demand 
B) Domestic distributors 
C) Export management companies 
D) New management

Question 8

____________, ___________, __________ and investment climate are the main causes of FDI.

Accepted Answer

A) Market factors; barriers of trade; cost factors 
B) Government resources; economies of scale; risk management 
C) Market factors; government resources; cost factors 
D) Reactive factors; proactive factors; risk management. 
A) Market factors; barriers of trade; cost factors 
B) Government resources; economies of scale; risk management 
C) Market factors; government resources; cost factors 
D) Reactive factors; proactive factors; risk management.

Question 9

Joint venture legislation and the ensuing regulations are often subject to substantial interpretation and arbitrariness.

Accepted Answer

A) True 
 B)False

Question 10

Sometimes cultural variables, legal factors and other societal norms make a foreign market that is geographically close seem psychologically distant.

Accepted Answer

A) True 
 B)False

Question 11

Exporting is the third less risky foreign market entry method.

Accepted Answer

A) True 
 B)False

Question 12

As a result of overproduction, companies historically would move inventories to foreign markets during periods of domestic downturn.What was this practice called?

Accepted Answer

A) Sky rocketing 
B) Pitching, assuming lag time was present 
C) Dumping, assuming lead time was available 
D) Safety-valve activity 
A) Sky rocketing 
B) Pitching, assuming lag time was present 
C) Dumping, assuming lead time was available 
D) Safety-valve activity

Question 13

Which of the following requires the marketer to make an investment into the foreign market for the purpose of selling its products in that market or more broadly in the region?

Accepted Answer

A) Agents 
B) Indirect exporting 
C) Direct exporting 
D) Integrated distribution 
A) Agents 
B) Indirect exporting 
C) Direct exporting 
D) Integrated distribution

Question 14

Under a licensing agreement:

Accepted Answer

A) the licensor permits another to use its intellectual property. 
B) the licensee is paid on a royalty basis. 
C) there are no intangibles. 
D) control is shifted from the original centre of gravity on the vertical supply chain. 
A) the licensor permits another to use its intellectual property. 
B) the licensee is paid on a royalty basis. 
C) there are no intangibles. 
D) control is shifted from the original centre of gravity on the vertical supply chain.

Question 15

Declining domestic sales volume (or market share)is only a motivator to enter international marketing if significant lead time exists in the foreign market.

Accepted Answer

A) True 
 B)False

Question 16

Frequently, international market expansion motivated by overproduction did not represent full commitment by management, but rather safety valve activity designed for short-term activities only.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not a reactive reason why firms go international?

Accepted Answer

A) Managerial urge 
B) Overproduction 
C) Excess capacity 
D) Proximity to customers and ports 
A) Managerial urge 
B) Overproduction 
C) Excess capacity 
D) Proximity to customers and ports

Question 18

Which of the following is a form of franchising?

Accepted Answer

A) Manufacturer-retailer systems 
B) Manufacturer-wholesaler systems 
C) Service firm-retailer systems 
D) All of these choices 
A) Manufacturer-retailer systems 
B) Manufacturer-wholesaler systems 
C) Service firm-retailer systems 
D) All of these choices

The internationalisation process can be driven by external forces such as:

Export management companies and trading companies are firms that assist other firms in marketing products abroad.What are these international broker-like companies called?

Which of the following is not a specialisation market intermediaries bring?

Which of the following statements is correct?

_____________ allows companies to improve their sustainability and be seen by consumers and stakeholders as more environmentally friendly.

New management is the primary external change agent in the internationalisation process.

Which of the following is not an external change agent in the internationalisation process?

______, _, ______ and investment climate are the main causes of FDI.

Joint venture legislation and the ensuing regulations are often subject to substantial interpretation and arbitrariness.

Sometimes cultural variables, legal factors and other societal norms make a foreign market that is geographically close seem psychologically distant.

Exporting is the third less risky foreign market entry method.

As a result of overproduction, companies historically would move inventories to foreign markets during periods of domestic downturn.What was this practice called?

Which of the following requires the marketer to make an investment into the foreign market for the purpose of selling its products in that market or more broadly in the region?

Under a licensing agreement:

Declining domestic sales volume (or market share)is only a motivator to enter international marketing if significant lead time exists in the foreign market.

Frequently, international market expansion motivated by overproduction did not represent full commitment by management, but rather safety valve activity designed for short-term activities only.

Which of the following is not a reactive reason why firms go international?

Which of the following is a form of franchising?

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

The internationalisation process can be driven by external forces such as:

Export management companies and trading companies are firms that assist other firms in marketing products abroad.What are these international broker-like companies called?

Which of the following is not a specialisation market intermediaries bring?

Which of the following statements is correct?

_____________ allows companies to improve their sustainability and be seen by consumers and stakeholders as more environmentally friendly.

New management is the primary external change agent in the internationalisation process.

Which of the following is not an external change agent in the internationalisation process?

____________, ___________, __________ and investment climate are the main causes of FDI.

Joint venture legislation and the ensuing regulations are often subject to substantial interpretation and arbitrariness.

Sometimes cultural variables, legal factors and other societal norms make a foreign market that is geographically close seem psychologically distant.

Exporting is the third less risky foreign market entry method.

As a result of overproduction, companies historically would move inventories to foreign markets during periods of domestic downturn.What was this practice called?

Which of the following requires the marketer to make an investment into the foreign market for the purpose of selling its products in that market or more broadly in the region?

Under a licensing agreement:

Declining domestic sales volume (or market share)is only a motivator to enter international marketing if significant lead time exists in the foreign market.

Frequently, international market expansion motivated by overproduction did not represent full commitment by management, but rather safety valve activity designed for short-term activities only.

Which of the following is not a reactive reason why firms go international?

Which of the following is a form of franchising?

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

______, _, ______ and investment climate are the main causes of FDI.