Question 1

The root cause of gray market activity is ________.

Accepted Answer

A)  a firm's ability to control production and distribution costs 
B)  a difference in price between national distributors 
C)  the dominance of substandard products in local markets 
D)  a significant difference in price of the same product between two countries 
A)  a firm's ability to control production and distribution costs 
B)  a difference in price between national distributors 
C)  the dominance of substandard products in local markets 
D)  a significant difference in price of the same product between two countries

Question 2

When is a standardized marketing approach the most appropriate? Define global brand.

Accepted Answer

Standardization represents a tendency to

Question 3

Galaxy Inc., a reputed global conglomerate, has suffered substantial losses in recent months owing to the problem of end-user prices shooting high up in the export market. In order to regain its competitive advantage abroad, Galaxy must ________.

Accepted Answer

A)  increase its budget on technical research 
B)  hire a greater number of semiskilled workers 
C)  shorten the distribution channel 
D)  decentralize production and sourcing to a single location 
A)  increase its budget on technical research 
B)  hire a greater number of semiskilled workers 
C)  shorten the distribution channel 
D)  decentralize production and sourcing to a single location

Question 4

Explain the purpose of positioning. How does a global positioning strategy assist firms participating in international business? What benefit does a global positioning strategy offer?

Accepted Answer

A key objective in pursuing global marke

Question 5

Prices can affect customers' perception of value.

Accepted Answer

A) True 
 B)False

Question 6

In which of the following industries is standardization more likely NOT to be pursued?

Accepted Answer

A)  aircraft manufacturing 
B)  pharmaceuticals 
C)  publishing 
D)  credit cards 
A)  aircraft manufacturing 
B)  pharmaceuticals 
C)  publishing 
D)  credit cards

Question 7

All of the following are true of global new-product planning teams EXCEPT ________.

Accepted Answer

A)  they assemble employees with special knowledge and expertise 
B)  they are responsible for global promotion of products and services 
C)  they include geographically diverse employees in team activities 
D)  they determine which elements of the product will be standardized 
A)  they assemble employees with special knowledge and expertise 
B)  they are responsible for global promotion of products and services 
C)  they include geographically diverse employees in team activities 
D)  they determine which elements of the product will be standardized

Question 8

Which of the following refers to an advantage of firms that enter new markets through FDI?

Accepted Answer

A)  low employee attrition 
B)  minimal competition from other players in the market 
C)  direct selling of products to consumers through the Internet 
D)  control over pricing strategy 
A)  low employee attrition 
B)  minimal competition from other players in the market 
C)  direct selling of products to consumers through the Internet 
D)  control over pricing strategy

Question 9

A subsidiary is most likely to receive favorable treatment from an MNE if it is located in a country with ________.

Accepted Answer

A)  lower corporate income-tax rates 
B)  significant restrictions on profit repatriation 
C)  low tariffs for the product in question 
D)  political instability 
A)  lower corporate income-tax rates 
B)  significant restrictions on profit repatriation 
C)  low tariffs for the product in question 
D)  political instability

Question 10

Refrigerator Adaptations (Scenario)
Cold-Aire Inc. manufactures refrigerators from its facilities in the United States and China and ships them to retail stores around the world. Kitchen sizes vary around the world, and as a result, refrigerator sizes must vary as well. U.S. retailers want large refrigerators, while European and Asian retailers demand smaller units. Cold-Aire manufactures over 20 different models of refrigerators, which often vary in size by only a few inches. Cold-Aire managers are concerned that the firm is losing money because of product adaptations. Cold-Aire management is meeting to discuss the various cost-saving options for the firm.
-Which of the following would most likely be a result of increased standardization of Cold-Aire refrigerators?

Accepted Answer

A)  Cold-Aire would stop exporting refrigerators completely. 
B)  Cold-Aire would open a facility to produce customized refrigerator models. 
C)  Cold-Aire would implement a uniform international marketing campaign. 
D)  Cold-Aire would hire fewer workers and pay lower wages. 
A)  Cold-Aire would stop exporting refrigerators completely. 
B)  Cold-Aire would open a facility to produce customized refrigerator models. 
C)  Cold-Aire would implement a uniform international marketing campaign. 
D)  Cold-Aire would hire fewer workers and pay lower wages.

Question 11

Rigid cost-plus pricing refers to setting prices to cover only the firm's variable costs, but not its fixed costs.

Accepted Answer

A) True 
 B)False

Question 12

What is market segmentation? In a short essay, discuss how international firms use market segmentation.

Accepted Answer

Market segmentation refers to the proces

Question 13

The longer the channel, the fewer intermediaries the firm must compensate.

Accepted Answer

A) True 
 B)False

Question 14

Promotional activities are typically long-term marketing activities.

Accepted Answer

A) True 
 B)False

Question 15

Promotions usually require a high level of intermediary or retailer sophistication to succeed.

Accepted Answer

A) True 
 B)False

Question 16

When managers attempt to standardize their international marketing program, they can expect ________.

Accepted Answer

A)  diminished efficiency 
B)  cost reduction 
C)  brand dilution 
D)  very high profit margins 
A)  diminished efficiency 
B)  cost reduction 
C)  brand dilution 
D)  very high profit margins

Question 17

A standardized marketing approach is appropriate when products have universal specifications.

Accepted Answer

A) True 
 B)False

Question 18

________ is the process of dividing the firm's total customer base into homogeneous clusters in a way that allows management to formulate unique marketing strategies for each group.

Accepted Answer

A)  Brand management 
B)  Customer relationship management 
C)  Market segmentation 
D)  Market diversification 
A)  Brand management 
B)  Customer relationship management 
C)  Market segmentation 
D)  Market diversification

Question 19

________ refers to a marketing strategy in which the firm develops both the product and its marketing to evoke a distinct impression in the customer's mind, emphasizing differences from competitors' offerings.

Accepted Answer

A)  Positioning 
B)  Standardization 
C)  Diversifying 
D)  Adaptation 
A)  Positioning 
B)  Standardization 
C)  Diversifying 
D)  Adaptation

Question 20

Gray market activity often leads to enhanced brand equity.

Accepted Answer

A) True 
 B)False

The root cause of gray market activity is ________.

When is a standardized marketing approach the most appropriate? Define global brand.

Galaxy Inc., a reputed global conglomerate, has suffered substantial losses in recent months owing to the problem of end-user prices shooting high up in the export market. In order to regain its competitive advantage abroad, Galaxy must ________.

Explain the purpose of positioning. How does a global positioning strategy assist firms participating in international business? What benefit does a global positioning strategy offer?

Prices can affect customers' perception of value.

In which of the following industries is standardization more likely NOT to be pursued?

All of the following are true of global new-product planning teams EXCEPT ________.

Which of the following refers to an advantage of firms that enter new markets through FDI?

A subsidiary is most likely to receive favorable treatment from an MNE if it is located in a country with ________.

Rigid cost-plus pricing refers to setting prices to cover only the firm's variable costs, but not its fixed costs.

What is market segmentation? In a short essay, discuss how international firms use market segmentation.

The longer the channel, the fewer intermediaries the firm must compensate.

Promotional activities are typically long-term marketing activities.

Promotions usually require a high level of intermediary or retailer sophistication to succeed.

When managers attempt to standardize their international marketing program, they can expect ________.

A standardized marketing approach is appropriate when products have universal specifications.

________ is the process of dividing the firm's total customer base into homogeneous clusters in a way that allows management to formulate unique marketing strategies for each group.

________ refers to a marketing strategy in which the firm develops both the product and its marketing to evoke a distinct impression in the customer's mind, emphasizing differences from competitors' offerings.

Gray market activity often leads to enhanced brand equity.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance in International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Human Resource Management in the Global Firm

Filters

Exam 16: Marketing in the Global Firm

The root cause of gray market activity is ________.

When is a standardized marketing approach the most appropriate? Define global brand.

Galaxy Inc., a reputed global conglomerate, has suffered substantial losses in recent months owing to the problem of end-user prices shooting high up in the export market. In order to regain its competitive advantage abroad, Galaxy must ________.

Explain the purpose of positioning. How does a global positioning strategy assist firms participating in international business? What benefit does a global positioning strategy offer?

Prices can affect customers' perception of value.

In which of the following industries is standardization more likely NOT to be pursued?

All of the following are true of global new-product planning teams EXCEPT ________.

Which of the following refers to an advantage of firms that enter new markets through FDI?

A subsidiary is most likely to receive favorable treatment from an MNE if it is located in a country with ________.

Rigid cost-plus pricing refers to setting prices to cover only the firm's variable costs, but not its fixed costs.

What is market segmentation? In a short essay, discuss how international firms use market segmentation.

The longer the channel, the fewer intermediaries the firm must compensate.

Promotional activities are typically long-term marketing activities.

Promotions usually require a high level of intermediary or retailer sophistication to succeed.

When managers attempt to standardize their international marketing program, they can expect ________.

A standardized marketing approach is appropriate when products have universal specifications.

________ is the process of dividing the firm's total customer base into homogeneous clusters in a way that allows management to formulate unique marketing strategies for each group.

________ refers to a marketing strategy in which the firm develops both the product and its marketing to evoke a distinct impression in the customer's mind, emphasizing differences from competitors' offerings.

Gray market activity often leads to enhanced brand equity.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance in International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Human Resource Management in the Global Firm

Filters