Question 1

A firm normally gets into international marketing simply by shipping out its goods.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

Most companies would prefer to remain domestic if their domestic market were large enough.Yet several factors are drawing more and more companies into the international arena.List some of these factors.

Accepted Answer

Some of the factors are: (1)Some foreign

Question 5

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 6

Which of the following can induce a firm to expand into the international arena?

Accepted Answer

A)  Consumer preferences in the domestic market vary widely. 
B)  Average income level of domestic consumers is high. 
C)  The firm operates in an industry that caters to the mass market. 
D)  The firm finds that the domestic market is almost saturated. 
E)  The firm is yet to achieve economies of scale even though the domestic market has potential. 
A)  Consumer preferences in the domestic market vary widely. 
B)  Average income level of domestic consumers is high. 
C)  The firm operates in an industry that caters to the mass market. 
D)  The firm finds that the domestic market is almost saturated. 
E)  The firm is yet to achieve economies of scale even though the domestic market has potential.

Question 7

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.

Question 8

Identify a benefit of using joint ventures to enter a foreign market.

Accepted Answer

A)  It entails minimum risk. 
B)  It provides access to an established distribution network in the host country. 
C)  It yields the highest returns. 
D)  It retains full control of its investment in the host country. 
E)  It is the best strategy for countries with psychic proximity. 
A)  It entails minimum risk. 
B)  It provides access to an established distribution network in the host country. 
C)  It yields the highest returns. 
D)  It retains full control of its investment in the host country. 
E)  It is the best strategy for countries with psychic proximity.

Question 9

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 10

A market survey by LG revealed that Indians preferred not to mix vegetarian and non-vegetarian food items.Hence,LG refrigerators in India include a special convertible box with separate compartments to store and control the temperature of vegetarian and non-vegetarian food.This is an example of customizing ________ to local needs.

Accepted Answer

A)  advertising media 
B)  product features 
C)  packaging 
D)  brand name 
E)  labeling 
A)  advertising media 
B)  product features 
C)  packaging 
D)  brand name 
E)  labeling

Question 11

When companies sell on the Internet,price becomes transparent,and price differentiation between countries declines.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Which of the following is likely if the distribution channel for a product in the foreign country is long?

Accepted Answer

A)  the foreign country buyers pay a high price 
B)  the consumer will pay arms-length price 
C)  the profit margin of the sellers increase 
D)  the intermediaries are motivated to reship the product to another country to earn higher profits 
E)  the seller can increase profit margins by charging a uniform price 
A)  the foreign country buyers pay a high price 
B)  the consumer will pay arms-length price 
C)  the profit margin of the sellers increase 
D)  the intermediaries are motivated to reship the product to another country to earn higher profits 
E)  the seller can increase profit margins by charging a uniform price

Question 14

Product adaptation not only involves altering the product to meet local preferences,but also calls for a change in the communication strategy.

Accepted Answer

A) True 
 B)False

Question 15

As a result of the ad campaigns depicting Brazil as a multicultural land of carnivals and beaches,any mention of the country makes people think of sun and sand.This is an example of ________.

Accepted Answer

A)  anchoring effect 
B)  target market impact 
C)  regiocentrism 
D)  country-of-origin effect 
E)  cognitive dissonance 
A)  anchoring effect 
B)  target market impact 
C)  regiocentrism 
D)  country-of-origin effect 
E)  cognitive dissonance

Question 16

A2Z Inc.is a producer of a wide variety of consumer goods in Brazil.It has successfully captured a huge share of the domestic market and has been able to create a very strong brand.It is now considering a foray into foreign markets.Its board of directors decide to first try out some of its products in the neighboring country of Argentina.A2Z plans to eventually expand its presence in other countries,after they analyze the impact of their entry into the Argentine market.A2Z Inc.is following a ________.

Accepted Answer

A)  born global approach 
B)  waterfall approach 
C)  sprinkler approach 
D)  franchisee approach 
E)  shotgun approach 
A)  born global approach 
B)  waterfall approach 
C)  sprinkler approach 
D)  franchisee approach 
E)  shotgun approach

Question 17

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 can improve its market share if it can offer better prices than its competitors. 
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 can improve its market share if it can offer better prices than its competitors. 
D)  People in the home country have an ethnocentric approach. 
E)  Market research indicates that Indian consumers have a low per-capita income.

Question 18

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 an 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 an existing marketing strategy

Question 19

For the launch of "Trema," your company's new pocket organizer that can also be used as a cell phone,the CMO has decided that the product can be launched in international markets without any changes in its features or the marketing strategy.This introduction can be described as a ________.

Accepted Answer

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

Question 20

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

A firm normally gets into international marketing simply by shipping out its goods.

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

Most companies would prefer to remain domestic if their domestic market were large enough.Yet several factors are drawing more and more companies into the international arena.List some of these factors.

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

Which of the following can induce a firm to expand into the international arena?

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

Identify a benefit of using joint ventures to enter a foreign market.

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

When companies sell on the Internet,price becomes transparent,and price differentiation between countries declines.

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

Which of the following is likely if the distribution channel for a product in the foreign country is long?

Product adaptation not only involves altering the product to meet local preferences,but also calls for a change in the communication strategy.

As a result of the ad campaigns depicting Brazil as a multicultural land of carnivals and beaches,any mention of the country makes people think of sun and sand.This is an example of ________.

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?

Straight extension of the product means ________.

For the launch of "Trema," your company's new pocket organizer that can also be used as a cell phone,the CMO has decided that the product can be launched in international markets without any changes in its features or the marketing strategy.This introduction can be described as a ________.

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

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Creating Long-term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning and Competing Effectively

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Filters

Exam 18: Managing Marketing in the Global Economy

A firm normally gets into international marketing simply by shipping out its goods.

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

Most companies would prefer to remain domestic if their domestic market were large enough.Yet several factors are drawing more and more companies into the international arena.List some of these factors.

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

Which of the following can induce a firm to expand into the international arena?

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

Identify a benefit of using joint ventures to enter a foreign market.

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

When companies sell on the Internet,price becomes transparent,and price differentiation between countries declines.

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

Which of the following is likely if the distribution channel for a product in the foreign country is long?

Product adaptation not only involves altering the product to meet local preferences,but also calls for a change in the communication strategy.

As a result of the ad campaigns depicting Brazil as a multicultural land of carnivals and beaches,any mention of the country makes people think of sun and sand.This is an example of ________.

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?

Straight extension of the product means ________.

For the launch of "Trema," your company's new pocket organizer that can also be used as a cell phone,the CMO has decided that the product can be launched in international markets without any changes in its features or the marketing strategy.This introduction can be described as a ________.

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

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Creating Long-term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning and Competing Effectively

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Filters