Question 1

In licensing,the licensor issues a license to a foreign company to use an item of value for a fee or royalty.

Accepted Answer

A) True 
 B)False

Question 2

In an attempt to tailor its products to suit the requirements of consumers in India,LG introduced the aero-comfort system.A remote control is programed to regulate both the air-conditioning and the ceiling fan.Consumers can switch off the AC and increase the ceiling fan's flow once the desired temperature is achieved.This not only increases convenience,but also cuts down electricity charges.LG's aero comfort system is an example of which of the following?

Accepted Answer

A)  backward invention 
B)  dual invention 
C)  country version product 
D)  straight extension 
E)  communication adaptation 
A)  backward invention 
B)  dual invention 
C)  country version product 
D)  straight extension 
E)  communication adaptation

Question 3

Forward invention is ________.

Accepted Answer

A)  creating a new product to meet a need in another country 
B)  creating a new product to meet the need in the home country 
C)  inventing products that are superior to competing offerings 
D)  taking an existing product into a new market 
E)  inventing something that as yet has no "market" 
A)  creating a new product to meet a need in another country 
B)  creating a new product to meet the need in the home country 
C)  inventing products that are superior to competing offerings 
D)  taking an existing product into a new market 
E)  inventing something that as yet has no "market"

Question 4

A Gucci bag sells for $120 in Italy and $240 in the United States due to the differences in the costs of distributing the product in the two countries.This phenomenon is called a(n)________.

Accepted Answer

A)  opportunity cost problem 
B)  market pricing problem 
C)  tactical pricing problem 
D)  price escalation problem 
E)  transfer pricing problem 
A)  opportunity cost problem 
B)  market pricing problem 
C)  tactical pricing problem 
D)  price escalation problem 
E)  transfer pricing problem

Question 5

Explain how marketers are using the Web for international business.

Accepted Answer

Marketers are using the Web to attract n

Question 6

What is a global firm?

Accepted Answer

A)  A firm that operates in one country and exports its goods and services to foreign countries. 
B)  A firm that operates in more than one country and has a sales and marketing staff in those countries. 
C)  A firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages not available to purely domestic competitors. 
D)  A firm that sells its products and services across the world but restricts manufacturing to the home country. 
E)  A firm that operates in more than one country but restricts the sale of its products to the home country. 
A)  A firm that operates in one country and exports its goods and services to foreign countries. 
B)  A firm that operates in more than one country and has a sales and marketing staff in those countries. 
C)  A firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages not available to purely domestic competitors. 
D)  A firm that sells its products and services across the world but restricts manufacturing to the home country. 
E)  A firm that operates in more than one country but restricts the sale of its products to the home country.

Question 7

Finnish cellular phone giant,Nokia,customized its 6100 series mobile phone for every major market in which it is present.In Asia,for example,the series came with a higher ring volume so that it could be heard on the crowded Asian streets.This is an example of ________.

Accepted Answer

A)  straight extension 
B)  forward invention 
C)  regional version 
D)  city version 
E)  country version 
A)  straight extension 
B)  forward invention 
C)  regional version 
D)  city version 
E)  country version

Question 8

Once a firm decides to enter the international market,what is the next step in the decision-making process?

Accepted Answer

A)  deciding on the marketing organization 
B)  deciding on the marketing program 
C)  deciding how to enter the market 
D)  deciding how to adapt the product to the new market 
E)  deciding which markets to enter 
A)  deciding on the marketing organization 
B)  deciding on the marketing program 
C)  deciding how to enter the market 
D)  deciding how to adapt the product to the new market 
E)  deciding which markets to enter

Question 9

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 10

The ultimate form of foreign investment is direct ownership of foreign-based assembly or manufacturing facilities.

Accepted Answer

A) True 
 B)False

Question 11

In an adapted marketing mix,the company ________.

Accepted Answer

A)  ensures that uniform practices are adopted across countries 
B)  focuses more on brand image than consumer preferences 
C)  ignores differences in the legal environment 
D)  ensures the lowest cost marketing program is adopted 
E)  tailors the marketing programs to each target market 
A)  ensures that uniform practices are adopted across countries 
B)  focuses more on brand image than consumer preferences 
C)  ignores differences in the legal environment 
D)  ensures the lowest cost marketing program is adopted 
E)  tailors the marketing programs to each target market

Question 12

Product adaptation involves ________.

Accepted Answer

A)  altering the product to meet local preferences with no change in communication strategy 
B)  altering the product to meet minimum acceptable standards 
C)  altering both the product and the communication strategy to meet local preferences 
D)  altering neither the product nor the communication strategy while entering a new market 
E)  developing a new product and adapting the communication strategy to enter a new market 
A)  altering the product to meet local preferences with no change in communication strategy 
B)  altering the product to meet minimum acceptable standards 
C)  altering both the product and the communication strategy to meet local preferences 
D)  altering neither the product nor the communication strategy while entering a new market 
E)  developing a new product and adapting the communication strategy to enter a new market

Question 13

Outline the major decisions that a firm must undergo in making a decision to market internationally.

Accepted Answer

The first step is deciding whether to go

Question 14

Which of the following is the first stage of the internationalization process that can induce firms to enter the international arena?

Accepted Answer

A)  no regular export activities 
B)  export via independent representatives (agents) 
C)  establishment of one or more sales subsidiaries 
D)  establishment of production facilities abroad 
E)  adoption of a flexible exchange rate regime 
A)  no regular export activities 
B)  export via independent representatives (agents) 
C)  establishment of one or more sales subsidiaries 
D)  establishment of production facilities abroad 
E)  adoption of a flexible exchange rate regime

Question 15

Forward invention refers to reintroducing earlier product forms that are well adapted to a foreign country's needs.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following modes of entry into a foreign market involves the maximum commitment and risk?

Accepted Answer

A)  franchising 
B)  direct investment 
C)  joint ventures 
D)  licensing 
E)  direct exporting 
A)  franchising 
B)  direct investment 
C)  joint ventures 
D)  licensing 
E)  direct exporting

Question 17

A Canadian software company decides to buy majority stakes in a Chinese firm producing software.The company even adds to its Chinese production capacity.Which of the following could be a potential disadvantage of this direct investment?

Accepted Answer

A)  The Canadian firm will find it difficult to achieve economies of scale. 
B)  This is the least financially rewarding mode of international expansion. 
C)  The Canadian firm will have very limited control on its Chinese investment. 
D)  The Canadian firm will be subject to the piracy problems in China. 
E)  The Canadian firm will be subject to a higher cost of production in China. 
A)  The Canadian firm will find it difficult to achieve economies of scale. 
B)  This is the least financially rewarding mode of international expansion. 
C)  The Canadian firm will have very limited control on its Chinese investment. 
D)  The Canadian firm will be subject to the piracy problems in China. 
E)  The Canadian firm will be subject to a higher cost of production in China.

Question 18

Indirect exports are characterized by high investment,and therefore high risk.

Accepted Answer

A) True 
 B)False

Question 19

Once a company decides to target a particular country,it must determine the best mode of entry.Each of its market entry strategies involves more commitment,risk,control,and profit potential.List these market entry strategies in order from low risk to high risk.

Accepted Answer

The five modes of entry into foreign mar

Question 20

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

In licensing,the licensor issues a license to a foreign company to use an item of value for a fee or royalty.

Forward invention is ________.

A Gucci bag sells for $120 in Italy and $240 in the United States due to the differences in the costs of distributing the product in the two countries.This phenomenon is called a(n)________.

Explain how marketers are using the Web for international business.

What is a global firm?

Finnish cellular phone giant,Nokia,customized its 6100 series mobile phone for every major market in which it is present.In Asia,for example,the series came with a higher ring volume so that it could be heard on the crowded Asian streets.This is an example of ________.

Once a firm decides to enter the international market,what is the next step in the decision-making process?

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

The ultimate form of foreign investment is direct ownership of foreign-based assembly or manufacturing facilities.

In an adapted marketing mix,the company ________.

Product adaptation involves ________.

Outline the major decisions that a firm must undergo in making a decision to market internationally.

Which of the following is the first stage of the internationalization process that can induce firms to enter the international arena?

Forward invention refers to reintroducing earlier product forms that are well adapted to a foreign country's needs.

Which of the following modes of entry into a foreign market involves the maximum commitment and risk?

A Canadian software company decides to buy majority stakes in a Chinese firm producing software.The company even adds to its Chinese production capacity.Which of the following could be a potential disadvantage of this direct investment?

Indirect exports are characterized by high investment,and therefore high risk.

Once a company decides to target a particular country,it must determine the best mode of entry.Each of its market entry strategies involves more commitment,risk,control,and profit potential.List these market entry strategies in order from low risk to high risk.

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

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

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Exam 18: Managing Marketing in the Global Economy

In licensing,the licensor issues a license to a foreign company to use an item of value for a fee or royalty.

Forward invention is ________.

A Gucci bag sells for $120 in Italy and $240 in the United States due to the differences in the costs of distributing the product in the two countries.This phenomenon is called a(n)________.

Explain how marketers are using the Web for international business.

What is a global firm?

Finnish cellular phone giant,Nokia,customized its 6100 series mobile phone for every major market in which it is present.In Asia,for example,the series came with a higher ring volume so that it could be heard on the crowded Asian streets.This is an example of ________.

Once a firm decides to enter the international market,what is the next step in the decision-making process?

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

The ultimate form of foreign investment is direct ownership of foreign-based assembly or manufacturing facilities.

In an adapted marketing mix,the company ________.

Product adaptation involves ________.

Outline the major decisions that a firm must undergo in making a decision to market internationally.

Which of the following is the first stage of the internationalization process that can induce firms to enter the international arena?

Forward invention refers to reintroducing earlier product forms that are well adapted to a foreign country's needs.

Which of the following modes of entry into a foreign market involves the maximum commitment and risk?

A Canadian software company decides to buy majority stakes in a Chinese firm producing software.The company even adds to its Chinese production capacity.Which of the following could be a potential disadvantage of this direct investment?

Indirect exports are characterized by high investment,and therefore high risk.

Once a company decides to target a particular country,it must determine the best mode of entry.Each of its market entry strategies involves more commitment,risk,control,and profit potential.List these market entry strategies in order from low risk to high risk.

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

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