Question 1

Which of the following is an advantage of management contracting?

Accepted Answer

A)  It gives a contracting firm an option to buy shares in the managed company immediately. 
B)  It is the simplest way to enter a foreign market. 
C)  It involves the fewest changes in a company's product lines. 
D)  It allows a contracting firm to set up its own operations at the beginning of the contract. 
E)  It yields income from the beginning of the contract. 
A)  It gives a contracting firm an option to buy shares in the managed company immediately. 
B)  It is the simplest way to enter a foreign market. 
C)  It involves the fewest changes in a company's product lines. 
D)  It allows a contracting firm to set up its own operations at the beginning of the contract. 
E)  It yields income from the beginning of the contract.

Question 2

Which of the following is a drawback of management contracting?

Accepted Answer

A)  It requires a domestic firm to export its products to a foreign company. 
B)  It does not provide the option of buying shares in the managed company later on. 
C)  It yields income to the contracting firm only much later in the process. 
D)  It prevents a company from setting up its own operations for a period of time. 
E)  It is a high-risk method of getting into a foreign market. 
A)  It requires a domestic firm to export its products to a foreign company. 
B)  It does not provide the option of buying shares in the managed company later on. 
C)  It yields income to the contracting firm only much later in the process. 
D)  It prevents a company from setting up its own operations for a period of time. 
E)  It is a high-risk method of getting into a foreign market.

Question 3

Explain management contracting with an example. What are its advantages and disadvantages?

Accepted Answer

Management contracting is a type of join

Question 4

Lemon N' Honey is a juice manufacturing company in Canada. It exports its products to Australia, licenses to China, has a joint ownership venture in France, and owns a subsidiary in Brazil. The firm will most likely need to create a(n) _ to handle all its worldwide activities.

Accepted Answer

A)  domestic division 
B)  value delivery network 
C)  international division 
D)  export department 
E)  domestic market 
A)  domestic division 
B)  value delivery network 
C)  international division 
D)  export department 
E)  domestic market

Question 5

Which type of economy consumes most of its output and barters the rest for simple goods and services?

Accepted Answer

A)  subsistence economy 
B)  industrial economy 
C)  service economy 
D)  developed economy 
E)  emerging economy 
A)  subsistence economy 
B)  industrial economy 
C)  service economy 
D)  developed economy 
E)  emerging economy

Question 6

Many companies including Gillette and P&G, have shifted their sights to the so-called , the vast untapped market consisting of the world's poorest consumers.

Accepted Answer

A)  "bottom of the economic pyramid" 
B)  "developed economies" 
C)  industrial economies 
D)  "emerging economies" 
E)  developing economies 
A)  "bottom of the economic pyramid" 
B)  "developed economies" 
C)  industrial economies 
D)  "emerging economies" 
E)  developing economies

Question 7

The whole-channel view refers to designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true of industrialized nations?

Accepted Answer

A)  Industrialized nations are poor markets for large equipment and trucks. 
B)  Industrialized nations do not have a growing middle class. 
C)  These economies consume most of their output and barter the rest. 
D)  Industrialized nations have low-, medium-, and high-income households. 
E)  Industrialized nations consist mostly of low-income households. 
A)  Industrialized nations are poor markets for large equipment and trucks. 
B)  Industrialized nations do not have a growing middle class. 
C)  These economies consume most of their output and barter the rest. 
D)  Industrialized nations have low-, medium-, and high-income households. 
E)  Industrialized nations consist mostly of low-income households.

Question 9

Kimlee, a food manufacturer based in China, recognizes the immense demand for noodles in the Australian market. Kimlee forms a new business venture to manufacture instant noodles and decides to share possession and control of the new business with a local food processing company. In this case, Kimlee has entered a foreign market through _ .

Accepted Answer

A)  direct investment 
B)  management contracting 
C)  licensing 
D)  joint ownership 
E)  contract manufacturing 
A)  direct investment 
B)  management contracting 
C)  licensing 
D)  joint ownership 
E)  contract manufacturing

Question 10

Which of the following statements is true of industrial economies?

Accepted Answer

A)  They have a declining middle-class population. 
B)  They do not trade goods amongst themselves. 
C)  They export their goods to other types of economies for raw materials. 
D)  They depend on agriculture as the primary revenue generator. 
E)  They consume most of their output and barter the rest for simple goods and services. 
A)  They have a declining middle-class population. 
B)  They do not trade goods amongst themselves. 
C)  They export their goods to other types of economies for raw materials. 
D)  They depend on agriculture as the primary revenue generator. 
E)  They consume most of their output and barter the rest for simple goods and services.

Question 11

Foreign-based production facilities offer many advantages to an investing company if the foreign market is small.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following describes the WTO?

Accepted Answer

A)  It reduced the influence of the WTO in agriculture. 
B)  It lacks the capability to mediate global trade disputes. 
C)  It increased the world's merchandise tariffs by 45 percent. 
D)  It increased international trade barriers. 
E)  It imposes international trade sanctions. 
A)  It reduced the influence of the WTO in agriculture. 
B)  It lacks the capability to mediate global trade disputes. 
C)  It increased the world's merchandise tariffs by 45 percent. 
D)  It increased international trade barriers. 
E)  It imposes international trade sanctions.

Question 13

Operating domestically, managers have to learn another language, deal with unstable currencies, and redesign their products to suit different customer expectations.

Accepted Answer

A) True 
 B)False

Question 14

Compared to standardized global marketing, adapted global marketing .

Accepted Answer

A)  uses the same marketing mix elements in all target markets 
B)  modifies marketing strategies to meet local needs 
C)  lowers marketing costs by using home country sales teams 
D)  results in greater brand power 
E)  maintains uniformity across all markets 
A)  uses the same marketing mix elements in all target markets 
B)  modifies marketing strategies to meet local needs 
C)  lowers marketing costs by using home country sales teams 
D)  results in greater brand power 
E)  maintains uniformity across all markets

Question 15

ventures consist of one company collaborating with foreign investors to create a local business in which they share possession and control. For example, Kellogg was able to move strongly and quickly into emerging markets in West Africa by taking this approach.

Accepted Answer

A)  Direct investment 
B)  Management contracting 
C)  Contract manufacturing 
D)  Joint ownership 
E)  Licensing 
A)  Direct investment 
B)  Management contracting 
C)  Contract manufacturing 
D)  Joint ownership 
E)  Licensing

Question 16

Compared to adapted global marketing, standardized global marketing .

Accepted Answer

A)  uses the same marketing mix worldwide 
B)  usually results in diluted brand power over time 
C)  relies on social media to develop customer relationships 
D)  adjusts promotional efforts to address cultural differences in target markets 
E)  results in additional marketing and manufacturing costs 
A)  uses the same marketing mix worldwide 
B)  usually results in diluted brand power over time 
C)  relies on social media to develop customer relationships 
D)  adjusts promotional efforts to address cultural differences in target markets 
E)  results in additional marketing and manufacturing costs

Question 17

Explain product invention with the help of suitable examples.

Accepted Answer

Product invention consists of creating s

Question 18

Straight product extension into international markets is often successful.

Accepted Answer

A) True 
 B)False

Question 19

Differentiate between straight product extension and product adaptation. Give a few examples of each.

Accepted Answer

Straight product extension means marketi

Question 20

Which of the following is an international division organized based on different merchandise categories?

Accepted Answer

A)  export department 
B)  geographical organization 
C)  global organization 
D)  international subsidiary 
E)  world product group 
A)  export department 
B)  geographical organization 
C)  global organization 
D)  international subsidiary 
E)  world product group

Which of the following is an advantage of management contracting?

Which of the following is a drawback of management contracting?

Explain management contracting with an example. What are its advantages and disadvantages?

Lemon N' Honey is a juice manufacturing company in Canada. It exports its products to Australia, licenses to China, has a joint ownership venture in France, and owns a subsidiary in Brazil. The firm will most likely need to create a(n) _ to handle all its worldwide activities.

Which type of economy consumes most of its output and barters the rest for simple goods and services?

Many companies including Gillette and P&G, have shifted their sights to the so-called , the vast untapped market consisting of the world's poorest consumers.

The whole-channel view refers to designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network.

Which of the following is true of industrialized nations?

Which of the following statements is true of industrial economies?

Foreign-based production facilities offer many advantages to an investing company if the foreign market is small.

Which of the following describes the WTO?

Operating domestically, managers have to learn another language, deal with unstable currencies, and redesign their products to suit different customer expectations.

Compared to standardized global marketing, adapted global marketing .

ventures consist of one company collaborating with foreign investors to create a local business in which they share possession and control. For example, Kellogg was able to move strongly and quickly into emerging markets in West Africa by taking this approach.

Compared to adapted global marketing, standardized global marketing .

Explain product invention with the help of suitable examples.

Straight product extension into international markets is often successful.

Differentiate between straight product extension and product adaptation. Give a few examples of each.

Which of the following is an international division organized based on different merchandise categories?

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Understanding Consumer and Business Buyer Behaviour

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 15: The Global Marketplace

Which of the following is an advantage of management contracting?

Which of the following is a drawback of management contracting?

Explain management contracting with an example. What are its advantages and disadvantages?

Lemon N' Honey is a juice manufacturing company in Canada. It exports its products to Australia, licenses to China, has a joint ownership venture in France, and owns a subsidiary in Brazil. The firm will most likely need to create a(n) _ to handle all its worldwide activities.

Which type of economy consumes most of its output and barters the rest for simple goods and services?

Many companies including Gillette and P&G, have shifted their sights to the so-called , the vast untapped market consisting of the world's poorest consumers.

The whole-channel view refers to designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network.

Which of the following is true of industrialized nations?

Which of the following statements is true of industrial economies?

Foreign-based production facilities offer many advantages to an investing company if the foreign market is small.

Which of the following describes the WTO?

Operating domestically, managers have to learn another language, deal with unstable currencies, and redesign their products to suit different customer expectations.

Compared to standardized global marketing, adapted global marketing .

ventures consist of one company collaborating with foreign investors to create a local business in which they share possession and control. For example, Kellogg was able to move strongly and quickly into emerging markets in West Africa by taking this approach.

Compared to adapted global marketing, standardized global marketing .

Explain product invention with the help of suitable examples.

Straight product extension into international markets is often successful.

Differentiate between straight product extension and product adaptation. Give a few examples of each.

Which of the following is an international division organized based on different merchandise categories?

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Understanding Consumer and Business Buyer Behaviour

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Sustainable Marketing: Social Responsibility and Ethics

Filters