Question 1

James LeBrun works out of Miami and buys locally produced manufacturer's products and sells them abroad mainly to Caribbean nations. Mr. LeBrun is

Accepted Answer

A)  indirect exporting. 
B)  a cooperative organization. 
C)  an export-management company. 
D)  a domestic-based export agent. 
E)  a domestic-based export merchant. 
A)  indirect exporting. 
B)  a cooperative organization. 
C)  an export-management company. 
D)  a domestic-based export agent. 
E)  a domestic-based export merchant.

Question 2

A firm can successfully introduce four versions of its products into a foreign country or a firm may select one of these for inclusion. These versions include:

Accepted Answer

A)  customer version, country version, and retailer version. 
B)  customer version, regional version, and city version. 
C)  regional version, country version, city version, and retailer version. 
D)  regional version, country version, city version, and market versions. 
E)  customer version, regional version, city version, and retailer version. 
A)  customer version, country version, and retailer version. 
B)  customer version, regional version, and city version. 
C)  regional version, country version, city version, and retailer version. 
D)  regional version, country version, city version, and market versions. 
E)  customer version, regional version, city version, and retailer version.

Question 3

Finnish cellular phone superstar Nokia customized its 6100 series phone for every major market in which it sells the product. In Asia, for example, the developers raised the ring volume so that it could be heard on the crowded Asian streets. This kind of adaptation is called

Accepted Answer

A)  city version. 
B)  country version. 
C)  straight extension. 
D)  regional version. 
E)  market adaptation. 
A)  city version. 
B)  country version. 
C)  straight extension. 
D)  regional version. 
E)  market adaptation.

Question 4

An advantage of global marketing is that it can lower marketing costs, has economies of scale in production and distribution, can produce consistency in brand image, has the ability to leverage good ideas quickly and efficiently, and

Accepted Answer

A)  is easier to adapt to foreign countries. 
B)  allows for individual countries to add their specific needs to the message. 
C)  is easier for corporations to evaluate the marketing message. 
D)  allows for uniformity of marketing practices. 
E)  allows for the same message to be used worldwide. 
A)  is easier to adapt to foreign countries. 
B)  allows for individual countries to add their specific needs to the message. 
C)  is easier for corporations to evaluate the marketing message. 
D)  allows for uniformity of marketing practices. 
E)  allows for the same message to be used worldwide.

Question 5

Sluggish demand and reluctance to may higher prices makes selling in emerging markets difficult. What did IKEA do to compete in China's challenging pricing market?

Accepted Answer

A global pricing challenge that has aris

Question 6

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 7

International companies must decide on how much to adapt their marketing strategy to local conditions. At one extreme are companies that use a globally standardized marketing program worldwide. Which of the following options promises the lowest cost?

Accepted Answer

A)  a concentric strategy which includes the product and distribution strategy 
B)  changing only the distribution channels to accommodate the host country 
C)  changes only to the product and communication message 
D)  standardization of the product, communication, and distribution channels 
E)  changes only to the product, keeping distribution channels and marketing communications consistent across countries 
A)  a concentric strategy which includes the product and distribution strategy 
B)  changing only the distribution channels to accommodate the host country 
C)  changes only to the product and communication message 
D)  standardization of the product, communication, and distribution channels 
E)  changes only to the product, keeping distribution channels and marketing communications consistent across countries

Question 8

Hofstede identifies four cultural dimensions that can differentiate countries. These are individualism versus collectivism, high versus low power distances, ________, and weak versus strong uncertainty avoidance.

Accepted Answer

A)  masculine versus feminine 
B)  total quality management versus JIT deliveries. 
C)  customer relationship management versus power distances. 
D)  strategic management versus marketing management. 
E)  marketing management versus customer relationships. 
A)  masculine versus feminine 
B)  total quality management versus JIT deliveries. 
C)  customer relationship management versus power distances. 
D)  strategic management versus marketing management. 
E)  marketing management versus customer relationships.

Question 9

Because of the price escalation problem, what are the choices available to companies, like Coca-cola and Gucci, when setting prices?

Accepted Answer

Set a uniform price everywhere

Question 10

Before making a decision to enter foreign markets, the firm must weigh several risks. List these risks and discuss each.

Accepted Answer

These risks are:(1)the company might not

Question 11

Product invention consist of creating something new. It can take two forms. Backward invention is reintroducing earlier product forms that are well adapted to a foreign country's needs.

Accepted Answer

A) True 
 B)False

Question 12

A firm that charges a price to another unit in the company sets the ________ for goods that it ships to its foreign subsidiaries.

Accepted Answer

A)  original price 
B)  margin price 
C)  customer value price 
D)  transfer price 
E)  break-even price 
A)  original price 
B)  margin price 
C)  customer value price 
D)  transfer price 
E)  break-even price

Question 13

Companies such as Marriott and Hyatt sell a variation of the licensing agreement called ________ to the owners of foreign hotels to manage these businesses for them in foreign countries.

Accepted Answer

A)  joint ventures 
B)  franchising 
C)  contract manufacturing 
D)  management contracts 
E)  hotel management licensing 
A)  joint ventures 
B)  franchising 
C)  contract manufacturing 
D)  management contracts 
E)  hotel management licensing

Question 14

Last stage in the internationalizatin process is estalishment of one or more sales subsidiaries.

Accepted Answer

A) True 
 B)False

Question 15

In ________, the firm hires local manufacturers to produce the product. This gives the company less control over the manufacturing process and loss of profits of the manufacturing efficiencies.

Accepted Answer

A)  franchising 
B)  joint ventures 
C)  management contracts 
D)  contract manufacturing 
E)  licensing 
A)  franchising 
B)  joint ventures 
C)  management contracts 
D)  contract manufacturing 
E)  licensing

Question 16

In an increasingly connected, highly competitive global marketplace, government officials, and marketers are concerned with how attitudes and beliefs about their country affect consumer and business decision makers. What is the term for this concept and what is the position of government officials and marketers?

Accepted Answer

Country-of-origin perceptions are the me

Question 17

Approximately 80 percent of the world's population lies outside of the developed nations and prosperous part of the world. Which of the following is the best tactic for serving markets with much less purchasing power?

Accepted Answer

A)  offering lower sales prices but larger packaging sizes 
B)  promoting an eastern image 
C)  conducting business as usual in these countries 
D)  dismissing local competition 
E)  offering lower sale prices and smaller packaging 
A)  offering lower sales prices but larger packaging sizes 
B)  promoting an eastern image 
C)  conducting business as usual in these countries 
D)  dismissing local competition 
E)  offering lower sale prices and smaller packaging

Question 18

Compare these two terms: global industry and global firm. Provide an example of an existing marketer to fit the description of global firm, and state in which global industry they compete.

Accepted Answer

A global industry is one in which the st

Question 19

Cambell Soup introduced its condensed soups to British consumers by employing ________. Unfortunately, consumers saw expensive small-sized cans and did not realize water was to be added.

Accepted Answer

A)  regional version 
B)  market version 
C)  product adaptation 
D)  straight extension 
E)  design change 
A)  regional version 
B)  market version 
C)  product adaptation 
D)  straight extension 
E)  design change

Question 20

A "waterfall" approach to international marketing is defined as

Accepted Answer

A)  countries are entered based upon ease of entry. 
B)  countries in which the supply of raw material is greatest is entered first. 
C)  countries in which the demand for the product is greatest is entered first. 
D)  countries that are gradually entered sequentially. 
E)  countries in which the demand for the product is greatest is entered las.t 
A)  countries are entered based upon ease of entry. 
B)  countries in which the supply of raw material is greatest is entered first. 
C)  countries in which the demand for the product is greatest is entered first. 
D)  countries that are gradually entered sequentially. 
E)  countries in which the demand for the product is greatest is entered las.t

Exam 21: Tapping into Global Markets

James LeBrun works out of Miami and buys locally produced manufacturer's products and sells them abroad mainly to Caribbean nations. Mr. LeBrun is

A firm can successfully introduce four versions of its products into a foreign country or a firm may select one of these for inclusion. These versions include:

Finnish cellular phone superstar Nokia customized its 6100 series phone for every major market in which it sells the product. In Asia, for example, the developers raised the ring volume so that it could be heard on the crowded Asian streets. This kind of adaptation is called

An advantage of global marketing is that it can lower marketing costs, has economies of scale in production and distribution, can produce consistency in brand image, has the ability to leverage good ideas quickly and efficiently, and

Sluggish demand and reluctance to may higher prices makes selling in emerging markets difficult. What did IKEA do to compete in China's challenging pricing market?

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

International companies must decide on how much to adapt their marketing strategy to local conditions. At one extreme are companies that use a globally standardized marketing program worldwide. Which of the following options promises the lowest cost?

Hofstede identifies four cultural dimensions that can differentiate countries. These are individualism versus collectivism, high versus low power distances, ________, and weak versus strong uncertainty avoidance.

Because of the price escalation problem, what are the choices available to companies, like Coca-cola and Gucci, when setting prices?

Before making a decision to enter foreign markets, the firm must weigh several risks. List these risks and discuss each.

Product invention consist of creating something new. It can take two forms. Backward invention is reintroducing earlier product forms that are well adapted to a foreign country's needs.

A firm that charges a price to another unit in the company sets the ________ for goods that it ships to its foreign subsidiaries.

Companies such as Marriott and Hyatt sell a variation of the licensing agreement called ________ to the owners of foreign hotels to manage these businesses for them in foreign countries.

Last stage in the internationalizatin process is estalishment of one or more sales subsidiaries.

In ________, the firm hires local manufacturers to produce the product. This gives the company less control over the manufacturing process and loss of profits of the manufacturing efficiencies.

Approximately 80 percent of the world's population lies outside of the developed nations and prosperous part of the world. Which of the following is the best tactic for serving markets with much less purchasing power?

Compare these two terms: global industry and global firm. Provide an example of an existing marketer to fit the description of global firm, and state in which global industry they compete.

Cambell Soup introduced its condensed soups to British consumers by employing ________. Unfortunately, consumers saw expensive small-sized cans and did not realize water was to be added.

A "waterfall" approach to international marketing is defined as

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Position

Competitive Dynamics

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

Introducing New Marketing Offerings

Managing a Holistic Marketing Organization

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