Question 1

How do multinationals, such as ECom and Gucci, try to prevent grey markets?

Accepted Answer

Multinationals try to prevent grey marke

Question 2

NAFTA established a free trade zone between what three countries?

Accepted Answer

A)  Canada, Mexico, and Japan 
B)  Canada, Mexico, and Peru 
C)  Mexico, South America, and the United States 
D)  Canada, Mexico, and South America 
E)  Canada, Mexico, and the United States 
A)  Canada, Mexico, and Japan 
B)  Canada, Mexico, and Peru 
C)  Mexico, South America, and the United States 
D)  Canada, Mexico, and South America 
E)  Canada, Mexico, and the United States

Question 3

Most companies would prefer to remain domestic if their domestic market were large enough.

Accepted Answer

A) True 
 B)False

Question 4

Foreign investors may join with local investors to create a joint venture company in which they share ownership and control.

Accepted Answer

A) True 
 B)False

Question 5

In a sprinkler approach to international expansion, ________.

Accepted Answer

A)  countries are entered when competition is limited 
B)  countries are gradually entered sequentially 
C)  many countries are entered simultaneously 
D)  countries in which the supply of raw material is greatest are entered first 
E)  countries in which the demand for the product is greatest are entered first 
A)  countries are entered when competition is limited 
B)  countries are gradually entered sequentially 
C)  many countries are entered simultaneously 
D)  countries in which the supply of raw material is greatest are entered first 
E)  countries in which the demand for the product is greatest are entered first

Question 6

Domestic-based export merchants

Accepted Answer

A)  buy the manufacturer's products and then sell them abroad. 
B)  seek and negotiate foreign purchases. 
C)  buy the manufacturer's products then sell them in the host country. 
D)  carry on exporting activities on behalf of several producers. 
E)  buy the manufacturer's products then fine agents and customers in foreign countries. 
A)  buy the manufacturer's products and then sell them abroad. 
B)  seek and negotiate foreign purchases. 
C)  buy the manufacturer's products then sell them in the host country. 
D)  carry on exporting activities on behalf of several producers. 
E)  buy the manufacturer's products then fine agents and customers in foreign countries.

Question 7

Your small firm has decided to begin exporting to a foreign country. Available to you are the five modes of entry. Your company has decided on direct exporting as its first venture into the foreign markets. What would the firm's next step in the exporting process be, considering that the next step involves increased risk and commitment to the processes?

Accepted Answer

A)  licensing 
B)  direct exporting 
C)  direct investment 
D)  indirect exporting 
E)  joint venture 
A)  licensing 
B)  direct exporting 
C)  direct investment 
D)  indirect exporting 
E)  joint venture

Question 8

A company needs to be large to sell globally.

Accepted Answer

A) True 
 B)False

Question 9

The favourability of country-of-origin perceptions must be considered both from a domestic and foreign perspective. Molson Canadian is an example of a product in the domestic market, where country-of-origin perceptions stirred consumers'

Accepted Answer

A)  diversification. 
B)  regional pride. 
C)  familiarity with foreign products. 
D)  patriotic spirit. 
E)  product perceptions. 
A)  diversification. 
B)  regional pride. 
C)  familiarity with foreign products. 
D)  patriotic spirit. 
E)  product perceptions.

Question 10

More than 90% of future population growth is projected to occur in the less developed countries.

Accepted Answer

A) True 
 B)False

Question 11

Marketers must also adapt sales promotion techniques to different markets. Several European countries have laws preventing or limiting sales promotion tools such as discounts. In India and Brazil, Lands' End could not advertise its

Accepted Answer

A)  sale price. 
B)  close-out specials. 
C)  comparative ads. 
D)  woman's bathing suits. 
E)  end-of-the-season sale. 
A)  sale price. 
B)  close-out specials. 
C)  comparative ads. 
D)  woman's bathing suits. 
E)  end-of-the-season sale.

Question 12

In Japan, Mister Donut's coffee cup is smaller and lighter to fit the hand of the average Japanese consumer. This is an example of product adaptation to meet local conditions or preferences. What version of its product has Mr. Donut adapted for Japan?

Accepted Answer

This is an example o

Question 13

Foreign investors may join with local investors to create a joint venture. Define a joint venture, and list some of the advantages and disadvantages to the firm of such a venture.

Accepted Answer

A joint venture is when a company in whi

Question 14

Existence of gray markets lead to which of the following outcomes?

Accepted Answer

A)  They create a free-rider problem making legitimate distributors' investments in supporting a manufacturer's product less productive. 
B)  They make the distribution channel stronger. 
C)  Goods sold in grey markets are always counterfeit. 
D)  Goods sold in grey markets come with standard product warranties. 
E)  Taxes imposed on grey market products are very high. 
A)  They create a free-rider problem making legitimate distributors' investments in supporting a manufacturer's product less productive. 
B)  They make the distribution channel stronger. 
C)  Goods sold in grey markets are always counterfeit. 
D)  Goods sold in grey markets come with standard product warranties. 
E)  Taxes imposed on grey market products are very high.

Question 15

Regional economic integration is defined as

Accepted Answer

A)  trading agreements between countries and firms. 
B)  trading agreements between blocs of countries. 
C)  trading agreements between individual countries. 
D)  agreements between individual firms for the sake of commerce. 
E)  trading agreements between individual firms. 
A)  trading agreements between countries and firms. 
B)  trading agreements between blocs of countries. 
C)  trading agreements between individual countries. 
D)  agreements between individual firms for the sake of commerce. 
E)  trading agreements between individual firms.

Question 16

If a company adapts or changes both the product and the communications, the company engages in a process called

Accepted Answer

A)  marketing communication. 
B)  straight extension. 
C)  product adaptation. 
D)  full adaptation. 
E)  dual adaptation. 
A)  marketing communication. 
B)  straight extension. 
C)  product adaptation. 
D)  full adaptation. 
E)  dual adaptation.

Question 17

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 and explain.

Accepted Answer

Some of the factors are:(1)the company d

Question 18

MERCOSUL is a free trade zone linking which of the following South American countries?

Accepted Answer

A)  Canada, Brazil, and Paraguay 
B)  Brazil, Argentina, and Paraguay 
C)  Brazil, Argentina, Paraguay, and Uruguay 
D)  Mexico, Japan, Brazil, and Paraguay 
E)  Mexico, Brazil, and Paraguay 
A)  Canada, Brazil, and Paraguay 
B)  Brazil, Argentina, and Paraguay 
C)  Brazil, Argentina, Paraguay, and Uruguay 
D)  Mexico, Japan, Brazil, and Paraguay 
E)  Mexico, Brazil, and Paraguay

Question 19

MERCOSUL links Brazil, Argentina, Paraguay, and Uruguay in a free trade area.

Accepted Answer

A) True 
 B)False

Question 20

Various governments force companies to charge the ________ price, which is charged by other competitors for the same or a similar product.

Accepted Answer

A)  gray market 
B)  arm's-length 
C)  implicit 
D)  escalation 
E)  dumping 
A)  gray market 
B)  arm's-length 
C)  implicit 
D)  escalation 
E)  dumping

Exam 21: Tapping into Global Markets

How do multinationals, such as ECom and Gucci, try to prevent grey markets?

NAFTA established a free trade zone between what three countries?

Most companies would prefer to remain domestic if their domestic market were large enough.

Foreign investors may join with local investors to create a joint venture company in which they share ownership and control.

In a sprinkler approach to international expansion, ________.

Domestic-based export merchants

A company needs to be large to sell globally.

The favourability of country-of-origin perceptions must be considered both from a domestic and foreign perspective. Molson Canadian is an example of a product in the domestic market, where country-of-origin perceptions stirred consumers'

More than 90% of future population growth is projected to occur in the less developed countries.

Marketers must also adapt sales promotion techniques to different markets. Several European countries have laws preventing or limiting sales promotion tools such as discounts. In India and Brazil, Lands' End could not advertise its

In Japan, Mister Donut's coffee cup is smaller and lighter to fit the hand of the average Japanese consumer. This is an example of product adaptation to meet local conditions or preferences. What version of its product has Mr. Donut adapted for Japan?

Foreign investors may join with local investors to create a joint venture. Define a joint venture, and list some of the advantages and disadvantages to the firm of such a venture.

Existence of gray markets lead to which of the following outcomes?

Regional economic integration is defined as

If a company adapts or changes both the product and the communications, the company engages in a process called

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 and explain.

MERCOSUL is a free trade zone linking which of the following South American countries?

MERCOSUL links Brazil, Argentina, Paraguay, and Uruguay in a free trade area.

Various governments force companies to charge the ________ price, which is charged by other competitors for the same or a similar product.

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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