Question 1

Global firms plan,operate,and ________ their activities on a worldwide basis.

Accepted Answer

A)  produce 
B)  coordinate 
C)  distribute 
D)  price 
E)  service 
A)  produce 
B)  coordinate 
C)  distribute 
D)  price 
E)  service

Question 2

Regional free trade zones exist around the world.One of the oldest is the European Union,formed in 1957.Describe the purpose of the EU and discuss some of the benefits to firms engaged in trade within the European Union.

Accepted Answer

The EU creates a single European market

Question 3

Product adaptation involves ________.

Accepted Answer

A)  altering the product to meet local conditions or preferences 
B)  altering the product to meet minimum acceptable standards 
C)  changing the product periodically 
D)  upgrading the product on a periodic basis 
E)  changing the product to meet competition 
A)  altering the product to meet local conditions or preferences 
B)  altering the product to meet minimum acceptable standards 
C)  changing the product periodically 
D)  upgrading the product on a periodic basis 
E)  changing the product to meet competition

Question 4

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

Accepted Answer

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

Question 5

Your firm has decided to enter the international market with your product called "Trema," a new pocket organizer/cell phone combination.In your discussions about the marketing plans,your CMO has decided that your firm will use the same advertising program from the "home" market for the new foreign markets.Your CMO is advocating ________.

Accepted Answer

A)  product adaptation 
B)  dual adaptation 
C)  straight extension 
D)  communication adaptation 
E)  none of the above 
A)  product adaptation 
B)  dual adaptation 
C)  straight extension 
D)  communication adaptation 
E)  none of the above

Question 6

If the company adapts both the product and the communications,the company engages in dual adaptation.

Accepted Answer

A) True 
 B)False

Question 7

NAFTA established a free trade zone between what three countries

Accepted Answer

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

Question 8

A global firm is 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.

Accepted Answer

A) True 
 B)False

Question 9

In a sprinkler approach to international expansion,________.

Accepted Answer

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

Question 10

Companies can manage their international marketing activities in three ways.These include export departments,international divisions,________.

Accepted Answer

A)  or a global organization 
B)  or a fixed corporate headquarters 
C)  or a strong marketing department in the "host" country 
D)  and local marketing efforts 
E)  none of the above 
A)  or a global organization 
B)  or a fixed corporate headquarters 
C)  or a strong marketing department in the "host" country 
D)  and local marketing efforts 
E)  none of the above

Question 11

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 ________.

Accepted Answer

A)  strategic marketing pricing problem 
B)  market pricing problem 
C)  tactical pricing problem 
D)  price escalation problem 
E)  transfer pricing problem 
A)  strategic marketing pricing problem 
B)  market pricing problem 
C)  tactical pricing problem 
D)  price escalation problem 
E)  transfer pricing problem

Question 12

Domestic-based export agents perform a valuable service for companies seeking to enter foreign markets.The primary function of these agents is to ________.

Accepted Answer

A)  carry on exporting activities on behalf of several producers 
B)  buy the manufacturer's products and then sell them abroad 
C)  buy the manufacturer's products then sell them in the host country 
D)  seek and negotiate foreign purchases for a commission 
E)  export products to foreign countries 
A)  carry on exporting activities on behalf of several producers 
B)  buy the manufacturer's products and then sell them abroad 
C)  buy the manufacturer's products then sell them in the host country 
D)  seek and negotiate foreign purchases for a commission 
E)  export products to foreign countries

Question 13

The ultimate form of foreign involvement is direct ownership of foreign-based assembly or manufacturing facilities.Advantages of direct ownership can include securing cost economies,creating jobs in the host country,and developing deeper relations with local suppliers; and the firm ________.

Accepted Answer

A)  retains full control over its investment 
B)  reviews global outreach projections 
C)  redefines the business concept 
D)  reviews the successes from e-commerce 
E)  receives no disadvantages to direct investment 
A)  retains full control over its investment 
B)  reviews global outreach projections 
C)  redefines the business concept 
D)  reviews the successes from e-commerce 
E)  receives no disadvantages to direct investment

Question 14

The major decisions in international marketing include which of the following steps

Accepted Answer

A)  Deciding whether to go abroad 
B)  Deciding which markets to enter 
C)  Deciding how to enter the market 
D)  Deciding on the marketing program 
E)  All of the above 
A)  Deciding whether to go abroad 
B)  Deciding which markets to enter 
C)  Deciding how to enter the market 
D)  Deciding on the marketing program 
E)  All of the above

Question 15

________ is one of the world's largest single markets,with 25 member countries,a common currency,and more than 454 million consumers.

Accepted Answer

A)  NAFTA 
B)  MERCOSUR 
C)  The European Union 
D)  APEC 
E)  ASEAN 
A)  NAFTA 
B)  MERCOSUR 
C)  The European Union 
D)  APEC 
E)  ASEAN

Question 16

Various governments are watching for dumping and transfer pricing abuses and often force companies to charge the ________-the price charged by other competitors for the same or a similar product.

Accepted Answer

A)  gray market price 
B)  implicit price 
C)  arm's-length price 
D)  authorized price 
E)  contingent price 
A)  gray market price 
B)  implicit price 
C)  arm's-length price 
D)  authorized price 
E)  contingent price

Question 17

Global firms,because they are targeting such a large market,must abandon niche strategies.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

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

Question 19

International companies must decide how much to adapt their marketing strategy to local conditions.Identify and explain the two strategies companies can use.

Accepted Answer

At one end is the standardized marketing

Question 20

Cooperative organizations carry on exporting activities on behalf of several producers and are partly under their administrative control.

Accepted Answer

A) True 
 B)False

Exam 21: Tapping into Global Markets

Global firms plan,operate,and ________ their activities on a worldwide basis.

Regional free trade zones exist around the world.One of the oldest is the European Union,formed in 1957.Describe the purpose of the EU and discuss some of the benefits to firms engaged in trade within the European Union.

Product adaptation involves ________.

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

If the company adapts both the product and the communications,the company engages in dual adaptation.

NAFTA established a free trade zone between what three countries

A global firm is 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.

In a sprinkler approach to international expansion,________.

Companies can manage their international marketing activities in three ways.These include export departments,international divisions,________.

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 ________.

Domestic-based export agents perform a valuable service for companies seeking to enter foreign markets.The primary function of these agents is to ________.

The ultimate form of foreign involvement is direct ownership of foreign-based assembly or manufacturing facilities.Advantages of direct ownership can include securing cost economies,creating jobs in the host country,and developing deeper relations with local suppliers; and the firm ________.

The major decisions in international marketing include which of the following steps

________ is one of the world's largest single markets,with 25 member countries,a common currency,and more than 454 million consumers.

Various governments are watching for dumping and transfer pricing abuses and often force companies to charge the ________-the price charged by other competitors for the same or a similar product.

Global firms,because they are targeting such a large market,must abandon niche strategies.

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

International companies must decide how much to adapt their marketing strategy to local conditions.Identify and explain the two strategies companies can use.

Cooperative organizations carry on exporting activities on behalf of several producers and are partly under their administrative control.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Gathering Information and Scanning the Environment

Conducting Marketing Research and Forecasting Demand

Creating Customer Value, Satisfaction, and Loyalty

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Dealing with Competition

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications:

Managing Personal Communications:

Introducing New Market Offerings

Managing a Holistic Marketing Organization

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