Question 1

Which of the following market entry strategies allows an organization 100 percent ownership of its foreign subsidiaries?

Accepted Answer

A)  franchising 
B)  direct investment 
C)  product sourcing 
D)  joint venture 
A)  franchising 
B)  direct investment 
C)  product sourcing 
D)  joint venture B

Question 2

Which of the following is true of licensing as a form of global market entry?

Accepted Answer

A)  A company can expand its market reach with almost no capital or marketing costs. 
B)  It allows a licensor to directly involve in the overseas market and user's needs. 
C)  It can restrict the growth of domestic competitors in an overseas market. 
D)  A company's resources cannot be exploited by another company. 
A)  A company can expand its market reach with almost no capital or marketing costs. 
B)  It allows a licensor to directly involve in the overseas market and user's needs. 
C)  It can restrict the growth of domestic competitors in an overseas market. 
D)  A company's resources cannot be exploited by another company. A

Question 3

Research and development becomes centralized when a company becomes transnational.

Accepted Answer

A) True 
 B)False  False

Question 4

Exchange-rate fluctuations have little effect on the attractiveness of a potential target market.

Accepted Answer

A) True 
 B)False

Question 5

Advanced global companies generally pursue cheap labor for manufacturing locations.

Accepted Answer

A) True 
 B)False

Question 6

Licensees can become direct competitors to licensors.

Accepted Answer

A) True 
 B)False

Question 7

A domestic company can go global simply by responding to an unsolicited order.

Accepted Answer

A) True 
 B)False

Question 8

The greater the distance between the product source and the target market, the lower the transportation costs.

Accepted Answer

A) True 
 B)False

Question 9

Most companies handle export operations in-house.

Accepted Answer

A) True 
 B)False

Question 10

In capital-intensive industries, wage levels are often a large percentage of costs associated with a product.

Accepted Answer

A) True 
 B)False

Question 11

One advantage of a joint venture is that it may be the only way to enter a country if local laws prohibit foreign ownership.

Accepted Answer

A) True 
 B)False

Question 12

While deciding a location for a manufacturing base, which of the following can be directly determined by organizations based on the foreign exchange rate of a country's currency?

Accepted Answer

A)  potential competition 
B)  product fit 
C)  demands for a product 
D)  costs of production 
A)  potential competition 
B)  product fit 
C)  demands for a product 
D)  costs of production

Question 13

Escobar, a global enterprise selling athletic shoes, procures its shoes through contract manufacturing agreements with producers in developing nations. It uses its expertise in distribution and sales to promote these products. In this case, the marketing strategy used by the company is referred to as ________.

Accepted Answer

A)  franchising 
B)  direct investment 
C)  product sourcing 
D)  joint venture 
A)  franchising 
B)  direct investment 
C)  product sourcing 
D)  joint venture

Question 14

If a company's export products are similar to products manufactured inside the target market, the exported target gains competitive advantage.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true of distributors?

Accepted Answer

A)  They take title to the goods. 
B)  They cannot add their margins to the sales. 
C)  They cannot resell to the trade. 
D)  They allow direct representation to the exporter. 
A)  They take title to the goods. 
B)  They cannot add their margins to the sales. 
C)  They cannot resell to the trade. 
D)  They allow direct representation to the exporter.

Question 16

One of the strengths of the transnational company is that it combines the strengths of each of the preceding stages in an integrated network which leverages worldwide learning and experience.

Accepted Answer

A) True 
 B)False

Question 17

Labor costs include the cost of workers at every level.

Accepted Answer

A) True 
 B)False

Question 18

________ refers to a marketing strategy where companies do not manufacture any of their product's components.

Accepted Answer

A)  Product sourcing 
B)  Product differentiation 
C)  Joint venture 
D)  Export marketing 
A)  Product sourcing 
B)  Product differentiation 
C)  Joint venture 
D)  Export marketing

Question 19

Agents differ from distributors in that agents ________.

Accepted Answer

A)  do not assist in invoice collection 
B)  do not take title to the goods 
C)  add channel value where thousands of customers are involved 
D)  pay directly to exporters 
A)  do not assist in invoice collection 
B)  do not take title to the goods 
C)  add channel value where thousands of customers are involved 
D)  pay directly to exporters

Question 20

Which of the following is the first stage of development of a transnational corporation?

Accepted Answer

A)  global 
B)  international 
C)  domestic 
D)  multinational 
A)  global 
B)  international 
C)  domestic 
D)  multinational

Which of the following market entry strategies allows an organization 100 percent ownership of its foreign subsidiaries?

Which of the following is true of licensing as a form of global market entry?

Research and development becomes centralized when a company becomes transnational.

Exchange-rate fluctuations have little effect on the attractiveness of a potential target market.

Advanced global companies generally pursue cheap labor for manufacturing locations.

Licensees can become direct competitors to licensors.

A domestic company can go global simply by responding to an unsolicited order.

The greater the distance between the product source and the target market, the lower the transportation costs.

Most companies handle export operations in-house.

In capital-intensive industries, wage levels are often a large percentage of costs associated with a product.

One advantage of a joint venture is that it may be the only way to enter a country if local laws prohibit foreign ownership.

While deciding a location for a manufacturing base, which of the following can be directly determined by organizations based on the foreign exchange rate of a country's currency?

If a company's export products are similar to products manufactured inside the target market, the exported target gains competitive advantage.

Which of the following is true of distributors?

One of the strengths of the transnational company is that it combines the strengths of each of the preceding stages in an integrated network which leverages worldwide learning and experience.

Labor costs include the cost of workers at every level.

________ refers to a marketing strategy where companies do not manufacture any of their product's components.

Agents differ from distributors in that agents ________.

Which of the following is the first stage of development of a transnational corporation?

Introduction to Global Marketing

The Global Economic Environment

The Political, Legal, and Regulatory Environments of Global Marketing

The Global Cultural Environment

Global Customers

Global Marketing Information Systems and Research

Segmentation, Targeting, and Positioning

Competitive Analysis and Strategy

Product Decisions

Pricing Decisions

Global Marketing Channels

Global Integrated Marketing Communications

Global Organization and Leadership: Managing the Global Marketing Effort

Global Corporate Social Responsibility and Environmental Sustainability

The Future of Global Marketing

Filters

Exam 8: Global Entry and Expansion Strategies

Which of the following market entry strategies allows an organization 100 percent ownership of its foreign subsidiaries?

Which of the following is true of licensing as a form of global market entry?

Research and development becomes centralized when a company becomes transnational.

Exchange-rate fluctuations have little effect on the attractiveness of a potential target market.

Advanced global companies generally pursue cheap labor for manufacturing locations.

Licensees can become direct competitors to licensors.

A domestic company can go global simply by responding to an unsolicited order.

The greater the distance between the product source and the target market, the lower the transportation costs.

Most companies handle export operations in-house.

In capital-intensive industries, wage levels are often a large percentage of costs associated with a product.

One advantage of a joint venture is that it may be the only way to enter a country if local laws prohibit foreign ownership.

While deciding a location for a manufacturing base, which of the following can be directly determined by organizations based on the foreign exchange rate of a country's currency?

If a company's export products are similar to products manufactured inside the target market, the exported target gains competitive advantage.

Which of the following is true of distributors?

One of the strengths of the transnational company is that it combines the strengths of each of the preceding stages in an integrated network which leverages worldwide learning and experience.

Labor costs include the cost of workers at every level.

________ refers to a marketing strategy where companies do not manufacture any of their product's components.

Agents differ from distributors in that agents ________.

Which of the following is the first stage of development of a transnational corporation?

Introduction to Global Marketing

The Global Economic Environment

The Political, Legal, and Regulatory Environments of Global Marketing

The Global Cultural Environment

Global Customers

Global Marketing Information Systems and Research

Segmentation, Targeting, and Positioning

Competitive Analysis and Strategy

Product Decisions

Pricing Decisions

Global Marketing Channels

Global Integrated Marketing Communications

Global Organization and Leadership: Managing the Global Marketing Effort

Global Corporate Social Responsibility and Environmental Sustainability

The Future of Global Marketing

Filters