Question 1

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.

Accepted Answer

Some of the factors are:
• some foreign markets present higher profit opportunities
• the company needs a larger customer base to achieve economies of scale
• the company wants to reduce its dependence on any one market
• the company decides to counterattack global competitors in their home markets
• customers are going abroad and require international servicing

Question 2

Which of the following causes a difference between marketing in developed countries and marketing in developing countries?

Accepted Answer

A)   The cost of production varies substantially between the developed and the developing world.
B)   The disparity between the rich and the poor in the developing world is reducing.
C)   There are substantial cultural differences between the developed and the developing world.
D)   Marketing in developing countries is far more expensive than in the developed world.
E)   The developing countries have more trade barriers in place than the developed countries. C

Question 3

The Organization for Economic Cooperation & Development (OECD) cautions that economic reforms have stagnated and ranks Russia as one of the most corrupt countries in the world.

Accepted Answer

A) True 
 B)False  True

Question 4

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

The answer of International companies must decide how much to...

Question 5

A risk averse attitude is associated with high ________.

Accepted Answer

A)   uncertainty avoidance
B)   femininity
C)   power distance
D)   individualism
E)   collectivism

Question 6

When innovation at Siemens enables the company to offer solutions that can make the generation of hydroelectricity more environment-friendly, the company will want to reap the benefits of being the first to introduce such a product across countries. In this case, which of the following approaches is likely to be the best approach to entering foreign markets?

Accepted Answer

A)   the rifle approach
B)   the continuous approach
C)   the born global approach
D)   the sprinkler approach
E)   the waterfall approach

Question 7

In general, a company prefers to enter countries that have high market attractiveness and high market risk, regardless of whether it possesses a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 8

Country-of-origin perceptions, once formed, are very difficult to change.

Accepted Answer

A) True 
 B)False

Question 9

In which of the following modes of licensing does the firm hire local producers to produce the product, giving the company less control over the manufacturing process?

Accepted Answer

A)   contract manufacturing
B)   management contracts
C)   direct investment
D)   joint venture production
E)   greenfield venturing

Question 10

________ consumers drank an average of only 14 eight-ounce bottles of Coke in 2012, compared with an average of 241 bottles in Brazil and 745 bottles in Mexico, leading Coca-Cola to announce a $5 billion investment over 2012-2020.

Accepted Answer

A)   Venezuelan
B)   Indian
C)   Indonesian
D)   South African
E)   Chinese

Question 11

Companies can run the same marketing communications programs as used in the home market or change them for each local market, a process called ________.

Accepted Answer

A)   product communications
B)   market development
C)   dual adaptation
D)   diversification
E)   communication adaptation

Question 12

Which of the following does NOT contribute to the custo Brasil ("the cost of Brazil") for businesses?

Accepted Answer

A)   Brazil had serious disputes with neighboring countries.
B)   Brazil's transportation costs are higher than other markets.
C)   Unloading a container is twice as expensive in India and takes three times longer than in China.
D)   Strict and costly labor laws inspire an underground economy that takes urban jobs.
E)   Crime and corruption are problems.

Question 13

"BRICS" is an acronym for ________.

Accepted Answer

A)   Brazil, Russia, India, China, and South Africa
B)   Bolivia, Russia, Indonesia, China, and South Africa
C)   Brazil, Russia, Indonesia, China, and South Africa
D)   Bolivia, Russia, India, Canada, and South Africa
E)   Bolivia, Russia, Indonesia, Canada, and South Africa

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 foreign products and sell them in the domestic country
D)   seek and negotiate foreign purchases for a commission
E)   produce and export products to foreign countries

Question 16

Nestlé, Unilever, and Modelēz get close to or above 40 percent of their total business coming from emerging markets.

Accepted Answer

A) True 
 B)False

Question 17

Indirect exports are characterized by high investment, and therefore high risk.

Accepted Answer

A) True 
 B)False

Question 18

Country-of-origin effects refer to the attitude anything produced by the home country is better than imported goods.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true about direct investment as a mode of international expansion?

Accepted Answer

A)   It allows a firm to retain full control over its investment.
B)   It yields lower returns than joint ventures.
C)   It involves the least amount of risk.
D)   It involves the least cost.
E)   It does not allow the firm to diversify.

Question 20

Services account for nearly ________ percent of global trade.

Accepted Answer

A)   10
B)   15
C)   20
D)   25
E)   30

Exam 8: Tapping Into Global Markets

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.

Which of the following causes a difference between marketing in developed countries and marketing in developing countries?

The Organization for Economic Cooperation & Development (OECD) cautions that economic reforms have stagnated and ranks Russia as one of the most corrupt countries in the world.

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

A risk averse attitude is associated with high ________.

In general, a company prefers to enter countries that have high market attractiveness and high market risk, regardless of whether it possesses a competitive advantage.

Country-of-origin perceptions, once formed, are very difficult to change.

In which of the following modes of licensing does the firm hire local producers to produce the product, giving the company less control over the manufacturing process?

________ consumers drank an average of only 14 eight-ounce bottles of Coke in 2012, compared with an average of 241 bottles in Brazil and 745 bottles in Mexico, leading Coca-Cola to announce a $5 billion investment over 2012-2020.

Companies can run the same marketing communications programs as used in the home market or change them for each local market, a process called ________.

Which of the following does NOT contribute to the custo Brasil ("the cost of Brazil") for businesses?

"BRICS" is an acronym for ________.

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

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

Nestlé, Unilever, and Modelēz get close to or above 40 percent of their total business coming from emerging markets.

Indirect exports are characterized by high investment, and therefore high risk.

Country-of-origin effects refer to the attitude anything produced by the home country is better than imported goods.

Which of the following is true about direct investment as a mode of international expansion?

Services account for nearly ________ percent of global trade.