Question 1

In some areas of the world there are large, impoverished populations that need goods and services but cannot afford to pay the prices that wealthier consumers in developed countries can. The area of the market representing the poorer populations is known as

Accepted Answer

A) exchange controls. 
B) parity purchasers. 
C) bottom of the pyramid. 
D) a trading bloc. 
E) glocalization.

Question 2

Today, many developed countries are experiencing ________ population growth.

Accepted Answer

A) slight 
B) zero or negative 
C) rapid 
D) moderate 
E) significant

Question 3

The most important consideration when a firm chooses a global product strategy should be

Accepted Answer

A) opportunities for countertrade. 
B) the effectiveness of the marketing team. 
C) the needs of the target market. 
D) the overall cost of the strategy. 
E) WTO regulations.

Question 4

In China, state control of media is high, so companies are challenged to find ways to get their message to customers. This demonstrates one of the difficulties in crafting a global ________ strategy.

Accepted Answer

A) communication 
B) product 
C) cultural 
D) distribution 
E) pricing

Question 5

The most typical method companies use to introduce a product outside of the home country is to adapt the product to local needs before presenting it to the marketplace.

Accepted Answer

A) True 
 B)False

Question 6

Olivia's Oil Supply has to pay a ten-cent tax on each bottle of olive oil it imports from Italy. This tax is an example of a

Accepted Answer

A) subsidy. 
B) bloc. 
C) tariff. 
D) recall. 
E) quota.

Question 7

Neal is on a business trip to Brazil. His company is considering this market and it is his job to get a grasp on the symbols and ceremonies common to Brazil. What aspect of Brazil's culture is Neal assessing?

Accepted Answer

A) underlying values 
B) visible artifacts 
C) assumptions 
D) opinions and beliefs 
E) purchasing parity

Question 8

Brazil has a high power distance score on Hofstede's cultural dimensions graph. What does this mean to someone looking to market a product in that country?

Accepted Answer

The answer of Brazil has a high power distance score...

Question 9

Many of the best-known American retailers, like Starbucks and McDonald's, have contractual agreements with another firm or individuals, allowing its businesses to operate overseas. These companies expanded globally using

Accepted Answer

A) franchising. 
B) exporting. 
C) joint ventures. 
D) direct investment. 
E) strategic alliances.

Question 10

Jessica's firm has developed a crustless pizza and rather than compete in the U.S. market, she has decided instead to introduce the product in Europe, where she feels it will be innovative. Her advertising agency urged caution because

Accepted Answer

A) differences in language, customs, and culture complicate marketers' ability to communicate with customers in various countries. 
B) print media are different in Europe, and it would be difficult to create a global campaign. 
C) literacy rates are significantly lower in Europe, and print ads would be ineffective. 
D) research indicates that Europeans do not eat pizza as often as Americans. 
E) domestic advertising agencies cannot earn commissions on advertising they place overseas.

Question 11

Which of these trade agreements represents the highest level of integration among participating nations?

Accepted Answer

A) NAFTA 
B) EU 
C) GNI 
D) ASEAN 
E) CAFTA

Question 12

What global entry strategy should Bistro Bakery Supply use if it wants to have the least financial risk?

Accepted Answer

A) exporting 
B) direct investment 
C) greenfield investment 
D) franchising 
E) joint venture

Question 13

Talia wants to sell her products in Europe, since they are doing well in the United States. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with

Accepted Answer

A) opening a franchise. 
B) exporting her products. 
C) forming a strategic alliance with another company. 
D) entering a joint venture with a local firm. 
E) making a direct investment in another country.

Question 14

Why is it that even among an audience of all English speakers, there can be significant differences in the effectiveness of advertising campaigns?

Accepted Answer

The answer of Why is it that even among an...

Question 15

Sebastian wants to start a business in his home city of Madrid, Spain. He does not have an existing firm or a product, and he doesn't have a lot of capital. He does, however, love Pizza Hut and would like to be a part of that company. What global entry strategy best suits Sebastian?

Accepted Answer

A) open a Pizza Hut franchise 
B) directly invest in Pizza Hut 
C) export Pizza Hut products to other countries 
D) form a strategic alliance with Pizza Hut 
E) form a joint venture with Pizza Hut

Question 16

Cultural nuances, subcultures, and consumers' different views of their roles in different countries can make ________ complicated.

Accepted Answer

A) purchasing power parity 
B) segmentation, targeting, and positioning 
C) trading bloc coordination 
D) exchange control planning 
E) reducing trade surpluses

Question 17

A company's communication strategy is one of the easiest things to adapt in the global marketplace.

Accepted Answer

A) True 
 B)False

Question 18

What are the risks associated with global franchising?

Accepted Answer

The answer of What are the risks associated with global...

Question 19

Once a company has decided to sell in a foreign country, it must determine the best mode of entry. List each mode of market entry and give an example for each.

Accepted Answer

The answer of Once a company has decided to sell...

Question 20

Global segmentation, targeting, and positioning (STP)are more complicated than local STP, in part because

Accepted Answer

A) consumers may view their roles differently in different countries. 
B) there are fewer franchising opportunities in global markets. 
C) global consumer markets are almost totally homogeneous, making segmentation difficult. 
D) most governments have rules against targeting consumers. 
E) positioning almost always fails when attempted in a foreign country.

Exam 8: Global Marketing

In some areas of the world there are large, impoverished populations that need goods and services but cannot afford to pay the prices that wealthier consumers in developed countries can. The area of the market representing the poorer populations is known as

Today, many developed countries are experiencing ________ population growth.

The most important consideration when a firm chooses a global product strategy should be

In China, state control of media is high, so companies are challenged to find ways to get their message to customers. This demonstrates one of the difficulties in crafting a global ________ strategy.

The most typical method companies use to introduce a product outside of the home country is to adapt the product to local needs before presenting it to the marketplace.

Olivia's Oil Supply has to pay a ten-cent tax on each bottle of olive oil it imports from Italy. This tax is an example of a

Neal is on a business trip to Brazil. His company is considering this market and it is his job to get a grasp on the symbols and ceremonies common to Brazil. What aspect of Brazil's culture is Neal assessing?

Brazil has a high power distance score on Hofstede's cultural dimensions graph. What does this mean to someone looking to market a product in that country?

Many of the best-known American retailers, like Starbucks and McDonald's, have contractual agreements with another firm or individuals, allowing its businesses to operate overseas. These companies expanded globally using

Jessica's firm has developed a crustless pizza and rather than compete in the U.S. market, she has decided instead to introduce the product in Europe, where she feels it will be innovative. Her advertising agency urged caution because

Which of these trade agreements represents the highest level of integration among participating nations?

What global entry strategy should Bistro Bakery Supply use if it wants to have the least financial risk?

Talia wants to sell her products in Europe, since they are doing well in the United States. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with

Why is it that even among an audience of all English speakers, there can be significant differences in the effectiveness of advertising campaigns?

Sebastian wants to start a business in his home city of Madrid, Spain. He does not have an existing firm or a product, and he doesn't have a lot of capital. He does, however, love Pizza Hut and would like to be a part of that company. What global entry strategy best suits Sebastian?

Cultural nuances, subcultures, and consumers' different views of their roles in different countries can make ________ complicated.

A company's communication strategy is one of the easiest things to adapt in the global marketplace.

What are the risks associated with global franchising?

Once a company has decided to sell in a foreign country, it must determine the best mode of entry. List each mode of market entry and give an example for each.

Global segmentation, targeting, and positioning (STP) are more complicated than local STP, in part because