Question 1

Straight extension means introducing the product in the foreign market without any changes to the brand.

Accepted Answer

A) True 
 B)False

Question 2

Indirect export has two advantages for the firm. First in involves less investment for the firm and secondly it

Accepted Answer

A)  involves less products and product lines. 
B)  involves less people to manage the process. 
C)  involves less intrusion by the government. 
D)  involves less risk. 
E)  involves less paperwork.

Question 3

Forward invention is creating a new product to meet a need in another country.

Accepted Answer

A) True 
 B)False

Question 4

The ultimate form of foreign involvement is direct ownership of foreign-based assembly or manufacturing facilities. One of the advantages of direct ownership can include economies of scale, creating jobs in the host country, developing deeper relations with local suppliers etcetera and the firm

Accepted Answer

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

Question 5

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)  management contracts 
B)  direct investment 
C)  joint venture production 
D)  franchising 
E)  contract manufacturing

Question 6

In deciding to go abroad, a company needs to define its marketing objectives and policies. Viterra chooses new locations based on which 3 preferences. What are they?

Accepted Answer

The answer of In deciding to go abroad, a company...

Question 7

If you were the marketing manager for small regional toy manufacturer who is considering exporting how would you describe the major decisions to be made prior to embarking on the international scale.

Accepted Answer

The answer of If you were the marketing manager for...

Question 8

To sell soap in Japan, Procter & Gamble sells to a general wholesaler, which sells to a product wholesaler, which sells to a product-specialty wholesaler, which sells to a regional wholesaler, which sells to a local wholesaler, which sells to retailers. This scenario represents the third link in the chain between sellers and final buyers, which is

Accepted Answer

A)  seller's corporate offices. 
B)  channels between nations. 
C)  seller's international marketing headquarters. 
D)  host country executive offices. 
E)  channels within foreign nations.

Question 9

The normal way to get involved in an international market is through exporting. The second stage in internationalization process is ______

Accepted Answer

A)  when the company hires domestic-based agents to negotiate foreign purchases. 
B)  when the company makes a commitment to expand into particular markets. 
C)  when the company works through independent agents. 
D)  a passive level of involvement in which the company exports its products from time to time. 
E)  when the company carries on exporting activities on the behalf of others.

Question 10

Once a company decides to target a particular country, it has to determine the best mode of entry. Each of its market entry strategies involves more commitment, risk, control, and profit potential. List these market entry strategies in order from low risk to highest risk.

Accepted Answer

The answer of Once a company decides to target a...

Question 11

When Microsoft introduces a new form of Windows software, the first-mover approach is preferred. Microsoft would then tend to use which form of entry strategy?

Accepted Answer

A)  sprinkler 
B)  waterfall 
C)  born global 
D)  market attractiveness 
E)  continuous

Question 12

Licensing is a simple way to become involved in international marketing. In licensing, the licensor issues a license to a foreign company to use a process, trademark, patent, or trade secret for a(n)

Accepted Answer

A)  exchange of information or propriety information. 
B)  limited period of time. 
C)  exchange for "their" process, trademark, patent, or secret. 
D)  exchange for access to the market place. 
E)  fee or royalty.

Question 13

A small firm has decided to enter the international market. At the present time, the firm has decided to enter only one country. What is the next step in the decision making process if the firm is to continue with its plans?

Accepted Answer

A)  deciding whether to go abroad 
B)  deciding on the marketing program 
C)  deciding on the marketing organization 
D)  deciding which markets to enter 
E)  deciding how to enter the market

Question 14

The cost escalation problem exists for multinationals and varies from country to country; the question is: How to set prices in different countries? Companies have three choices. One is to set a uniform price everywhere, two is to set a market-based price in each country, and three is to

Accepted Answer

A)  set a cost-based price in each country. 
B)  set the transfer price at marginal costs + marginal revenue. 
C)  set a final "cost plus" price in each country. 
D)  vary the price/market/country on a daily basis to reflect consumer demand. 
E)  let the market dictate price/country.

Question 15

The owners of a small B.C. orchard feel that their fruit would be appreciated the world over and would like to introduce them to as many countries as possible. What conditions would indicate this marketer should enter fewer countries?

Accepted Answer

The answer of The owners of a small B.C. orchard...

Question 16

In the United States, Tim Hortons has only seen around a 3-percent annual growth as it faces strong competition from Dunkin' Donuts. The company may need to market itself differently in the United States. The process of changing the communications programs used in the home market for each new local market is called

Accepted Answer

A)  straight extension. 
B)  communication adaptation. 
C)  product adaptation. 
D)  regionalized approach. 
E)  dual adaptation.

Question 17

A global industry is defined as

Accepted Answer

A)  a firm that operates in more than one country and has a sales and marketing staff in those countries. 
B)  an industry that has strategic positions in many countries but is not affected by competition. 
C)  an industry that operates in more than one country and has a strategic position in many countries. 
D)  an industry that operates in more than one country and captures R&D, marketing, and other financial advantages in its costs and reputation. 
E)  an industry in which the strategic positions of competitors are affected by their overall global positions.

Question 18

Trade is Canada's primary engine of economic growth. Exports represent approximately ____ percent of our GDP.

Accepted Answer

A)  10 
B)  20 
C)  25 
D)  30 
E)  40

Question 19

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)  communication adaptation. 
B)  product communications. 
C)  marketing communications. 
D)  dual adaptation. 
E)  brand communications.

Question 20

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

Accepted Answer

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

Exam 21: Tapping into Global Markets