Deck 17: International Marketing

Question 1

For companies to achieve their full potential and prosper in the long run, it is critical that they expand into international markets.

Answer 1

True

Question 2

Companies expand into international markets to take advantage of global market opportunities, to keep pace with the competition, and to maximize the potential of their product mix.

Answer 2

True

Question 3

While only a few companies operate in an isolated, country-specific environment, most companies can effectively avoid international involvement if they so choose.

Answer 3

False

Question 4

Driving macroenvironment forces behind international expansion include economic, competitive, and political forces.

Question 5

The organization that was formed in the 1970s during the economic crisis to address economic and financial issues was the World Trade Organization (WTO).

Question 6

The World Bank is the largest international bank that sponsors economic development projects.

Question 7

The microenvironment driver of converging consumer needs means that a company must use a different marketing strategy throughout various countries.

Question 8

An advantage of international expansion is that some products that are in the maturity stage or even decline stage of the product life cycle in the United States can enter countries where the product is in the growth stage of the PLC.

Question 9

Because of the high costs of new product development, firms must focus on marketing new products in their home country rather than utilize international expansion.

Question 10

In international marketing, nonverbal communication, which includes body language, gestures, grimaces, eye contact, and even silence, is especially important.

Question 11

Silent communications, especially gestures, have different meanings across cultures, and marketing managers must be aware of them in order to avoid embarrassing or costly mistakes.

Question 12

A peculiar trait of American culture is the bubble that surrounds individuals, which others are not to enter. Such a bubble is unheard of in Europe and Latin America.

Question 13

The French gesture very little compared to other cultures, while Italians use hand gestures frequently.

Question 14

In terms of the impact of religion on marketing, Judaism stresses hard work and frugality and is linked to the development of capitalism and economic emancipation.

Question 15

In terms of levels of international marketing involvement, export marketing is marketing in different countries without coordinating across operations .

Question 16

In terms of levels of international marketing involvement, multinational marketing is marketing in different countries without coordinating across operations.

Question 17

In terms of levels of international marketing involvement, international marketing involves marketing activities that do not have a country or region focus and that are possibly due to the emergence of global consumer segments and efficient global allocation of company talent and resources.

Question 18

In general, companies tend to use the export mode in their first attempt to expand internationally and in environments that present substantial risk.

Question 19

In terms of mode of entry, companies tend to approach markets that offer promise and lower risk by engaging in some form of direct investment.

Question 20

In terms of international entry mode, direct exporting is where a firm handles its own exports, usually with the help of an in-house exporting department.

Question 21

Indirect exporting does not require market expertise or a long-term commitment to the international market.

Question 22

In terms of international entry mode, indirect exporting is a higher risk than direct exporting, but the costs are lower for indirect exporting.

Question 23

Exporting, a popular international entry mode, presents more risk to the company than licensing, but offers the company more control.

Question 24

The two approaches to licensing are licensing without the name and licensing with the name.

Question 25

Franchising is the principal international entry mode for the service industry.

Question 26

Joint ventures are international entry modes that allow for very rapid market penetration, which is especially important when new markets open their doors for foreign firms.

Question 27

A special type of joint venture is a consortium, which involves two companies.

Question 28

In terms of risk, having branch offices in another country would possess higher risk than having a wholly owned subsidiary.

Question 29

Loosely stated, all joint ventures, licensing agreements, and franchising agreements are considered to be strategic alliances.

Question 30

In terms of the product component of the international marketing mix, global standardization refers to the practice of global branding and localized marketing adaptation to differences in local culture, legislation, and even production capabilities.

Question 31

In terms of the product component of the international marketing mix, regional standardization refers to the adaptation of products to local requirements so that the product can legally and physically function in the specific country's environment.

Question 32

In terms of the product component of the international marketing mix, global localization refers to the standardization of products across markets, and ultimately, the standardization of the marketing mix worldwide.

Question 33

In terms of the product component of the international marketing mix, mandatory adaptation refers to the adaptation of products to local requirements so that the product can legally and physically function in the specific country's environment.

Question 34

In terms of international distribution, foreign-country intermediaries can be placed into two categories: merchant intermediaries who take title and possession of goods and agents and brokers who do not take title and possession of goods.

Question 35

While standardization is the ideal for international promotions because it lowers costs substantially, it is difficult to accomplish.

Question 36

In the case of advertising internationally, the media infrastructure provides many challenges.

Question 37

With regard to business-to-business promotions, international trade shows are of particular prominence and often involve national and local government participation.

Question 38

Multinational corporations normally have an advantage over small and medium size firms in terms of pricing because they can shift production to take advantage of lower costs and exchange rates.

Question 39

All of the following are trade organizations that facilitate international trade and development except

A) The World Trade Organization (WTO)
B) The Group of Eight (G8)
C) The American Trade Block (ATB)
D) The International Monetary Fund (IMF)

Question 40

The General Agreement on Tariffs and Trade (GATT) was signed by 123 nations agreeing to promote trade and eliminate trade barriers and was the forerunner of the

A) Group of Eight (G8)
B) World Trade Organization (WTO)
C) International Monetary Fund (IMF)
D) World Bank

Question 41

The World Trade Organization's (WTO) main functions include all of the following except

A) addressing biotechnology and food safety
B) providing assistance to developing and transitional economies
C) offering specialized help for export promotion through the International Trade Center
D) promoting regional trade agreements

Question 42

The World Trade Organization's (WTO) main functions include all of the following except

A) promoting cooperation in global economic policymaking
B) reviewing members' trade policies
C) engaging in route notification when members introduce new trade measures or alter old ones
D) addressing digital opportunity issues

Question 43

The organization that was formed in the 1970s during the economic crisis to address economic and financial issues was the

A) Group of Seven (G7) which then became the Group of Eight (G8)
B) World Trade Organization (WTO)
C) International Monetary Fund (IMF)
D) World Bank

Question 44

The Group of Seven (G7), also referred to as the Group of Eight (G8), meets once a year to address all of the following issues except

A) the role of the International Trade Center
B) biotechnology and food safety
C) economic development
D) disarmament and arms control

Question 45

The Group of Seven (G7), also referred to as the Group of Eight (G8), meets once a year to address all of the following issues except

A) organized crime and drug trafficking
B) terrorism
C) marketing issues
D) environment issues

Question 46

The organization that meets once a year to discuss issues such as biotechnology, food safety, organized crime, drug trafficking, terrorism, environmental issues, and microeconomic issues is the

A) The Group of Seven (G7), also referred to as the Group of Eight (G8)
B) World Trade Organization (WTO)
C) International Monetary Fund (IMF)
D) World Bank

Question 47

The organization(s) that was (were) developed in 1944 to address the need for global economic development, stability and rebuilding after WWII and the Great Depression was the

A) The Group of Seven (G7), also referred to as the Group of Eight (G8)
B) World Trade Organization (WTO)
C) International Monetary Fund (IMF) and World Bank
D) United Nations (UN)

Question 48

The Southern Cone Common Market (MERCOSUR) is an agreement between Argentina, Brazil, Paraguay, and all of the following nations except

A) Uruguay
B) Mexico
C) Bolivia
D) Chile

Question 49

The microenvironment driver of converging consumer needs means that companies

A) will have longer product lifecycle for their products
B) can use similar marketing strategies in multiple countries where the product is sold
C) can create fewer new products
D) will face more intense competition from global products

Question 50

All of the following are primary microenvironment drivers of international expansion except

A) advances in technology
B) converging consumer needs
C) competition
D) product lifecycle and product development

Question 51

In terms of international expansion, an effective strategy for a product that is in the maturity stage in the United States is to enter

A) countries where the product is also in the maturity stage
B) as many countries as possible to create economies-of-scale
C) emerging markets where the product is in the growth stage
D) markets where the product is in the introductory stage

Question 52

During the maturity stage of the product life cycle, firms typically engage in all of the following except

A) achieving economies-of-scale in production
B) moving manufacturing operations and facilities to countries where labor is cheaper
C) price competition
D) greatly expanding production to meet growing demand

Question 53

In terms of the product life cycle and international expansion, during the _____ stage of the product life cycle, firms typically compete on price.

A) introductory
B) growth
C) maturity
D) decline

Question 54

All of the following are likely to be impediments to international expansion except

A) international competition
B) self-reference criterion
C) new product development cycle
D) limited knowledge of particular cultural environments and local business practices

Question 55

In terms of nonverbal modes of communication, proxemics refer to

A) one's positioning relative to others and the use/avoidance of eye contact during communication
B) the timing of verbal exchanges
C) the movement of the body in order to communicate
D) the relationship between physical space and communication

Question 56

In terms of nonverbal modes of communication, postures, orientations, and oculesics refer to

A) one's positioning relative to others and the use/avoidance of eye contact during communication
B) the timing of verbal exchanges
C) the movement of the body in order to communicate
D) the relationship between physical space and communication

Question 57

In terms of nonverbal modes of communication, chronemics refers to

A) one's positioning relative to others and the use/avoidance of eye contact during communication
B) the timing of verbal exchanges
C) the movement of the body in order to communicate
D) the relationship between physical space and communication

Question 58

In terms of nonverbal modes of communication, kinesics refers to

A) one's positioning relative to others and the use/avoidance of eye contact during communication
B) the timing of verbal exchanges
C) the movement of the body in order to communicate
D) the relationship between physical space and communication

Question 59

In terms of nonverbal modes of communication, paralinguistics refers to

A) one's positioning relative to others and the use/avoidance of eye contact during communication
B) the timing of verbal exchanges
C) the movement of the body in order to communicate
D) emotional intonation, accents, and the quality of voice

Question 60

When visiting the United States, Europeans are surprised at the space around individuals, called the bubble, which if one violates he or she must apologize. This is an example of _____.

A) proxemics
B) chronemics
C) kinesics
D) paralinguistics

Question 61

In terms of _____, Americans expect a prompt response to questions; where other nationalities, such as the Japanese, use this quiet time as a time for evaluating the message and contemplating the response.

A) proxemics
B) chronemics
C) kinesics
D) paralinguistics

Question 62

In the United States, one should offer a firm and brief handshake while looking the other person in the eye. This handshake in _____ would be seen as aggressive, where a soft handshake, a humble posture, and avoidance of eye contact convey respect.

A) Europe
B) Asia
C) Latin America
D) Africa

Question 63

In terms of the impact of religion on marketing, _____ stresses hard work and frugality and is linked to the development of capitalism and economic emancipation.

A) the Protestant religion
B) Judaism
C) the Hindu religion
D) Buddhism

Question 64

In terms of the impact of religion on marketing, _____ dictates social etiquette and consumption of products, and bans the use of interest rates.

A) Islam
B) Judaism
C) the Hindu religion
D) Buddhism

Question 65

In terms of the impact of religion on marketing, _____ stresses sufferance and avoidance of worldly desires, thus, in principle, rejecting many aspects of marketing.

A) Islam
B) Judaism
C) the Hindu religion
D) Buddhism

Question 66

Formal methods used by national governments to restrict or impede entrance of international firms into local markets include all of the following except

A) tariffs
B) import quotas
C) preference given to local providers
D) foreign exchange restrictions

Question 67

Competition can erect barriers to new entrants wanting to expand into a new market using all of the following methods except

A) blocking channels of distribution
B) increasing production
C) binding retailers into exclusive agreements
D) slashing prices temporarily to prevent product adoption

Question 68

In terms of levels of international marketing involvement, domestic marketing is

A) marketing in different countries without coordinating across operations
B) focused solely on domestic consumers and on the home-country environment
C) limited to the exporting function; although the firm actively seeks international clients
D) the creation, production, distribution, promotion, and pricing of goods and services for international markets

Question 69

In terms of levels of international marketing involvement, export marketing is

A) marketing in different countries without coordinating across operations
B) marketing activities that do not have a country or region focus and that are possibly due to the emergence of global consumer segments and efficient global allocation of company talent and resources
C) limited to the exporting function; although the firm actively seeks international clients
D) the creation, production, distribution, promotion, and pricing of goods and services for international markets

Question 70

In terms of levels of international marketing involvement, international marketing is

A) marketing in different countries without coordinating across operations
B) marketing activities that do not have a country or region focus and that are possibly due to the emergence of global consumer segments and efficient global allocation of company talent and resources
C) limited to the exporting function; although the firm actively seeks international clients
D) the creation, production, distribution, promotion, and pricing of goods and services for international markets

Question 71

In terms of levels of international marketing involvement, multinational marketing is

A) marketing in different countries without coordinating across operations
B) marketing activities that do not have a country or region focus and that are possibly due to the emergence of global consumer segments and efficient global allocation of company talent and resources
C) limited to the exporting function; although the firm actively seeks international clients
D) the creation, production, distribution, promotion, and pricing of goods and services for international markets

Question 72

In terms of levels of international marketing involvement, global marketing is

A) marketing in different countries without coordinating across operations
B) marketing activities that do not have a country or region focus and that are possibly due to the emergence of global consumer segments and efficient global allocation of company talent and resources
C) limited to the exporting function; although the firm actively seeks international clients
D) the creation, production, distribution, promotion, and pricing of goods and services for international markets

Question 73

In general, companies tend to use the _____ mode of entry in their first attempt to expand internationally and in environments that present substantial risk.

A) export
B) licensing
C) joint ventures
D) strategic alliances

Question 74

In terms of international entry mode, indirect exporting is

A) when the owner of a brand name allows a manufacturer or a reseller to sell the product under the owner's brand name in return for a fee
B) where a company sells its products in the company's home country to intermediaries, who, in turn, sell the product overseas
C) where a firm handles its own exports, usually with the help of an in-house exporting department
D) where a firm handles its own exports, usually with the assistance of an exporting broker or agent

Question 75

In terms of international entry mode, direct exporting is

A) when the owner of a brand name allows a manufacturer or a reseller to sell the product under the owner's brand name in return for a fee
B) where a company sells its products in the company's home country to intermediaries, who, in turn, sell the product overseas
C) where a firm handles its own exports, usually with the help of an in-house exporting department
D) where a firm handles its own exports, usually with the assistance of an exporting broker or agent

Question 76

_____ allows apparel labels, such as Beverly Hills and Polo Club, to offer a product all over the world for global distribution.

A) indirect exporting
B) direct exporting
C) licensing
D) franchising

Question 77

The international mode of entry used by companies such as McDonald's, Kentucky Fried Chicken, Burger King, and Pizza Hut is

A) direct exporting
B) indirect exporting
C) licensing
D) franchising

Question 78

One of the disadvantages of _____ is that it can create future competitors who know the ins and outs of the firm's operation.

A) indirect exporting
B) franchising
C) a joint venture
D) a strategic alliance

Question 79

Overall, _____ percent of all joint ventures break up within 3.5 years, and international joint ventures have an even slimmer chance for success.

A) 35
B) 50
C) 70
D) 85

Question 80

A company created with the participation of three or more companies, allowed in underserved markets or in domains where the government and/or the marketplace can control its potentially monopolistic activity is called a(n)

A) consortium
B) license agreement
C) strategic alliance
D) monopolistic venture