Question 1

The ultimate form of foreign involvement is direct ownership of foreign-based assembly or manufacturing facilities.Advantages of direct ownership can include securing cost economies,creating jobs in the host country,and developing deeper relations with local suppliers; and the firm ________.

Accepted Answer

Direct ownership allows the firm to have full control over its investment, which can be an advantage in terms of decision-making and strategic planning. The other choices are not relevant to the advantages of direct ownership.

Question 2

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 license is issued to a foreign company in exchange for a fee or royalty, allowing them to use a process, trademark, patent, or trade secret for a limited period of time. There is no mention of exchanging information or proprietary information, access to the market place, or exchanging for "their" process, trademark, patent, or secret.

Question 3

According to Hofstede,cultures with low power distance are best described as ________.

Accepted Answer

Cultures with low power distance are characterized by a relatively flat organizational structure, where power is distributed equally among members. These cultures value egalitarianism and equal distribution of power, with fewer hierarchical structures.

Question 4

Backward invention is ________.

Accepted Answer

Backward invention involves bringing back earlier product forms to meet current needs and wants.

Question 5

Most brands are adapted to some extent to reflect significant differences in ________,brand development,competitive forces,and the legal and political environment.

Accepted Answer

Consumer behavior plays a crucial role in creating and managing a brand as it determines the preferences, attitudes, and buying behavior of consumers. Brands are adjusted accordingly to cater to the unique consumer behavior of a particular market segment. The other options such as business mission, strategy, programs, and politics may also impact brand development, but they do not reflect significant differences as consumer behavior does.

Question 6

Product invention consists of creating something new.Forward invention is ________.

Accepted Answer

Forward invention involves creating a new product specifically to meet the needs of a market in another country.

Question 7

Which of the following is most likely to be successful when introduced in foreign markets as a straight extension

Accepted Answer

The answer of Which of the following is most likely...

Question 8

In an adapted marketing mix,the producers ________ the marketing programs to each target market.

Accepted Answer

In an adapted marketing mix, producers tailor the marketing programs to each target market. This means that the marketing mix elements such as product, price, promotion and place are adjusted to meet the needs and preferences of the target market. This approach takes into account cultural, economic, and social differences between countries, offering a more effective and efficient way of entering and succeeding in foreign markets.

Question 9

Straight extension of the product means ________.

Accepted Answer

Straight extension refers to introducing a product to a foreign market without making any changes to the product itself.

Question 10

According to Hofstede,cultures with weak uncertainty avoidance are best described as ________.

Accepted Answer

Cultures with weak uncertainty avoidance are characterized by a high degree of tolerance for ambiguity, change and unconventional behavior. Therefore they are more risk-tolerant and less risk-averse.

Question 11

A company can enter a foreign market through ________,which is a complete form of licensing in which the company offers a complete brand concept and operating system.In return,the ________invests in and pays certain fees to the company.

Accepted Answer

The given scenario describes franchising, which involves a company offering its brand concept and operating system to a franchisee. The franchisee invests in and pays certain fees to the company in exchange for the right to use the brand and operating system. The other options do not match the description mentioned in the scenario.

Question 12

Companies such as Hyatt sell a variation of the licensing agreement called a ________ to the owners of foreign hotels to manage these businesses for a fee.

Accepted Answer

Hyatt sells management contracts to owners of foreign hotels. These contracts allow Hyatt to manage the businesses for a fee. This is a variation of a licensing agreement, not contract manufacturing or franchising. The option of hotel management licensing is not mentioned, so it is not the answer.

Question 13

A joint venture may be necessary or desirable for economic or political reasons.The foreign firm might lack the ________,or managerial resources to undertake the venture alone.

Accepted Answer

A joint venture may be necessary if the foreign firm lacks the financial and physical resources to undertake the venture alone, as these are critical for establishing and operating a business in a new market.

Question 14

According to Hofstede,in collectivist societies,such as Japan,________.

Accepted Answer

Hofstede defines collectivist societies as those in which people prioritize the goals of the group or community over their individual goals. In such societies, the self-worth of the individual is rooted more in the social system than in individual achievement, which is the characteristic of individualist societies. Therefore, option B is the best choice. Options A, C, D, and E do not accurately describe collectivist societies according to Hofstede's framework.

Question 15

International companies must decide on how much to adapt their marketing strategy to local conditions.At one extreme are companies that use a globally standardized marketing mix worldwide.A standardized marketing mix includes ________.

Accepted Answer

A standardized marketing mix involves keeping the product, communication, and distribution channels consistent across countries in order to achieve economies of scale and lower costs. This means that companies do not customize their marketing approach to different local conditions, but rather use a one-size-fits-all approach across all their markets. This approach is often used by companies that sell products with universal appeal, such as Coca-Cola or McDonald's.

Question 16

Product adaptation involves ________.

Accepted Answer

Product adaptation involves modifying the product to suit local conditions or preferences. This could mean changing the packaging, size, ingredients, or features to better cater to the needs and preferences of consumers in a particular region or market. It can help increase sales and customer satisfaction as it shows that the company is sensitive to the needs of its consumers.

Question 17

In ________,the firm hires local manufacturers to produce the product,giving the company less control over the manufacturing process.

Accepted Answer

Contract manufacturing involves outsourcing production to a third-party manufacturer who may be located overseas or domestically. The firm hires local manufacturers to produce the product, giving the company less control over the manufacturing process.

Question 18

One advantage of global marketing is that it can ________.

Accepted Answer

The answer of One advantage of global marketing is that...

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

The process described in the statement is communication adaptation, where companies change their marketing communications programs for each local market. Therefore, the correct answer is E, communication adaptation.

Question 20

Hofstede identifies four cultural dimensions that can differentiate countries,including ________.

Accepted Answer

Hofstede identifies four cultural dimensions, including individualism vs collectivism, power distance, masculinity vs femininity, and uncertainty avoidance. The option C mentions weak versus strong uncertainty avoidance, which is a valid dimension identified by Hofstede. The other options do not represent the cultural dimensions identified by Hofstede.

Quiz 21: Tapping into Global Markets