Question 1

An embargo occurs when a government suspends trade with a particular country.

Accepted Answer

This is true. An embargo is a political tool used by governments to restrict or completely halt trade with a particular country, most commonly used as a form of economic or diplomatic pressure.

Question 2

Which of the following centralizes all of the responsibility for international operations?

Accepted Answer

International division structures centralize all of the responsibility for international operations into a separate division within the organization. This division reports directly to top management and typically has its own functional areas such as marketing, finance, and operations. This structure allows for a dedicated focus on international operations and improves coordination and communication across international markets.

Question 3

Opportunities for international marketers are limited to industrial nations with the highest incomes.

Accepted Answer

Opportunities for international marketers exist in both industrialized and developing nations, and are not limited to those with the highest incomes. Emerging markets such as Brazil, China, and India offer significant opportunities for international marketers due to their large and growing middle class populations, increasing purchasing power, and demand for a wide range of products and services.

Question 4

Organizations that employ standardized products, promotion campaigns, and prices for all markets are practicing what is known as

Accepted Answer

The practice described is known as globalization, which involves standardizing products, promotion campaigns, and prices for all markets. This allows for consistency and efficiency across all countries and regions. Customization, on the other hand, involves tailoring products and strategies to meet the specific needs of individual markets. Internationalization and regionalization both refer to expanding operations into new geographic areas, but do not necessarily involve standardization. Nationalization refers to the process of a government taking control of a foreign company or industry.

Question 5

Government restrictions on the amount of a particular currency that can be bought or sold are known as import controls.

Accepted Answer

Government restrictions on the amount of a particular currency that can be bought or sold are known as currency controls or exchange controls. Import controls refer to restrictions on the import of goods into a country.

Question 6

Globalization of markets requires developing marketing strategies as if the world were one market. Which of the following marketing mix variables is most difficult to standardize for globalization?

Accepted Answer

The answer of Globalization of markets requires developing marketing strategies...

Question 7

When the makers of Red Bull, an energy drink, decided to go international with their marketing effort, a global approach was adopted. With which of the following factors did Red Bull most likely experience difficulty as the firm applied a global strategy for marketing?

Accepted Answer

Advertising often presents challenges in global marketing due to cultural differences, language barriers, and varying regulations across countries, which can affect the messaging and effectiveness of advertising campaigns.

Question 8

When asked where Laser Tools, Inc., markets its products, company president and founder Roger Helms says that "the world is just one big market." He feels anyone not taking this stance is systematically passing up profitable business. Helms's international marketing strategy is best described as

Accepted Answer

Helms's statement suggests that Laser Tools, Inc. has a global outlook and sees the world as one integrated market. Therefore, the company's international marketing strategy is best described as the globalization of marketing, which involves viewing the world as a single market and using a standardized marketing mix for all countries.

Question 9

Swiss-based Nestlé has taken a global approach to marketing its chocolate products. Which of the following is most easily standardized?

Accepted Answer

The product is the most easily standardized element of marketing as it refers to the physical attributes and features of the actual product, which can be uniform across different markets. Nestlé can maintain the same quality, taste, packaging and branding of its chocolate products in different countries without any significant adaptations.

Question 10

A positive balance of trade is considered good because it means that U.S. dollars are supporting foreign economies at the expense of U.S. companies and workers.

Accepted Answer

A positive balance of trade means that a country is exporting more goods and services than it is importing, which can benefit domestic companies and workers by creating more demand for their products. It also means that the country is earning more foreign currency, which can be used to purchase foreign assets or invest in the domestic economy.

Question 11

International marketing is defined as marketing activities performed across national boundaries.

Accepted Answer

International marketing involves marketing activities that take place across national borders. This could include strategies for entering new markets, adapting products or services to meet the needs of different cultures, or developing marketing campaigns that are tailored to local consumer preferences. International marketing can be challenging due to differences in language, culture, and legal and regulatory frameworks, but it also offers opportunities for businesses to expand their reach and tap into new sources of revenue.

Question 12

Northeastern University and Penn State University both offer online MBA programs that are available to students around the world. This is an example of

Accepted Answer

This is an example of globalization as both universities are offering their programs to students globally, breaking down geographic barriers and opening opportunities for students from different regions to access education from a variety of institutions.

Question 13

Levi Strauss markets its denim jeans in many countries and develops its marketing strategy as if the world were a single market. This approach to selling a standardized product in all countries represents which type of international marketing?

Accepted Answer

The approach of marketing a standardized product in all countries represents the globalization of markets, which involves treating the world as a single market by creating a standardized product, branding, and marketing strategy that can be used in many different countries. This enables companies like Levi Strauss to take advantage of economies of scale in production and marketing and to reach a larger customer base with a consistent message.

Question 14

A quota is the suspension, by a government, of trade in a particular product.

Accepted Answer

A quota is a restriction or limit on the amount of a particular product that can be imported or exported, imposed by a government. It is not a suspension of trade.

Question 15

Customers that travel the globe expect to be able to buy the same product in most of the world's more than 200 countries.

Accepted Answer

Customers who travel and are familiar with a certain brand or product expect to be able to purchase it in most parts of the world. This is why many global brands strive to maintain consistency in product availability and quality across different countries.

Question 16

Which of the following is most likely to engage in direct ownership activities internationally?

Accepted Answer

Internationally integrated structures are the most likely to engage in direct ownership activities internationally as they have a high level of integration across different countries and are therefore well-positioned to manage and control their overseas operations. International division structures may also engage in direct ownership activities, but they typically have limited autonomy and may need to coordinate closely with headquarters. Export department structures, import department structures, and outsourcing structures are more focused on specific aspects of international trade and do not typically involve direct ownership of international operations.

Question 17

Both Nike and Adidas standardize many of their shoe models and colors worldwide, which is an example of _______.

Accepted Answer

Standardizing shoe models and colors worldwide is a common practice in globalization, where companies aim to reach a global audience with standardized products and marketing strategies. This practice allows Nike and Adidas to reach a broad customer base while maintaining consistency in their products across different countries and cultures.

Question 18

Selling products that are not in demand in all world markets, such as hand-powered washing machines for use in countries where electricity is not universally available, represents an international marketing strategy focusing on

Accepted Answer

This international marketing strategy is focusing on customization, as the product is adapted to the specific needs and circumstances of a particular market segment. The hand-powered washing machine is only relevant and useful in countries without universal access to electricity, and thus requires customization to meet that specific demand.

Question 19

Two-thirds of the world's total purchasing power is outside the United States.

Accepted Answer

According to the International Trade Administration, as of 2018, two-thirds of the world's purchasing power is outside the United States.

Question 20

In determining the size of the market for consumer products, the international marketer will probably be very interested in per capita GDP figures.

Accepted Answer

Per capita GDP (Gross Domestic Product) figures give the international marketer an idea of the purchasing power of consumers in a particular country, which is important in determining the size of the market for consumer products.

Quiz 9: Reaching Global Markets