Question 1

Ford Motor Company is merging its individual operation into one so that it can use a standardized product and marketing strategy worldwide. This strategy can best be described as a(n) ______.

Accepted Answer

The strategy described in the question, where Ford is looking to standardize its product and marketing strategies worldwide, is known as a global strategy. This approach involves treating the world as a single market and offering a standardized product that is sold using a standardized marketing strategy. This differs from a multidomestic strategy, where a company tailors its offerings and marketing to specific local markets. An international marketing strategy is a more general term that can include a range of approaches used by companies operating in multiple countries. There is no such thing as an "orderly marketing strategy."

Question 2

Film distributors sometimes change movie titles when marketing overseas due to language or slang barriers. Studios usually allow modification of its product as part of a ______ strategy.

Accepted Answer

A multidomestic business strategy allows for adaptation to local markets, including changes in product names to suit cultural and language differences.

Question 3

Complete the following using the terms listed below.
-A country has ______ in the marketing of a product if it has a monopolistic position or it produces the product at the lowest cost.

Accepted Answer

The term "absolute advantage" refers to a country's ability to produce a certain product more efficiently or at a lower cost than any other country, therefore giving it an advantage in marketing that product.

Answer: Q
 "Comparative advantage" refers to a country's ability to produce a certain product at a lower opportunity cost than any other country, therefore making it more efficient to specialize in producing that product and trading with other countries.

Note: The other terms listed do not directly relate to a country's advantage in marketing a product.

Question 4

______ is NOT a strategy for entering international markets.

Accepted Answer

Signing a free trade agreement is not a strategy for entering international markets as it is a type of trade agreement between countries aimed at reducing barriers to trade and increasing economic cooperation, rather than a specific market entry strategy for a company.

Question 5

BMW and Toyota set up a factory in Brazil to produce minivans. Slightly different minivan versions are sold in Brazil-one as a Toyota and one as a BMW. This is an example of ______.

Accepted Answer

This is an example of a joint venture, as both BMW and Toyota have partnered to set up a factory in Brazil and produce minivans with slightly different versions sold under their respective brands.

Question 6

Complete the following using the terms listed below.
-A country's ______ is the difference between its exports and imports.

Accepted Answer

Balance of trade is the term used to describe the difference between a country's exports and imports. It is a measure of the country's trade deficit or surplus. The balance of payments, on the other hand, is a broader measure that includes all financial transactions between a country and the rest of the world, including investment flows and foreign aid. The other terms listed are not directly related to the balance of trade or payments.

Question 7

Companies such as Dell Computer adapt their websites to specific countries. These companies are following a(n) ______ strategy.

Accepted Answer

The multidomestic strategy involves adapting the marketing mix to specific countries or regions. Dell Computer adapting their website to specific countries is an example of this strategy. This allows the company to tailor their offerings to fit the cultural, economic, and societal differences of each country, which can lead to higher customer satisfaction and increased sales.

Question 8

Complete the following using the terms listed below.
-A nation can have a(n) ______ in a product if it can supply it more efficiently and at a lower price.

Accepted Answer

Comparative advantage refers to a nation's ability to produce a product at a lower opportunity cost than another country. It allows a nation to specialize in the production of goods and services where it has a comparative advantage and trade with other countries. This results in increased efficiency and lower prices of products.

Question 9

Which of the following should a company evaluate when developing a framework for international operations?

Accepted Answer

When developing a framework for international operations, a company should evaluate all of the above factors, including the company's objectives, strengths and weaknesses, and strategies for product development and marketing. This comprehensive evaluation will help the company to develop a well-rounded and effective international strategy.

Question 10

Speedy Lube enters into a contract with a foreign company to produce and distribute its products in a specific geographic area. Speedy Lube is involved in ______.

Accepted Answer

Speedy Lube is entering into a foreign licensing agreement with the foreign company to produce and distribute its products in a specific geographic area. Foreign licensing involves a company (licensor) granting permission to a foreign company (licensee) to produce and distribute its products or use its intellectual property in a specific geographic area.

Question 11

Which country features the most multinational corporations?

Accepted Answer

The United States is home to the highest number of multinational corporations, with many of the world's largest corporations based in the country.

Question 12

In order to use a global business strategy, XYZ Inc. should ensure that ______.

Accepted Answer

A global business strategy requires a product or service that has an appeal in multiple countries. This means that the company should be targeting market segments that are common to many nations. Quality and competitive pricing are important in any market, but uniqueness to the domestic market may not be as relevant when pursuing a global strategy.

Question 13

When firms develop products and marketing strategies that appeal to the customer tastes and buying habits of particular national markets, they are using a ______.

Accepted Answer

A multidomestic strategy is a localization strategy wherein firms customize their products and marketing strategies to cater to the specific tastes and preferences of different national markets. This approach helps firms to achieve higher levels of responsiveness to local customer needs, which can improve their competitive position in these markets.

Question 14

Company XYZ would like to sell its products in a foreign country. Since the products will be best sold by locals in the foreign country, the best type of contract-based agreement to use will be

Accepted Answer

The answer of Company XYZ would like to sell its...

Question 15

Complete the following using the terms listed below.
-_____ describes the fall of currency's value relative to other currencies.

Accepted Answer

Devaluation is the term that describes the fall of a currency's value relative to other currencies.

Question 16

An American electronics firm sets up a venture capital firm to fund promising British and Irish startup companies. This is an example of ______.

Accepted Answer

Setting up a venture capital firm to fund startups in another country is a form of direct investment, as it involves investing capital directly into foreign businesses.

Question 17

A Chinese company that makes plastic garden furniture wants to market its products in a foreign country that has a high tariff barrier against imported plastic goods. One way the company can get around this problem is to ______.

Accepted Answer

By entering into a licensing agreement with companies within the foreign country to produce the furniture there, the Chinese company can avoid the high tariff barrier on imported plastic goods since the furniture will now be produced locally within the foreign country. This enables the company to compete more effectively in the local market while minimizing the impact of the high tariffs. Hiring an export management team may help the company navigate the export process, but it is not a solution to the high tariffs. Violating the Foreign Corrupt Practices Act or submitting a complaint to the Chinese Department of Commerce are not viable options for circumventing the high tariffs.

Question 18

Complete the following using the terms listed below.
-A nation's ______ is the rate at which currency can be exchanged for the currency of another nation.

Accepted Answer

The exchange rate is the rate at which currency can be exchanged for the currency of another nation.

Question 19

By allowing a company to purchase another existing firm in the host country, a(n) ______ permits a largely domestic business to gain an international presence very quickly.

Accepted Answer

An acquisition allows a company to purchase another existing firm in the host country, which results in a quick expansion of the business in the international market. Acquisitions can be either friendly or hostile, and they involve either purchasing the entire company or a significant portion of its assets. This allows the acquiring company to quickly gain access to the target company's customer base, technology, market share, and other resources, which would ordinarily take years to develop through organic growth or other means. Foreign licensing agreements involve leveraging the intellectual property of one company in exchange for licensing fees paid by another company. Joint ventures involve two or more companies sharing resources and risk to develop a new business venture. Countertrade involves exchanging goods or services instead of currency.

Question 20

The Coca-Cola Company designs its ads around the world to emphasize a common theme. These ads are adapted only slightly for local markets. Coca-Cola is using which of the following strategies in its international operations?

Accepted Answer

Coca-Cola is using a global strategy, where it emphasizes a common theme and adapts its ads slightly for local markets. This means that the company is striving for consistency in its branding and messaging worldwide.

Quiz 4: Competing in World Markets