Question 1

Goodyear Tire and Rubber Company provided China with the materials and training needed to establish a printing plant in exchange for finished labels.This is an example of a(n):

Accepted Answer

This is an example of countertrade, which involves the exchange of goods and services instead of currency as a means of payment in international trade. Goodyear Tire and Rubber Company provided materials and training, which are goods and services, in exchange for finished labels from China's printing plant.

Question 2

Currency markets operate under a system in which the prices of different currencies move up or down based on the demand and supply of each currency.This practice is called:

Accepted Answer

The given scenario describes the concept of floating exchange rates, where the value of a currency is determined by the demand and supply of that currency in the market. Other options such as countertrading, variable purchasing power, flexible monetary policies, and purchasing power elasticity do not accurately describe the given scenario.

Question 3

Japanese consumers have experienced more than a decade of recession and deflationary pressures.This condition would more likely impact the Japanese consumers':

Accepted Answer

The prolonged recession and deflationary pressures in Japan would likely decrease the purchasing power of Japanese consumers as they struggle to make ends meet with a reduced ability to afford goods and services.

Question 4

The Canadian magazine industry accused U.S.magazine publishers of ______,selling the magazines in Canada at a lower price than in the United States.

Accepted Answer

The term used to describe the accused practice of selling products at a lower price in another country than in its home country is "dumping." Therefore, the best choice is A. The other options are not relevant to this context.

Question 5

Which of the following statements about the use of the Internet in global marketing is true?

Accepted Answer

The statement that "the new Internet economy is being restrained by the old bricks-and-mortar rules, regulations, and habits" is true, as many traditional regulations and business practices have not adapted to the pace and nature of e-commerce. The other statements are not entirely accurate, as global consumers may seek bargains online, businesses do shop at Internet sites, and trade restrictions still apply to e-commerce transactions.

Question 6

International trade does not always involve cash.Sometimes companies accept all or part of the payment for goods or services is in the form of other goods or services.This is known as:

Accepted Answer

This is known as countertrade, where goods or services are exchanged instead of cash payment. Countertrade is common in international trade, especially in developing countries where access to foreign currency is limited.

Question 7

Once marketing managers have determined a global product and promotion strategy,they can select the remainder of the marketing mix.However,entry into many developing nations presents special pricing problems because:

Accepted Answer

Many developing nations have a lack of mass-purchasing power, which means pricing strategies need to be carefully considered. For example, offering lower-priced versions of products or services may be necessary to appeal to the local market. Pricing also needs to take into account local currency fluctuations and economic conditions. Price discrimination may also be an issue in some markets. However, the availability of television advertising time in developed countries is not relevant to pricing problems in developing nations.

Question 8

SCENARIOS
Computer Sales
A price war began in Japan in the personal computer market when Dell Computer Corporation introduced PCs at prices 25 to 60 percent lower than rivals.Dell targeted corporate customers from its Tokyo offices by "direct sales," the company's preferred name for mail order,and its main avenue for PC sales in the United States.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,who maintained a strong dealer network and had traditionally sold its computers at very high prices.Dell joined IBM and Compaq in targeting the Japanese market.Dell bet it could succeed in Japan by transplanting its U.S.method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to Japan.The company's success depended on its ability to sell PCs over the telephone.Analysts doubted this was possible in Japan because dealer networks are the key to the market,but Dell executives believed that name recognition was the main hurdle.To familiarize its target market with the idea of buying a computer sight unseen,Dell launched a major ad campaign through direct mail and ads in computer-related magazines and newspapers.
-Refer to Computer Sales.Dell's decision to market PCs by phone in Japan mirrors its marketing strategy in the United States.This suggests that Dell believes in the concept of:

Accepted Answer

Dell's decision to market PCs by phone in Japan by transplanting its U.S. method of operations in which the company assembles the PC to customer specifications, loads it with software, and delivers it to Japan demonstrates global marketing standardization, which means developing standardized products marketed in the same way across different countries.

Question 9

The European Union accused South Korea of selling ships at a loss in an attempt to push their European rivals out of the market.In other words,South Korea was accused of:

Accepted Answer

The act of selling goods at a lower price in a foreign market than in a domestic market is known as "dumping." The EU accused South Korea of selling ships at a loss in an attempt to drive European competitors out of the market, thus engaging in "dumping" practices.

Question 10

SCENARIOS
Computer Sales
A price war began in Japan in the personal computer market when Dell Computer Corporation introduced PCs at prices 25 to 60 percent lower than rivals.Dell targeted corporate customers from its Tokyo offices by "direct sales," the company's preferred name for mail order,and its main avenue for PC sales in the United States.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,who maintained a strong dealer network and had traditionally sold its computers at very high prices.Dell joined IBM and Compaq in targeting the Japanese market.Dell bet it could succeed in Japan by transplanting its U.S.method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to Japan.The company's success depended on its ability to sell PCs over the telephone.Analysts doubted this was possible in Japan because dealer networks are the key to the market,but Dell executives believed that name recognition was the main hurdle.To familiarize its target market with the idea of buying a computer sight unseen,Dell launched a major ad campaign through direct mail and ads in computer-related magazines and newspapers.
-Refer to Computer Sales.The fact Japanese consumers do not buy through the methods typically used by Dell is an example of how the _____ environment influences global marketing.

Accepted Answer

The fact that Japanese consumers do not buy through the methods typically used by Dell is an example of how cultural environment influences global marketing. Japanese consumers prefer to buy from dealers and have a strong relationship with them, which is influenced by their cultural norms and values.

Question 11

Mattel lost millions of dollars on its international marketing campaign for Holiday Barbie dolls and accessories because Barbie prices were expressed in U.S.dollars and were set without regard for how they would translate into foreign currencies.The dolls were too expensive for most international markets.Mattel had a faulty _____ strategy.

Accepted Answer

The situation described suggests that Mattel had a pricing strategy that did not take into account the differences in foreign currency exchange rates and how that would affect the affordability of their products in international markets. Therefore, the best choice is pricing.

Question 12

SCENARIOS
Computer Sales
A price war began in Japan in the personal computer market when Dell Computer Corporation introduced PCs at prices 25 to 60 percent lower than rivals.Dell targeted corporate customers from its Tokyo offices by "direct sales," the company's preferred name for mail order,and its main avenue for PC sales in the United States.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,who maintained a strong dealer network and had traditionally sold its computers at very high prices.Dell joined IBM and Compaq in targeting the Japanese market.Dell bet it could succeed in Japan by transplanting its U.S.method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to Japan.The company's success depended on its ability to sell PCs over the telephone.Analysts doubted this was possible in Japan because dealer networks are the key to the market,but Dell executives believed that name recognition was the main hurdle.To familiarize its target market with the idea of buying a computer sight unseen,Dell launched a major ad campaign through direct mail and ads in computer-related magazines and newspapers.
-Refer to Computer Sales.Dell has chosen the _____ method of entry into a foreign market.

Accepted Answer

Dell has chosen the direct investment method of entry into the foreign market by establishing its own Tokyo offices and selling PCs through direct sales or mail order.

Question 13

A Brazilian-based office supply distributor wishes to close a deal for advertising space in a major Argentine newspaper.The office supply distributor is strapped for cash but would like to run weekly quarter-page ads in the newspaper.The newspaper needs office supplies for its employees.The Brazilian supplier knows the Argentine economy is going through a period of inflation and the value of its money is falling.Which of the following strategies should the Brazilian office supply distributor implement?

Accepted Answer

Using a countertrade agreement would allow the Brazilian office supply distributor to avoid having to use Argentine currency, which is losing value due to inflation. Instead, the distributor could offer goods or services in exchange for the advertising space, or arrange for the newspaper to pay using currency from another country. This would benefit both parties and allow them to do business without being negatively impacted by inflation or currency instability.

Question 14

The pricing component of the global marketing mix is:

Accepted Answer

Pricing in the global marketing mix is a complex matter due to various factors such as tariffs, exchange rates, and government regulations. It requires careful consideration and adaptation to local market conditions. Pricing strategies may also be complicated by product penetration strategies that aim to capture market share through lower prices. Additionally, the strength of the U.S. dollar abroad may not necessarily simplify pricing decisions as it can affect export competitiveness and pricing strategies relative to local competitors.

Question 15

Nigeria has about 2,200 miles of railroad,but years of neglect of both the rolling stock and the right-of-way have seriously reduced the capacity and utility of the system.Due in part to the failure of the railroad system,much of its 120,000 miles of roads are barely usable.As a result,businesses hoping to do business in Nigeria will most likely be concerned with:

Accepted Answer

Businesses will be concerned with distribution due to the poor condition of transportation infrastructure, which affects the movement of goods.

Question 16

According to an article in the Financial Times,bringing Coca-Cola to the Chinese market presented a special challenge to the soft drink manufacturer.This challenge most likely had to do with which element of the marketing mix?

Accepted Answer

The challenge presented to Coca-Cola when bringing the product to the Chinese market is most likely related to distribution. This is because of the unique challenges in distributing and delivering goods in China due to its size, geography, and complex regulations. Coca-Cola would have had to navigate these challenges to ensure its products could reach the market effectively.

Question 17

SCENARIOS
Computer Sales
A price war began in Japan in the personal computer market when Dell Computer Corporation introduced PCs at prices 25 to 60 percent lower than rivals.Dell targeted corporate customers from its Tokyo offices by "direct sales," the company's preferred name for mail order,and its main avenue for PC sales in the United States.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,who maintained a strong dealer network and had traditionally sold its computers at very high prices.Dell joined IBM and Compaq in targeting the Japanese market.Dell bet it could succeed in Japan by transplanting its U.S.method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to Japan.The company's success depended on its ability to sell PCs over the telephone.Analysts doubted this was possible in Japan because dealer networks are the key to the market,but Dell executives believed that name recognition was the main hurdle.To familiarize its target market with the idea of buying a computer sight unseen,Dell launched a major ad campaign through direct mail and ads in computer-related magazines and newspapers.
-Refer to Computer Sales.Dell is dedicated to entering the Japanese market.Company executives believe name recognition is the largest marketing issue.The first step in creating the international marketing mix should be:

Accepted Answer

Before selecting any specific element of the marketing mix, it is important to conduct marketing research in the target market to understand the needs, preferences, and behavior of potential customers. This will help Dell to create an effective marketing strategy that addresses the specific needs of the Japanese market.

Question 18

SCENARIOS
Computer Sales
A price war began in Japan in the personal computer market when Dell Computer Corporation introduced PCs at prices 25 to 60 percent lower than rivals.Dell targeted corporate customers from its Tokyo offices by "direct sales," the company's preferred name for mail order,and its main avenue for PC sales in the United States.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,who maintained a strong dealer network and had traditionally sold its computers at very high prices.Dell joined IBM and Compaq in targeting the Japanese market.Dell bet it could succeed in Japan by transplanting its U.S.method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to Japan.The company's success depended on its ability to sell PCs over the telephone.Analysts doubted this was possible in Japan because dealer networks are the key to the market,but Dell executives believed that name recognition was the main hurdle.To familiarize its target market with the idea of buying a computer sight unseen,Dell launched a major ad campaign through direct mail and ads in computer-related magazines and newspapers.
-Refer to Computer Sales.Dell believed that it would have a competitive advantage in Japan due to which of the marketing mix elements?

Accepted Answer

The answer of SCENARIOS
Computer Sales
A price war began in Japan...

Question 19

_____ is generally defined as the sale of an exported product at a price lower than that charged for the same or a similar product in the home market of the exporter.

Accepted Answer

Dumping is the sale of exported products at prices lower than the prices charged for similar products in the exporter's home market. It is seen as an unfair trade practice because it can create an artificial advantage for the exporter and harm local industries in importing countries.

Question 20

SCENARIOS
Computer Sales
A price war began in Japan in the personal computer market when Dell Computer Corporation introduced PCs at prices 25 to 60 percent lower than rivals.Dell targeted corporate customers from its Tokyo offices by "direct sales," the company's preferred name for mail order,and its main avenue for PC sales in the United States.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,who maintained a strong dealer network and had traditionally sold its computers at very high prices.Dell joined IBM and Compaq in targeting the Japanese market.Dell bet it could succeed in Japan by transplanting its U.S.method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to Japan.The company's success depended on its ability to sell PCs over the telephone.Analysts doubted this was possible in Japan because dealer networks are the key to the market,but Dell executives believed that name recognition was the main hurdle.To familiarize its target market with the idea of buying a computer sight unseen,Dell launched a major ad campaign through direct mail and ads in computer-related magazines and newspapers.
-Refer to Computer Sales.Dell's advertising campaign utilizing direct mail and ads in computer magazines relates to which global marketing mix variables?

Accepted Answer

Dell's advertising campaign utilizing direct mail and ads in computer magazines relates to the promotion variable of the marketing mix, as it is a form of advertising and communication to promote their product. However, it also relates to the distribution variable as it is targeting the specific method of distribution Dell uses (direct sales). Therefore, the correct answer is C) promotion and distribution.

Quiz 4: Developing a Global Vision27

Goodyear Tire and Rubber Company provided China with the materials and training needed to establish a printing plant in exchange for finished labels.This is an example of a(n) :