Question 1

In terms of the global marketplace, there are three primary types of companies: international firms, multinational firms, and transnational firms. The key factor that distinguishes one from another is

Accepted Answer

A)  the firm's financial capacity to take risks.
B)  the willingness and ability to embrace diversity and cultural differences.
C)  the firm's orientation toward and strategy for global markets and marketing.
D)  the relative position of the product or service in terms of its life cycle.
E)  the relative size of the firm both in financial terms and in production capacity.F) C) and D)
G) A) and B)

Question 2

A multidomestic marketing strategy refers to

Accepted Answer

A)  the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
B)  the strategy used by firms that use the same product variations, brand names, and advertising programs for every country in which they do business.
C)  the strategy used by firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.
D)  the strategy of seeking out already established firms in other nations and selling them the rights to manufacture and distribute the firm's products.
E)  the strategy currently used by most U.S. domestic firms that when entering a new international market, these firms offer only those products that require the least amount of product adaptation.F) B) and E)
G) B) and D)

Question 3

One disadvantage of direct investment when entering a new global market is that

Accepted Answer

A)  intermediaries have the potential to harm the brand.
B)  the firm entering the foreign market must pay royalties to the government.
C)  the company forgoes control over its product.
D)  the financial commitments involved.
E)  this method is likely to provide the fewest cost savings relative to the other global market-entry options.F) D) and E)
G) C) and E)

Question 4

Consumer groups living in many countries or regions of the world that have similar needs or seek similar features and benefits from products or services are referred to as

Accepted Answer

A)  transnational consumers.
B)  meganational consumers.
C)  international consumers.
D)  multinational consumers.
E)  global consumers.F) C) and E)
G) B) and E)

Question 5

Mary Kay, Inc. can be classified as which type of company when marketing its products around the world?

Accepted Answer

A)  multinational firm
B)  transnational firm
C)  international firm
D)  global marketing firm
E)  multidomestic firmF) A) and E)
G) B) and E)

Question 6

The __________ imposed on imported bananas by European Union countries cost consumers $2 billion a year in higher prices.

Accepted Answer

A)  boycotts
B)  quotas
C)  sanctions
D)  subsidies
E)  tariffsF) None of the above
G) C) and D)

Question 7

When foreign currencies can buy more U.S. dollars,

Accepted Answer

A)  U.S. products are more expensive to foreign customers.
B)  U.S. products are more expensive to U.S. customers.
C)  U.S. products are less expensive to foreign customers.
D)  economists consider it an indicator of an impending long-term economic upturn.
E)  American consumers will buy in large quantities and stockpile in fear of an impending economic crisis.F) A) and B)
G) C) and D)

Question 8

GlaxoSmithKline plc. of Great Britain makes Breathe-Right nasal strips. It sells the same product in many countries because customers all over the world will use them in the same way. This is an example of which type of global marketing product and promotion strategy?

Accepted Answer

A)  product customization
B)  product extension
C)  product adaptation
D)  product invention
E)  product integrationF) B) and D)
G) None of the above

Question 9

Which of the following is an advantage inherent in the use of licensing?

Accepted Answer

A)  The licensor retains control of its product.
B)  The licensor is protected from creating a potential competitor.
C)  It provides an exemption from domestic trade regulations.
D)  There is an increase in potential profit compared with direct investment.
E)  The licensee gains information about the dynamics of the market.F) A) and D)
G) B) and E)

Question 10

Cultural symbols refer to

Accepted Answer

A)  ideas that can be protected by international copyrights.
B)  ideas that cannot be expressed by words or characters.
C)  things that represent values that exist solely within a nation.
D)  things that represent ideas and concepts.
E)  words that represent pictures or designs.F) All of the above
G) B) and E)

Question 11

Which of the following examples best demonstrates a company's appreciation of another country's values?

Accepted Answer

A)  American companies in Germany encouraging the use of all types of credit cards.
B)  In Brazil, American companies are extremely careful to keep to a strict agenda and time schedule, even though an informal structure is preferred.
C)  Bath products are advertised by portraying intimate scenes between husbands and wives in countries where personal privacy is important.
D)  McDonald's restaurants in India serve a full line of products except for hamburgers made from beef.
E)  Vogue Italia publishing a feature with a model wearing "slave earrings," which it said were "worn by women of color during the slave trade."F) None of the above
G) B) and E)

Question 12

Which of the following types of firms would be most likely to use a global marketing strategy?

Accepted Answer

A)  multidomestic
B)  multinational
C)  multicountry
D)  transnational
E)  transborderF) A) and C)
G) A) and B)

Question 13

Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?

Accepted Answer

A)  an analysis of cultural diversity within the country under consideration
B)  regulatory constraints regarding contracts, mergers, and partnerships
C)  measurement of consumer income in different countries
D)  an assessment of language differences including dialect variation
E)  political and ideological differences between the countries involvedF) C) and D)
G) A) and C)

Question 14

Trade among nations or regions depends on political stability. In recent times, billions of dollars have been lost in __________ and __________ as a result of internal political strife, terrorism, and war.

Accepted Answer

A)  Russia; Poland
B)  France; Spain
C)  China; Japan
D)  the Middle East; Africa
E)  Germany; the United KingdomF) None of the above
G) All of the above

Question 15

The U.S. Rice Millers' Association claims that if the Japanese rice market were opened to imports by lowering __________, lower prices would save Japanese consumers $6 billion annually and the United States would gain a large share of the Japanese rice market.

Accepted Answer

A)  boycotts
B)  quotas
C)  sanctions
D)  tariffs
E)  subsidiesF) B) and E)
G) A) and C)

Question 16

A country's communications, transportation, financial, and distribution systems are considered to be its

Accepted Answer

A)  capital improvements.
B)  fixed-asset base.
C)  economic infrastructure.
D)  geopolitical wealth.
E)  asset wealth.F) B) and D)
G) C) and E)

Question 17

Indirect exporting occurs when a firm sells its domestically produced products in a foreign country

Accepted Answer

A)  in violation of a quota.
B)  without paying import tariffs.
C)  without paying export duties.
D)  through a joint venture.
E)  through an intermediary.F) C) and E)
G) A) and B)

Question 18

Which of the following issues raises concerns about the ethics of protectionism?

Accepted Answer

A)  Competitive advantage grows out of continuous improvement.
B)  Small firms succeed in foreign niche markets.
C)  Tariffs have declined from an average of 40 percent to less than 5 percent.
D)  Regional trade agreements provide preferential treatment for member nations.
E)  Pan-European marketing strategies are possible due to greater uniformity in packaging standards.F) D) and E)
G) A) and E)

Question 19

Generally, as the proportion of middle-income households in a country __________, the __________ a nation's purchasing power.

Accepted Answer

A)  increases; greater
B)  increases; lesser
C)  decreases; greater
D)  levels off; greater
E)  There is no relationship between middle-income households and a nation's purchasing power.F) A) and C)
G) A) and B)

Question 20

Yum! Brands, the parent company of KFC, has pursued an aggressive growth strategy in China. There are now than 3,700 restaurants in 650 Chinese cities, and KFC has a 40% market share of the entire fast-food industry there. Yum! Brands China owns and directly manages about 90% of its Chinese stores, so it appears that the company prefers __________ in this market.

Accepted Answer

A)  licensing
B)  local assembly
C)  a joint venture
D)  direct investment
E)  local manufacturingF) C) and D)
G) None of the above

Exam 6: Understanding and Reaching Global Consumers and Markets

In terms of the global marketplace, there are three primary types of companies: international firms, multinational firms, and transnational firms. The key factor that distinguishes one from another is

Correct Answer
verified

The __________ imposed on imported bananas by European Union countries cost consumers $2 billion a year in higher prices.

Correct Answer
verified

Cultural symbols refer to

Correct Answer
verified

Which of the following types of firms would be most likely to use a global marketing strategy?

Correct Answer
verified

The U.S. Rice Millers' Association claims that if the Japanese rice market were opened to imports by lowering __________, lower prices would save Japanese consumers $6 billion annually and the United States would gain a large share of the Japanese rice market.

Correct Answer
verified

Which of the following examples best demonstrates a company's appreciation of another country's values?

Correct Answer
verified

Trade among nations or regions depends on political stability. In recent times, billions of dollars have been lost in and as a result of internal political strife, terrorism, and war.

Correct Answer
verified

Mary Kay, Inc. can be classified as which type of company when marketing its products around the world?

Correct Answer
verified

Which of the following issues raises concerns about the ethics of protectionism?

Correct Answer
verified

Consumer groups living in many countries or regions of the world that have similar needs or seek similar features and benefits from products or services are referred to as

Correct Answer
verified

A country's communications, transportation, financial, and distribution systems are considered to be its

Correct Answer
verified

Correct Answer
verified

A multidomestic marketing strategy refers to

Correct Answer
verified

When foreign currencies can buy more U.S. dollars,

Correct Answer
verified

Indirect exporting occurs when a firm sells its domestically produced products in a foreign country

Correct Answer
verified

Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?

Correct Answer
verified

Which of the following is an advantage inherent in the use of licensing?

Correct Answer
verified

Generally, as the proportion of middle-income households in a country , the a nation's purchasing power.

Correct Answer
verified

One disadvantage of direct investment when entering a new global market is that

Correct Answer
verified

GlaxoSmithKline plc. of Great Britain makes Breathe-Right nasal strips. It sells the same product in many countries because customers all over the world will use them in the same way. This is an example of which type of global marketing product and promotion strategy?

Correct Answer
verified

Exam 6: Understanding and Reaching Global Consumers and Markets

In terms of the global marketplace, there are three primary types of companies: international firms, multinational firms, and transnational firms. The key factor that distinguishes one from another is

Correct AnswerverifiedShow Answer

The __________ imposed on imported bananas by European Union countries cost consumers $2 billion a year in higher prices.

Correct AnswerverifiedShow Answer

Cultural symbols refer to

Correct AnswerverifiedShow Answer

Which of the following types of firms would be most likely to use a global marketing strategy?

Correct AnswerverifiedShow Answer

The U.S. Rice Millers' Association claims that if the Japanese rice market were opened to imports by lowering __________, lower prices would save Japanese consumers $6 billion annually and the United States would gain a large share of the Japanese rice market.

Correct AnswerverifiedShow Answer

Which of the following examples best demonstrates a company's appreciation of another country's values?

Correct AnswerverifiedShow Answer

Trade among nations or regions depends on political stability. In recent times, billions of dollars have been lost in __________ and __________ as a result of internal political strife, terrorism, and war.

Correct AnswerverifiedShow Answer

Mary Kay, Inc. can be classified as which type of company when marketing its products around the world?

Correct AnswerverifiedShow Answer

Which of the following issues raises concerns about the ethics of protectionism?

Correct AnswerverifiedShow Answer

Consumer groups living in many countries or regions of the world that have similar needs or seek similar features and benefits from products or services are referred to as

Correct AnswerverifiedShow Answer

A country's communications, transportation, financial, and distribution systems are considered to be its

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A multidomestic marketing strategy refers to

Correct AnswerverifiedShow Answer

When foreign currencies can buy more U.S. dollars,

Correct AnswerverifiedShow Answer

Indirect exporting occurs when a firm sells its domestically produced products in a foreign country

Correct AnswerverifiedShow Answer

Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?

Correct AnswerverifiedShow Answer

Which of the following is an advantage inherent in the use of licensing?

Correct AnswerverifiedShow Answer

Generally, as the proportion of middle-income households in a country __________, the __________ a nation's purchasing power.

Correct AnswerverifiedShow Answer

One disadvantage of direct investment when entering a new global market is that

Correct AnswerverifiedShow Answer

GlaxoSmithKline plc. of Great Britain makes Breathe-Right nasal strips. It sells the same product in many countries because customers all over the world will use them in the same way. This is an example of which type of global marketing product and promotion strategy?

Correct AnswerverifiedShow Answer

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verified

Trade among nations or regions depends on political stability. In recent times, billions of dollars have been lost in and as a result of internal political strife, terrorism, and war.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Generally, as the proportion of middle-income households in a country , the a nation's purchasing power.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified