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International Business
Q:
Which term refers to the network that links together the different aspects of the value chain and coordinates materials, information, and funds from the initial raw-material supplier to the ultimate customer?
A) logistics strategy information system
B) materials management device
C) customer service
D) supply chain
Q:
In order to save costs and consolidate its manufacturing capacity, Samsonite has ________.
A) decreased investment in R&D
B) moved from a centralized configuration to a decentralized configuration
C) increased the amount of final goods and components it outsources
D) diversified its reseller base
Q:
In order to assure the quality of its products, Samsonite ________.
A) performs only internal quality tests
B) relies only on independent quality-assurance tests
C) conforms its products to industry-set standards
D) uses both internal quality tests and independent quality-assurance tests
Q:
Why are MNEs criticized for exporting to developing countries the same products they sell in developed countries?
A) The prices of the products are too low in developing countries.
B) Many of the products are deemed to be unnecessary for low income consumers.
C) The sales enhance local company failures in developing countries.
D) Developing countries need local production rather than imports.
Q:
When a company identifies a market segment on a global basis, such as a segment based on income, it will likely ________.
A) encounter a similar percentage of the population in each country within that segment
B) find that a niche market in one country may be a mass market in another
C) find that the market in each country is so dispersed that distribution is difficult
D) be aiming at a mass market in each country
Q:
What is the most likely reason that sales to a mass market would be necessary for a company selling internationally?
A) gaining economies in production and distribution
B) earning initial sales in emerging economies
C) eliminating excess domestic capacity
D) gaining brand recognition
Q:
Which of the following is most likely to occur when a firm segments markets by country?
A) achieving objectives by following a sales orientation strategy within that market
B) initially targeting the high-income consumers within that market
C) overlooking similarities between different countries
D) introducing multiple products to assess demand
Q:
What is the most common way of identifying market segments within a country?
A) psychographics
B) the Internet
C) gap analysis
D) demographics
Q:
Which of the following best describes a company that follows a social marketing orientation?
A) It considers political and safety dimensions of its products.
B) It is a not-for-profit entity based in a developed country.
C) It is a government-owned entity from an emerging economy.
D) It generates sales to niche markets using social networking sites.
Q:
Pulte Homes adapts its marketing to foreign differences by making minor changes to bathrooms and outdoor patios. However, Pulte Homes uses the same floor plans and exterior attributes in all countries to gain economies of standardization. Pulte Homes most likely follows a ________.
A) social marketing orientation
B) sales orientation
C) strategic marketing orientation
D) production orientation
Q:
Which of the following would be an example of a customer orientation in international marketing?
A) A cosmetics company bans animal testing of its products to gain goodwill.
B) A fruit company brands the bananas it sells in foreign and domestic markets.
C) A beer company makes non-alcoholic beer for a country that bans the sale of alcohol.
D) A plastics manufacturer makes some components to the specifications of a foreign company.
Q:
Companies using a sales orientation find their greatest ability to sell the same product in more than one country when ________.
A) promotional programs are identical in each country
B) consumer characteristics are similar
C) the product is a household item
D) the product has a low price relative to incomes
Q:
All of the following are true about passive exports EXCEPT that ________.
A) companies adapt their products very little to foreign consumer preferences
B) companies frequently export only if they have excess capacity
C) companies generally quote higher prices on exports than on domestic sales
D) they refer to the filling of unsolicited requests from abroad
Q:
Executives at Apex decided to use a production orientation in the firm's international marketing efforts. Which of the following statements best supports this decision?
A) Top management at Apex is committed to the concept of social responsibility.
B) Apex is willing to alter its products to fit mass-market needs in foreign countries offering growth potential.
C) Apex will produce in each country where it sells.
D) Apex will aim sales at foreign-market segments that resemble segments to which it aims domestically.
Q:
When selling a commodity for which there is little possibility of product differentiation, a company would likely use which of the following orientations internationally?
A) customer orientation
B) production orientation
C) sales orientation
D) strategic marketing orientation
Q:
The marketing orientation used by Bantam Shoes for its foreign sales focuses primarily on efficiency and product quality. Bantam most likely uses a ________.
A) production orientation
B) customer orientation
C) sales orientation
D) strategic marketing orientation
Q:
In comparing international and domestic marketing, it is best to state that ________.
A) similar principles are at work
B) mass-market orientations are most effective
C) principles differ for product and price, but not for advertising
D) the differences between them can be studied through gap analysis
Q:
International marketing differs from domestic marketing in that ________.
A) marketing principles are different
B) consumers prefer domestically made merchandise
C) environmental variations require applying principles differently
D) low prices are a more important competitive factor in foreign markets
Q:
Tommy Hilfiger has encountered some European resistance to the sale of its products because ________.
A) many European consumers associate France and Italy, rather than the U.S., with upscale fashions
B) its customary prices, especially for the German market, have been out of reach for its target market
C) it has refused to adjust products to fit the tastes and needs of local consumers
D) it has depended on self-service in its company-owned stores
Q:
Which of the following was most responsible for the early success of Tommy Hilfiger clothing?
A) The products were mass-marketed through discount stores.
B) Internet mail-order sales were developed when people had less time to shop.
C) Products were developed to fit the specific needs of different country markets.
D) Brand awareness was developed through advertising.
Q:
In a short essay, discuss gap analysis.
Q:
What challenges are created by selling internationally through the Internet? How does e-commerce affect pricing?
Q:
How do foreign government regulations affect pricing and promotion for international businesses?
Q:
How do language differences affect international branding and promotion?
Q:
In a short essay, discuss the standardization of two marketing components: advertising and distribution.
Q:
In a short essay, compare push and pull promotional strategies.
Q:
What is the gray market? Why are companies concerned about it?
Q:
Define price escalation in exporting and explain why it occurs.
Q:
What factors makes international pricing and distribution more complex than domestic pricing and distribution?
Q:
In a short essay, describe the various reasons for product alteration.
Q:
In a short essay, discuss the international application of five common marketing orientations.
Q:
E-commerce facilitates the ability of consumers to compare prices from different distributors, which will most likely result in lower prices on products.
Q:
Gap analysis may show that the combined market potential among several countries may justify product development costs.
Q:
Gap analysis refers to an estimation of sales potential caused by the disparity in incomes between developed and developing countries.
Q:
Internet sales complement traditional distributors, thus enhancing companies' ability to secure and hold traditional distributors.
Q:
When a company sells technologically advanced products to global customers, it is more likely to handle distribution itself.
Q:
Higher disposable income and technological advances help overcome many geographic constraints on product demand and distribution.
Q:
Seasonal differences around the world enable MNEs to distribute weather-related sales, such as winter clothing, more evenly throughout the year.
Q:
If a brand name becomes generic in one country, it becomes generic in other countries as well.
Q:
A positive brand image cannot overcome negative perceptions of the country where the product is made.
Q:
A problem of advertising through media that reach multiple countries is that the product may not be available everywhere it is advertised.
Q:
A push strategy is most likely preferable to a pull strategy when the price of the product is high relative to incomes.
Q:
A push strategy is most likely preferable to a pull strategy when goods are sold using self-service distribution.
Q:
When the currency value in the location where a company produces becomes stronger, the company most likely needs to adjust its margins downward to be competitive in export markets.
Q:
High inflation might cause a company to gain advantages by selling more on credit.
Q:
A company that prices its products at a desired margin over cost is using a cost-plus strategy.
Q:
A company that exports products at a price lower than its domestic market price is using a skimming policy abroad.
Q:
Antidumping regulations of the WTO allow countries to establish restrictions against any exports that fail to meet quality standards.
Q:
Market diversity, government intervention, and currency fluctuations complicate international pricing decisions.
Q:
Although the broadening of product lines increases distribution efficiencies, too broad a line can create problems in selling.
Q:
A company sometimes handles a broader line of products in a foreign country than in its home country because most of its new product development is abroad.
Q:
Different country standards, such as safety regulations, add complexity to whether companies decide to use a globally standardized product.
Q:
There are more cost savings for international branding standardization than for international product standardization.
Q:
The most common way of identifying market segments is through demographics.
Q:
Under a strategic marketing orientation, a company considers potential environmental, health, social, and work-related problems from the sale of its products abroad.
Q:
A company that adapts its marketing to foreign differences without deviating very much from its experience is following a customer orientation.
Q:
Passive exports involve the filling of unsolicited orders from abroad.
Q:
In a production orientation, a company focuses on efficiency and product quality when selling abroad.
Q:
The marketing approach a company takes internationally should be compatible with its overall aims and strategies.
Q:
International marketing is unlike domestic marketing because the basic principles are completely different.
Q:
Which of the following is NOT one of the three personality traits that specifically affect international marketing?
A) globalism
B) materialism
C) ethnocentrism
D) cosmopolitanism
Q:
Compton Cereal Company sells its cereals in most global markets, and overall sales at the firm remain strong. However, the firm is losing sales to some of its competitors because Compton lacks a gluten-free cereal. Which of the following best describes Compton's current problem?
A) usage gap
B) competitive gap
C) distribution gap
D) product-line gap
Q:
Arden Shoes runs a different marketing campaign every four weeks abroad. Which of the following best describes the advantage of doing so?
A) It enables Arden to attract more sales personnel.
B) It helps Arden create an image of having quality products.
C) It allows Arden to change prices in highly inflationary economies.
D) It enables Arden to switch quickly and inexpensively to a local emphasis.
Q:
Gap analysis can be used by companies to gain synergy among countries. Which of the following is a benefit of this synergy?
A) It allows companies to determine the allocation of marketing budgets among countries.
B) It can be used to prevent sales via the gray market.
C) By seeing the combined market potential among several countries, companies can determine whether there is sufficient demand to justify new product development costs.
D) By analyzing the distribution gap, companies can better determine whether to handle other companies' imported products along with their own.
Q:
Assume the per capita consumption of shoes is three pairs in Country A and two pairs in Country B. The difference probably means that there is a ________ gap in Country B.
A) product line
B) usage
C) distribution
D) competitive
Q:
A company would most likely use gap analysis to ________.
A) estimate market potential over a business cycle
B) compare sales over time
C) compare consumption potential with its own sales
D) determine the best market niches to target
Q:
Gap analysis is ________.
A) a method for estimating a company's potential sales by identifying segments it is not serving adequately
B) an investment advisor's report on the future of one of the leading clothing retailers
C) the leap-frogging of demand in many developing economies whereby consumers skip certain generations of products, buying the latest model instead
D) an estimation of the disparity in incomes between the very rich and the very poor in a given market
Q:
All of the following are true about the Internet and electronic commerce EXCEPT which one?
A) Suppliers can deal more quickly with their customers.
B) It enhances companies' ability to differentiate their marketing methods by country.
C) Customers worldwide can quickly compare prices from different distributors.
D) To be successful, companies must be able to deliver efficiently what they sell over the Internet.
Q:
Although electronic commerce offers companies an opportunity to promote their products globally, doing so brings challenges. Which of the following is NOT one of the challenges?
A) Many households, especially in developing countries, lack access to the Internet.
B) Setting up and implementing Internet sales can be expensive.
C) The appeals must be differentiated for every country of the world.
D) Switching to Internet sales can upset current distribution.
Q:
Which of the following statements is important to companies in order for them to gain contracts with foreign distributors?
A) Convince the distributors that the product and company are viable.
B) Offer high margins so distributors will compete to get the account.
C) Determine the distribution gap before signing a contract.
D) Establish in-house distribution to demonstrate what is desired.
Q:
Which of the following would most likely indicate that a company should handle its own distribution?
A) high-volume sales and non-complex after-sales servicing
B) local customers and low-tech products
C) low sales volume and few business-to-business sales
D) global customers and high technology
Q:
Which of the following is true concerning countries' distribution systems?
A) They reflect the economic levels of countries, so countries at similar economic levels have similar distribution systems.
B) They are difficult to change because they have evolved over time, reflecting countries' cultural, economic, and legal environments.
C) They are more similar among countries than pricing and promotional systems are.
D) When standardized, they offer more cost savings for international companies than when products are standardized.
Q:
Ampco Industries has a production facility in an area of India in which roads are poorly maintained and dangerous. What part of Ampco's marketing mix do these conditions most likely affect?
A) distribution
B) branding
C) product standardization
D) promotion
Q:
All of the following are true about distribution concerns when marketing internationally EXCEPT which one?
A) Geographic barriers may divide countries into very distinct markets.
B) In some countries, few potential sales lie outside the large metropolitan areas.
C) Each country has its own distribution system, making standardization of distribution difficult.
D) Because most foreign consumers are easily presold by advertising messages, it is difficult to convince retailers to offer good service.
Q:
The importance of using a brand to convey the perception of whether a firm will deliver what it promises is more critical in ________.
A) countries without strong trademark protection
B) selling to mass markets than in selling to niche markets
C) countries with strong cultural characteristics of uncertainty avoidance
D) selling industrial products than final consumer products
Q:
Which of the following statements is most likely true?
A) Consumers in most countries believe that imported products are better than locally made products.
B) Brand names have little impact on perceptions about a product's country-of-origin.
C) Consumers in most countries favor locally made products over imported products.
D) A positive brand image helps overcome negative perceptions about a product's country-of-origin.
Q:
All of the following are problems of using a worldwide brand EXCEPT which one?
A) Brand names may carry a different association in another language.
B) Pronunciation may be difficult in another language.
C) Acquired brand names cannot be legally changed.
D) Pictogram alphabets need visual appeal in addition to phonetic appeal.
Q:
In advertisements aimed at different countries, companies sometimes use actors who do not speak, along with a voice and/or print overlay. What is the main reason for doing this?
A) avoiding dubbing that does not correspond to lip movements
B) altering themes and messages among countries
C) meeting legal requirements on morality
D) reaching a hearing-or sight-impaired audience
Q:
Increasingly, media reach audiences in more than one country, such as through satellite TV that reaches multiple countries simultaneously. What is NOT a problem of advertising on these media?
A) Because of reaching so many households, the cost is prohibitive.
B) The product may not be available everywhere it is advertised.
C) A company may not be able to advertise price because they may differ among countries.
D) The advertisement may reach countries using different languages.
Q:
All of the following are possible advantages of globally standardized advertising programs EXCEPT ________.
A) cost savings
B) improvement of local-level quality
C) avoidance of legal impediments
D) faster entry into different markets