Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
International Business
Q:
A ________ strategy is best suited for the promotion of industrial products because potential buyers usually need to be informed about a product's special features before purchase.
A) push
B) pull
C) stability
D) differentiation
Q:
Which of the following circumstances would best require a pull strategy to be implemented for product promotion?
A) channel members wield relatively lesser power compared to that of producers
B) buyers display a great deal of brand loyalty to a particular product
C) distribution channels are short
D) buyers need to be informed about the features of a product before purchase
Q:
Using any two of the four theories that appear in your text, explain why companies engage in foreign direct investment.
Q:
Which of the following circumstances would best require a push strategy to be implemented for product promotion?
A) channel members wield a great deal of power relative to that of producers
B) distribution channels are lengthy
C) buyers display a great deal of brand loyalty to particular product
D) products in question are industrial goods
Q:
According to the eclectic theory that explains FDI, an internalization advantage is the advantage of locating a particular economic activity in a specific location because of the characteristics of that location.
Q:
A ________ is used for a product's promotion when there are many levels of intermediaries in its distribution channel.
A) push strategy
B) pull strategy
C) retrenchment strategy
D) stability strategy
Q:
According to the eclectic theory that explains FDI, an ownership advantage is the advantage that arises from internalizing a business activity rather than leaving it to a relatively inefficient market.
Q:
As a promotional strategy, manufacturers of products that are commonly sold through department and grocery stores often use ________.
A) a push strategy
B) a pull strategy
C) retrenchment strategy
D) stability strategy
Q:
The eclectic theory states that firms undertake foreign direct investment only when the features of a particular location make the location appealing for investment.
Q:
The possibility that a company will create a future competitor by charging another company for access to its knowledge is a market imperfection that can encourage foreign direct investment.
Q:
Which of the following is a promotional strategy designed to pressure channel members to carry a product and promote it to final users?
A) differentiation strategy
B) retrenchment strategy
C) push strategy
D) pull strategy
Q:
Which of the following is a push strategy that companies use to promote their products?
A) mass media advertising
B) direct marketing techniques
C) free trial packages
D) retail product stocking
Q:
Trade barriers and specialized knowledge are examples of market imperfections.
Q:
According to the market imperfections theory, competition is a common market imperfection.
Q:
A promotional strategy designed to create buyer demand that will encourage channel members to stock a company's product is called a ________.
A) pull strategy
B) push strategy
C) retrenchment strategy
D) stability strategy
Q:
In the maturing product stage of the international product life cycle theory, increased competition creates pressures to reduce production costs.
Q:
Which of the following promotional strategies is being used by a company that hires a fleet of trucks to drive through village squares and hand out free trial packages to potential end users?
A) push strategy
B) pull strategy
C) retrenchment strategy
D) differentiation strategy
Q:
Which of the following is an example of a greenfield investment?
A) an agricultural business acquisition in South-east Asia's former agricultural region
B) the construction of an entirely new steel manufacturing subsidiary overseas
C) a merger between a U.S. and a non-U.S. company
D) the purchase of an existing business that is still in its infancy
Q:
________ is a major component of a promotion mix.
A) Distribution
B) Market segmentation
C) Pricing
D) Public relations
Q:
The ________ theory states that a firm tries to establish a dominant presence in an industry by undertaking foreign direct investment.
A) eclectic
B) market power
C) market imperfections
D) international product life cycle
Q:
The term ________ refers to a company's efforts to reach distribution channels and target customers through communications such as personal selling, advertising, public relations, and direct marketing.
A) social marketing
B) viral marketing
C) promotion mix
D) positioning
Q:
The possibility that a company will create a future competitor by charging another company for access to its knowledge is a(n) ________ that can encourage FDI.
A) ownership advantage
B) internalization advantage
C) market imperfection
D) trade barrier
Q:
Which of the following is among the most commonly counterfeited products?
A) aircraft parts
B) watches
C) surgical equipment
D) medicines
Q:
A(n) ________ advantage is the advantage of conducting a particular economic activity in a specific area because of the characteristics of that area.
A) internalization
B) ownership
C) comparative
D) location
Q:
Which of the following is a marketplace of underground transactions that typically appears because a product is either illegal or tightly regulated?
A) black market
B) niche market
C) two-sided market
D) vertical market
Q:
Which of the following theories states that firms undertake foreign direct investment, when the features of a particular location combine with ownership and internalization advantages, to make the location appealing for investment?
A) market power theory
B) international product life cycle theory
C) market imperfections theory
D) eclectic theory
Q:
Which of the following is true of counterfeit goods?
A) Developed nations normally have the most active counterfeiting markets.
B) Counterfeiting is more common among less visible local brands than global brands.
C) Most counterfeit products are imitations of products that normally enjoy legal protection.
D) Engineered industrial components and medicines are among the few categories of products that cannot be counterfeited.
Q:
The requirement that a sufficient portion of a product's content must originate within a certain market to escape tariff charges is an example of a(n) ________.
A) ad valorem tariff
B) market imperfection
C) tariff-quota
D) subsidy
Q:
________ are imitation products passed off as legitimate trademarks, patents, or copyrighted works.
A) Giffen goods
B) Counterfeit goods
C) Inferior goods
D) Intangible goods
Q:
The ________ theory states that when an aspect of the market makes a transaction less efficient than it could be, a company will undertake foreign direct investment to internalize the transaction and thereby remove the efficiency-reducing aspect.
A) market power
B) eclectic
C) international product life cycle
D) market imperfections
Q:
All company and product brand names are made up of semantic elements or language building blocks called ________.
A) aesthetics
B) morphemes
C) hybrid words
D) propositions
Q:
A market that is said to operate at peak efficiency and where goods are readily and easily available is said to be a(n) ________ market.
A) perfect
B) Eurocurrency
C) foreign exchange
D) greenfield investment
Q:
Governments in developing countries impose fewer consumer protection laws in order to ________.
A) hold down production costs and consumer prices
B) enable companies to focus on profit-making exclusively
C) decrease the flow of foreign direct investment into the country
D) decrease the complexity of the legal procedures for foreign direct investment
Q:
In the ________ product stage of the international product life cycle theory, increased competition pressurizes a company to build production facilities in low-cost developing nations.
A) new
B) maturing
C) standardized
D) declining
Q:
According to the international product life cycle theory, in which stage of a product's life cycle does a company directly invest in production facilities in countries where demand is great enough to warrant production facilities?
A) new product stage
B) maturing product stage
C) standardized product stage
D) declining product stage
Q:
Antidumping tariffs punish producers in the offending nation by increasing the price of their products to a fairer level.
Q:
According to the international product life cycle theory, in which of the following stages is a good produced in the home country because of uncertain domestic demand and to keep production close to the research department?
A) standardized product stage
B) maturing product stage
C) declining product stage
D) new product stage
Q:
An arm's length price is the price that is charged for products sold among a company's divisions or subsidiaries.
Q:
The lower a product's value density, the more localized is the distribution system for that product.
Q:
Which of the following is true of foreign direct investment?
A) The contributions of entrepreneurs and small businesses to foreign direct investment is insignificant.
B) Globalization has led emerging markets to undertake less foreign direct investment and industrialized nations to undertake more foreign direct investment.
C) The desire to increase a firm's global competitiveness drives many cross-border mergers and acquisitions.
D) Foreign direct investment does not involve obtaining a degree of control in a company.
Q:
The more intermediaries there are in a distribution channel, the less costly the channel becomes.
Q:
Which of the following is least likely a reason for companies to seek cross-border mergers and acquisitions?
A) to get a foothold in new geographic markets
B) to raise company budgets for increased research and development activities
C) to increase a firm's global competitiveness
D) to fill the gaps in companies' product lines in a global industry
Q:
The realization that companies can start production in the most efficient and productive locations in the world and export to markets worldwide led to a new surge of foreign direct investment into ________.
A) First World nations
B) low-income nations
C) high-income nations
D) newly industrialized nations
Q:
Service providers do not need distribution channels because they market intangible goods.
Q:
What two factors propel growth in foreign direct investment?
Q:
The physical path a product follows on its way to customers is called a promotional channel.
Q:
One reason a home country may discourage foreign direct investment outflows is to protect its "sunset" industries.
Q:
Under the dual adaptation method, a company adapts its product to local requirements while retaining the product's original marketing communication.
Q:
A current account deficit occurs when a country exports more goods and receives more income from abroad than it imports and pays abroad.
Q:
The product adaptation/communications extension method adapts both the product and its marketing communication to suit the target market.
Q:
The income payments account includes income earned on home country assets held abroad.
Q:
Dual extension method extends the same home-market product and marketing promotion into target markets.
Q:
The merchandise account includes exports and imports of tangible goods.
Q:
By ignoring important cultural nuances, companies can inadvertently decrease the potential for noise that can cloud the audience's understanding of their promotional message.
Q:
A majority of the regulatory changes that governments around the world introduced in recent years are unfavorable to FDI.
Q:
Noise refers to anything that disrupts the audience's ability to receive and interpret a promotional message.
Q:
In industries having a limited number of small firms, foreign direct investment decisions frequently resemble a "follow the leader" scenario.
Q:
The marketing communication process involves encoding and decoding of the promotional message.
Q:
The soaring cost of developing subsequent stages of technology has led multinationals to engage in cross-border alliances and acquisitions.
Q:
In marketing, distribution is the process of sending promotional messages about products to target markets.
Q:
Building a subsidiary abroad from the ground up is called a greenfield investment.
Q:
Firms that standardize their advertising usually control campaigns from the home office.
Q:
In foreign direct investment, complete ownership of a company guarantees its complete control.
Q:
A pull strategy is most appropriate when buyers display a great deal of brand loyalty toward one particular brand name.
Q:
Firms from emerging markets account for a greater share of global mergers and acquisitions than developed markets.
Q:
Emerging markets typically have fewer forms of mass media for use in implementing a pull strategy.
Q:
Developed countries have been the major participants behind cross-border mergers and acquisitions.
Q:
A push strategy is the most efficient promotional strategy when distribution channels are lengthy.
Q:
Increasing globalization is causing a growing number of international companies from emerging markets to undertake FDI.
Q:
A common example of a push strategy is the creation of consumer demand through direct marketing techniques.
Q:
Portfolio investment is the purchase of physical assets of a company in another country to gain a degree of management control.
Q:
A push strategy is a promotional strategy designed to pressure channel members to promote a product to final users.
Q:
Not all factors of production are internationally mobile.
Q:
The rapid pace of technological innovation today extends the life cycles of products.
Q:
If board members ask about the maquiladora industry, Keith would explain that it refers to ________.
A) Mexico's low-cost labor union
B) the cross-border drug trafficking problem that threatens to limit legitimate production in Mexico
C) the low-wage, 130-mile-wide strip along the U.S.-Mexico border that comprises a special economic region
D) Latin America's new model for business that restricts foreign investors to take advantage of government incentives
Q:
Product life cycles are becoming shorter because companies are undertaking new product development at an increasingly rapid pace.
Q:
Blickinstock has identified a company that it can acquire or merge with. Which of the following statements would represent the least likely reason for Blickinstock to go ahead with the merger?
A) The merger would help increase Blickinstock's global competitiveness.
B) The merger would allow the company to get a foothold in the nascent Latin American market.
C) The merger would help to fill the gaps in Blickinstock's product line.
D) The merger would bring in increased cash-flows that Blickinstock can use to acquire other firms.
Q:
Developed nations normally have the most active counterfeiting markets.
Q:
If Happyland is successful in attracting foreign direct investment, transactions involving those investments would appear in the country's ________ account.A) capitalB) servicesC) income paymentsD) merchandise
Q:
Discuss the advantages of licensing, low-cost production, and low-cost shipping for international companies.