Question 1

What are the market-entry strategy options available to a company seeking to enter the global marketplace? How do they relate to each other in terms of profit potential,risk,financial commitment required,and marketing control?

Accepted Answer

Once a company has decided to enter the global marketplace,it may select one of four strategies: (1)exporting,which involves producing goods in one country and selling them in another country;(2)licensing,where a company offers the right to a trademark,patent,trade secret,or other similarly valued items of intellectual property in return for a royalty or a fee;(3)joint venture,which involves a foreign company and a local firm investing together to create a local business;and (4)direct investment,which entails a domestic firm actually investing in and owning a foreign subsidiary or division.The amount of financial commitment,risk,marketing control,and profit potential increases as the firm moves from exporting to direct investment.

Question 2

Almost all countries have some division of social class (upper,middle,and lower) .The determining factor for the assignment to one of these classes may differ from country to country.For example,in the United States,the primary determining factor is occupation;in India,it is birthright;in China,it is geographical region and education;and in Singapore,it is income.These differences are best explained in terms of a country's

Accepted Answer

A)  semiotics.
B)  legal system.
C)  ethnocentricity.
D)  religion.
E)  values.F) A) and B)
G) A) and C)

Question 3

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Accepted Answer

A)  The WTO acts as an agent in trade negotiations between its members and the remainder of the world.
B)  The 119 member countries of the WTO account for less than 25 percent of world trade.
C)  The WTO attempts to mitigate trade wars between countries.
D)  The WTO uses legal scholars who can only issue nonbinding recommendations.
E)  The WTO was formed by the United Nations.F) A) and B)
G) C) and D)

Question 4

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) All of the above
G) D) and E)

Question 5

Figure 7-5
 
-Even though Exxon adapts its gasoline blends for different countries based on climate,the promotion message is unchanged: "Put a Tiger in Your Tank." This type of global promotional strategy is known as

Accepted Answer

A)  product extension
B)  product customization
C)  product adaptation
D)  dual adaptation
E)  dual integrationF) A) and C)
G) A) and E) C

Question 6

Figure 7-4
 
-According to Figure 7-4 above,point A would most likely represent which option for entering the global marketplace?

Accepted Answer

A)  joint venture
B)  licensing
C)  exporting
D)  direct investment
E)  franchiseF) All of the above
G) A) and E)

Question 7

A Tokyo shopkeeper would have been wise to use ________ to verify the accuracy of the new sign in English he purchased for his dry cleaning business.The sign read,"Drop your pants here for best results," which he did not know had another suggestive meaning to native speakers.

Accepted Answer

A)  cultural symbolism
B)  dialect transformation
C)  semantic analysis
D)  linguistic exchange
E)  back translationF) C) and D)
G) A) and B)

Question 8

Figure 7-4
 
-As a firm changes its global market entry strategy from exporting to direct investment,all of the following increase except which?

Accepted Answer

A)  marketing control
B)  risk
C)  divestiture
D)  profit potential
E)  financial commitmentF) B) and C)
G) B) and D)

Question 9

Figure 7-4
 
-According to Figure 7-4 above,point C would most likely represent which option for entering the global marketplace?

Accepted Answer

A)  exporting
B)  joint venture
C)  direct investment
D)  licensing
E)  franchisingF) C) and D)
G) B) and D)

Question 10

Recipco and Tradaq are both companies that connect international companies who want to barter the products they make for the products they need without using cash or credit.Recipco and Tradaq assist international companies in making

Accepted Answer

A)  countertrades.
B)  quota exchanges.
C)  trading exchanges.
D)  balances of trade.
E)  WTO trade arrangements.F) D) and E)
G) A) and B)

Question 11

U.S.appliance manufacturers note that people in Northern Europe shop only once a week,so they need bigger refrigerators than Southern Europeans,who shop daily.Furthermore,Northern Europeans insist that freezers should be on the top just as firmly as Southern Europeans want them on the bottom.Based on this,U.S.appliance manufacturers would more likely be successful if they used a(n) ________ marketing strategy.

Accepted Answer

A)  global
B)  multidomestic
C)  transnational
D)  meganational
E)  internationalF) A) and D)
G) C) and D)

Question 12

Figure 7-4
 
-A firm's profit potential and control over marketing activities increase as it moves from exporting to direct investment as a global market-entry strategy.But so does a firm's

Accepted Answer

A)  likelihood of long-term success.
B)  financial commitment and risk.
C)  vulnerability to political changes and doctrines.
D)  need for a more educated workforce.
E)  need for a larger workforce.F) A) and E)
G) A) and D)

Question 13

Five developments in the past decade have significantly influenced the landscape of global marketing.One of them is

Accepted Answer

A)  an increase in most countries' GDP coupled with an increased degree of consumer ethnocentrism.
B)  a significant increase in economic protectionism and a decline in tariffs and quotas.
C)  a more aggressive attitude toward regulating international banking.
D)  a decrease in most countries' GDP and a renewal of nationalism.
E)  a growth in economic integration among countries.F) A) and C)
G) A) and E)

Question 14

For the marketer,a thorough ________ involves an understanding of and an appreciation for the values,customs,symbols,and language of other societies.

Accepted Answer

A)  market synthesis
B)  international sociographic study
C)  anthropological examination
D)  cross-cultural analysis
E)  ethnocentrism assessmentF) B) and D)
G) A) and E)

Question 15

Which of the following is an important indicator of a nation's increasing purchasing power?

Accepted Answer

A)  a growing proportion of middle-income households
B)  declining per capita income
C)  stable household incomes
D)  stable incomes for the wealthiest consumers
E)  a large gap developing or persisting between top incomes and lowest incomesF) A) and B)
G) A) and C)

Question 16

Based on a study of 6,500 teens in 26 countries,when asked what country had the most influence on their attitudes and purchase behavior,54 percent of teens from the United States,87 percent of those from Latin America,80 percent of the Europeans,and 80 percent of those from Asia named

Accepted Answer

A)  the United States.
B)  Japan.
C)  the United Kingdom.
D)  France.
E)  China.F) C) and D)
G) B) and E)

Question 17

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.The distribution channels can be considered to have been successful when the product reaches the

Accepted Answer

A)  seller.
B)  channels between nations.
C)  seller's international marketing headquarters.
D)  final consumer.
E)  channels within foreign nations.F) A) and D)
G) D) and E)

Question 18

Describe the World Trade Organization (WTO)and its purpose.

Accepted Answer

The World Trade Organization (WTO)was formed in 1995 to address a broad array of world trade issues.There are 162 WTO member countries,including the United States,which account for more than 90 percent of world trade.The WTO is a permanent institution that sets rules governing trade between its members through panels of trade experts,who decide on trade disputes between members and issue binding decisions.The WTO reviews more than 200 disputes annually.

Question 19

The European Union (EU) has been beneficial to electronic commerce because it is no longer necessary to

Accepted Answer

A)  use multiple languages when settling accounts for purchases made across borders.
B)  continually monitor currency exchange rates among participating nations.
C)  trade with the former Eastern European communist countries.
D)  obey international e-trade regulations.
E)  use the American dollar as the economic standard.F) A) and E)
G) B) and E)

Question 20

Companies that use a(n) ________ marketing strategy have as many different product variations,brand names,and advertising programs as countries in which they do business.

Accepted Answer

A)  ethnocentric
B)  multidomestic
C)  transnational
D)  global
E)  internationalF) A) and B)
G) B) and E)

Exam 7: Understanding and Reaching Global Consumers and Markets

What are the market-entry strategy options available to a company seeking to enter the global marketplace? How do they relate to each other in terms of profit potential,risk,financial commitment required,and marketing control?

Correct Answer
verified

Which of the following statements about the World Trade Organization (WTO) is most accurate?

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

Figure 7-5 -Even though Exxon adapts its gasoline blends for different countries based on climate,the promotion message is unchanged: "Put a Tiger in Your Tank." This type of global promotional strategy is known as

Correct Answer
verified
C

Figure 7-4 -According to Figure 7-4 above,point A would most likely represent which option for entering the global marketplace?

Correct Answer
verified

A Tokyo shopkeeper would have been wise to use ________ to verify the accuracy of the new sign in English he purchased for his dry cleaning business.The sign read,"Drop your pants here for best results," which he did not know had another suggestive meaning to native speakers.

Correct Answer
verified

Figure 7-4 -As a firm changes its global market entry strategy from exporting to direct investment,all of the following increase except which?

Correct Answer
verified

Figure 7-4 -According to Figure 7-4 above,point C would most likely represent which option for entering the global marketplace?

Correct Answer
verified

Recipco and Tradaq are both companies that connect international companies who want to barter the products they make for the products they need without using cash or credit.Recipco and Tradaq assist international companies in making

Correct Answer
verified

Correct Answer
verified

Figure 7-4 -A firm's profit potential and control over marketing activities increase as it moves from exporting to direct investment as a global market-entry strategy.But so does a firm's

Correct Answer
verified

Five developments in the past decade have significantly influenced the landscape of global marketing.One of them is

Correct Answer
verified

For the marketer,a thorough ________ involves an understanding of and an appreciation for the values,customs,symbols,and language of other societies.

Correct Answer
verified

Which of the following is an important indicator of a nation's increasing purchasing power?

Correct Answer
verified

Based on a study of 6,500 teens in 26 countries,when asked what country had the most influence on their attitudes and purchase behavior,54 percent of teens from the United States,87 percent of those from Latin America,80 percent of the Europeans,and 80 percent of those from Asia named

Correct Answer
verified

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.The distribution channels can be considered to have been successful when the product reaches the

Correct Answer
verified

Describe the World Trade Organization (WTO)and its purpose.

The European Union (EU) has been beneficial to electronic commerce because it is no longer necessary to

Correct Answer
verified

Companies that use a(n) ________ marketing strategy have as many different product variations,brand names,and advertising programs as countries in which they do business.

Correct Answer
verified

Exam 7: Understanding and Reaching Global Consumers and Markets

What are the market-entry strategy options available to a company seeking to enter the global marketplace? How do they relate to each other in terms of profit potential,risk,financial commitment required,and marketing control?

Correct AnswerverifiedShow Answer

Which of the following statements about the World Trade Organization (WTO) is most accurate?

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

Figure 7-5 -Even though Exxon adapts its gasoline blends for different countries based on climate,the promotion message is unchanged: "Put a Tiger in Your Tank." This type of global promotional strategy is known as

Correct AnswerverifiedC

Figure 7-4 -According to Figure 7-4 above,point A would most likely represent which option for entering the global marketplace?

Correct AnswerverifiedShow Answer

A Tokyo shopkeeper would have been wise to use ________ to verify the accuracy of the new sign in English he purchased for his dry cleaning business.The sign read,"Drop your pants here for best results," which he did not know had another suggestive meaning to native speakers.

Correct AnswerverifiedShow Answer

Figure 7-4 -As a firm changes its global market entry strategy from exporting to direct investment,all of the following increase except which?

Correct AnswerverifiedShow Answer

Figure 7-4 -According to Figure 7-4 above,point C would most likely represent which option for entering the global marketplace?

Correct AnswerverifiedShow Answer

Recipco and Tradaq are both companies that connect international companies who want to barter the products they make for the products they need without using cash or credit.Recipco and Tradaq assist international companies in making

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 7-4 -A firm's profit potential and control over marketing activities increase as it moves from exporting to direct investment as a global market-entry strategy.But so does a firm's

Correct AnswerverifiedShow Answer

Five developments in the past decade have significantly influenced the landscape of global marketing.One of them is

Correct AnswerverifiedShow Answer

For the marketer,a thorough ________ involves an understanding of and an appreciation for the values,customs,symbols,and language of other societies.

Correct AnswerverifiedShow Answer

Which of the following is an important indicator of a nation's increasing purchasing power?

Correct AnswerverifiedShow Answer

Based on a study of 6,500 teens in 26 countries,when asked what country had the most influence on their attitudes and purchase behavior,54 percent of teens from the United States,87 percent of those from Latin America,80 percent of the Europeans,and 80 percent of those from Asia named

Correct AnswerverifiedShow Answer

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.The distribution channels can be considered to have been successful when the product reaches the

Correct AnswerverifiedShow Answer

Describe the World Trade Organization (WTO)and its purpose.

The European Union (EU) has been beneficial to electronic commerce because it is no longer necessary to

Correct AnswerverifiedShow Answer

Companies that use a(n) ________ marketing strategy have as many different product variations,brand names,and advertising programs as countries in which they do business.

Correct AnswerverifiedShow Answer

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C

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