question

Regardless of how companies go about pricing their products, their foreign prices probably will be higher than their domestic prices for comparable products. This is known as the ____ problem.

answer

price escalation

question

In managing their international marketing activities, most companies first organize a(n)

answer

export department.

question

Which of the following types of economies consumes most of its outputs and barters the rest for simple goods and services?

answer

subsistence economy.

question

Which of the following is true of channels within nations?

answer

products are moved from their market entry to the final consumers.

question

A firm normally gets into international marketing by

answer

simply shipping out its goods.

question

An emerging economy is one in which

answer

fast growth in manufacturing results in rapid overall economic growth.

question

Which of the following most closely describes indirect exporting?

answer

indirect exporting works through independent international marketing intermediaries.

question

Which of the following is a drawback of contract manufacturing?

answer

there is decreased control over the manufacturing process.

question

Compared to adapted global marketing, standardized global marketing

answer

basically uses the same marketing strategy approach worldwide.

question

Which of the following is true of a joint ownership?

answer

the domestic firm exports management services rather than products.

question

Which of the following is true of a global firm?

answer

a global firm manufactures and markets goods wherever it can do the best job.

question

Lemon N' Honey is a juice manufacturing company in the U.S. It exports its products to Australia, licenses to China, has a joint ownership venture in France, and owns a subsidiary in Brazil. It will eventually create a(n) ______ to handle all its worldwide activities.

answer

international division.

question

Licensing is a type of

answer

joint venture.

question

_____ means marketing a product in a foreign market without making any changes to the product.

answer

straight product extension.

question

The similarity between and industrializing economy and an industrial economy is that both

answer

are importers of raw materials.

question

Which of the following is true of exporting?

answer

exporting involves the least change in the company's product lines.

question

Leonards, a leading French garment manufacturing company, is looking for ways to go global. Penny, a designer from California, wishes to open a fashion boutique in the neighborhood, and gain production expertise and name without having to invest significantly. She learns about Leonards' global expansion plans, and buys the rights to use its manufacturing process for a royalty fee. This allows it to gain entry into a foreign market at little risk. Leonards has used the _______ method of entering a foreign market.

answer

licensing

question

A subsistence economy is one in which

answer

a vast majority of people engage in simple agriculture.

question

Which of the following is true of communication adaptation for a company entering a foreign market?

answer

a strategy of fully modifying advertising messages to local markets is used.

question

_____ ventures consists of one company collaborating with foreign investors to create a local business in which they share possession and control.

answer

joint ownership.

question

Which of the following is true of raw material exporting economies?

answer

raw material exporting economies are rich in one or more resources but poor in the other ways.

question

Which of the following is a disadvantage of licensing?

answer

when the contract ends, the firm may find that it has created a competitor in the license.

question

Which of the following is true of geographical organizations?

answer

geographical organizations are managed by country managers responsible for salespeople, distributors, and licensees in their respective countries.

question

_____ are operating units responsible for worldwide sales of collections of merchandise, which are similar in nature.

answer

world product groups.

question

In management contracting, the domestic firm

answer

exports management services rather than products.

question

Pizza House, a leading Italian restaurant, recently opened a new restaurant in New York called Papa James. The property is locally owned, but Pizza House operates the restaurant with its world-renowned culinary expertise. Pizza House has used the ____ method of entering the foreign market.

answer

management contracting.

question

One of the disadvantages of adapted global marketing when compared to standardized global marketing is that

answer

adapted global marketing results in more costs.

question

Which of the following is an example of non tariff trade barriers?

answer

host-country regulations.

question

Which of the following is a disadvantage of straight product extension?

answer

straight product extension can be costly in the long run if products fail to satisfy consumers.

question

Which of the following is a benefit of contract manufacturing?

answer

contract manufacturing gives the company a chance to start faster, with less risk.

Marketing Chapter 15 Questions – Flashcards

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