question

When shopping for a car, you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of____

answer

a tariff

question

Cultural nuances, subcultures, and consumers' different views of their roles in different countries can make __________ complicated.

answer

segmenting, targeting, and positioning

question

Many of the best-known American retailers, like Starbucks and McDonalds, have expanded globally using

answer

franchising

question

In the 1970s and 1980s, __________ dominated the global marketplace because they could exploit their skills in production, materials management, and new product development.

answer

Japanese Firms

question

Franz lives in a country where he and his friends have disposable income, in spite of the fact that their average income is $650 per month, because they have no debt and don't save money. Franz most likely lives in

answer

Russia

question

China has three main languages, and many more dialects. This presents a particular challenge to developing a global ________ strategy.

answer

communication

question

Why should marketers be aware of the BRIC countries?

answer

They are likely to be the source of most market growth

question

Chris laughed at some of the cultural mistakes companies made in advertising and promotion in international trade while he was in school. Now he was trying to determine what had gone wrong with the campaign he had planned in Latin America for his company's product, and it didn't seem quite as amusing. He narrowed the issues down to sociocultural factors. He was looking at both __________ and __________.

answer

visible artifacts; underlying values

question

Which of the following is a potential negative factor for foreign investment in China?

answer

China's population is aging rapidly.

question

In most cases, countries use tariffs to reduce foreign competition, but tariffs are also used

answer

as a response to perceived unfair trade practices

question

Of the five strategies for entering new markets, direct investment creates the

answer

greatest potential risk

question

Culture affects

answer

every aspect of consumers' purchase decisions.

question

Which of the following trade agreements is designed to manage and promote trade activities for the United States, Canada, and Mexico?

answer

NAFTA

question

Many developed countries are experiencing __________ population growth.

answer

zero or negative

question

China, like many other countries, usually requires entering firms to create _________ when expanding into their markets, limiting outsiders' control of businesses.

answer

joint ventures

question

The most important consideration when a firm chooses a global product strategy should be

answer

opportunities for countertrade.

question

Which of the following global entry strategies is being used if a company collaborates with a competitor on a globally based opportunity for mutual benefit, but the competitors do not invest in each other?

answer

direct investment

question

Changes in tariffs and quotas are

answer

government actions that reduce competition from international firms

question

Globalization refers to the process by which goods, services, capital, people, and ideas

answer

flow across national borders.

question

Global segmenting, targeting, and positioning are more complicated than domestic segmenting and positioning because of cultural nuances, significant subcultures within countries, and

answer

differences in the way consumers see themselves and in the way they see products and services.

question

If you visit a Kentucky Fried Chicken restaurant in China, you will find congee, a rice porridge that can feature pork, pickles, mushrooms, and preserved egg, on the menu. This is an example of which global product strategy?

answer

Sell totally new products or services.

question

During the early stages of globalization, in the 1950s and 1960s, _______________ were uniquely positioned in the global marketplace because they had the skills necessary to develop, promote, and market brand name consumer products.

answer

large U.S. firms

question

Global pricing strategies should be consistent with

answer

positioning strategies.

question

Which country has a large literate population, which has helped it move up to become the world's seventh largest economy?

answer

Brazil

question

Which country is projected to become Europe's largest online market in the next few years, with Internet users growing at a rate of 15 percent annually?

answer

Russia

question

Global segmentation, targeting, and positioning (STP) are more complicated than local STP, in part because

answer

consumers may view their roles differently in different countries.

question

Which of these is NOT one of the BRIC countries?

answer

Bulgaria

question

Domestic firms developing a global entry strategy might consider franchising; however, the disadvantages need to be considered. Which of these is NOT a disadvantage of franchising?

answer

Franchising is the riskiest way to enter a foreign market.

question

When entering a foreign market, the least risky strategy is

answer

exporting

question

Brands can be extremely valuable domestically, but challenging internationally. Companies can help to overcome language difficulties in using brands by

answer

developing brand names that are meaningless in known languages.

question

Mary wants to sell her products in Europe, since they are doing well in the U.S. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with

answer

exporting her products.

question

The most common measure of market potential of an economy is a country's

answer

GDP

question

When Ford Motor Company decided to sell the Fiesta—in the same form and design—around the globe, instead of selling different versions in different countries, this was part of Ford's global ________ strategy.

answer

product

question

Graham had developed an extremely successful advertising and promotion campaign for a client in the United States. The client wanted to roll out the same campaign to markets worldwide, but Graham cautioned against doing this, most likely because

answer

differences in languages, customs, and culture might make the campaign meaningless and ineffective in some markets.

question

As part of efforts to stimulate economic development in Africa, the Gates Foundation announced that it would provide cellular phones to farmer cooperatives. The Gates Foundation recognized problems in __________ exist in many African markets.

answer

communication

question

To determine the market potential for its particular product or service, a firm should use

answer

as many metrics as it can obtain.

question

Which of the following is currently a negative factor for foreign investment in Russia?

answer

Russia is known for corruption, creating ethical dilemmas for firms.

question

Which country has embraced market-oriented economic development in spite of maintaining communist political ideals?

answer

China

question

Marketers sometimes use Hofstede's cultural dimensions to design marketing campaigns

answer

consistent with underlying cultural values in a country.

question

Sydney's Emporium has 59 stores in the U.S. and wants to expand globally. Sydney's wants to achieve the highest possible returns, and is not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Sydney's is most likely

answer

direct investment.

question

Which of the following best describes the direct investment global entry strategy?

answer

With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country

question

Which statement about India's population is TRUE?

answer

India's workforce is highly skilled, particularly in technology.

question

When firms pool their resources to enter a new market, they create a

answer

joint venture.

question

Global expansion often begins with

answer

an order from another country.

question

NCD company wants to expand into the Mexican market. It has the financial resources, wants to control business operations, and has had considerable success marketing to Hispanics in the United States. NCD will likely use __________ to expand into the Mexican market.

answer

direct investment

question

Global marketers are under constant pressure to shorten distribution channels to

answer

reduce costs.

question

GDP is defined as

answer

the market value of goods and services produced in a country in a year.

question

When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as

answer

exporting.

question

One Laptop Per Child is a nonprofit initiative with the goal of making extremely low-cost laptops available to children in the developing world to help them learn skills, with the goal of helping them to learn skills needed in today's workforce. If some of the low-cost technology developed for this laptop found its way into laptops created for U.S. consumers, this would be an example of

answer

reverse innovation.

question

Exchange control refers to the regulation of a country's

answer

currency exchange rate.

question

Geert Hofstede's cultural dimensions concept focuses on five dimensions of __________ in a country. a. symbols b. visible artifacts c. dress d. underlying values e. ceremonies

answer

d

question

GDP is defined as Select one: a. the value of a country's exports minus its imports. b. great domestic product. c. the gross purchasing power of domestic goods and services plus international income. d. national income minus national taxes. e. the market value of goods and services produced in a country in a year.

answer

e

question

The shift of population from rural to urban areas in countries such as India helps global marketers by Select one: a. simplifying the supply chain needed to make goods and services available. b. decreasing pollution. c. increasing the human development index. d. decreasing competition for intellectual capital. e. increasing nonmaterial GDP output.

answer

a

question

Global expansion often begins with Select one: a. an order from another country. b. direct investment. c. franchising. d. joint ventures. e. strategic alliances.

answer

a

question

Global marketers are under constant pressure to shorten distribution channels to Select one: a. reduce trade deficits. b. afford tariffs. c. reduce costs. d. meet trade agreement guidelines. e. improve promotion efficiency.

answer

c

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