80 notecards = 20 pages (4 cards per page)
Red Bull has gained ________ of the worldwide energy drink market by skillfully connecting with global youth.
a. 70 percent
b. 80 percent
c. 60 percent
d. 50 percent
e. 90 percent
Red Bull built buzz about the product through its .
a. "buzz marketing program"
c. "marketing program"
d. "seeding program"
e. "advertising campaign
D. "seeding program"
A global industry is defined as .
a. an industry in which the strategic positions of competitors are fundamentally affected by their overall global positions
b. an industry that operates in more than one country and captures R&D, marketing, and other financial advantages in its costs and reputation.
c.an industry that operates in more than one country and has a strategic position in many countries
d. a firm that operates in more than one country and has sales and marketing staff for those countries
e. an industry that has strategic positions in many countries but is not affected by compeition
A. An industry in which the strategic positions of competitors are fundamentally affected by their overall global position.
A global firm is one that .
a. where the strategic positions of competitors are fundamentally affected by their overall global positions
b. operates in more than one country and capture R&D, marketing, and other financial advantages in its costs and reputation
c. operates in more than one country and has a sales and marketing staff in those countries
d. operates in more than one country and has a sales and marketing staff in those countries developing
e.has strategic positions in many countries but is not affected by competition researching
B. operates in more than one country and captures, R&D, marketing, and other financial advantages in its costs and reputation.
International trade in 2003 accounted for over of U.S. GDP up from 11 percent in 1970
e. 18 percent
Global firms plan, operate, and their activities on a worldwide basis.
The major decisions in international marketing include which of the following steps?
a. deciding whether to go abroad
b. deciding which markets to enter
c. deciding how to enter the market
d. deciding on the marketing program
e. all of the above
e. all of the above
The internationalization process has four stages. These stages are .
a. no regular export activities
b. export via independent representatives (agents)
c. establishment of one or more sales subsidiaries
d. establishment of production facilities abroad.
e. all are part of the internationalization process
E. all are part of the internationalization process
Most firms work with an and enter a nearby or similar country.
a. independent agent
b. contractual export department
c. import/export department
e. management contract
A. independent Agent
A "waterfall: approach to international marketing is defined as:
a. countries that are gradually entered sequentially
b. countries in which the demand for the product is greatest is entered first
c. countries in which the demand for the product is greatest is entered last
d. countries in which the supply of race material is greatest is entered first
e. countries are entered based upon ease of entry
A. countries that are gradually entered sequentially
A "sprinkler" approach to international marketing is defined as :
a. countries that are entered when timing is right
b. countries that are gradually entered sequentially
c. countries in which the supply of raw material is greatest is entered first
d. countries in which the demand for the product is greatest is entered first
e. many countries are entered simultaneously within a limited period of time
E. many countries are entered simultaneously within a limited period of time.
The developed nations and the prosperous parts of developing nations account for less than of the world's population.
Marketers must change their conventional marketing to sell their products to developing countries. One of the changes that marketers can make is to :
a. reduce the price of the product but increase the packaging size
b. reduce the size but keep the pricing the same
c. reduce the price of the product
d. reduce the size and price of the packaging
e. increase the price and packaging size because these countries have never seen the product before
D. Reduced the size and price of the packaging
Factors that influence the "Attractiveness: of a country to enter include which of the following?
a. product, geography, income and population, political climate, and other factors
b. product, geography, income, climate, and source of income
c. population, incomes, competition, and political climate
d. incomes, profit potentials, competitions, and climate
e. incomes, families, competition, and cultural differences
A. product, geography, income and population, political climate, and other factors.
Regional economic integration is defined as:
a. agreements between individual firms for the sake of commerce
b. trading agreements between individual countries
c. trading agreements between individual firms
d. trading agreements between countries and firms
e. trading agreements between blocs of countries
E. Trading agreements between blocs of countries.
The European Union founded in 1957 added in May 2004 bringing its total membership to 25 countries.
a. 10 countries
b. 5 countries
c. 20 countries
d. 6 countries
e. 4 countries
A. 10 countries
NAFTA established a free trade zone between what three countries?
a. Canada, Mexico, and South America
b. Canada, Mexico, and Peru
c. Mexico, South America, and the United States
d. Canada, Mexico, and the United States
e. Canada, Mexico, and Japan
D. Canada, Mexico, and the United States
MERCOSUL is a free trade zone linking which of the following South American countries
a. Mexico, Japan, Brazil, and Paraguay
b. Mexico, Brazil, and Paraguay
c. Brazil, Argentina, and Paraguay
d. Canada, Brazil, and Paraguay
e. Brazil Argentine, Paraguay and Uruguay
E. Brazil, Argentina, Paraguay, and Uruguay
The five modes of entry into foreign markets generally flow by increasing commitment, risk, control, and profit potential as follows ________.
a. indirect exporting, direct exporting, licensing, joint ventures, and direct investment
b. direct investment, joint ventures, licensing, direct exporting, and indirect exporting.
c. direct investment, joint ventures, and licensing
d. direct investment, joint ventures, licensing, and indirect exporting
e. none of the above
A. indirect exporting, direct exporting, licensing, joint ventures, and direct investment.
In choosing which countries to invest in, companies sometimes choose psychic proximity to their own country. Psychic proximity can best be defined as ________.
A. countries close to the "host" country in which the company feels comfortable with the language, laws, and culture.
The normal way to get involved in an international market is through exporting. Occasional exporting is defined as ________.
E. a passive level of involvement in which the company exports its products from time to time
Active exporting takes place when the company ________ to expand into a particular market.
E. makes a commitment
Domestic-based export merchants ________.
A. buy the manfacturer's products and then sell them abroad
Domestic based export agents perform a valuable service for the companies seeking to enter foreign markets. The primary function of these agents is to ________.
D. seek and negotiate foreign purchases and are paid a commission on those sales.
Company’s prefer to enter a country that ranks high on market attractiveness, low in market risks and ________.
A. in which it would possesses a competitive advantage
Indirect export has two advantages for the firm. First in involves less investment for the firm and secondly it ________.
C. involves less risk
A company can carry on direct exporting in several ways. These include domestic- based export department or division, overseas sales branch or subsidiary, traveling export sales representatives, and ________.
A. foreign-based distributors or agents
According to the text, Shaper Image receives more than ________ of its online business form overseas customers.
“Going abroad” using the Internet has its challenges. One of the challenges that a global marketer may run up against when using the Web are ________.
A. cultural restrictions
Licensing is a simple way to become involved in international marketing. In licensing, the licensor issues a license to a foreign company to use a process, trademark, patent, or trade secret for a(n) ________.
B. fee or royalty
Companies such as Marriott and Hyatt sell a variation of the licensing agreement called ________ to the owners of foreign hotels to manage these businesses for them in foreign countries.
B. management contracts
In ________, the firm hires local manufacturers to produce the product. This gives the company less control over the manufacturing process and loss of profits of the manufacturing efficiencies.
A. contract manufacturing
A company can enter a foreign market through ________, which is a complete form of licensing in which the company offers a complete brand concept and operating system designed to ensure that the ________ operates according to the requirements of the licensor.
The definition of a joint venture company is one ________.
A. in which foreign inventors join local investors where they share ownership and control
A joint venture may be necessary or desirable for economic or political reasons. Additionally, a foreign firm might lack the ________, or managerial resources to undertake the venture alone.
B. financial, physical
In an adapted marketing mix, the producers’ ________ the marketing program to each target market.
International companies must decide on how much to adapt their marketing strategy to local conditions. At one extreme are companies that use a globally standardized marketing mix worldwide. A standardized marketing mix includes ________.
B. standardization of the product, communication, and distribution channels promising lowest costs
The ultimate form of foreign involvement is direct ownership of foreign-based assembly or manufacturing facilities. One of the advantages of direct ownership can include economies of scale, creating jobs in the host country, developing deeper relations with local suppliers etcetera and the firm ________.
A. retains full control over its investment
Hofstede identifies four cultural dimensions that can differentiate countries. These are individualism versus collectivism, high versus low power distances, masculine versus feminine, and ________.
C. weak versus strong uncertainty avoidance
Straight extension of the product means ________.
A. introducing the product to the foreign market without any changes to the product.
An advantage of global marketing is that it can lower marketing costs, has economies of scale in production and distribution, can produce consistency in brand image, has the ability to leverage good ideas quickly and efficiently, and ________.
E. allows for uniformity of marketing practices
Product adaptation involves ________.
A. altering the product to meet local conditions or preferences
A firm can successful introduce four versions of its products into a foreign country or a firm may select one of these for inclusion. These versions include ________.
C. regional version, country version, city version, and retailer version
Product invention consists of creating something new. Backward invention is reintroducing earlier product forms that are well adapted to a foreign country’s needs. Forward invention is ________.
A. creating a new product to meet a need in another country
Companies can run the same marketing communications programs as used in the home market or change them for each local market, a process called ________.
E. communication adaption
Many multinationals are plagued by the gray market problem. The gray market consists of ________.
B. branded product diverted from normal distribution channels in the country of product origin.
If a company adapts or changes both the product and the communications, the company engages in a process called ________.
D. dual adaption
The use of media requires international adaptation because media availability varies from country to country. Norway, Belgium, and France do not allow cigarettes and alcohol to be advertised on TB. Austria and Italy regulate TV advertising ________.
B. to children
A Gucci bag sells for $120 in Italy and $240 in the United States. This is an example of when a firm tries to sell its products abroad. This phenomenon is called a ________.
D. price escalation problem
A firm that charges a price to another unit in the company sets the ________ price for goods that it ships to its foreign subsidiaries.
B. Transfer Price
The cost escalation problem exists for multinationals and varies from country to country; the question is: How to set prices in different countries? Companies have three choices. One is to set a uniform price everywhere, two is to set a market-based price in each country, and three is to ________.
B. Set a cost based price in each country
In 2000 Stelco a Canadian steelmaker, successfully fought dumping changes against steelmakers in Brazil and other countries. “Dumping” is defined or occurs when ________.
A. a company charges either less than its costs or less than it charges in its home market
The “whole channel concept for international marketing” includes the following steps________.
A. seller to seller's international marketing headquarters to channels between nations to channels within foreign nations to final buyers
In an increasingly connected, highly competitive global marketplace, government officials, and marketers are concerned with how attitudes and beliefs about their country affect consumer and business decision-making. ________is(are) the mental associations and beliefs triggered by a country.
D. country-or-origin perceptions
A company has several options when its products are competitively priced but their place of origin turns consumers off. The company can consider ________.
E. co-production with a foreign company that has a better name
Most brands are adapted to some extent to reflect significant differences in ________, ________, competitive forces, and the legal and political environment.
A. consumer behavior, brand development
Disadvantages to global marketing include differences in consumer needs, wants, and usage patterns for products; difference in consumer response to marketing-mix elements; differences in brand and product development and the competitive environment; and ________.
A. differences in marketing institutions
Marketers must also adapt sales promotion techniques to different markets. Several European countries have laws preventing or limiting sales promotion tools such as discounts. In Germany, Lands’ End could not advertise its ________.
E. money-back guarantee
Companies can manage their international marketing activities in three ways. These include, through export departments, international divisions, ________.
A. or a global organization
Bartlett and Ghoshal have identified three organizational strategies for international firms. These are: (1) a global strategy treats the world as a single market; (2) a multinational strategy treats the world as a portfolio of national opportunities; and (3) ________.
C. a "glocal" strategy standardizes certain core elements and localizes other elements
A small firm has decided to enter the international market. At the present time, the firm has decided to enter only one country. What is the next step in the decision making process if the firm is to continue with its plans?
C. Deciding how to enter the market
When Microsoft introduces a new form of Windows software, the first-mover approach is preferred. Microsoft would then tend to use which form of entry strategy?
Approximately 85 percent of the world’s population lies outside of the developed nations and prosperous part of the world. In attempting to reach these markets, where income and purchasing power is diminished, marketers could review their service by ________.
A. offering lower sale prices and smaller packaging
You small firm has decided to begin exporting to a foreign country. Available to you are the five modes of entry. Your company has decided on direct exporting as its first venture into the foreign markets. What would the firm’s next step in the exporting process be, considering that the next step involves increased risk and commitment to the processes?
James Franks works out of Miami and buys locally produced manufacturer’s products and sells them abroad mainly to Caribbean nations. Mr. Frank’s is ________.
A. a domestic-based export merchant
Mr. Day and Ms. Pound represent a number of producers and carry on exporting activities for each of them. As a result, Mr. Day and Ms. Pound’s firm come under the administrative control of these producers. How would you describe Mr. Day and Ms. Pound’s firm?
B. Cooperative organization
Your firm has decided to enter the international market with your product called “Trema’” a new pocket organizer/cell phone combination. In your discussions about the marketing plans, your CMO has decided that no changes will be/are necessary in either the marketing mix or product for export. What form of marketing strategy is the CMO advocating?
E. Standardized-marketing mix
For the launch of “Trema’” the CMO has decided on no changes to either the marketing mix or the product necessary. This introduction is described as ________.
B. straight extension
Finnish cellular phone superstar Nokia customized its 6100 series phone for every major market in which it sells the product. In Asia, for example, the developers raised the ring volume so that it could be heard on the crowded Asian streets. This kind of adaptation is called ________.
C. regional version
When the National Cash Register Company reintroduced its crank-operated cash registers in Latin America and Africa, it was practicing what form of invention?
A. Backward Integration
Your firm has decided to enter the international market with your product called “Trema’” a new pocket organizer/cell phone combination. In your discussions about the marketing plans, your CMO has decided that your firm will use the same advertising program from the “home” market to the new foreign markets. Your CMO is advocating ________.
D. Communication adaption
The Trema’ launch was a success! Now, a year later, you have been receiving calls from U.S. dealers complaining that Trema’ is available from international distributors at prices 50 percent less than the U.S. price. You are faced with the ________ problem due to the international success of your product.
A. gray market
Too many U.S. firms think their job is done once the product leaves the factory for the foreign country. These firms do not pay attention to how the product moves within the foreign country. There are three major links between seller and ultimate buyer in the foreign country. The first link is ________. where the export department or international division makes decisions on channels and other marketing-mix elements.
C. Seller's international marketing headquarters
The second link, ________ gets the products to the borders of the foreign nation and includes the types of intermediaries that will be used, the type of transportation, and the financing and risk arrangements.
A. Channels between nations
The international division’s corporate staff consists of functional specialists who provide services to various operating units. Operating units can be organized several ways. Your firm has a president of your division who reports to the president of the international division. This defines your organization as having a ________.
D. international subsidiaries
If you were the CEO of a company that was truly a global organization, you would have some decisions to make regarding corporate strategy. Bartlett and Ghoshal have distinguished three organizational strategies one of which is to ________.
A. treat the world as a single market
The favorability of country-of-origin perceptions must be considered both from a domestic and foreign perspective. In the domestic market, country-of-origin perceptions may stir consumers’ ________ or remind them of the past.
B. patriotic notions
Bartlett and Ghoshal have proposed circumstances under which different approaches work best. In their book, Managing Across Borders, they describe forces that favor “global integration” (capital-intensive production, and ________).
A. homogeneous demand
Exxon used the slogan “Put a tiger in your tank” across countries with minor variations and gained international recognition. This is an example of ________.
c. communication adaption
Firm’s in general prefer to enter countries that: (1) rank high on market attractiveness; (2) are low in market risk; and (3) ________.
B. in which they would have a competitive advantage.