In addition to struggling in its attempt to enter the U.S. market,
what trouble did UK retailer Tesco experience in its domestic
market?
A) Employee resentment at the new expansion
B) Lack
of management attention to its stores in the UK
C) Confusion
among UK consumers about the international expansion
D) Confusing
messaging in the UK market
E) Excess inventory in UK storesB)
Lack of management attention to its stores in the UK1 / 87
B
Which of these was NOT identified as a problem with Tesco's failed
expansion into the U.S. market?
A) U.S. consumers weren't
interested in fresh and healthy foods.
B) Stores weren't properly
staffed.
C) Fresh food was not properly maintained.
D) New
private-label products were not introduced.
E) U.S. customers
were not accustomed to British-style ready meals.
A
Once a firm expanding internationally has decided which markets to
enter, what is the next step in the decision-making process?
A)
Deciding on the marketing organization
B) Deciding on the
marketing program
C) Deciding how to enter those markets
D)
Deciding how to adapt the product to the new market
E) Deciding
how to reorganize domestic operations
C
Which of these is identified in the chapter as a general risk
associated with entering any new market, foreign or domestic?
A)
Motivating employees
B) Compensating managers for the increased
revenue
C) Undoing years of progress in current markets
D)
Building effective supply and distribution networks
E) Worrying
about upsetting domestic customers
D
Which of these is a potential benefit of expanding globally?
A)
Counteracting boredom among domestic staff by adding the excitement of
international business
B) Getting rid of excess inventory in the
domestic supply chain
C) Pressuring domestic employees to improve
performance
D) Pressuring domestic suppliers to improve
performance
E) Transferring ideas and products from international
operations back to the domestic market
E
Which of these benefits did Cinnabon realize from its marketing
efforts in Central and South America?
A) Bringing products
developed there back to Hispanic consumers in the U.S.
B)
Employee pride at serving international markets
C) Being named a
cultural ambassador by the U.S. Trade Commission
D) Reducing
company workload through economies of scale
E) Simplifying
recruiting of U.S. employees
A
When companies are hesitant to expand internationally, even when
potentially profitable opportunities await, what is that reluctance
based on?
A) A lack of managerial energy and focus
B)
Employee resistance
C) Sufficient opportunities in their domestic
markets
D) The real challenges of moving into international
markets
E) A lack of interest in global affairs
D
Which of the following is NOT a risk that firms must consider prior
to expanding into another country?
A) Not understanding the
nuances of the other country's business culture
B) Not
understanding the nuances of the other country's business
regulations
C) Lacking skilled managers with international
experience
D) Having business disrupted by commercial and
political changes
E) Choosing countries too similar to their home market
E
Once a firm decides to enter the international market, what is the
next step in the decision-making process?
A) Deciding on the
marketing organization
B) Deciding on the marketing
program
C) Deciding how to enter the market
D) Deciding how
to adapt the product to the new market
E) Deciding which markets
to enter
E
Which decision by Unilever and Procter & Gamble has been vital to
their success in reaching underserved markets in developing
countries?
A) Touting the eco-friendliness of their
offerings
B) Emphasizing their outsider status
C)
Emphasizing their products' stature in global markets
D) Offering
products in smaller, less-expensive packages
E) Running harsh
competitive ads in local media
D
How was Deere & Company able to make its 8R line of tractors
successful in 130 countries, in both developing and developed
economies?
A) By making it highly customizable
B) By
emphasizing its U.S. origins
C) By teaching farmers around the
world U.S. farming techniques
D) Be centralizing all
manufacturing in the U.S.
E) By undercutting local prices in
nearly every market
A
Which of these is a challenge to selling in developing areas around
the world?
A) Customers don't care about brand names.
B)
Customers don't care about quality.
C) A marketing infrastructure
may barely exist.
D) Consumers refuse to buy foreign
goods.
E) It's impossible to figure out consumer needs.
C
Which of these is a key factor about the consumer market in India
that food manufacturers need to consider?
A) Consumers don't care
about brand names.
B) A handful of huge retail conglomerates
control the final stage of distribution.
C) Food is largely
purchased from supercenters that exceed the size of typical U.S.
supermarkets.
D) Food is largely purchased from 12 million small
neighborhood stores.
E) Consumer shop less frequently than in the
U.S. and buy in much larger quantities.
D
Which of these was NOT mentioned as a reason for Unilever's
successful introduction of TRESemmé in Brazil?
A) Collaborating
with 40 big retailers
B) Courting fashion bloggers
C) Using
social media outreach through Facebook
D) Distributing free
samples
E) Keeping the brand name a secret until launch day
E
How did Grameenphone successfully market cell phones to 35,000
villages in Bangladesh?
A) Hiring local women as agents who
leased phone time to other villagers
B) Using social media to
build demand for mobile devices
C) Giving the phones away for
free
D) Selling the phones but offering airtime away for no
cost
E) Building demand through a text messaging campaign
A
WayToGrow Inc. is one of the most popular brands of toys in its home
market. The company decides to expand its business abroad and its
board of directors feel that instead of trying to establish its
presence all at once in multiple markets, it is better to expand one
country at a time. This would limit their risk and allow them to
analyze customer response, after which they could expand to other
similar countries. WayToGrow is following a ________ approach.
A)
shotgun
B) continuous
C) born global
D)
sprinkler
E) waterfall
E
The main risks in a ________ approach are the substantial resources
needed and the difficulty of planning entry strategies for many
diverse markets.
A) shotgun
B) continuous
C) born
global
D) sprinkler
E) waterfall
D
When innovation at Siemens enables the company to offer solutions
that can make the generation of hydroelectricity more
environment-friendly, the company wants to reap the benefits of being
the first to introduce such a product across multiple countries. In
this case, which of the following approaches is likely to be the best
approach to entering foreign markets?
A) The rifle
approach
B) The continuous approach
C) The born-global
approach
D) The sprinkler approach
E) The waterfall approach
C
A2Z Inc. is a producer of a wide variety of consumer goods in Brazil.
It has successfully captured a huge share of the domestic market and
has been able to create a very strong brand. It is now considering a
foray into foreign markets. Its board of directors decides to first
try out some of its products in the neighboring country of Argentina.
A2Z plans to eventually expand its presence in other countries, after
they analyze the impact of their entry into the Argentine market. A2Z
Inc. is following a ________ approach.
A) born global
B)
waterfall
C) sprinkler
D) franchisee
E) shotgun
B
In a waterfall approach to international expansion, ________.
A)
firms enter countries gradually in a sequence
B) firms enter
those countries first where the demand for the product is
greatest
C) countries are entered based upon the availability of
government subsidies
D) firms enter those countries first where
the supply of raw material is greatest
E) countries are entered
based upon ease of entry
A
In a sprinkler approach to international expansion, ________.
A)
countries are entered when competition is limited
B) countries
are gradually entered sequentially
C) countries in which the
supply of raw material is greatest are entered first
D) countries
in which the demand for the product is greatest are entered
first
E) many countries are entered simultaneously
E
When first-mover advantage is crucial and a high degree of
competitive intensity prevails, the ________ approach is
better.
A) waterfall
B) born global
C) rifle
D)
sprinkler
E) franchisee
D
Which of the following requires different marketing approaches in
developed countries versus developing countries?
A) The cost of
production varies substantially between the developed and the
developing world.
B) The disparity between the rich and the poor
in the developing world is reducing.
C) There are substantial
economic and cultural differences between the developed and the
developing world.
D) Marketing in developing countries is far
more expensive than in the developed world.
E) The developing
countries have more trade barriers in place than the developed countries.
C
Many U.S. firms prefer to sell in Canada, England, and Australia
rather than in larger markets such as Germany and France because they
feel more comfortable with the languages, laws, and culture. This
reflects the ________ between these countries and the United
States.
A) self-serving bias
B) coincident
development
C) cultural proximity
D) cognitive
dissonance
E) backward invention
C
While choosing countries to invest in, companies often choose
cultural proximity to their own country. Cultural proximity can best
be defined as countries ________.
A) in which the company feels
comfortable with the language, laws, and culture
B) that are
located close
C) that the home country's management team have
visited
D) that have no trade barriers
E) with good
infrastructure and stable political environment
A
If a company that has been licensing its business format to firms in
other countries wants to take a more hands-on approach in some
countries but doesn't yet have the financial resources for direct
investment, which of these options would be best?
A) Indirect
exporting
B) Direct exporting
C) Subsidiaries
D) Joint
ventures
E) Sub-licensing
D
Which of these is NOT an option for direct exporting?
A)
Domestic-based export department operating as a service
function
B) Domestic-based export department operating as its own
profit center
C) Overseas sales branch
D) Home-country-based
traveling export sales representatives
E) Domestic-based export agent
E
Which state government agencies can help U.S. companies move into
exporting?
A) Export-promotion offices
B) Export merchant
offices
C) Export agencies
D) Public communication
offices
E) Small Business
A
Which of these is a potential risk of using licensing for global
marketing?
A) Licensors that can evolve into competitors
B)
Licensees that can evolve into competitors
C) Complexity relative
to direct investing
D) Lack of licensors in most markets
E)
Inability to reach contractual terms
B
Which of these is the simplest way for a company to get started in
international marketing?
A) Direct exporting
B) Indirect
exporting
C) Joint ventures
D) Licensing
E) Direct investment
B
Which of the following modes of entry into a foreign market involves
the maximum commitment and risk?
A) Franchising
B) Direct
investment
C) Joint ventures
D) Licensing
E) Direct exporting
B
Domestic-based export merchants ________.
A) buy manufacturers'
products and then sell them abroad
B) manage a company's export
activities for a fee
C) buy foreign products and sell them in the
domestic country
D) seek and negotiate foreign purchases
E)
carry on exporting activities on behalf of several producers
A
Domestic-based export agents perform a valuable service for companies
seeking to enter foreign markets. The primary function of these agents
is to ________.
A) carry on exporting activities on behalf of
several producers
B) buy the manufacturer's products and then
sell them abroad
C) buy foreign products and sell them in the
domestic country
D) seek and negotiate foreign purchases for a
commission
E) produce and export products to foreign countries
D
Companies typically start their international foray with ________,
which involves working through independent intermediaries who sell
their products abroad.
A) indirect exporting
B)
licensing
C) franchising
D) direct exporting
E) joint ventures
A
Indirect exports have two advantages for a firm: less investment and
less ________.
A) paperwork
B) intrusion by the
government
C) risk
D) competition
E) customer suits
C
James Franks buys local products from manufacturers in Miami and
other parts of Florida and sells them abroad, mainly to Caribbean
nations. Franks is a(n) ________.
A) domestic-based export
merchant
B) domestic-based export agent
C) cooperative
agent
D) export-management agent
E) direct exporting agent
A
________ agree to manage a company's export activities for a
fee.
A) Cooperative organizations
B) Domestic-based export
agents
C) Export-management companies
D) Domestic-based
export merchants
E) Contract manufacturing organizations
C
After successfully exporting its products through export merchants,
Boyes Inc. decides to take control of its exports. It sets up its own
unit in the home country that takes care of all
export-related
activities. Boyes Inc. is most likely using ________.
A)
foreign-based distributors or agents
B) a domestic-based export
department
C) export merchants in foreign countries
D)
export-management companies
E) traveling export sales representatives
B
A well-known producer of breakfast cereals has decided to hire
producers in different countries so that the cereals marketed under
their brand are locally produced in the respective countries. This
would not only appeal more to consumers who prefer domestically
produced goods, but would also create jobs in the host-country
enhancing the brand's image further. This is an example of
________.
A) management contracting
B) franchising
C)
greenfield venturing
D) contract manufacturing
E) straight extension
D
Which of the following statements is true about licensing?
A) It
is one of the most complex ways to engage in international
marketing.
B) The licensor gains entry into the new market at low
risk.
C) The licensee has no access to proprietary
information.
D) The licensee receives a fee or royalty.
E)
The only benefit for a licensee is the production expertise it gains.
B
Hotel chains such as Hyatt and Marriott sell a variation of the
licensing agreement called ________ to the owners of foreign hotels to
manage these businesses for a fee.
A) greenfield
venturing
B) management contracts
C) strategic
alliance
D) indirect exporting
E) direct exporting
B
In which of the following modes of licensing does the firm hire local
producers to produce the product, giving the company less control over
the manufacturing process?
A) Contract manufacturing
B)
Management contracts
C) Direct investment
D) Joint venture
production
E) Greenfield venturing
A
Toshiba, Hitachi, and other Japanese television manufacturers use
________ to service the Eastern European market.
A) contract
manufacturing
B) management contracts
C) direct
investment
D) joint venture production
E) greenfield venturing
A
A company can enter a foreign market through a ________, which is a
complete form of licensing in which the company offers a complete
brand concept and operating system.
A) contract manufacturing
agreement
B) cooperative agreement
C) management
contract
D) joint venture
E) franchising arrangement
E
Which of the following is true about direct investment as a mode of
international expansion?
A) It allows a firm to retain full
control over its investment.
B) It yields lower returns than
joint ventures.
C) It involves the least amount of risk.
D)
It involves the least cost.
E) It does not allow the firm to diversify.
A
Whirlpool took a 53 percent stake in the Dutch electronics group
Philips' home appliances business to leapfrog into the European
market. This is an example of a ________.
A) straight
extension
B) direct investment
C) contract manufacturing
agreement
D) licensing agreement
E) franchising agreement
B
Which of the following is NOT one of the ways direct exporting
happens?
A) Overseas sales branch or subsidiary
B)
Domestic-based export agents
C) Domestic-based export
division
D) Traveling export sales representatives
E)
Foreign-based distributors or agents
B
If a U.S. bicycle manufacturer sells products to a retail chain in
Indonesia which then resells some of that stock to an unauthorized
retailer in Malaysia for less than the manufacturer itself sells to
its authorized retail chains in Malaysia, this is an example of
________.
A) the black market
B) multi-shipping
C) the
gray market
D) forward buying
E) reverse buying
C
Which is the most effective deterrent against gray market reselling
by authorized distribution channels?
A) Severe and/or timely
penalties
B) Closing operations in the country
C) Contract
renegotiation
D) Diplomatic discussions
E) Threats
A
Which of these is a frequent target of gray market
activities?
A) Breakfast cereals
B) Magazines
C)
Prescription drugs
D) Over the counter drugs
E) Cosmetics
C
The ways that a society handles inequalities among its people is
reflected in which of these cultural dimensions?
A) Power
distance index
B) Individualism vs. collectivism
C)
Masculinity vs. femininity
D) Uncertainty avoidance index
E)
Normative vs. pragmatic orientation
A
Societies that prefer to maintain time-honored traditions and are
skeptical about societal change are said to have a ________.
A)
collectivist orientation
B) high power distance
C) normative
orientation
D) high degree of uncertainty avoidance
E)
pragmatic orientation
C
A country in which people accept a hierarchical social stratification
is said to have a ________.
A) collectivist orientation
B)
high power distance
C) normative orientation
D) high degree
of uncertainty avoidance
E) pragmatic orientation
B
If a society tends to maintain rigid codes of belief and behavior and
is intolerant of unorthodox behavior and ideas, this reflects a
________.
A) collectivist orientation
B) high power
distance
C) normative orientation
D) high degree of
uncertainty avoidance
E) pragmatic orientation
D
A U.S. executive who is transferred to the company's subsidiary in
Tokyo causes friction with his new colleagues, who think he worries
too much about his own career advancement. This
is an example of
which cultural dimension?
A) Power distance index
B)
Individualism vs. collectivism
C) Masculinity vs.
femininity
D) Uncertainty avoidance index
E) Normative vs.
pragmatic orientation
B
A data scientist who grew up in a fairly strict culture relocates to
a new country, where she is taken aback by the freer lifestyle that
most of the residents pursue. This is an example of which cultural
dimension?
A) Indulgence vs. restraint
B) Individualism vs.
collectivism
C) Masculinity vs. femininity
D) Uncertainty
avoidance index
E) Normative vs. pragmatic orientation
A
General Mills positions its Häagen-Dazs brand globally in terms of
"indulgence," "affordable luxury," and
"intense sensuality." Which of these best describes its
communication strategy in this regard?
A) Maintaining the same
basic positioning but modifying the specific language country by
country
B) Modifying the positioning but keeping the same general
language
C) Modifying the brand name but keeping the
positioning
D) Changing the brand name, the positioning, and the
specific implementation language.
E) Leaving the communication up
to local distributors
A
How did Ikea respond to the prevalence of low-cost copies of its
products when it expanded into China?
A) Drastically slashed
prices on its products
B) Switched to selling local
brands
C) Slashed prices on its own products and began selling
some local brands
D) Changed its name to avoid any association
with the knockoff products
E) Kept its usual prices and
repositioned itself as a luxury brand
C
The price a company charges its own subsidiaries in other countries
is known as the ________.
A) escalator
B) transfer
price
C) subsidiary price
D) international price
E)
internal price
B
Which of these countries has a reputation for high-tech innovations,
soft drinks, toys, cigarettes, and jeans?
A) Japan
B)
China
C) The United States
D) Germany
E) France
C
What is the estimated global scale of the problem of counterfeit
goods?
A) Between $100 and $200 million a year
B) About $500
million a year
C) About $500 billion a year
D) More than a
trillion dollars a year
E) The real cost is unknown
D
How does McDonald's manage to maintain consistent global branding
when tastes and eating habits vary so widely from country to
country?
A) By enforcing menu consistency from country to
country
B) By allowing franchise owners in each country to run
their restaurants as they see fit
C) By enforcing global branding
and service standards but allowing regions and countries to customize
store layout and menu staples
D) By insisting that every
McDonald's outlet in the world emphasize the company's U.S.
roots
E) By frequently passing product ideas from one country to another
C
If consumers believe that French products are naturally stylish, what
phenomenon is occurring?
A) Francophone marketing
B)
Francophile marketing
C) Country-of-origin effects
D)
Regional perceptions
E) Nationalism
C
What impact is the growing middle class in many emerging markets
having on the product strategies of many international
marketers?
A) They are raising prices across the board.
B)
They are dropping their economy price lines.
C) They are trying
to nudge these consumers toward luxury brands.
D) They are adding
price-quality tiers to their product portfolios to appeal to the
growing middle class.
E) They are trying to "price
shame" consumers into abandoning lower-cost products.
D
In a localized marketing program, the company ________.
A)
ensures that uniform practices are adopted across countries
B)
focuses more on brand image than consumer preferences
C) ignores
differences in the legal environment
D) ensures the lowest cost
marketing program is adopted
E) tailors the marketing programs to
each target market
E
When Kraft blends different coffees for the British (who tend to
drink coffee with milk), the French (who often prefer it black), and
Latin Americans (who often want a chicory taste), it is
engaged
in ________.
A) straight extensions
B) product
adaptation
C) retailer versions
D) backward
invention
E) forward invention
B
A standardized marketing program involves ________.
A) adopting
the strategy that best fits a given target market
B) using the
same products and communication programs in every country
C)
adjusting the product to suit market preferences
D) changing the
features of the product to accommodate the host country
E)
changing only the communication message to suit the different target markets
B
Which of the following is one of the six cultural dimensions that
differentiate countries?
A) Customer relationship management
versus power distance
B) Strategic management versus marketing
management
C) High versus low uncertainty avoidance
D) Total
quality management versus JIT deliveries
E) Marketing management
versus customer relationships
C
The United States imposed a duty of on wind towers produced in China
and Vietnam and imported to the United States after they found
evidence both countries were selling them at below fair market value,
or ________, the practice of charging less than its costs or less than
it charges at home to win a market.
A) arm's-length
pricing
B) gray marketing
C) counterfeiting
D) transfer
pricing
E) dumping
E
In collectivist societies, ________.
A) all property is owned by
the government
B) the self-worth of the individual is rooted more
in the social system than in individual achievement
C) the
culture is dominated by the need to maintain low power distance and
reduce income inequality
D) the culture is dominated by a
nurturing attitude as opposed to an assertive attitude
E) people
are highly risk-averse
B
Cultures with low power distance ________.
A) emphasize
collectivism
B) are pragmatic
C) strive to equalize the
distribution of power
D) are averse to risk
E) are tolerant
of risk
C
Straight extension of the product means introducing ________.
A)
the product to the foreign market without any changes
B) the
product to the foreign market with minor changes
C) the product
to the foreign market with major changes
D) a customized product
to the foreign market with a new marketing strategy
E) a
customized product to the foreign market with existing marketing strategy
A
Cultures with high uncertainty avoidance ________.
A) are open
to change and ambiguity
B) are tolerant of unorthodox behavior
and ideas
C) believe practice counts more than principle
D)
maintain a relaxed attitude
E) maintain rigid codes of belief and behavior
E
Which of the following is most likely to be successful when
introduced in foreign markets as a straight extension?
A) Laundry
detergent
B) Casual pants
C) Dessert mixes
D) Digital
camera
E) Condensed soup
D
Finnish cellular phone giant Nokia customized its 6100 series mobile
phone for every major market in which it is present. In Asia, for
example, the series came with higher ring volume so that it could be
heard on the crowded Asian streets. This is an example of
________.
A) straight extension
B) forward invention
C)
product adaptation
D) city version
E) country version
C
Product adaptation involves ________.
A) altering the product to
meet local preferences
B) altering the product to meet minimum
acceptable standards
C) altering the communication strategy to
meet local preferences but not the product
D) altering neither
the product nor the communication strategy while entering a new
market
E) developing a new product and adapting the communication
strategy to enter a new market
A
A Gucci bag that might sell for $200 in its home country of Italy but
$300 in the United States and $400 in China due to the differences in
the costs of distributing the product in the two
countries. This
phenomenon is called a(n) ________ problem.
A) opportunity
cost
B) market pricing
C) tactical pricing
D) price
escalation
E) transfer pricing
D
The problem with setting a uniform global price for a product is that
________.
A) it allows intermediaries in low-price countries to
reship their products to high-price countries
B) the company
would earn the same profits everywhere, regardless of the cost
structure
C) this strategy can price the product out of the
market in countries where costs are high
D) this strategy makes
the price too high in poor countries and not high enough in rich
countries
E) it is ineffective for products that are homogeneous
D
When companies are setting prices in different countries, the problem
with setting a market-based price in each country is that
________.
A) it might motivate intermediaries in low-price
countries to reship their products to high-price countries
B) the
company would earn the same profits everywhere, regardless of the cost
structure
C) this strategy might price the product out of the
market in countries where costs are high
D) this strategy would
make the price too high in poor countries and not high enough in rich
countries
E) it prevents the company from differentiating its products
A
When one unit charges another unit in the same company for goods it
ships to its foreign subsidiaries, the charge is called a(n) ________
price.
A) original
B) transfer
C) margin
D)
break-even
E) customer value
B
Existence of gray markets leads to which of the following
outcomes?
A) They make the distribution channel stronger.
B)
They create a free-rider problem making legitimate distributors'
investments in supporting a manufacturer's product less
productive.
C) Goods sold in grey markets are always
counterfeit.
D) Goods sold in grey markets come with standard
product warranties.
E) Taxes imposed on grey market products are
very high.
B
Dumping occurs when a company ________.
A) selling in a foreign
market charges either less than its costs or less than it charges at
home
B) selling in a foreign market charges more than the price
in its home market
C) selling in a foreign market charges prices
that are lower than those charged by its competitors in this
market
D) sets its price equal to its average cost of
production
E) exports its products to a foreign country to
increase its revenue in spite of excess demand in the home country
A
In India, where people often buy items like cigarettes one at a time
because incomes are low and people shop daily because homes lack
storage and refrigeration, ________ remains an important function of
intermediaries and helps perpetuate long channels of
distribution.
A) breaking bulk
B) jobbing
C) type of
transportation
D) information sharing
E) reinforcing policies
A
As people in developing countries often prefer to buy in smaller
quantities, ________ is one of the most important functions of
intermediaries in developing countries and helps perpetuate the long
channels of distribution, which are a major obstacle to the expansion
of retailing.
A) product adaptation
B) breaking bulk
C)
diversification
D) transfer pricing
E) dual adaptation
B
If PepsiCo charges what each country could afford, ignoring cost
differences from country to country, it would be using a(n) ________
price.
A) uniform
B) market-based
C) cost-based
D)
escalation
E) skimming
B
As a result of ad campaigns depicting Brazil as a multicultural land
of carnivals and beaches, any mention of the country can make people
think of sun and sand. This is an example of ________.
A)
collectivism
B) target market impact
C) ethnocentric
thinking
D) country-of-origin effect
E) cognitive dissonance
D
The New Zealand Way program was an initiative by the government of
New Zealand to raise awareness and attract tourists by showing the
dramatic landscapes featured in "The Lord of the Rings" film
trilogy. This is an example of a government trying to strengthen its
________.
A) country-of-origin perceptions
B) international
subsidiaries
C) internationalization
D) contract
manufacturing
E) distributor relationships
A