Question 1

A global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as

Accepted Answer

A)   licensing.
B)   a joint venture.
C)   direct exporting.
D)   contract assembly.
E)   dual adaptation.F) C) and D)
G) A) and E)

Question 2

Which of the following issues raises concerns about the ethics of protectionism?

Accepted Answer

A)   Competitive advantage grows out of continuous improvement.
B)   Small firms succeed in foreign niche markets.
C)   Tariffs have declined from an average of 40 percent to less than 5 percent.
D)   Regional trade agreements may provide preferential treatment for member nations.
E)   Pan-European marketing strategies are possible due to greater uniformity in packaging standards.F) A) and B)
G) A) and C)

Question 3

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

Accepted Answer

A)   indirect exporting.
B)   direct ownership.
C)   joint ventures.
D)   licensing.
E)   direct exporting.F) D) and E)
G) B) and D)

Question 4

Figure 6-5
-Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-5, D refers to which type of strategy?

Accepted Answer

A)   product extension strategy
B)   product adaptation strategy
C)   dual adaptation strategy
D)   product invention strategy
E)   communication adaptation strategyF) B) and C)
G) A) and E)

Question 5

The prominent global market entry strategy among small- and medium-sized companies is

Accepted Answer

A)   exporting.
B)   franchising.
C)   licensing.
D)   joint venture.
E)   direct investment.F) D) and E)
G) A) and B)

Question 6

Figure 6-5
-Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-5, E refers to which type of strategy?

Accepted Answer

A)   product extension strategy
B)   product adaptation strategy
C)   dual adaptation strategy
D)   product invention strategy
E)   communication adaptation strategyF) None of the above
G) A) and C)

Question 7

Nescafé coffee is marketed using different coffee blends and promotional campaigns to match consumer preferences in different countries. For example, Nescafé generally emphasizes the taste, aroma, and warmth of shared moments in its advertising around the world. However, in Thailand, Nescafé is advertised as a way to relax from the pressures of daily life. This is an example of which type of global marketing product and promotion strategy?

Accepted Answer

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

Question 8

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

Accepted Answer

A)   the presence of a networked global marketspace.
B)   an elimination worldwide of tariff and quotas.
C)   a more aggressive attitude toward regulating international banking.
D)   a sharp decline in economic espionage.
E)   a gradual dissolution of unpopular trade agreements.F) C) and E)
G) B) and E)

Question 9

A New York car wash owner wanted to open a car wash in Quebec, Canada. He hired a U.S. translator to create signage for the new venture and to design some simple advertising. It was not until the business was opened that he realized he should have used ________. His French signs actually said "car bath" instead of "car wash."

Accepted Answer

A)   Esperanto
B)   back translation
C)   semiotics
D)   semantic symbolism
E)   linguistic exchangeF) B) and C)
G) C) and D)

Question 10

Since 1963, the guiding principle of Mary Kay, Inc., has been based on

Accepted Answer

A)   the Consumer Bill of Rights.
B)   the Golden Rule.
C)   caveat emptor.
D)   the American Marketing Association Statement of Ethics.
E)   maximizing profits so long as the firm stays within the rules.F) A) and B)
G) All of the above

Question 11

The North American Free Trade Agreement was designed to encourage free trade between

Accepted Answer

A)   North America, Central America, and South America.
B)   the United States and the European Union.
C)   member countries originally from NATO (North Atlantic Treaty Organization) .
D)   the United States, Canada, and Mexico.
E)   the United States, Canada, and the United Kingdom.F) All of the above
G) None of the above

Question 12

Mars, America's second-largest candy company, began doing business in Russia in the late 1980s. The Snickers bar is one of the top-selling candies in Russia and is marketed in much the same way as it is in the United States. What type of global company is Mars?

Accepted Answer

A)   an international firm
B)   a multidomestic firm
C)   a transnational firm
D)   a meganational firm
E)   a multinational firmF) D) and E)
G) All of the above

Question 13

Define a currency exchange rate and discuss its importance to global companies.

Accepted Answer

Fluctuations in exchange rates among the...

Question 14

What are the product and promotion strategies available to a company seeking to enter the global marketplace? How do they relate to each other in terms of the same or adapted product and promotion?

Accepted Answer

There are five global marketing product ...

Question 15

The strategy transnational firms employ that standardizes marketing activities when there are cultural similarities and adapts them when cultures differ is referred to as

Accepted Answer

A)   a global marketing strategy.
B)   an integrated marketing strategy.
C)   a transnational marketing strategy.
D)   a meganational marketing strategy.
E)   an international marketing strategy.F) B) and E)
G) All of the above

Question 16

Another term for a gray market is

Accepted Answer

A)   equivalent exporting.
B)   back-channel market.
C)   mature marketing.
D)   parallel importing.
E)   transparent market.F) D) and E)
G) B) and E)

Question 17

Which of the following statements concerning currency exchange rates is most accurate?

Accepted Answer

A)   Short-term exchange-rate fluctuations can have a significant effect on the profits of global companies.
B)   Fluctuations in exchange rates among the world's currencies occur, but multinational companies are insulated from the effects because of direct investment.
C)   Exchange rate fluctuations are relatively rare, and when they occur, their effects are minimal.
D)   Exchange rate fluctuations are now almost nonexistent due in great part to the stability of the euro.
E)   Exchange rate fluctuations may affect the financial sector but rarely reach the consumer.F) D) and E)
G) A) and D)

Question 18

All of the following are disadvantages of licensing except which?

Accepted Answer

A)   The licensor has reduced potential profits compared to direct investment.
B)   The licensor incurs higher costs for product manufacturing in the foreign country.
C)   The licensor forgoes control of its product.
D)   Should the licensee prove to be a poor choice, the name or reputation of the company may be harmed.
E)   The licensor may be creating its own competition.F) A) and E)
G) C) and D)

Question 19

A firm's profit potential and control over marketing activities ________ as it moves from exporting to direct investment as a global market entry strategy.

Accepted Answer

A)   becomes more stable
B)   increases
C)   levels off
D)   decreases
E)   becomes more unpredictableF) C) and D)
G) A) and E)

Question 20

One disadvantage of direct investment when entering a new global market is

Accepted Answer

A)   intermediaries have the potential to harm the brand.
B)   the firm entering the foreign market must pay royalties to the government.
C)   the company forgoes control over its product.
D)   the financial commitments involved.
E)   this method is likely to provide the fewest cost savings relative to the other global market entry options.F) C) and E)
G) A) and E)

Exam 6: Understanding and Reaching Global Consumers and Markets

The North American Free Trade Agreement was designed to encourage free trade between

Correct Answer
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What are the product and promotion strategies available to a company seeking to enter the global marketplace? How do they relate to each other in terms of the same or adapted product and promotion?

Correct Answer
verified
There are five global marketing product ...
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One disadvantage of direct investment when entering a new global market is

Correct Answer
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The strategy transnational firms employ that standardizes marketing activities when there are cultural similarities and adapts them when cultures differ is referred to as

Correct Answer
verified

Figure 6-5 -Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-5, E refers to which type of strategy?

Correct Answer
verified

Which of the following issues raises concerns about the ethics of protectionism?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Figure 6-5 -Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-5, D refers to which type of strategy?

Correct Answer
verified

All of the following are disadvantages of licensing except which?

Correct Answer
verified

A global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as

Correct Answer
verified

Since 1963, the guiding principle of Mary Kay, Inc., has been based on

Correct Answer
verified

A firm's profit potential and control over marketing activities ________ as it moves from exporting to direct investment as a global market entry strategy.

Correct Answer
verified

Another term for a gray market is

Correct Answer
verified

The prominent global market entry strategy among small- and medium-sized companies is

Correct Answer
verified

Mars, America's second-largest candy company, began doing business in Russia in the late 1980s. The Snickers bar is one of the top-selling candies in Russia and is marketed in much the same way as it is in the United States. What type of global company is Mars?

Correct Answer
verified

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

Correct Answer
verified

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

Correct Answer
verified

Which of the following statements concerning currency exchange rates is most accurate?

Correct Answer
verified

Define a currency exchange rate and discuss its importance to global companies.

Correct Answer
verified
Fluctuations in exchange rates among the...
View Answer

Exam 6: Understanding and Reaching Global Consumers and Markets

The North American Free Trade Agreement was designed to encourage free trade between

Correct AnswerverifiedShow Answer

What are the product and promotion strategies available to a company seeking to enter the global marketplace? How do they relate to each other in terms of the same or adapted product and promotion?

Correct AnswerverifiedThere are five global marketing product ...View AnswerShow Answer

One disadvantage of direct investment when entering a new global market is

Correct AnswerverifiedShow Answer

The strategy transnational firms employ that standardizes marketing activities when there are cultural similarities and adapts them when cultures differ is referred to as

Correct AnswerverifiedShow Answer

Figure 6-5 -Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-5, E refers to which type of strategy?

Correct AnswerverifiedShow Answer

Which of the following issues raises concerns about the ethics of protectionism?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 6-5 -Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-5, D refers to which type of strategy?

Correct AnswerverifiedShow Answer

All of the following are disadvantages of licensing except which?

Correct AnswerverifiedShow Answer

A global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as

Correct AnswerverifiedShow Answer

Since 1963, the guiding principle of Mary Kay, Inc., has been based on

Correct AnswerverifiedShow Answer

A firm's profit potential and control over marketing activities ________ as it moves from exporting to direct investment as a global market entry strategy.

Correct AnswerverifiedShow Answer

Another term for a gray market is

Correct AnswerverifiedShow Answer

The prominent global market entry strategy among small- and medium-sized companies is

Correct AnswerverifiedShow Answer

Mars, America's second-largest candy company, began doing business in Russia in the late 1980s. The Snickers bar is one of the top-selling candies in Russia and is marketed in much the same way as it is in the United States. What type of global company is Mars?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

Correct AnswerverifiedShow Answer

Which of the following statements concerning currency exchange rates is most accurate?

Correct AnswerverifiedShow Answer

Define a currency exchange rate and discuss its importance to global companies.

Correct AnswerverifiedFluctuations in exchange rates among the...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
There are five global marketing product ...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Fluctuations in exchange rates among the...
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