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International marketing cateora 16th tb
Economics
Ambrose Alli University
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Chapter 01 The Scope and Challenge of International Marketing True / False Questions 1. For companies today, becoming international is a luxury only some can afford. True False 2. Companies from Japan are the leading group of investors in the United States. True False 3. International marketing involves selling of a company’s goods and services to consumers or users in more than one nation for a profit. True False 4. The difference between domestic and international marketing lies in the different concepts of marketing. True False 5. An international marketer must deal with at least two levels of uncontrollable uncertainty. True False 6. The geography and infrastructure of a country are uncontrollable factors that influence the business decisions of a company in an international market. True False 1-1 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7. The uncontrollable factors affecting international marketing are limited to political forces, economic climate, and competitive structure. True False 8. The level of technology in a country is an uncontrollable element for international marketers. True False 9. The uncontrollable factors a company has to deal with decreases with the number of foreign markets in which it operates. True False 10. The controllable elements can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives. True False 11. Political and legal forces, economic climate, and competition are some of the domestic environment’s controllable factors. True False 12. The foreign policies of a country have a direct effect on a firm’s international marketing success. True False 13. Abolition of apartheid in South Africa is an example of a positive uncontrollable element in an international marketing scenario. True False 14. The business activities of international marketers are not affected by competition in their domestic market. True False 15. The process of evaluating the uncontrollable elements in an international marketing program involves substantial doses of cultural, political, and economic shock. True False 1-2 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 24. Sam Watkins just ate cookies and, therefore, feels justified in refusing food offered by his Middle Eastern host. In this instance, Sam’s self-reference criterion has just saved him from making a cultural blunder. True False 25. To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that emphasizes the need for ethnocentrism. True False 26. Understanding one’s own culture normally requires no additional study. True False 27. The most effective approach to build global awareness into an organization is to increase the diversity mix of the employee profile, especially for entry-level jobs True False 28. Research has revealed that smaller home markets and larger production capacities appear to favor internationalization. True False 29. A company in the “no direct foreign marketing” stage of international marketing involvement does not actively cultivate customers outside national boundaries. True False 30. The global marketing concept views the marketplace as consisting of one primary domestic market that is complimented by several smaller regional markets. True False Multiple Choice Questions 1-4 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 31. Which of the following is a dynamic trend that is affecting the current global business strategies? A. The trend toward buying American cars in Europe. B. The trend toward the acceptance of the free market system among developing countries. C. The trend toward using English as the global language. D. The trend toward establishing a world currency. E. The trend toward worldwide instant communication. 32. Companies from _____ lead in foreign investment in the United States. A. Kingdom of Saudi Arabia B. Russia C. China D. United Kingdom E. Canada 33. Which of the following is true regarding the impact of globalization on domestic markets in the United States? A. Companies with only domestic markets have been able to sustain their customary rates of growth. B. Multinational companies are making more profits from their domestic operations compared to their earnings from the foreign markets. C. Only multinational companies with large production facilities have succeeded in the international markets. D. The domestic companies have reduced their manufacturing employment more than the US multinationals. E. Multinational manufacturing companies in all industries and sizes have outperformed their domestic counterparts. 34. Which of the following is an essential requirement for companies to succeed in international markets? A. Binding strictly to their traditional methods of operations to succeed in international markets. B. Focusing primarily on their production to meet the demands at home. C. Venturing into multiple markets at once. D. Committing themselves completely to foreign markets. E. Focusing on improving the domestic market to invest the returns in international markets. 1-5 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 39. Which of the following is an uncontrollable element for an international marketer? A. Firm characteristics B. Promotion C. Price D. Research E. Level of technology 40. For an international marketer, the _____ can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives. A. competitive structure B. economic climate C. structure of distribution D. environmental factors E. controllable elements 41. Which of the following is an uncontrollable factor for a marketer in a domestic environment? A. Firm characteristics B. Competitive structure C. Channels of distribution D. Price of the product E. Promotional measures 42. Which of the following political actions is likely to favor international marketing? A. Placing trade embargo on Cuba owing to widespread political instability in the country. B. U. government placing a trade ban on Libya for rampant terrorism. C. Paraguay imposing low tariffs and tax rates for manufacturing industries. D. Tariff hike for imports established by China. E. U. government coupling human rights issues with foreign trade policy. 1-7 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 43. Which of the following reflects the relationship between international business and domestic business? A. Domestic businesses find it relatively easy to manage profits in the current scenario. B. Domestic businesses find it relatively easy to manage profits in the current scenario. C. Most domestic businesses are the result of customization efforts of international businesses. D. The ability to invest abroad is to a large extent a function of domestic economic vitality. E. Domestic businesses are more viable as capital tends to move toward minimum use. 44. Which of the following is a possible outcome of the “alien status” of a company? A. An increase in protectionist federal policies. B. A positive balance of trade. C. A sharp rise in domestic and international demand. D. A huge trade deficit. E. An economic situation of the magnitude of the Great Depression. 45. With respect to the environment in which a business operates, factors such as competition, political and legal forces, economic climate, would all be classified as: A. controllable elements. B. uncontrollable elements. C. predictable elements. D. demographic elements. E. cultural elements. 46. _____ is a controllable element in both domestic and international marketing environments. A. Economic climate B. Competition within the home country C. Price of products D. Political forces E. Foreign policies 1-8 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 50. Amy Sims has been assigned the task of preparing a marketing plan for her company for the next year’s business activities. She knows that she should begin her plan by examining the variables that she has some control over. These controllable variables would include price, product, channels-of-distribution, and _____. A. demand B. political forces C. competition D. economic climate E. promotion 51. M&M, a company producing musical instruments, had dominated its home market for several years before venturing into international markets. The company was focusing more on international operations until a German company in the same business entered its home market. The German company started selling good quality products at prices much lower than M&M’s and affected its sales adversely. Which of the following elements in the marketing environment has affected the business of M&M in the above scenario? A. Level of technology B. Structure of distribution C. Competition in the domestic market D. Cultural forces E. Promotion of the product 52. Ralph Waite is a marketing manager at a video game console manufacturing firm. Ralph has been asked to review the marketing opportunities of his company in a foreign market. Ralph is aware that he can modify certain elements of the marketing environment to suit the foreign market needs. He is primarily focusing his attention on the factors that are not under his control and might affect their business prospects. Which of the following uncontrollable elements is most likely to affect the company’s business prospects in the foreign market? A. The pricing policies in the foreign market. B. The trade policies in the home country. C. The promotional activities required to market the product. D. The level of technology in the targeted market. E. The product distribution channels adopted by his company. 1-10 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 53. The _____ issues faced by a company are often amplified by the “alien status” of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate. A. product research B. pricing C. product specification D. political/legal E. promotional 54. Which of the following best illustrates the political and legal issues faced by companies because of their “alien status” when they attempt to do business in foreign countries? A. A company doing moderate business in international markets because of violent history of its home country. B. A company being forced by the local government to share its core competencies in order to continue doing business. C. A product not being widely accepted in the foreign market because of its irrelevance to the customers. D. A company utilizing an identical promotional campaign it used in the domestic country. E. A company not succeeding in a foreign market because its product pricing is above the purchasing power of the local customers. 55. _____ is the conscious effort on the part of the international marketer to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then to adjust the marketing mix to minimize the effects. A. Standardization B. Adaptation C. Segregation D. Segmentation E. Projection 1-11 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 60. _____ impedes the ability of a person to assess a foreign market in its true light. A. Nativism B. Pluralism C. Xenocentrism D. Ethnocentrism E. Relativism 61. Which of the following is true of ethnocentrism? A. It is the cultural binding force among a diverse employee population in an organization. B. It is a problem that arises when managers from affluent countries work with managers and markets in less affluent countries. C. American managers have generally been uninfluenced by it, especially in the beginning of the 21st century. D. It is the cornerstone of effective adaptation in the field of international marketing. E. Self-reference criterion is universally considered the technique to reduce or eliminate ethnocentrism. 62. The most effective way to control the influence of ethnocentrism and the SRC is to: A. reduce interaction with culturally diverse audience. B. ask for feedback on every possible occasion. C. recognize their effects on our behavior. D. learn at least two foreign languages to understand the cultural differences. E. ask for second opinion in a decision-making scenario. 63. To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences. Which of the following should be the first-step to avoid the aforementioned errors? A. Redefining the problem without the SRC influence. B. Solving the problem for the optimum business goal situation. C. Isolating the SRC influence in the problem and examining it carefully to see how it complicates the problem. D. Defining the business problem or goal in home-country cultural traits, habits, or norms. E. Defining the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country. 1-13 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 64. Understanding one’s own culture requires additional study as: A. self-criticism is not easy to build when studying one’s own culture. B. much of the cultural influence on market behavior is at the subconscious level. C. the cultural traits in one’s own country are complex and not internalized. D. international trade treaties mandate that managers have extensive cultural knowledge of their own country. E. cultural influence on one’s own market behavior is generally minimal and insignificant in the long run. 65. Which of the following types of nontariff barriers strictly falls under the category of specific limitations on trade? A. Import credit discriminations B. Export subsidies C. Voluntary export restraints D. Embargoes E. Packaging, labeling, or marking standards 66. Which of the following characterizes a globally aware manager? A. Using one’s home culture’s values alone to market one’s products in foreign countries. B. Accepting the cultural ways of another individual as their own. C. Allowing others to be different and equal. D. Discarding one’s home culture’s standards to adopt the global cultural standards. E. Controlling any influences that the global cultural standards may have on the marketing process. 67. Which of the following will aid a manager in understanding the way people of different countries think and act? A. A better understanding of global economic trends. B. A deeper understanding of world market potential. C. An understanding of foreign investment opportunities. D. An understanding of microeconomics. E. A historical perspective. 1-14 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 72. Which of the following best describes the stage of development where the company’s products reach a foreign market without any conscious effort on the part of the marketer? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing 73. Jefferson’s is a firm that specializes in dog food and grooming products. The company has a very well-established domestic market. The company does not actively sell its products outside national borders but provides goods to customers who contact them directly or place orders with them through the Internet. Jefferson’s is currently in the _____ stage of international marketing involvement. A. frequent foreign marketing B. active foreign marketing C. global marketing D. regular foreign marketing E. no direct foreign marketing 74. If a marketer is motivated to initiate an international marketing effort mainly because of temporary surpluses in the domestic market, which of the following stages best characterizes the stage of international marketing involvement for this marketer? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing 1-16 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 75. James Bright’s company seeks markets all over the world and attempts to sell products that are a result of planned production for markets in various countries. Which of the following stages best characterizes the stage of international marketing involvement for Mr. Bright’s company? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Internal marketing 76. Maria Peron’s company treats the world, including the home market in Spain, as one market. Market segmentation decisions no longer focus on national borders. Instead, market segments are defined by income levels, usage patterns, and other factors that span countries and regions. Which of the following stages best characterizes the stage of international marketing involvement for Ms. Peron’s company? A. Infrequent foreign marketing B. Test marketing C. No direct foreign marketing D. Internal marketing E. Global marketing 77. Ajax Corporation has decided to enter the international marketing arena by marketing its products on a country-by-country basis, with separate marketing strategies for each country. The company is using which of the following concepts to formulate its international policies and strategies? A. Domestic market extension concept B. Multidomestic market concept C. Mass marketing concept D. Universal marketing concept E. Standardized marketing concept 1-17 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 81. The firms at the stage of regular foreign marketing of international marketing involvement: A. sell products that are a result of planned production in markets in various countries. B. primarily focus all their operations and production to service domestic market needs. C. have a global perspective and view the entire world as one market devoid of any segments based on nationality. D. have half their sales revenues coming from international markets. E. have no intention of maintaining continuous market representation in foreign markets. 82. Which of the following is true of firms at the international marketing stage of marketing involvement? A. The primary focus of operations and production is to service domestic market needs. B. As domestic demand increases and absorbs surpluses, foreign sales activity is reduced or even withdrawn. C. Profit expectations from foreign markets are seen primarily as a bonus in addition to regular domestic profits. D. Planning generally entails production of goods outside the home market. E. The firm treats the world, including the home market, as one market. 83. What is the most profound change for firms at the global marketing stage of internationalization? A. Planning involves production of goods outside the home market. B. Sales to foreign markets are made as and when goods become available. C. Temporary surpluses marketed in foreign markets is the only element of internationalization. D. Companies treat the world, along with home market, as one market. E. Production capacity exceeds domestic demand. 84. Which of the following firms/products reflects a global marketing orientation? A. A skin-lightening cream aimed at African American women. B. A company promoting Latino jazz musicals. C. A firm producing highly cost-effective and durable computers. D. A famous restaurant in Singapore that specializes in Oriental food. E. A Japanese to English translation software. 1-19 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 85. For a company at the _____ stage of internationalization, market segments are defined by income levels, usage patterns, or other factors that frequently span countries and regions. A. domestic market extension B. no direct foreign marketing C. global marketing D. internal marketing E. infrequent foreign marketing Essay Questions 86. List out the events or trends that have shaped international business beyond today’s bumpy roads and into the future. 87. Define international marketing. How it is different from domestic marketing? 1-20 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
International marketing cateora 16th tb
Course: Economics
University: Ambrose Alli University
- Discover more from:EconomicsAmbrose Alli University26 Documents
- More from:EconomicsAmbrose Alli University26 Documents
