International Marketing Questions
alliances can be formed for various purposes, ex: sharing technology, marketing, or production joint ventures: TRUE OR FALSE
TRUE
A merger is a transition mechanism that propels the partner's strategies forward in a turbulent environment faster than would be possible for each company alone true or false
true
According to Gibbs (2005), mindshare can be broken down into the following three drivers: a) commitment and trust, collaboration and mutuality of interest and common purpose b) indirect export, direct export, and cooperative export c) inbound logistics, outbound logistics, and collaboration d) know how, know why, and know who
A
According to Svend Hollensen, the main external triggers of export initiation are: a) network partners, trade association and other outside experts b) financing c) market demand and competing firms d) all of the above
A
According to the incremental approach, firms typically begin their internationalization by going to those markets that they can: a) most easily understand b) domesticate c) easily access geographically d) easily influence
A
Born global is the term that refers to a firm that: a) From its birth globalizes rapidly without any preceding long term internationalization period b) From its birth globalizes slowly c) Globalizes after long term internationalization period d) Any SMEs with more than 500 employees
A
Complexity of trade documentation is an example of: a) Political Risk b) Commercial Risk c) General Market Risk d) Political and commercial risk
A
For which product is export the most feasible internationalization option? a) diamonds b) coke c) furniture d) lemons
A
Forces for global coordination/integration: a) Removal of trade barriers b) Cultural differences c) Deglobalization trend d) Regionalism/protectionism
A
The Uppsala internationalization model: a) An incremental approach to internationalization b) When firms do business using only an importer agent, or distributer c) When firms implement a global marketing strategy using only their own subsidiaries d) The relationships of a firm in a domestic network can be used as bridges to other networks in other countries
A
The network model of internationalization argues that internationalizing firms typically engage in networks which are primarily: a) domestic b) multinational c) glocal d) global
A
Which of the following approaches is most appropriate for an organization with little experience in international markets? a) Exporting b) Acquisition c) Joint venture d) Strategic alliance
A
Which of the following is a reactive reason that prompts a firm to expand overseas? a) Customer demands b) Seeking economies of scale c) Growth opportunities d) Seeking incentives
A
Which one of the following does not represent a commercial risk in the internationalization process? a) National export policy b) Exchange rate fluctuations when contracts are made in a foreign currency c) Difficulties in obtaining export financing d) Delays and/or damage in the export shipment and distribution process
A
Internal triggers of internationalization include: a) changes in the industry b) perceptive management, specific internal events, and importing as inward internationalization c) market demand, network partners, competing firms, financing and trade association and other outside experts d) all of the above
B
One of the main criticisms of the Uppsala model is that for the internationalization model is not valid for: a) Russian organizations b) service organizations c) manufacturing organizations d) French organizations
B
Polycentric: The control with affiliates is: a) Highly centralized b) Highly decentralized c) To integrate and coordinate its marketing programme d) Within regions, but not across them
B
Roch, a Swiss chocolate company, recently opened a manufacturing unit in Spain. The purpose of this move was that Roch wanted to avoid Spain's high import tariffs. Which of the following reasons prompted Roch to open the manufacturing unit in Spain? a) customer demands b) trade barriers c) globalization of competitors d) growth opportunities
B
Sequential modes of internationalization were introduced by: a) John H. Dunning's 1988 electric paradigm b) the Uppsala internationalization model c) Raymond Vernon's 1966 product life cycle hypothesis d) none of the above
B
When firms implement a global marketing strategy using their own subsidiaries it is called: a) Externalization b) Internalization c) Network model d) TC model
B
Why do giant British food retailers such as Tesco prefer acquisition as a method of entry into Eastern Europe? a) it is cheaper b) it is quicker c) it is safer d) it is preferred by the governments of those countries
B
The most important single factor in determining IJV success or failure is: a)percentage of equity held by each partner b) choice of partner c) proprietary technologies held by each partner d) amount of decision making control given to each firm
B) choice of a partner
Trade barriers, such as tariffs and quotas, decrease risk and increase profits. Hence, they are attractive to foreign companies.
False
A very important trend in favor of born globals is the recent advance in: a) communications technology b) China c) global trading d) shipping
C
Among the main reactive reasons for Haier Group's internationalization was: a) the geographic location in respect of its international customers b) the need to dispose of its excess capacity c) the competitive pressures and saturation of its domestic market d) all of the above
C
Compared to direct exporting, indirect exporting bears: a) a lower risk b) no risk at all c) a higher risk d) an equal level of risk
C
Competition from other firms is an example of: a) Political Risk b) Commercial Risk c) General Market Risk d) Political and commercial risk
C
Differences in product usage is an example of: a) Political Risk b) Commercial Risk c) General Market Risk d) Political and commercial risk
C
Due to the high demand for its handmade soaps in Canada, Fragrance Exotica, an Indian Soap manufacturer, has decided to open a new manufacturing unit in Canada, thereby expanding overseas. In this scenario, which of the following reasons prompted Fragrance Exotica to set up a manufacturing unit overseas? a) trade barriers b) manufacturer demands c) customer demands d) tax incentives
C
The global financial market is an example of: a) successful alliances b) the successful internationalization of American firms c) the phenomenon of 'born globals' d) successful buyouts
C
The main difference between direct and indirect export is that: a) companies engaged in indirect exporting get more support from the foreign governments b) indirect exporting results in more sales c) direct exporting implies that the manufacturer performs the export task d) indirect exporting takes longer
C
The network model: a) The relationships of a firm in a domestic network never can be used as bridges to other networks in other countries b) when firms do business using an importer, agent, or distributer c) The relationships of a firm in a domestic network can be used as bridges to other networks in other countries d) Refers to a firm that from its 'birth' globalizes rapidly without any preceding long term internationalization period
C
Which of the following statements is true: a) The main consequence according to the Uppsala School model is that organizations tend to intensify their commitment towards foreign markets as their experience grows b) The main consequence according to the Uppsala School model is that organizations tend to give up their domestic networks once their experience in international marketing grows c) The mean consequence according to the Uppsala School model is that organizations tend to distance themselves from their home market once their experience in the international market grows d) None of the above statements is true
C
A defining characteristic of born globals is: a) they are all LSEs b) they always start up in the USA c) they tend to be managed by women d) relatively unique products of process innovations
D
Born globals share which of the following similarities: a) They have a strong customer orientation b) They possess unique assets c) They focus on a narrow global market segment d) All of the above
D
Born regional means: a) a firm that previously focused on its domestic markets but that suddenly enhances rapid and dedicated to internationalization b) firms that are 'born global' in several different regions c) 'born glocal' d) a firm that starts international activities early and with significant shares, but its international activities are only in its home region
D
Ethnocentric: a) Each country is unique and therefore should be targeted in a different way. b) The firm tries to integrate and coordinate its marketing programme within regions, but not across them. c) The firm may offer global product concepts but with local adaptation ('think global, act local'). d) The home country is superior and the needs of the home country are most relevant.
D
Indirect export occurs when: a) an independent company sells on to the customers on behalf of the manufacturer b) a representative of foreign buyers is located in the exporter's home country c) the manufacturer sells directly to an importer, agent, or distributor located in the foreign target market d) a manufacturer uses independent export organizations located in its own country
D
When the domestic market is small and saturated is one example of proactive motives for start exporting.
False
Internationalization motives are: a) reactive motives indicate that the firm reacts to pressures or threats in its home market or in foreign markets b) the fundamental reasons for internationalization c) proactive motives represent stimuli to attempt strategy change, based on the firm's interest in exploiting unique competences d) all of the above
D
Physical value chain=only includes: a) R&D b) R&D and Production c) R&D, Production, and Marketing d) R&D, Production, Marketing, Sales and Services
D
Political risks include: a) exchange rate fluctuations b) delays and/or damage in the export shipment and distribution process c) difficulties in obtaining export financing d) foreign government restrictions
D
Small organizations find that _____ is the easiest method of obtaining foreign sales. a) using trading companies b) barter c) piggybacking d) selling to export commission houses
D
Strengths' of Small and Medium Companies: a) Organization b) Resources c) Formation of strategy d) Flexibility
D
Which is the most traditional and well established form of operating in foreign markets? a) Franchising b) Joint venture c) Importing d) Exporting
D
Which of the following is not a stage in the Uppsala Internationalization model? a) No regular export activities b) Foreign production/manufacturing units c) Establishment of a foreign sales subsidiary d) Joint venture
D
Which of the following is the proactive reason that prompts firms to expand overseas? a) Avoiding restrictive trade barriers b) Solving logistics related problems c) Responding to foreign competition d) Seeking economies of scale
D
Which of the following represent major proactive reasons for initiating export? a) Managerial urge and ta benefits b) Profit and growth goals c) Technology competence and economies of scale d) All of the above
D
Customer demands have no impact on a company international business strategy.
False
It is impossible for small businesses, such those with fewer than 500 workers, to do business overseas.
False
The following fall into commercial risk group: high foreign tariffs on imported products.
False
The following fall into the political risk group: Failure of export customers to pay due to contract disputes, bankruptcy, refusal to accept product, or fraud.
False
The main consequence of the Uppsala Internationalization model is that firms tend to intensify their commitment towards foreign markets as their experience grows.
False
A marketing strategy does not require absolute standardization to be global.
True
Export motives can be classified as reactive or proactive.
True
Internationalization is a key factor to success in the long term survival of LSEs.
True
Management attitude to risk is one of the proactive motives why companies decide to go international.
True
One pressing reason for many large firms to expand overseas is to seek economies of scale.
True
The availability of raw materials and other resources offers both greater control over inputs and lower transportation costss
True
Transactional Cost Analysis model= Transaction costs = ex ante costs (search + contracting costs) + ex post costs (monitoring + enforcement costs).
True
What is an equity alliance? a) a collaborative arrangement in which at least one collaborating company takes an ownership in the other b) a collaboration in which each contributor recieves an equitable return based on relative contribution c) a collaboration in which partners agree to share technology with eachother d) a wholly owned acquisition to prevent appropriation of intellectual property
a) a collaborative arrangement in which at least one collaborating company takes an ownership in the other
a(n) ----- refers to a JV among companies in different countries a) international joint venture b) equity joint venture c) global joint venture d) transnational joint venture
a) international joint venture
Trout corp., Kirgo Ltd., and Sturgeon inc, three of the leading construction companies in the Us, have decided to join hands and create a new cement manufacturing company. according to their agreement, trout has 50% equity, Kirgo has 20% equity and Sturgeon has 30% equity. in the given scenario, sturgeon is referred to as a ___: a) minority JV partner b) majority JV partner c) sole proprietor d) franchisor
a) minority JV partner
Runnerz Inc, a leading manufacturing and retail company that designs and develops footwear and apparel, has signed a contract with a particular courier service for managing the delivery process. the courier service is required to deliver goods from the factory to the warehouse, to customers and also to collect customer payments for the goods. this is a typical example of a : a) non-equity strategic alliance b) turnkey operation c) Greenfield investment d) international licensing agreement
a) non-equity strategic alliance
Panera bread is a franchise for selling food. the company began in 1981 with stores primarily located on the east coast of the us. since, the company expanded to over 1300 locations throughout the US and Canada. the firm has strong earnings and has been designated by Business Week as the "Significant Growth Company". Panera executives are considering the idea of expanding globally by opening cafes in Asia through a franchising strategy. Which of the following , if true, supports the argument that Panera should not expand through Franchising into Asia? a) quality control is a high priority for panera bread b) Panera wants to access the asian market quickly c) paneras primary competitor has already expanded into Asia d) panera managers have expressed interest into relocating into Asia
a) quality control is a high priority for panera bread
the primary motive in contract manufacturing is -- a) utilizing inexpensive labor overseas b) obtaining rights to patented tech c) sharing managerial expertise d) sharing financial resources
a) utilizing inexpensive labor overseas
a ____ is a new independent identity that is collectively created and owned by two or more parent companies a) subsidiary b) joint venture c) Greenfield investment d) turnkey operation
b) joint venture
---- is an ideal strategy for small businesses with a few financial and managerial resources for direct investment abroad: 1) joint venture 2) licensing 3) offshoring 4) turnkey operation
b) licensing
Panera bread is a franchise for selling food. the company began in 1981 with stores primarily located on the east coast of the us. since, the company expanded to over 1300 locations throughout the US and Canada. the firm has strong earnings and has been designated by Business Week as the "Significant Growth Company". Panera executives are considering the idea of expanding globally by opening cafes in Asia through a franchising strategy. Which of the following , if true, supports the argument that Panera should expand through Franchising into Asia? a) Panera executives want to test the Asian market with short commitment that allows for quick profits b) panera executives want fast access into asian market without significant investment of capital c) panera menu changes rapidly, and each cafe artisans bread bakers receive regular training on new recipes d) the Panera bread mission is to create excellent bread available to consumers all over the world
b) panera executives want fast access into asian market without significant investment of capital
parent companies use the IJV control process in order to ensure that the management of the joint venture conforms to: a) international accounting standards b) qualitative standards c) its own interests d) industry standards
c) its own interests
Alliances that are carried out through contract rather than ownership sharing are called ----: a) cultural strategic alliances b) equity strategic alliances c) non-equity strategic alliances d) transmodal strategic alliances
c) non-equity strategic alliances
which of the following is the most beneficial aspect of an international joint venture? a) the international partner receives the entire profit b) the responsibility of risks is solely taken by the international partner c) the partner's local contacts and markets will be utilized d) the entire cost of production will be borne by the local partner
c) the partner's local contacts and markets will be utilized
all of the following would be examples of international joint ventures except: a) 2 Japanese companies sharing ownership of a company in canada b) a danish company sharing ownership with a South African company In South Africa c) a government owned company from china sharing ownership with an Australian company in Panama d) 2 venezualen companies sharing ownership of a company in Venezuela
d) 2 venezualen companies sharing ownership of a company in Venezuela
in spite of potential problems with local partners, many firms rush the process of partner selection because ---: a) They want to reduce the amount spent on establishing subsidiaries abroad b) They want to take advantage of the local partner's technological innovations c) They mostly aim at increasing the number of equity shares within a short period of time d) They are anxious to get into an attractive market
d) They are anxious to get into an attractive market
