Final MKT 4320 ch 8 -10

Volkswagen distributes cars in the U.S. through​ company-owned and franchised dealerships and provides financing through​ company-owned Volkswagen Credit. This is an example of which of the​ following? A. Intermediary independent representation B. Direct market representation C. Indirect representation D. Independent representation E. An intermediary​ manufacturer's export agent​ (MEA)

Direct market representation

Which of the following is a type of innovation that could be described as a​ "game-changer"? A. Platform innovation B. Continuous innovation C. Line extension innovation D. Dynamically continuous innovation E. Discontinuous innovation

Discontinuous innovation

In which of the following innovation categories do products share certain features with earlier products while incorporating​ new, added-value​ features? A. Disruptive innovation B. Continuous innovation C. Discontinuous innovation D. Dynamically continuous innovation E. Product transformation

Dynamically continuous innovation

Why did the WTO rule that American incentives through the foreign sales corporation​ (FSC) were​ illegal? A. It was an unfair competitive advantage. B. The European Union was unhappy. C. Any tax break contingent on exports was an illegal subsidy. D. All government incentives are illegal. E. It was perceived that the FSC provided governmental assistance.

Any tax break contingent on exports was an illegal subsidy.

Considering a licensee is typically a local​ business, what is the main benefit of a licensing​ agreement? A. Positioning B. Expanded market control C. Corporate control D. Avoidance of barriers for foreign companies doing business E. Reduced competition

Avoidance of barriers for foreign companies doing business

​________ is defined as perceptions about a brand as reflected by brand associations that consumers hold in their memories. A. Brand equity B. Branding C. Brand awareness D. Brand value E. Brand image

Brand image

Which of the following is credited with being the driving force behind South​ Korea's economic growth between 1960 and​ 1990? A. Chaebol B. U.S. financial aid C. Zaibatsu D. Keiretsu E. President Kim Dae Jung

Chaebol

Which of the following refers to a method of guarding against unintended transfers of technology in a​ GSP? A. Corporate amnesia B. Collaboration section C. ​Non-compete clauses D. Transparency limitation E. Agreement of confidentiality

Collaboration section

Which of the following are the two major advantages to direct representation in a​ market? A. Control and communications B. Risk and reward C. Risk and control D. Cost and​ return-on-investment (ROI) E. Brand awareness and profits

Control and communications

Mother hen​, piggyback exporter​, or export vendor are other names for which of the​ following? A. Freight forwarder B. Cooperative exporter C. Export management company D. Export broker E. Export merchant

Cooperative exporter

Which of the following market expansion strategies involves targeting a limited number of customer segments in a few​ countries? A. Country and market diversification B. Country and market concentration C. Country diversification and market concentration D. Country and market penetration E. Country concentration and market diversification

Country and market concentration

Which of the following market expansion strategies is used by most global or transnational​ companies? A. Country and market diversification B. Country concentration and market diversification C. Market penetration and market diversification D. Country diversification and market concentration E. Country and market concentration

Country and market diversification

Which of the following market expansion strategies could be used for an American company wanting to diversify within the United States rather than going​ global? A. Country and market diversification B. Country diversification and market concentration C. Country and market concentration D. Country concentration and market diversification E. Product expansion

Country concentration and market diversification

​Harley-Davidson has assembly plants in India and Brazil and plans to open one in Thailand and will continue to​ target, on a global​ basis, "old​ guys" who want to hit the open road. This is what type of expansion​ strategy? A. Country and market diversification B. Country diversification and market concentration C. Country concentration and market diversification D. Country and market concentration E. Product and country expansion

Country diversification and market concentration

​________ is defined as perceptions about and attitudes towards particular​ countries, which extend to products and brands known to originate in those countries. A. Global consumer cultural positioning B. Country stigma C. Global brand leadership D. Foreign consumer cultural positioning E. ​Country-of-origin effect

Country-of-origin effect

American Express moved its service center to Mumbai. Which of the following is probably the reason the center was subsequently moved back to​ Phoenix? A. Logistics B. Country infrastructure C. Political factors D. Costs and conditions E. Customer needs

Customer needs

The internal motivation driving demand for​ status-oriented products is based on which of the following levels of​ Maslow's needs​ hierarchy? A. Safety B. Physiological C. Esteem D. Social E. ​Self-actualization

Esteem

Which of the following is an independent marketing intermediary that acts as the export department for two or more​ non-competing manufacturers? A. Foreign purchasing agent B. Cooperative exporter C. Export Management Company​ (EMC) D. Export broker E. Export commission representative

Export Management Company​ (EMC)

​Stihl, a German manufacturer of​ hand-held outdoor​ equipment, assigns exclusive dealerships around the world. What type of distribution organization are these​ dealers? A. Foreign purchasing agents B. Export management company C. Export broker D. Export merchants E. Export distributor

Export distributor

Which of the following distinguishes export marketing from export​ selling? A. Export marketing focuses on the needs of the​ consumer, while export selling focuses on product distribution. B. Export marketing is easier than export selling because it is more standardized. C. Export marketing is​ effective; export selling is not effective. D. Export selling is never appropriate for a niche targeting​ strategy, whereas export marketing is. E. Export marketing requires a deeper understanding of the target market environment.

Export marketing focuses on the needs of the​ consumer, while export selling focuses on product distribution.

Which of the following is a general term that refers to capital that flows out of the home country as companies invest in​ plants, equipment, and other​ assets? A. Mergers and acquisitions B. Greenfield investment C. Equity stake D. Foreign direct investment​ (FDI) E. Joint ventures

Foreign direct investment​ (FDI)

Which of the following has the greatest appeal to local entrepreneurs who are anxious to learn and apply​ Western-style marketing​ techniques? A. Subsidiaries B. Mergers C. Licensing D. Franchising E. Joint ventures

Franchising

Which of the following terms refer to the startup of new​ operations? A. Joint venture B. Full ownership C. Acquisition D. Equity stake E. Greenfield investment

Greenfield investment

Which of the following requires a classification system for all products and services that will cross national​ borders? A. Countervailing duties​ (CVD) B. Harmonized Tariff System​ (HTS) C. Discriminatory procurement policies D. Normal trade relations​ (NTR) E. ​Non-tariff barriers​ (NTB)

Harmonized Tariff System​ (HTS)

​KIND® is planning to expand distribution of its health bars to South Africa. The company forecasts a low volume of sales in the first year. Which type of​ market-country export organization would be most​ appropriate? A. Export broker B. ​Manufacturer's export agent​ (MEA) C. Export commission representative D. Independent distributor E. Direct market representation

Independent distributor

Which of the following approaches is best suited to a global market where there is need but not the needed purchasing power to buy either the existing or adapted​ product? A. ​Product-communication adaptation​ (dual adaptation) B. Product​ extension-communication adaptation C. Product​ adaptation-communication extension D. ​Product-communication extension​ (dual extension) E. Innovation

Innovation

Which of the following is the key advantage of making export responsibility a part of a domestic​ employee's job​ description? A. It creates competence in product knowledge. B. It gives the domestic employee an opportunity to learn about a foreign country. C. It creates competence in market knowledge. D. It is a​ low-cost arrangement requiring no additional personnel. E. It gives a domestic employee a chance to gain additional skills.

It is a​ low-cost arrangement requiring no additional personnel.

Why is Slovenia considered a launch brand​? A. Products made in Slovenia are of very poor quality. B. It lacks global recognition and reputation. C. ​Slovenia's reputation for luxury brands has been tainted. D. Slovenia has a negative reputation. E. Slovenia has no industry.

It lacks global recognition and reputation.

Why did Japanese automakers choose to produce cars in the United​ States? A. American labor costs are lower. B. Japan was concerned about market access. C. Japan lacks skilled workers. D. Land for development is less expensive in the United States. E. The political climate is more favorable for manufacturing.

Japan was concerned about market access.

Toyota is the largest single firm in Japan. Toyota is primarily an automobile manufacturer but controls many companies in their supply chain. Which type of cooperative strategy does this​ represent? A. Zaibatsu B. Global Strategic Partnerships​ (GSPs) C. Chaebol D. Keiretsu E. Joint ventures

Keiretsu

________ represents a special category of cooperative strategy in Japan that has been described as​ "a fighting clan in which business families join together to vie for market​ share." A. Keiretsu B. Fuyo Group C. Zaibatsu D. Mitsubishi E. Mitsui Group

Keiretsu

Why has the warranty program been important to Hyundai sales in the​ U.S.? A. Americans​ won't buy cars without a warranty. B. Korean cars were initially perceived as cheap. C. ​Hyundai's warranty program received media attention. D. Competitors​ don't offer warranties. E. The warranty justified the high cost.

Korean cars were initially perceived as cheap.

When forming a global strategic partnership​ (GSP), which of the following factors is considered critically​ important? A. Similar organizational structures B. Vertical relationship structure C. Learning from partners D. Profitability E. Common pursuit of market leadership

Learning from partners

​________ is defined as a contractual arrangement whereby one company makes a legally protected asset available to another company in exchange for some form of compensation. A. Joint venture B. Equity stake C. Licensing Your answer is correct. D. Foreign direct investment​ (FDI) E. Contract manufacturing

Licensing

Which of the following refers to a type of brand that has achieved success in a single national​ market? A. Local brand B. International brand C. Transformed brand D. Global brand E. Generic brand

Local brand

​Coca-Cola bottles and distributes Deep RiverRock drinking water in Ireland and Great Britain. Dasani is marketed in the U.S. These are examples of which of the​ following? A. Local brand B. Global brand C. International brand D. ​Co-brand E. Tiered brand

Local brand

For the home​ company, which of the following is one of the goals of a global strategic partnership​ (GSP)? A. Improved infrastructure B. Reducing the number of employees C. Subsidies D. Government incentives E. Market access

Market access

In response to new tariffs imposed by the​ EU, Harley Davidson announced plans to move production for motorcycles destined for Europe to plants in Thailand and India. This is an example of which of the​ following? A. Offshoring B. Outsourcing C. Realignment D. ​Sub-contracting E. Production relocation

Offshoring

Which of the following is a major problem in connection with joint ventures in developing​ countries? A. Lack of understanding of the scope of global strategic partnerships B. Unwillingness of governments to approve joint ventures C. Outdated regulatory and legal systems D. Increased tariffs on a joint venture E. Lack of sufficient labor

Outdated regulatory and legal systems

Which of the following components of a product is designed to engage the​ senses, make an emotional​ connection, and enhance the​ consumer's brand​ experience? A. Aesthetics B. Packaging C. Express warranty D. Labeling E. Product warranties

Packaging

​McDonald's and​ Coca-Cola have focused on which of the following needs to create global brand​ franchises? A. Safety and esteem B. Physiological and safety C. Physiological and social D. Esteem and​ self-actualization E. Social and safety

Physiological and social

Which of the following is the strategic alternative where both the product and at least one of the promotional elements are adapted for a particular country​ market? A. Product​ adaptation-communication extension B. ​Product-communication adaptation​ (dual adaptation) C. ​Product-communication extension​ (dual extension) D. Innovation E. Product​ extension-communication adaptation

Product-communication adaptation​ (dual adaptation)

Why do consumers in India prefer European products like Coach and Louis Vuitton over​ "Made in​ India" products? A. Indian products are too bright and colorful. B. Indian products are of low quality. C. Products made in Europe carry a great appeal as symbols of success. D. The Indian consumers want to take advantage of new accessibility. E. Indian products are more expensive than imported products.

Products made in Europe carry a great appeal as symbols of success.

Which of the following is the strategic alternative where the product is adapted to local preferences while the​ home-market promotional strategy or brand name is​ used? A. Product​ extension-communication adaptation B. Innovation C. ​Product-communication extension​ (dual extension) D. Product​ adaptation-communication extension E. ​Product-communication adaptation​ (dual adaptation)

Product​ adaptation-communication extension

Which of the following is a government policy that discourages​ imports? A. Subsidies B. Quota C. Free trade zones D. Tax incentives E. NAFTA

Quota

Which of the following naming strategies is best for a company pursuing a global brand​ identity? A. One name in the home country and another in other countries B. Same name throughout the world C. Distinctive names for each local market D. ​Co-branding E. Different names for each regional market

Same name throughout the world

Which of the following is a U.S. technology alliance created to keep the U.S.​ chip-industry from losing market share to​ Japan? A. Microsoft B. Sematech C. Proctor​ & Gamble D. General Motors E. Intel

Sematech

Which of the following refers to a geographic entity that offers manufacturers simplified customs​ procedures, operational​ flexibility, and a general environment of relaxed​ regulations? A. Comfort zones B. Common markets C. Special economic zones​ (SEZ) D. Preferential trade agreements​ (PTA) E. Common Policy

Special economic zones​ (SEZ)

Which of the following can be considered the​ "three Rs"​ (rules, rate​ schedules, and​ regulations) of global​ business? A. Custom duties B. Tariffs C. ​Non-tariff trade barriers​ (NTB) D. Quotas E. Subsidies

Tariffs

Which of the following is a government program that supports​ exports? A. Technical regulations B. Tariffs C. Tax incentives D. Quotas E. Preferential tariffs

Tax incentives

Why are South Koreans concerned about chaebol​? A. The influence of government over private industry B. Limited employment option C. Failure of chaebol companies to diversify D. Stunted national economic growth E. The amount of economic power it wields

The amount of economic power it wields

Which of the following best describes American​ businesses' major concern with​ Japanese-affiliated manufacturing in the​ U.S.? A. The majority of suppliers are members of keiretsu​, not American companies. B. This type of alliance is​ long-term. C. Keiretsu alliances result in higher prices to Japanese consumers. D. Keiretsu is competition to U.S. industry. E. Keiretsu is similar to a labor union in the United States.

The majority of suppliers are members of keiretsu​, not American companies.

Why do some companies establish an​ in-house organization for export​ responsibilities? A. It is less expensive than hiring an export broker. B. The company lacks the experience to deal with an EMC. C. To maintain maximum control of the export function. D. Most EMCs are corrupt. E. It is more efficient than hiring a jobber.

To maintain maximum control of the export function.

What was specifically designed for​ Coca-Cola to differentiate Coke from other soft​ drinks? A. Product flavor B. The label C. Freshness guarantee D. Unique bottle shape and texture E. Premium pricing

Unique bottle shape and texture

While the functionality of the refrigerator is to keep foods and beverages​ cold, in some developing countries ownership of a refrigerator is a status symbol. In this​ case, the refrigerator serves​ ______________________. A. a secondary purpose B. a primary function C. social needs D. safety needs E. ​self-actualization

a secondary purpose

Customs duties that are based on a percentage of the value of the goods are​ a(an) ____________. A. mixed duty B. ad valorem duty C. compound duty D. specific duty E. tariff

ad valorem duty

Benefits of a joint venture entry strategy include sharing of​ risk, a good way to learn about a new market​ environment, and​ ________. A. encouraging contract manufacturing B. creating a licensing agreement C. establishing a franchise program D. an acquisition tool E. allowing partners to achieve synergy

allowing partners to achieve synergy

Product​ attributes, both tangible and​ intangible, must be translated into​ ___________ for a product strategy to be successful. A. cultural preferences B. convenience to the customer C. the perception of luxury D. benefits that match needs and wants E. English

benefits that match needs and wants

For the United​ States, the first wave of​ non-manufacturing outsourcing primarily affected​ ________. A. hotels B. call centers C. rental cars D. health care E. financial institutions

call centers

One of the risks of forming a global strategic partnership​ (GSP) is that although partners are pursuing mutual goals in some​ areas, they are potentially​ ________. A. looking around for an acquisition opportunity B. competitors in other areas C. compromising in other areas D. creating profits in other areas E. licensees in other areas

competitors in other areas

Because esteem needs are​ universal, any company with a premium product or brand that has proved itself in a local market by fulfilling esteem needs should​ __________. A. devise a strategy for mass production B. also consider the​ market's physiological needs C. be wary of globalization D. devise a strategy for taking the product global E. grow the brand by market penetration

devise a strategy for taking the product global

Research has shown that although profitability is an important expected benefit of​ exporting, other advantages include​ ________. A. reduction in overhead B. improved ability to deal with economic fluctuations in the home market C. fewer regulations D. more control over distribution E. less paperwork

improved ability to deal with economic fluctuations in the home market

Some consumers flaunt their wealth or status by buying expensive products that others will notice. The marketing term for this is​ ________. A. ​admiration-based B. luxury badging C. status seeking D. status symbols E. premiumisation

luxury badging

​A(n) ________ is a grouping of firms in different industries and countries held together by common goals that encourage them to act as a single firm. A. super alliance B. relationship enterprise Your answer is correct. C. virtual corporation D. consortium E. corporation

relationship enterprise

A modified hierarchy has been proposed for Asia where the top three levels of​ affiliation, admiration, and status each emphasize​ ________. A. physiological needs B. personal esteem C. social needs D. psychological needs E. ​self-actualization

social needs

One of the key advantages to licensing as a​ market-entry strategy is​ ____________________. A. increased market share B. elimination of competition C. the speed of diffusion of the new product or technology D. brand awareness E. enabling a company to​ "borrow" another​ company's resources

the speed of diffusion of the new product or technology

​Research, design, and testing are each a part of​ ________. A. global product planning strategic alternatives B. ​country-of-origin effect C. extension strategy D. the​ new-product continuum E. the​ not-invented-here (NIH) syndrome

the​ new-product continuum

In​ 2008, Apple introduced the​ second-generation iPhone to 21 countries simultaneously using the same message and promotional appeals used in the United States. This is an example of​ __________. A. ​product-communication adaptation​ (dual adaptation) B. innovation C. product​ adaptation-communication extension D. product​ extension-communication adaptation E. ​product-communication extension​ (dual extension)

​product-communication extension​ (dual extension)

What did​ Anheuser-Busch find was critical to success in the Japanese​ market? A. Access to distribution B. Market share C. Brand awareness D. Licensing agreements E. Joint ventures

Access to distribution

With export​ selling, which of the following is NOT a​ consideration? A. Participating in a trade fair B. Creating agreements on product modifications C. Adapting the domestic marketing mix to the new environment D. Attending trade shows E. Conducting market research to identify a target segment

Adapting the domestic marketing mix to the new environment

In stage seven of the exporting developmental​ process, what markets are being​ considered? A. Emerging markets B. Domestic markets C. All markets D. Global markets E. Triad country markets

All markets

Which of the following BEST describes a global​ brand? A. A brand created by a global company to meet the needs of a local market B. A brand that uses the same name and has a similar positioning throughout the world C. A brand that is offered in several markets in a specific region D. A brand that has found success in a single national market E. A brand created by a global company and distributed in more than one country

A brand that uses the same name and has a similar positioning throughout the world

Creative Irish Gifts imports Waterford Crystal to sell through their catalog and online. Waterford Glass Company requires a guarantee of funds from Creative Irish​ Gifts' bank before processing the order. This is an example​ of: A. A letter of credit​ (L/C) B. Open account C. Documentary collection D. Documents against payment​ (D/P) E. Cash with order​ (CWO)

A letter of credit​ (L/C)

In a discussion of trade​ financing, what document specifies how much and by what means the​ exporter-seller wants to be​ paid? A. A letter of credit​ (L/C) B. A pro forma invoice C. A time draft D. A documents against payment​ (D/P) E. A bill of exchange

A pro forma invoice