International Marketing Final Exam NDSU WRIGHT

1. The goal of a just-in-time inventory system is to:

create product flow rather than stock.

The ______________ processes routine orders from the customers

order taker

If a company from the United States sets up a subsidiary in a country in the European Union, that company is

A corporate citizen of the European Union

1. A free trade area that has eliminated or greatly reduced internal tariffs and that imposes common external tariffs is an example of:

A customs union

1. Which ERPG orientation goes with a global standardization strategy?

A geocentric orientation.

1. Which of the following is an example of a cultural adiaphora?

An American in China eating a meal with chopsticks

1. What global brand rule does the German brand Fuchsschwanz violate?

Avoid long vowel/consonant sequences.

The legal system in the United States is based on _________ .

Common Law

1. International advertising is most powerful when:

All of the above.

1. Which linguistic attributes do the brands Coca Cola and Kal Kan both have?

Assonance and alliteration

A: There is substantial overlap between BUSN 340 (International Business), MGMT 440 (International Management) and MRKT 440 (International marketing). STATEMENT B: With global marketing, the firm coordinates is marketing activities across different countries without a country or a regional focus.

Both statements are true.

1. _______ is a comprehensive body of written laws that specify what constitutes legal behavior, and has its roots in Roman law.

Code Law

1. In 17th century Belgium, "Rubenesque" women were thought to be the ideal of beauty. This is an example of:

Conceptual equivalence.

1. _______________ is the unauthorized copying of brands and selling them as originals.

Counterfeiting

1. Interviewer relationship bias, courtesy bias, response style, reluctance to answer, and non-response patterns are all examples of:

Data collection equivalence.

1. Which of the following does NOT involve substantial levels of foreign direct investment (FDI)?

Exports (direct or indirect).

1. For which of the following is international marketing research used?

International marketing research is used for all of the above.

1. Which of the statements below best describes an "outer" direction?

Nature controls us; we do not control nature.

1. This is a communication about a company and/or the company's products that the company does not pay for.

Publicity.

1. Macro-segmentation criteria include all of the following except:

Demographics.

A firm with a(n) _____________ orientation perceives the entire world—without national and regional distinctions—as a potential market with identifiable, homogeneous segments that need to be addressed with tailored marketing strategies, regardless of geographic location or nationality.

Geocentric

1. A government representative of India suggesting that automobiles from high-income countries should incur high duties when imported into the country because India is still developing its automobile sector is making reference to which of the following types of protectionism?

Infant industry argument

1. Which of the following is NOT a component of the international promotional mix?

International pricing.

1. What is a significant weakness of the European Parliament?

It cannot propose legislation.

1. What is the main problem with cost plus pricing?

It ignores demand when setting a price

1. Which of the following is an EQUITY mode of market entry?

Joint ventures.

1. The establishment of a _____________ involves the creation of a common central bank and the use of a single currency.

Monetary union

1. Which of the following is the definition for pattern standardization?

Similar positioning and creative, but execution differs between markets.

1. One day, when driving home from Bismarck, my wife asked me if I was hungry. I said no, and we drove on home. When we got home, she was very mad at me. Which of the following cultural theories best explains why she was mad at me?

Slow vs. fast messages.

1. Which of the following has the highest level of risk for international expansion?

Wholly-owned subsidiaries.

1. Which of the following is NOT a cultural issue with respect to international sales?

All of the above are cultural issues relating to international sales.

1. Suzy Shier, a Canadian fashion retailer targeting middle class women, emphasizes the name "Suzy" and de-emphasizes the name "Shier." Why?

Canada is bilingual, and Shier has an unintended meaning in French.

1. Which of the following is NOT an example of a non-equity strategic alliance?

Joint venture alliances

In the _______ stage of the Marxist-Leninist model of economic development, the state begins to take over private property - and private property gradually disappears.

Socialist society

1. The use of a uniform marketing strategy within a particular region is known as:

regional standardization

1. This promotional budget setting method first identifies advertising goals, then conducts research to determine the cost of achieving those goals. Firms then allocate the necessary sum for advertising expenditures. This method is known as the:

the objective-and-task method.

1. Which of the following is not part of the global branding and linguistics model?

Brand logo

____ present the greatest potential for international trade and expansion because they are developing rapidly and their economies are characterized by rapid growth.

Countries with emerging markets

1. Which of the following has a major impact on focus group research?

Culture.

1. According to the video lecture, what is the top country as a brand?

Japan

1. STATEMENT A: Retailers shouldn't use creative strategies for maintaining share in mature home markets, while expanding to markets around the globe. STATEMENT B: In developing countries, discount stores are the dominant retail format.

Statement B is true, statement A is false.

1. With demand-based pricing, if demand is strong and competition is weak, then

you may charge higher markups.

1. Umbrellas and rain are highly correlated. Therefore, I incorrectly assume that umbrellas cause rain. What type of research am I most likely doing?

Descriptive research.

1. Which of the following statements best describes collectivism?

Identity is rooted in the social system.

1. According to our discussion in class, what is one major, overlooked strategy for reducing expatriate failure?

Send more female expatriates.

1. Strict bans against U.S. beef, or against bioengineered corn and beans are nontariff barriers known as

Standards

1. STATEMENT A: Local pricing is a pricing strategy in which different prices are charged in different markets. STATEMENT B: Countertrade is on the decrease worldwide.

Statement A is true, statement B is false

1. Of the EU legislative process, which of the following statements is FALSE?

The Council of Europe enacts legislation and is considered the policing arm of the EU.

1. Which of the following United Nations Organizations promotes the integration of trade?

The United Nations Conference on Trade and Development (UNCTAD)

1. In 1857, Jean Heuhaus settled in Brussels and opened a boutique pharmacy in the city center. With his customers' well-being at heart, he would cover his medicines with a layer of chocolate to make them more palatable. In 1912, his grandson, Jean Neuhaus, Jr., innovated on his grandfather's creation by replacing the medicine with a decadent chocolate cream center, creating the first filled chocolate. His wife, Louise Agostinie, designed an elegant gift box, known as a ballotin, to attractively protect the chocolates. This gift box instantly became a must-have gift, and the tradition of giving chocolates (pralinés in French) was born. In 1958, the chocolates were introduced globally at the 1958 Brussels World Expo and quickly became the talk of the event. In 1999, the first Neuhaus boutique opened globally in New York City, and today, Neuhaus chocolates are located in prestigious boutiques around the world (in the U.S., China, the United Arab Emirates, countries throughout Europe, Japan and Australia). All Neuhaus chocolates are produced in Brussels using real Belgian chocolate and are shipped via refrigerated air transport to destinations around the world. All business strategy is conducted in Brussels and the company does not adapt the product to the local tastes and preferences of its customers. If you eat a Neuhaus chocolate, you are consuming a true, real Belgian chocolate. What organizational structure best fists this scenario?

A global products division structure.

1. Which strategic posture goes with a polycentric orientation?

A localization or adaptation strategy.

1. Which of the following is NOT an explanation why it is difficult to control international marketing operations?

All of the above are explanations for the difficulty in controlling international marketing operations.

Which of the following is NOT true of ethnocentrism?

All of the above are true of ethnocentrism

1. Why do most MNEs do a lousy job of managing repatriation?

All of the above.

1) Which of the following is(are) example(s) of Big Emerging Markets?

Both A and D

1. STATEMENT A: In the communication process, the receiver encodes the message into words and images and communicates it to the target market. STATEMENT B: Product placement refers to placing the product prominently in retail locations.

Both statements are false.

1. STATEMENT A: Market-based transfer pricing is a pricing strategy used in intra-firm sales for commercial transactions between units of the same corporation, within or beyond the national borders of the parent company, where the costs reflect the estimated opportunity costs of the product. STATEMENT B: Barter involves a simple, monetized exchange of goods or services between two parties.

Both statements are false.

1. STATEMENT A: Positioning refers to the process of identifying countries and/or consumers that are similar with regard to key traits, such as product-related needs and wants, that would respond to a product and related marketing mix. STATEMENT B: Segmentation refers to the space your product occupies in the consumers' minds relative to the competition.

Both statements are false.

1. STATEMENT A: Voluntary export restraints are not an example of a nontariff barrier - in fact, they are voluntary and thus they are not a barrier to trade. STATEMENT B: Dumping refers to discarding products illegally before crossing borders in order to avoid paying duties.

Both statements are false.

STATEMENT A: Embargoes and sanctions are NOT initiated by governments. STATEMENT B: Boycotts ARE initiated by governments

Both statements are false.

STATEMENT A: Global marketing companies focus primarily on national and regional segmentation. STATEMENT B: A company engaged in export marketing has a geocentric philosophy to internationalization.

Both statements are false.

1. STATEMENT A: Control and risk are positively correlated in international expansion. When management control is low, expansion risk is also low. When management control is high, expansion risk is also high. STATEMENT B: Indirect exporting has the lowest level or risk for international expansion.

Both statements are true.

1. STATEMENT A: If the countries where they operate share language, religion or other cultural similarities, firms can organize their operations with a regional focus. STATEMENT B: With a holacracy structure, the organization chart becomes circular, and people take on more than one role, moving in teams/circles, without any thought to the organizational hierarchy.

Both statements are true.

1. STATEMENT A: Regional proximity is an important determinant of economic integration. STATEMENT B: A free trade agreement involves a reduction in trade barriers between member countries.

Both statements are true.

1. STATEMENT A: SRC is an unconscious reference to one's own cultural values, experiences and knowledge as a basis for decisions . STATEMENT B: Knowledge, communication, rituals, norms and traditions that are socially acquired are common to many definitions of culture.

Both statements are true.

1. STATEMENT A: The Internet has been a driver for internationalization, allowing companies to reach customers worldwide. STATEMENT B: Despite extensive Internet access worldwide, some companies are not equipped to handle Internet sales or cannot manage the sale due to language and cultural barriers.

Both statements are true.

STATEMENT A: An International Marketing Strategy (IMS) means developing and maintaining a strategic fit between the MNE's objectives, competencies, and resources and its opportunities in continuously changing international environments. STATEMENT B: The International Marketing Strategic planning process must be systematic and continuous, and it must continually reevaluate objectives in light of new opportunities and potential threats

Both statements are true.

STATEMENT A: Corruption laws are designed to prevent multinational corporations from using unethical means to obtain competitive advantage in a particular market. STATEMENT B: According to the U.S. Foreign Corrupt Practices Act, it is illegal for companies and their representatives to bribe government officials and other politicians or candidates to political office.

Both statements are true.

STATEMENT A: In many cultures, a contract may have little value, while someone's word or a handshake may be fully reliable. STATEMENT B: EDI relationships are possible primarily if the firms have the appropriate resources and trust their local partner with the information

Both statements are true.

STATEMENT A: Protectionism policies are typically a major component of populist governments. STATEMENT B: Tariffs are taxes that are imposed on goods entering a particular country

Both statements are true.

1. A(n) ____ is initiated as the result of an action group calling for a ban on consumption of all goods associated with a particular company and/or country.

Boycott

1. The International Monetary Fund and the World Bank were created as a result of the

Bretton Woods Agreement

1. Which level of international strategic planning makes decisions about which consumer segments to target in each country, and how to target them?

Business unit strategic plans.

1. Calculating "miles per gallon" or "liters used per 100 kilometers" correctly in a cross-cultural marketing research survey is an example of:

Calibration equivalence.

1. Which of the following is NOT part of the culture definition we went over in class?

Culture is concrete

In the Rostow Modernization Model, countries in the ______ stage are characterized by the adoption of technology in all the sectors of the economy.

Drive to maturity

1. Steel factories in Eastern Europe are huge, have many employees, and thus Eastern European governments are reluctant to allow competitors from high-income countries to bring their own steel into their countries because that would mean that these employees will lose their jobs. Which protectionist argument are the respective Eastern European governments making?

Employment protection.

Which of the following is NOT an example of a strategy used specifically to minimize the effect of the self-reference criterion?

Engaging in foreign exchange restrictions

1. Which of the following is NOT an example of a formal control?

Establishing frequent contact and a close relationship between the home-country headquarters and respective regional office.

A firm with a(n) _____________ orientation believes that domestic strategies, techniques, and personnel are superior to foreign ones.

Ethnocentric

1. Which of the following is a pricing strategy that can be used to counter parallel imports or gray trade?

Ethnocentric pricing.

1. Which of the following is a form of licensing that is a principal mode of entry for the service industry?

Franchising.

1. The first level of integration involves establishing

Free trade agreements

1. Jean-Marie Sautier of Montpelier, France, had been transferred to the Lansing, Michigan headquarters of NDW. He was supposed to spend three years learning from HQ before returning to Paris, but his wife, Agnes, had a terrible time dealing with American culture (particularly the cuisine), superficial lifestyles and the Michigan winters. On top of that, the scope of Jean-Marie's job was substantially larger than in Paris and he was not accustomed to the American workstyle. For the first time in his career, he had failed to meet his quarterly goals and objectives. He felt like Americans lived to work and spent all of their free time in the office. Though well compensated for his efforts, he did not like spending eighty hours a week at work. Also, in France, it was normal to use all of his vacation time, but in the U.S., his co-workers took pride in their number of unused vacation days. On top of everything else, his thick French accent made communication with co-workers difficult. Eighteen months after arriving in Lansing, Jean-Marie requested a transfer back to the Paris office. He felt like he had failed in his expatriate assignment and wondered what repercussions this failure would have on his career with NDW. Which of the following reasons does NOT describe Jean-Marie Sautier's apparent failure?

Fulfillment of business objectives

1. This staffing approach focuses on finding the most suitable managers, regardless of nationality. It creates a corporate-wide culture and identity for a geographically dispersed MNE. The top manager us usually a mix of PCN, HCN or TCN managers. What approach to international staffing is this?

Geocentric staffing.

A firm engaging in ___________ marketing has the highest commitment to international marketing and does not focus primarily on national or regional segmentation.

Global Marketing

1. The advantages of this compensation approach include creating equity with local nationals, simplicity, and identification with the host country. The disadvantages include variation between assignments for the same employee, variation between expatriates of the same nationality in different countries and potential re-entry problems. To which staffing approach do the above descriptions refer?

Going rate approach.

2) ______ are laws in the company's home country.

Home-country laws

1. Which of the following is NOT one of the world's five largest retailers (excluding online retailers)?

Ikea

1. This is an advertising campaign that enhances perceptions of a company in a given market by creating a positive impression on the target consumers.

Image advertising.

These are home-country agents who represent a certain manufacturer on a commission basis for a particular deal

Manufacturer's export agents

During the ___________stage of the international product life cycle the core product is likely to achieve a standard in a particular industry and firms increasingly compete on price.

Maturity

1. Which of the following is NOT an example of a home-country intermediary?

Merchant middlemen.

1. n the luxury market segments example in the lecture video, elitist, democratic, and distance were examples of:

Micro-segmentation.

1. In the future of marketing, what is likely to happen?

Microtargeting

1. Which of the following countries is a likely candidate for future EU expansion?

Moldova

1. Which of the following is issued on a discretionary basis and used to restrict imports of a given product?

Nonautomatic import license

1. What is the "silent language?"

Nonverbal communication.

1. Which of the following is a definition of exploratory research?

Research conducted early in the research process that helps further define a problem or identify additional problems that need to be investigated.

1. This global segment is predominantly female (men are less than 10% of the market), aged between 30 and 55 years, in the middle class around the world, most (60%) live with a spouse or significant other and 60% consider themselves to be feminists. What is the product this global segment purchases?

Romance novels.

STATEMENT A: The United States constitutes one of the most important target markets in the world, consuming a high percentage of worldwide products and services, but it is losing its dominant position. STATEMENT B: Only companies from large countries are able to achieve global market dominance, due to their large home market.

Statement A is true, statement B is false

1. STATEMENT A: Culture consists of words, actions, and behaviors. STATEMENT B: Nonverbal communication accounts for only a small portion of communication.

Statement A is true, statement B is false.

1. STATEMENT A: Governments of low- and medium-income countries prefer joint ventures as an entry mode, because they encourage the development of local expertise, the development of the local market and the improvement in the country's balance of trade. STATEMENT B: Wholly-owned subsidiaries have the highest levels of risk but the lowest levels of control.

Statement A is true, statement B is false.

1. STATEMENT A: In 1982, the U.S. Congress passed the Export Trading Company (ETC) Act to encourage the formation of export trading companies to promote U.S. exports and to facilitate the formation of export intermediaries. STATEMENT B: Merchant middlemen bring buyers and sellers together but do not carry title to and take possession of the products they deal with.

Statement A is true, statement B is false.

1. STATEMENT A: Questionnaires that will be used across multiple countries and cultures should be extensively pre-tested, translated and back translate to insure accuracy, and should be much longer in high context cultures to establish a proper context for the questions. STATEMENT B: Conceptual equivalence refers to the comparability of units of measurement.

Statement A is true, statement B is false.

1. STATEMENT A: Success in sales in one culture is no guarantee of success in another culture. Sales is the least global component of the international marketing mix. STATEMENT B: Low context cultures use extensive nonverbal information to convey the message.

Statement A is true, statement B is false.

1. STATEMENT A: The EU Commission is capped at 27 commissioners, regardless of enlargement. STATEMENT B: The EU Commission is spread across three cities: Brussels, Belgium; Strasbourg, France; and Luxembourg City, Luxembourg.

Statement A is true, statement B is false.

1. STATEMENT A: The rationale for standardization is that it is cheaper to have the same product and communication strategy worldwide. STATEMENT B: Ethnocentric consumers prefer to purchase foreign-made products - they consider products from their own country as inferior.

Statement A is true, statement B is false.

STATEMENT A: Confiscation refers to the seizing of company assets and/or investors' assets without any compensation. STATEMENT B: Code law is based on prior court rulings (legal precedent).

Statement A is true, statement B is false.

1. STATEMENT A: A global campaign is a worldwide standardized advertising campaign that is tailored to local needs. STATEMENT B: Trade shows and exhibitions are usually held annually in formats where companies purchase exhibit space to display and demonstrate their offerings to the target market.

Statement B is true, statement A is false.

1. STATEMENT A: In a high-context culture, what is said is precisely what is meant. STATEMENT B: Culture is the key determinant of the manner in which individuals do business, or respond to a company's marketing strategy.

Statement B is true, statement A is false.

1. STATEMENT A: In a matrix structure, each operational unit reports only to region/country managers. STATEMENT B: The Internet and related technologies have expanded the realm of international marketing and dramatically increased access to new markets.

Statement B is true, statement A is false.

1. STATEMENT A: Non-mechanical fieldwork should usually be done on a global basis by researchers in the home country. STATEMENT B: National equivalence, cultural equivalence and population equivalence refer to sampling.

Statement B is true, statement A is false.

1. STATEMENT A: The Council of Ministers, the Council of the EU, the Council of Europe, and the European Council are all referring to the SAME European Union institution. STATEMENT B: The European Parliament is the only democratically elected institution in the European Union.

Statement B is true, statement A is false.

1. STATEMENT A: The letters W, J, R, and L are frequently used as the first letter of a global brand name. STATEMENT B: Names starting with plosives (the letters B, C, D, G, K, P, T) are easier to remember than names not starting with plosives.

Statement B is true, statement A is false.

1. STATEMENT A: The textbook treats countertrade as a pricing issue, but in this class, it is more of a distribution issue. STATEMENT B: Direct selling involves contacting a person at home or at work, demonstrating the product, taking orders and delivering the merchandise.

Statement B is true, statement A is false.

1. STATEMENT A: U.S. marketing research assumes slow messages, high context, polychronicity, face, high power distance and high uncertainty avoidance. STATEMENT B: International marketing research is the systematic design, collection, recording, analysis, interpretation, and reporting of information pertinent to a particular marketing decision facing a company operating internationally.

Statement B is true, statement A is false.

STATEMENT A: The traditional society stage of economic development in the Rostow model is characterized as dominated by manufacturing. STATEMENT B: According to the World Bank, countries are classified in three groups: high-income, middle-income, and low-income.

Statement B is true, statement A is false.

1. Effective international marketing segmentation requires all of the following EXCEPT:

Sustainability: the effort of maintaining international marketing campaigns over time.

1. ________________________ involves buying a party's position in a countertrade in exchange for hard currency and selling it to another customer.

Switch trading

1. Which of the following is NOT a challenge to international distribution and logistics?

System approaches

1. Based on the chapter 12 video lecture, which of the following international advertising campaigns consists of identical advertising without language localization?

The Cartier advertising campaign.

1. To what does the "Democratic Deficit" refer?

The gap between the democratically elected EU Parliament and the appointed Commission and Council of the EU.

1. If you are "polychronic," which of the following statements is most likely to be true?

The person is more important than the task.

1. Geert Bonsaert of Rotterdam, in the Netherlands, has been transferred to NDW's Shanghai subsidiary. Previously, he has been managing NDW's Dutch operations in Amsterdam. NDW has its headquarters in Lansing, MI, USA. What kind of employee is Geert?

Third country national.

1. While some thought father knew best, Vic Mills believed grandfathers knew even more. Mills (who just happened to work for Procter & Gamble) looked for an easier way for his grandson to wear diapers. His daughter would have to rinse out soiled cloth diapers in the toilet and he found the how process distasteful. The result - Pampers diapers were born. Though they sold well in the 60's and 70's, pampers really took off in the 1980s and were exported globally. In Japan, a densely populated country with small boutique shops, the large, bulky diapers developed by Mills were impracticable, as they took up too much shelf space. Thus, the diapers were re-engineered to be much less bulky to take up less space in the small Japanese boutiques. The newly redesigned, thinner diapers were so successful in Japan that P&G launched them in the U.S., then Europe, then worldwide. They learned from the Japanese market and marketed the new innovation globally. What is the implied strategy in this scenario?

Transnational strategy.

1. Which of the following is a major implication of a still-growing but soon-to-be reversing global population growth?

Will stalling population growth lead to economic decline?

1. With respect to direct exporting, which of the following is TRUE?

With direct exporting, the firm itself handles the exporting function, usually with its own in-house export department.

1. Who said, "It's hard to make predictions, especially about the future?"

Yogi Berra.

I need €1,000,000 six months from today so I make a forward transaction for delivery in six months. The spot rate is currently €1=$1.18, but the dollar is predicted to weaken against the euro. I decide to purchase my euros at the €1=$1.18 rate. When the €1,000,000 are delivered six months later, the spot rate is €1=$1.39. This is an example of:

a currency hedging strategy.

1. Products that are low-volume and low-weight but high-value, such as jewelry and electronics are transported by __________.

air.

1. Subaru, Sony, and Lego are examples of brands that use:

basic consonant and vowel units.

1. With this segmentation strategy, companies identify market segments that want different benefits from a product and target them with different brands using the appropriate marketing strategies. This is known as a ______________ segmentation strategy.

differentiated

1. A joint venture :

involves a foreign company that helps create a new company, usually in conjunction with a local company.

1. Marginal profit

is the amount in excess of variable costs.

1. General Mills manufactures and distributes Cheerios breakfast cereal in North America. But in Europe, Africa, Asia and other markets, Nestle is the brand name on the box of Cheerios, because the Nestle corporation has the international marketing expertise, manufacturing facilities and channels of distribution that General Mills lacks. General Mills enters into a contractual agreement with Nestle to market Cheerios outside of North America in exchange for royalties on each box of Cheerios sold. This is an example of:

licensing.

1. Television is an example of a ___________________________ medium.

nonpersonal

1. Entrepreneurs buy the new product where it is available cheaply, often at retail but sometimes at wholesale, and import it legally to the target market. They then sell it at a price high enough to provide a profit, but lower than the normal market price. This is an example of:

parallel imports or gray trade.

1. In the global market, high price does not always mean high quality. It may simply mean that

the product is an imported product rather than a domestic product.

1. The best mode of transportation for transporting over long distances high-weight, high-volume products that have a low-per-pound value, such as grains, gasoline, forestry products, cement, and fertilizers is:

water