PRACTICE TEST; CHPT 19

What are the three ways a company can organize its international operating​ units?

By geographical​ organizations, world product​ groups, and international subsidiaries

In organizing their international marketing​ activities, where do most companies​ start?

By organizing an export department

Which market entry strategy has the greatest amount of​ commitment, risk,​ control, and profit​ potential?

Direct investment

Which of the following statements is true regarding pricing in global​ markets?

For most​ companies, their foreign prices probably will be higher than their domestic prices for comparable products.

In which form of international organization are country managers responsible for​ salespeople, sales​ branches, distributors, and licensees in their respective​ countries?

Geographical organizations

What are the two economic factors that reflect a​ country's attractiveness as a​ market?

Industrial structure and income distribution

What are the four types of joint venture entry​ strategies?

Licensing, contract​ manufacturing, management​ contracting, and joint ownership

Which of the following is true of global​ organizations?

Planning for manufacturing​ facilities, marketing​ policies, financial​ flows, and logistical systems is done on a worldwide basis.

McDonald's offers its signature burgers and fries in most locations around the world.​ However, the chain has added menu items that meet the unique taste buds of customers in local markets. This represents which global product​ strategy?

Product adaptation

Apple​ iPads, Gillette​ razors, and Black​ & Decker tools are all sold successfully in about the same form around the world. This represents which global product​ strategy?

Straight product extension

Which type of industrial structure offers the fewest marketing​ opportunities?

Subsistence economies

What is the simplest way to enter a foreign​ market?

Through exporting

A​ country's industrial structure shapes its product and service​ needs, income​ levels, and employment levels. The industrial structure of countries experiencing rapid overall economic growth fueled largely by increased manufacturing is best described as​ ________ economy.

an emerging

​________, in which the company makes agreements with manufacturers in the foreign market to produce its product or provide its service.

contract manufacturing

To assess the impact of​ ________ on global​ market, sellers must understand the ways that consumers in different countries think about and use certain products before planning a marketing program.

culture

Honda​ Motors' fundamental philosophy is​ "to build automobiles where we​ sell." This philosophy is reflected in the fact that more than​ 90% of all Honda vehicles sold in the U.S. are manufactured in North America. Based upon this​ example, Honda's preferred approach to foreign market entry is​ ________.

direct investment

A firm normally gets into international marketing by simply shipping out its goods. If its international sales​ expand, the company will typically establish​ a(an) ________ with a sales manager and a few assistants.

export department

International divisions are organized in a variety of ways. Using the​ ________ approach, country managers are responsible for​ salespeople, sales​ branches, distributors, and licensees in their respective countries.

geographical organization

Free trade zones can be described as​ ________.

groups of nations organized to work toward common goals in the regulation of international trade

In a​ _________ agreement, a company enters into a contract with a firm in the foreign market under which it buys the right to use the​ company's manufacturing​ process, trademark,​ patent, trade​ secret, or other item of value.

licensing

Global firms must take into consideration factors such as the​ country's attitudes toward international​ buying, corruption, political​ stability, and monetary policies. These factors are all considered part of the​ country's _________ environment.

political-legal

​McDonald's serves salmon burgers in​ Norway, mashed-potato burgers in​ China, shrimp burgers in​ Japan, a Samurai Pork Burger in​ Thailand, chicken porridge in​ Malaysia, and Spam and eggs in Hawaii. This exemplifies the concept of​ ________, which involves changing the product to meet local​ requirements, conditions, or wants.

product adaptation

Chinese appliance producer Haier developed sturdier washing machines for rural users in emerging​ markets, where it found that​ lighter-duty machines often became clogged with mud when farmers used them to clean vegetables as well as clothes. This example illustrates a​ ________ strategy.

product invention

When using the global product strategy of​ ________, companies create something new to meet the needs of consumers in a given country.

product invention