Ch.8
Celia's firm has developed a breakfast cereal targeted toward children. Rather than compete in the mature U.S. market, she has decided instead to introduce the product in Europe, where she feels it will be innovative. Her advertising agency urged caution because A. advertising regulations differ in other countries, including advertising to children. B. print media are different in Europe, and it would be difficult to create a global campaign. C. literacy rates are significantly lower in Europe, and print ads would be ineffective. D. research indicates that European children do not eat breakfast as often as American children. E. domestic advertising agencies cannot earn commissions on advertising they place overseas.
A
China has three main languages, and many more dialects. This presents a particular challenge to developing a global ________ strategy. A. communication B. product C. cultural D. distribution E. pricing
A
Cory is working on a global marketing assessment team looking out well into the future to help determine the most attractive market areas around the world. He is evaluating market sizes and growth rates. Based on population growth rates in different regions, he should consider that A. countries with high purchasing power today may not continue to show the same growth in the future. B. the United States and Western Europe will have dramatic increases in population growth leading to overcrowding. C. the middle class in India will continue to shrink as the rich get richer and the poor get poorer. D. in places like India, urban population centers will become increasingly unattractive and the rural areas will experience major growth in population. E. the global population is expected to grow at staggering rates indefinitely.
A
Franco, a former retailer, has been living in the United States for five years and wants to start a business. He does not have an existing firm or a product, and he doesn't have a lot of capital, but since he loves McDonald's food, he decides to A. open a McDonald's franchise. B. directly invest in McDonald's. C. export McDonald's products to other countries. D. form a strategic alliance with McDonald's. E. form a joint venture with McDonald's.
A
Generally, firms entering foreign markets begin with A. less risky strategies first. B. direct investment. C. importing. D. decentralized production. E. the riskiest, but most profitable endeavor.
A
Gerald is assessing global entry strategies for his gourmet sandwich business. He does not want to take a lot of risk and he is willing to limit his control of international stores. Gerald will most likely use a(n) __________ strategy. A. franchising B. exporting C. joint venture D. direct investment E. strategic alliance
A
Global marketers typically find distribution in developing countries is more complex because A. they must go through many different types of distribution channels. B. distribution is more heavily regulated in developing countries. C. most consumers in developing countries live in densely populated cities. D. the infrastructure is more advanced in most developing countries. E. consumers in developing countries have very specific preferences.
A
Global segmentation, targeting, and positioning (STP) are more complicated than local STP, in part because A. consumers may view their roles differently in different countries. B. there are fewer franchising opportunities in global markets. C. global consumer markets are almost totally homogeneous, making segmentation difficult. D. most governments have rules against targeting consumers. E. positioning almost always fails when attempted in a foreign country.
A
Graham had developed an extremely successful advertising and promotion campaign for a client in the United States. The client wanted to roll out the same campaign to markets worldwide, but Graham cautioned against doing this, most likely because A. differences in languages, customs, and culture might make the campaign meaningless and ineffective in some markets. B. copyright and intellectual property concerns prevented him from wanting to share his good ideas outside of the U.S. market. C. he had not applied for or received international certification that was required for working outside the United States. D. he was unfamiliar with the code of ethics for advertising in other countries. E. he did not have the budget for a global rollout.
A
In China, state control of media is high, so companies are challenged to find ways to get their message to customers. This demonstrates one of the difficulties in crafting a global ________ strategy. A. communication B. product C. cultural D. distribution E. pricing
A
Manufacturers would prefer to produce in a country with a trade __________, because it signals a greater opportunity to export products to more markets. A. surplus B. deficit C. discrepancy D. bonus E. balance
A
Many of the best-known American retailers, like Starbucks and McDonald's, have contractual agreements with another firm or individuals, allowing its businesses to operate overseas. These companies expanded globally using A. franchising. B. exporting. C. joint ventures. D. direct investment. E. strategic alliances.
A
Marketers considering operations and trade with a specific country must consider whether or not the country belongs to a trading bloc. A trading bloc is a group of countries A. that have established a formal agreement to manage trade activities. B. using the same currency. C. with similar cultural shopping patterns. D. located next to each other. E. with similar political views.
A
Tariffs protect domestic producers by A. making imported products more expensive. B. increasing brand recognition. C. reducing the cost of production. D. offering subsidies to exports. E. avoiding regulation.
A
The components of a global market assessment include all of the following except A. ethnic analysis. B. infrastructure and technological analysis. C. analysis of government actions. D. sociocultural analysis. E. economic analysis.
A
Unilever discovered that people in emerging economies could not afford to buy standard sizes of toothpaste or shampoo, so Unilever started selling single-serve packets at very low prices. Later, Unilever discovered that the same approach worked in the United States and started also selling them there. This is an example of A. reverse innovation. B. glocalization. C. ethnic sensitivity. D. promotional flex. E. unethical marketing practices.
A
When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as A. exporting. B. franchising. C. a strategic alliance. D. a joint venture. E. direct investment.
A
When entering into a franchise agreement, what term is used to refer to the firm that is granted the right to operate a business using the franchise name and business concept? A. franchisee B. franchisor C. franchise agent D. franchise partner E. franchised owner
A
When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of A. a tariff. B. a boycott. C. overseas consolidation. D. globalization. E. franchising.
A
When the value of the dollar declines in relation to other currencies, it benefits U.S. marketers who A. export goods to other countries. B. import goods from other countries. C. engage in countertrade. D. enforce import quotas. E. outsource labor.
A
Which of the following best describes the direct investment global entry strategy? A. With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country. B. Direct investment occurs when a firm enters a new market by pooling its resources with those of a local firm to form a new company in which ownership, control, and profits are shared. C. Direct investment refers to depositing payroll funds in a foreign bank. D. Direct investment designates the maximum quantity of a product that may be brought into a country during a specified time period. E. Direct investment occurs when a producer sells its offering in a foreign market at a price less than its production cost.
A
Which of the following is a potential negative factor for foreign investment in China? A. China's population is aging rapidly. B. China drastically restricts the goods it allows U.S. companies to export to China. C. China's standard of living has dropped over the past 30 years. D. China has imported fewer goods from the United States each year for the past decade. E. Chinese consumers are not interested in purchasing products from the United States.
A
Which of the following is one of the global entry strategies? A. direct investment B. countertrade C. offshoring D. infrastructure development E. trade agreements
A
Which of the following statements regarding global segmentation, targeting, and positioning is true? A. Companies must continually adjust products and marketing strategies to meet the changing needs of global markets. B. Global segmentation, targeting, and positioning activities are far less complicated than the same activities in the domestic market. C. When developing a global STP strategy, it is best to define segments by geography alone. D. Segmentation, targeting, and positioning activities for global markets do not differ substantially from that of domestic markets. E. The "golden rule" for global STP activities for firms is to never alter a firm's marketing mix to serve the needs of global markets.
A
Which of the following trade agreements is designed to manage and promote trade activities for the United States, Canada, and Mexico? A. NAFTA B. EU C. CAFTA D. Mercosur E. ASEAN
A
According to Hofstede's cultural dimensions concept, which BRIC country posts notably high scores in the dimensions of uncertainty avoidance and power distance? A. Brazil B. Russia C. India D. China E. Iran
B
As part of efforts to stimulate economic development in Africa, the Gates Foundation announced that it would provide cellular phones to farmer cooperatives. The Gates Foundation recognized that problems in __________ exist in many African markets. A. transportation B. communication C. distribution D. commerce E. population
B
Chris is gathering information about the general economic environment in Nepal. In doing so, he will look for information about the general economic environment, market size and population growth rate, and A. culture. B. real income. C. airport capabilities. D. political status. E. religious institutions.
B
Cultural nuances, subcultures, and consumers' different views of their roles in different countries can make __________ complicated. A. purchasing power parity B. segmentation, targeting, and positioning C. trading bloc coordination D. exchange control planning E. reducing trade surpluses
B
Gandolph's Tires sells the same tire globally, but it uses different advertisements based on the country and culture. This is an example of A. cultural shift. B. glocalization. C. ethnic sensitivity. D. promotional flex. E. unethical marketing practices.
B
Geert Hofstede's cultural dimensions concept focuses on six dimensions of __________ in a country. A. symbols B. underlying values C. buying patterns D. personality E. visible artifacts
B
Global businesses often find it particularly difficult to understand the __________ of a country's culture. A. symbols B. underlying values C. ceremonies D. exhibited behavior E. visible artifacts
B
Global expansion often begins with A. franchising. B. exporting. C. joint ventures. D. direct investment. E. strategic alliances.
B
In most cases, countries use tariffs to reduce foreign competition, but tariffs are also used A. to shorten supply chains. B. as a response to perceived unfair trade practices. C. to offer domestic discounts. D. to stimulate consumer demand. E. as a way to equalize quotas.
B
Mary wants to sell her products in Europe, since they are doing well in the United States. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with A. opening a franchise. B. exporting her products. C. forming a strategic alliance with another company. D. entering a joint venture with a local firm. E. making a direct investment in another country.
B
Of the five strategies for entering new markets, direct investment creates the A. least investment cost. B. greatest potential risk. C. most franchisee control. D. best opportunity for strong strategic alliances. E. greatest coordination of efforts of global and local partners.
B
Once a firm has done an analysis of the most viable markets for its products, then it must next A. determine the competition and develop strategies to overcome it. B. conduct an internal assessment of its capabilities. C. conduct an external analysis of the target market's economy, culture, and regulatory barriers. D. develop a product to meet the needs of those markets. E. achieve success with the product in its home market.
B
One Laptop Per Child is a nonprofit initiative with the goal of making extremely low-cost laptops available to children in the developing world, with the goal of helping them learn skills needed in today's workforce. If some of the low-cost technology developed for this laptop found its way into laptops created for U.S. consumers, this would be an example of A. glocalization. B. reverse innovation. C. franchising. D. a strategic alliance. E. purchasing power parity.
B
Tariffs, quotas, and currency exchange policies affect global A. offshore product design. B. pricing strategies. C. advertising. D. logistics. E. promotion.
B
The Big Mac Index is a novel measure of A. GDP. B. purchasing power parity. C. per capita GNI. D. economic growth. E. international trade surplus.
B
The most common measure of market potential of an economy is a country's A. GNI. B. GDP. C. PPP. D. CPI. E. APR.
B
The shift of population from rural to urban areas in countries such as India helps global marketers by A. decreasing pollution. B. simplifying the supply chain needed to make goods and services available. C. increasing the human development index. D. decreasing competition for intellectual capital. E. increasing nonmaterial GDP output.
B
Today, many developed countries are experiencing __________ population growth. A. slight B. zero or negative C. rapid D. moderate E. significant
B
When Ben evaluated the commercial infrastructure in Mauritius, he considered the island's A. population control measures. B. legal, banking, and regulatory systems. C. retailing capabilities. D. per capita income estimates. E. climate and culture.
B
When entering a foreign market, the least risky strategy is A. franchising. B. exporting. C. joint venture. D. direct investment. E. strategic alliance.
B
Which of the following are the two components of a global marketing strategy? A. understanding foreign currency fluctuations and developing products that can be priced accordingly B. determining which target markets to pursue and developing a marketing mix to obtain a competitive advantage C. understanding the supply chain and distribution networks in foreign markets D. developing culturally appropriate advertising messages and cultivating "domestic" habits among foreign consumers E. adapting to foreign regulations and targeting as many people as possible
B
Which of the following is currently a negative factor for foreign investment in India? A. India's population is fairly old and aging fast. B. India's infrastructure for supply chain management is not up-to-date. C. India prevents foreign investors from entering into joint ventures. D. India has no shopping malls or other large commercial centers. E. India lacks a skilled workforce.
B
Which of the following is not one of Hofstede's cultural dimensions? A. power distance B. certainty assurance C. masculinity D. individualism E. time orientation
B
Which of the following statements best describes global expansion through a strategic alliance? A. In a strategic alliance, a firm enters a new market and forms a new company with shared ownership, profits, and control. B. A strategic alliance is a relationship in which two firms collaborate on a business opportunity, but do not invest in each other. C. In a strategic alliance, two firms enter into a franchise agreement. D. In a strategic alliance, a firm in one country sends products to a firm in another country. E. In a strategic alliance, a firm signs a trade agreement with a firm in another country.
B
Which of these trade agreements represents the highest level of integration among participating nations? A. NAFTA B. EU C. GNI D. ASEAN E. CAFTA
B
With a median age of 36.3 years, ________ is one of the most rapidly aging countries in the world. A. Russia B. China C. Brazil D. India E. Chile
B
As noted in your text, global segmenting, targeting, and positioning are more complicated than domestic segmenting and positioning because of cultural nuances, significant subcultures within countries, and A. currency differences. B. antidiscrimination regulations prohibiting segmentation and targeting in developing countries. C. differences in the way consumers see themselves and in the way they see products and services. D. complications due to franchising issues. E. the taxes imposed by some foreign countries on marketing activities.
C
Changes in tariffs and quotas are A. business actions stimulating imports. B. corporate strategies designed to maximize profits. C. government actions that reduce competition from international firms. D. efforts to stimulate choices among government agencies. E. a means of slowing outsourcing.
C
DP is defined as A. the value of a country's exports minus its imports. B. the difference between two country's exchange rates. C. the market value of goods and services produced in a country in a year. D. national income minus national taxes. E. the gross purchasing power of domestic goods and services plus international income.
C
Ford Motor Company decided to sell the Fiesta around the globe. Which of the following would be an example of glocalization of the Fiesta? A. The same product design and features, and the same basic promotional campaign, used in all countries. B. Variations in the product design country by country, with the same basic promotional campaign used in all countries. C. The same product design and features in all countries, with variations in the promotional campaigns country by country. D. Variations in the product design and the promotional campaign country by country. E. The same marketing mix for all of the four Ps used in all countries.
C
Global pricing strategies should strive to be consistent with A. offshore distribution facilities. B. the cost of materials. C. positioning strategies. D. domestic pricing. E. trade surplus guidelines.
C
India, like some other countries, may require entering firms to create _________ when expanding into their markets, limiting outsiders' control of businesses. A. franchises B. export promotions C. joint ventures D. direct investments E. strategic alliances
C
The most important consideration when a firm chooses a global product strategy should be A. opportunities for countertrade. B. the effectiveness of the marketing team. C. the needs of the target market. D. the overall cost of the strategy. E. WTO regulations.
C
When a firm pools its resources with that of a local firm to enter a new market, they create a(n) A. franchise. B. export promotion. C. joint venture. D. direct investment. E. strategic alliance.
C
Which country has a large literate population which has helped it move up to become the world's seventh largest economy? A. Russia B. China C. Brazil D. India E. United States
C
Which country's government has recently made significant changes that will modernize the retail environment, such as allowing joint ventures and direct ownership in some cases? A. Brazil B. Russia C. India D. China E. Mexico
C
Which of the BRIC countries has one of the youngest populations in the world and is increasingly adopting global attitudes? A. Russia B. Brazil C. India D. Italy E. China
C
Which of the following global entry strategies is being used if a company collaborates with a competitor on a globally based opportunity for mutual benefit, but the competitors do not invest in each other? A. franchising B. joint venture C. strategic alliance D. direct investment E. equity partnership
C
Which of the following is currently a negative factor for foreign investment in Russia? A. The Russian population is poorly educated. B. Russian consumers have little interest in online shopping. C. Russia is known for corruption, creating ethical dilemmas for firms. D. Russian consumer markets are saturated, offering few opportunities for goods from U.S. companies to sell well. E. Few Russians have access to the Internet due to heavy regulation.
C
Which of the following is not one of the major trade agreements affecting global marketing? A. NAFTA B. EU C. GNI D. ASEAN E. CAFTA
C
Which statement about India's population is true? A. With a median age of 61, India has one of the oldest populations in the world. B. India's young people mostly live in rural areas in large families. C. India's workforce is highly skilled, particularly in technology. D. India claims more than 25 percent of the world's population. E. Most Indian citizens shop in large retail outlets.
C
Your text notes that global markets are the result of several fundamental changes. Which of the following is not one of those changes? A. reductions or eliminations of trade barriers by governments B. decreasing concerns of distance and time with regard to moving products across countries C. declining fuel costs allowing cost-effective shipping to global markets D. the standardization of laws across borders E. globally integrated production processes
C
hy should marketers be aware of the BRIC countries? A. They are a microcosm of the rest of the world. B. They represent almost half the world's population. C. They are likely to be the source of most market growth. D. They have the most dramatic changes in culture and consumer buying patterns. E. They have stable population growth, which makes them easier to study. The four BRIC nations are likely to be the source of most market growth
C
Brands can be extremely valuable domestically, but challenging internationally. Companies can help overcome language difficulties in using brands by A. keeping the brand name the same in all languages, regardless of meanings, as long as the brand logo and symbol are displayed prominently. B. avoiding the use of the brand name in advertising and focusing on features and benefits. C. translating advertising copy for the entire ad except the brand name. D. developing brand names that have no preexisting meaning in any known language. E. adhering to the UN Convention on Naming Rights.
D
Changes in _________ have been a driving force for growth in global markets for decades. A. infrastructure B. demographics C. population D. technology E. ethical standards
D
Core Publishing Company learned that when selling overseas, local fulfillment can be more cost-effective, and it also can decrease delivery time and improve customer service. This is an example of a global _________ strategy. A. communication B. product C. promotion D. distribution E. pricing
D
Domestic firms developing a global entry strategy might consider franchising; however, the disadvantages need to be considered. Which of these is not a disadvantage of franchising? A. The franchisor has limited ability to ensure that foreign operations follow all the concepts and ideas that made the firm successful domestically. B. The franchisee might end up becoming a competitor. C. Franchising limits profit potential, since profits will have to be split with the franchisee. D. Franchising is the riskiest way to enter a foreign market. E. All of these are disadvantages a firm must consider. Franchising is actually among the lower-risk global expansion strategies
D
Gross national income equals GDP A. minus net consumer spending. B. plus government spending on international trade. C. minus purchasing power parity. D. plus the net investment income earned from abroad. E. plus gross domestic international investment.
D
Marketers sometimes use Hofstede's cultural dimensions to design marketing campaigns A. with low individualism symbolism when confronted with a time-oriented culture. B. that use uncertainty avoidance to reduce power distance. C. with significant power distance. D. consistent with underlying cultural values in a country. E. with more consistent time orientation.
D
NCD Company wants to expand into the Mexican market. It has the financial resources, wants to control business operations, and had considerable success marketing to Hispanics in the United States. NCD will likely use __________ to expand into the Mexican market. A. franchising B. exporting C. a joint venture D. direct investment E. a strategic alliance
D
Sydney's Emporium has 59 stores in the United States and wants to expand globally. Sydney's wants to achieve the highest possible returns, and is not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Sydney's is most likely A. exporting. B. a strategic alliance. C. a joint venture. D. direct investment. E. franchising.
D
The United States imports more goods from China than it exports to China. This is known as A. gross national income (GNI). B. a trade surplus. C. gross domestic product (GDP). D. a trade deficit. E. an import imbalance.
D
When considering global marketing opportunities in Bangladesh, Tom asked the question, "How will we get it there?" Tom is concerned about __________ capabilities in Bangladesh. A. production capacity B. pricing C. advertising D. infrastructure E. cultural
D
Which country has a rapidly aging population due to its one-child policy? A. Brazil B. Russia C. India D. China E. Japan
D
Which country has embraced market-oriented economic development in spite of maintaining communist political ideals? A. Brazil B. Russia C. Iran D. China E. Afghanistan
D
A __________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products. A. tariff B. duty C. trading bloc D. trade agreement E. quota
E
According to purchasing power parity theory, if __________ is(are) in equilibrium, products will cost the same in each country. A. imports and exports B. consumer spending C. interest rates D. domestic products E. exchange rates
E
Culture affects A. how consumers decide to make their purchases. B. what consumers decide to purchase. C. when consumers decide to make their purchases. D. where consumers decide to make their purchases. E. every aspect of consumers' purchase decisions.
E
Exchange control refers to the regulation of a country's A. comparative inflation rate. B. countertrade exchange. C. quota rate of exchange. D. exchange tariffs. E. currency exchange rate.
E
Global marketers are under constant pressure to shorten distribution channels in order to A. improve promotion efficiency. B. reduce trade deficits. C. afford tariffs. D. meet trade agreement guidelines. E. reduce costs.
E
If you visit a Kentucky Fried Chicken restaurant in China, along with KFC's regular menu items, you will find congee, a rice porridge that can feature pork, pickles, mushrooms, and preserved egg, on the menu. This is an example of which global product strategy? A. Sell the same products in both the home country market and the host country. B. Sell only products native to the home country. C. Sell a product similar to that sold in the home country, but include minor adaptations. D. Sell only products native to the various global markets. E. Sell totally new products or services.
E
The term trade deficit refers to A. a country that exports more goods than it imports. B. an indicator of the quality of life in a country. C. a level of population growth that impacts exports. D. the sum of all goods and services handled in a country. E. higher levels of imports than exports.
E
To determine the market potential for its particular product or service, a firm should use A. GDP data. B. unemployment data. C. purchasing power parity data. D. inflation data. E. as many metrics as it can obtain.
E
What do the BRIC countries have in common? A. They participate together in a trading bloc. B. They have suffered more than most other countries in the recent recession. C. They are Asian countries experiencing explosive population growth. D. They are the four countries known for the highest levels of bribery in business and government. E. They are experiencing significant levels of economic growth.
E
When Ford Motor Company decided to sell the Fiesta—in the same form and design—around the globe, instead of selling different versions in different countries, this was part of Ford's global ________ strategy. A. communication B. pricing C. distribution D. exchange E. product
E
Which country is Europe's largest Internet market, with Internet users growing at a rate of 14 percent annually? A. Great Britain B. Spain C. France D. Germany E. Russia
E
Which of these is not one of the BRIC countries? A. Bulgaria B. Russia C. India D. China E. These are all BRIC countries.
E
Economic measures like GDP and GNI do not fully account for a country's economic health because they measure only A. material output. B. international trade. C. global expectations. D. purchasing power parity. E. poverty potential.
a
Globalization refers to the processes by which goods, services, capital, people, information, and ideas A. are onshored and offshored. B. flow across national borders. C. are integrated through IMF facilitation. D. are similar in various markets. E. affect corporate culture.
b
Chris laughed at some of the cultural mistakes companies made in advertising and promotion in international trade while he was in school. Now he was trying to determine what had gone wrong with the campaign he had planned in Latin America for his company's product, and it didn't seem quite as amusing. He narrowed the issues to sociocultural factors. He was looking at both __________ and __________. A. product uses; currency rates B. language; trading blocs and social structure C. potential tariffs; symbols D. visible artifacts; underlying values E. verbal communication; logistics
d
