Chapter 21-Tapping Into Global Markets

"When innovation at Siemens enables the company to offer solutions that can make the generation of hydroelectricity more environment-friendly, the company will want to reap the benefits of being the first to introduce such a product across countries. In this case, which of the following approaches is likely to be the best approach to entering foreign markets? "

*c the born global approach

"A2Z Inc. is a producer of a huge variety of consumer goods, from soaps to shower gels, and shampoos to detergents. It is a market leader in the United States and is planning to tap the immense potential in the emerging markets. Market research, however, indicates that the Brazilian culture and society are substantially different from their American counterparts. If the company wants to target the masses, which of the following options is most likely to succeed?"

A2Z can introduce smaller ""sachets"" of shampoos and detergents that are priced lower.

"""BRIC"" is an acronym for ________."

Brazil, Russia, India, and China

Which of the following is a risk that firms must consider prior to expanding abroad?

The foreign country's business culture may be too different from the domestic country.

Which of the following causes a difference between marketing in the developed countries and marketing in the developing countries?

There are substantial cultural differences between the developed and the developing world.

Zodiac Inc. is one of the leading producers of designer bags in its country. The company is considering shifting some of its production to India. Which of the following could have prompted this move?

Zodiac can improve its market share if it can offer better prices than its competitors.

Domestic-based export merchants ________.

buy manufacturers' products and then sell them abroad

A standardized marketing mix involves ________.

consistently using the communication and distribution channels that entail the lowest costs

"Companies typically start their international foray with ________, which involves working through independent intermediaries who sell their products abroad."

indirect exporting

Which of the following is the first stage of the internationalization process that can induce firms to enter the international arena?

no regular export activities

Domestic-based export agents perform a valuable service for companies seeking to enter foreign markets. The primary function of these agents is to ________.

seek and negotiate foreign purchases for a commission

"In collectivist societies, ________. "

the self-worth of the individual is rooted more in the social system than in individual achievement

"A2Z Inc. is a producer of a wide variety of consumer goods in Brazil. It has successfully captured a huge share of the domestic market and has been able to create a very strong brand. It is now considering a foray into foreign markets. Its board of directors decide to first try out some of its products in the neighboring country of Argentina. A2Z plans to eventually expand its presence in other countries, after they analyze the impact of their entry into the Argentine market. A2Z Inc. is following a ________."

waterfall approach

"WayToGrow Inc. is one of the most popular brand of toys in its home market. The company decides to expand its business abroad and its board of directors feel that instead of trying to establish its presence all at once in multiple markets, it is better to expand one country at a time. This would limit their risk and allow them to analyze customer response, after which they could expand to other similar countries. WayToGrow is following a ________."

waterfall approach

Which of the following is one of Hofstede's four cultural dimensions that differentiate countries?

weak versus strong uncertainty avoidance