International Marketing chapters 9-11

Market entry through acquisitions is an attractive option when

A market is saturated with competitors

Purchasing and inventory procedures are examples of a service firm's _____ elements.

Back-stage

At Henkel, a brand strategy emerges from shared experiences and best practices among the firm's subsidiaries. Henkel employs a _____ approach to global brand strategy.

Bottom- up

Local assembly or compounding is least appropriate for

Bread

Citibank, Chase, and Bank of America are examples of

Commercial Banks- business services

GlobalNOW is changing its product development strategy. Instead of developing local products, it wants to produce global products. What should the company do?

Consider the unique or special concerns of the company's major markets first before designing the product

According to the text, which is not a typical type of strategic alliance?

Consortium- based alliance

Jill learns her Kate Spade purse she bought in China wasn't made by the Kate Spade company. It was made by a local Chinese company and a Kate Spade label was even sewn into the purse. Jill has bought a(n) _____ purse.

Counterfeit

Jill learns that her Kate Spade purse that she bought in China was not made by the Kate Spade company. It was made by a local Chinese company and a Kate Spade label was sewn into the purse. Jill has bought a _________ purse.

Counterfeit

At McDonald's locations in China, managers regularly go table to table, chatting with customers as they eat their food. McDonald's has adapted to cultural differences in _____.

Customer expectations

Swiss pharmaceuticals is considering entering a lead market. It should look for markets known for their

Demanding customers

Which of the following is not part of the process of developing a global brand strategy?

Develop local brand names/advertising strategies

The Nigerian government decided to host the All-Africa Games in 2003, despite the fact that building costs for a new stadium exceeded $340 million, twice what the government planned to spend on health care for one year. This action was motivated by the Nigerian government's interest in ____.

Enhancing national prestige

LeBlanc enterprises produced high-end purses and scarves for women. It is currently exporting to Brazil through several Brazilian distributors. It now wants to take greater control over the marketing of its products in Brazil. Leblanc Enterprises should

Establish a marketing subsidary

Samer Ali owns a carpet manufacturing company in Egypt. He is deciding which mode of entry to use for entering the relatively small market of Chile. Which would be least appropriate?

Establishing a production facility in Chile

When the value of the euro drops against the US dollar

European products become cheaper in the US

Around the word, all consumers appreciate fast service at restaurants.

False

Attitudes towards waiting in lines are similar across all cultures

False

Marketing services are tangible because they can be stored and readily displayed.

False

Which countries are ideal to enter first? Countries with...

Fast takeoff, strong clout, and low susceptibility

A major goal of the European Union government is to provide full employment and increasing standard of living for its citizens by encouraging foreign investment in the EU and promoting EU exports in foreign markets. These actions are motivated by the EU government's interest in ____.

Fostering national prosperity

McDonald's provides separate dining areas for men and women in Saudi Arabia. This is an example of an adaptation in a service firm's _____ elements.

Front-stage

A focus group participant observes, "The Starbucks is a symbol of modernity and cosmopolitanism. I can go to Starbucks in Beijing, Madrid, and Istanbul. When I go there, I feel like a citizen of the world." The person is describing to the _____ of global brands

Global Myth

GM produces ________; its production process seeks to standardize as much as possible those areas involving common components or part.

Global Products

Coca-Cola and Levi are examples of ________ names.

Global brand

Ford decides to make several adaptations to its Fiesta before producing it for sale in the Indian market. One change in making shock absorbers tougher so as to withstand Indias potholed streets. which is a benefit of this decision.

Greater performance of the product due to infrastructure differences

Product life cycles for _____ are very short. These types of products are likely to be sold worldwide- or at least in viable markets- soon after their introduction in the domestic market.

High-tech products

A country that contains an operational unit of an international company is called a ___

Host country

After P&G introduced the detergent, Vizir, in France, its Spanish subsidiary employed the same strategy, used in the French launch. The Spanish subsidiary is playing the ___ role in the company's NPD process.

Implementer

In China, Saudi Arabia, and southern Italy, interpersonal trust is extended only to immediate family members. Most businesses in these countries are family-owned firms. These are ______ societies.

Individualistic

When a firm expands from its domestic market into foreign markets, this is

Internationalization

Parish Products produces and sells Cajun spice mixes in the United States. The firm is considering expanding to Mexico. This will be its first foreign market. At this point Parish Products should consider

Joining a Mexican export consortium

Sales people from monochronic cultures who travel to polychronic cultures should expect their customers to be

Late for meetings

A market whose level of development exceeds that of other countries and sets a pattern for other countries is called a ____ market

Lead

The Japanese skincare industry is developed beyond the skincare industry in most other countries. There are several strong local and global competitors in Japan, and Japanese consumers are some of the most sophisticated, knowledgeable, and demanding in the global skin care market. What happens in the Japanese skincare market sets the pattern for skincare markets around the world. Japan is a(n) ______________ market in skincare products

Lead

Which of the following is not part of the process of developing a global brand strategy?

Leave markets quicker

Action Toys is considering entering a new market in Central America and is thinking of establishing a marketing subsidiary. Which of the following facts should be of concern to the firm?

Local laws require the use of a local agent

Wal-Mart decides to sell the same jeans in all of its retail locations throughout the world. Which of the following is a benefit of this decision to standardize this product line?

Lower costs of manufacturing due to economies of scale

A French court required Yahoo! to block French users from accessing Nazi memorabilia on its U.S.-based website. This is an example of a _________ product adaptation.

Mandatory

The EU requires all clothing entering include a care label informing consumers how to wash the garment. Lesotho, a small country in south Africa produces basic clothing products without care labels. A Lesotho clothing exporter would have to make a ____ product adaptation if they want to export in the EU.

Mandatory

ABC International recently changed its production processes for cosmetic products; it has developed standard components that can easily be connected with other standard components to increase the variety of final products. This type of product development strategy is called

Modularity

ABC International recently changed its production processes for cosmetic products; the company has developed standard components that can easily be connected with other standard components to increase the variety of final products. This type of product development strategy is called __________.

Modularity

Bakery French Breads is considering entering a new national market in Central America and is thinking of establishing a marketing subsidiary. Which of the following facts should be of concern to the firm?

None of the choices

Tarox Automobiles is considering a joint venture to build a car assembly plant in Morocco. Which would argue against such a decision?

None of these choices

Which is not a benefit of standardization products?

Product costs may be decreased by varying local inputs

"I prefer to buy branded medicine because I know that those drugs are reliable. I can't trust whether generics are safe," says one focus group participant. She is describing the _____ of global brands.

Quality signal

For many years, Romania promised all export-oriented foreign investors a five-year tax holiday if they set up a factory in Romania. Recently, this tax holiday was revoked. Now all foreign investors must pay the same taxes as local companies. Romania has just undergone ____.

Regulatory change

Ballentine Gourmet breads wants to enter the Argentine market but doesn't ant to become involved in producing bread in Argentina. Yet, it wants to keep control over the marketing of its breads in Argentina, It should

Seek a contract manufacturer in Argentina

Taiwan Mirrors wants to enter the Vietnamese car mirror market but does not want to become involved itself in producing mirrors in Vietnam. However, the company does want to keep control over the marketing of its mirrors in Vietnam. Taiwan Mirrors should

Seek a contract manufacturer in Vietnam

Marketing services are difficult to standardize because _____.

Services need to be tailored to the local culture and because there are fewer opportunities for economies of scale

"I know when I buy Rainforest Crunch, I know my dollars are being spent to protect the rainforest and support the indigenous people who live there." This statement describes the ___ of global myths

Social Responsibility

An alliance involving two or more global firms in which each partner brings a particular skill or resource is called a

Strategic Alliance

a highly competent subsidiary in a very significant market that is responsible for developing a new range of products to be used by the entire company is a _____

Strategic Leader

A highly competent subsidiary in a very significant market that is responsible for developing a new range of products to be used by the entire company is a _____ _____.

Strategic leader

Tanner Tractors is considering utilizing either a licensee or a contract manufacturer for its tractors in a small West African country. Which of the following would indicate that a contract manufacturer would be the better option?

Tanner wants to control the marketing of its product in the country

In Turkey, as soon as a restaurant customer appears to have finished her meal, waiters whisk the plate away. It is considered impolite to leave a finished plate in front of a customer. For a nonTurk, the speed at which the plate is taken away is very quick-even shocking. Foreign restaurant chains considering entry into the Turkish market must adapt to cultural differences in _____.

The waiting experience

Many Chinese firms acquired companies in foreign markets because

They were late movers into those markets

At Sony, a global team determines the global brand strategy and then country strategies are derived from it. Sony employs a _____ approach to global brand strategy.

Top-down

Consumers in the United States are more accustomed to self-service than are Japanese consumers.

True

In the Middle East, working in a service occupation is often considered akin to being a servant.

True

Technological advances have allowed many services to be outsourced.

True

Universal University Courses is considering using a licensee for the Saudi Arabian market. Which of the following facts is not a good reason for UUC to license in Saudi Arabia?

UUC does not want to commit any time or resources to the Saudi market

Which of the following offers good protection against counterfeits?

Unique packaging

A global product is one in which _____.

a proportion of the final design is standardized

A monochronic culture is one in which

activities are addressed one at a time, and schedules and agendas are respected

Independent distributors overseas earn profits

by earning a margin on the selling price

Tin City Bicycles has decided to open a marketing subsidiary in Italy. Now the company will have to

decide how to price, promote, and distribute its bicycles in Italy

Tin City Bicycles has decided to open a marketing subsidiary in Italy. Now the company will have to

decide how to price, promote, and distribute its bicycles in Italy.

Companies often acquire other companies to

gain access to new technologies

"I'd prefer brands who behave responsibly in terms of workers' rights and the environment. If a company contributes to society, I'll buy it." This statement describes the _________ segment in the consumer attitudes toward global brands study mentioned in the text.

global citizen

An American company sets up a subsidiary in Thailand, including a production facility and marketing/sales office. In this example, Thailand is a(n) ____ country.

host

Government subsidies are most likely to be given to firms that

increase national revenue through export sales.

In the case of indirect exporting,

markets are reached through intermediaries in the exporters home market

The global core of a product is the

percent of the product that is standardized worldwide

A highly competent subsidiary in a market of strategic importance that is responsible for developing a new range of products to be used by the entire company is a(n)

strategic leader

World Foods first introduced a new ketchup in a limited Canadian market, then it rolled it out worldwide with minor modifications based on consumer surveys in Canada. The Canadian advertising campaign is an example of a _________.

test market

For a new product launch in the United States, test marketing should be done in

the United States or Canada

Within 3 years of entering into the US market, IKEA had to make product modifications mainly because

there were product size and dimension differences in the US.

Nike's "swoosh" is an example of a ________.

trademark