Marketing 301 chapter 8

b

1. Which of the following is not one of Hofstede's cultural dimensions? A. uncertainty avoidance B. technological imperative C. individualism - collectivism D. distribution of power

gross national income

consists of GDP plus the net income earned from investments abroad (minus any payments made to nonresidents who contribute to the domestic economy)

trading bloc

consists of those countries that have signed a particular trade agreement

joint venture

formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared

glocalization

the process of firms standardizing their products globally, but using different promotional campaigns to sell them.

purchasing power parity (PPP)

theory that states that if the exchange rates of two countries are in equalibrium, a product purchased in one will cost the same in the other, if expressed in the same currency.

direct investment

when a firm maintains 100% ownership of its plants, operation facilities and offices in a foreign country, often through the formation of wholly owned subsidiaries

reverse innovation

when companies initially develop products for niche or underdeveloped markets, and then expand them into their original or home markets

d

Based on predicted growth rates, which of the following countries is expected to become the world's fifth largest economy within a few years? A) Russia B) India C) China D) Brazil E) Canada

a

Direct investment A) offers a firm control over the foreign enterprise and the highest potential return. B) is much faster to launch than exporting. C) requires less detailed analysis than franchising. D) can only occur as part of a strategic alliance among businesses, governments, and trading associations. E) is the least risky of all the global entry strategies.

c

Eduardo is working on creating a marketing mix for his firm's business-to-business products, and he is looking at government action. He is concerned that some foreign governments may place limits on the quantity of his products that can be imported. What kind of government action is Eduardo worried about? A) tariffs B) exchange controls C) quotas D) trade agreements E) the interest rates on government bonds

d

Firms use economic analysis to help determine the relative attractiveness of various marketing opportunities. These analyses include all the following EXCEPT evaluating A) the general economic environment. B) market size. C) population growth rate. D) working capital. E) real income.

e

In comparison to the marketing mix for domestic firms, the global marketing mix A) excludes Place because the mix is global by definition. B) excludes Price because of the difference in currencies and exchange rates. C) excludes Promotion because of the cultural difference between the domestic and foreign markets. D) excludes Product because the product rarely needs to be adjusted for differences between countries. E) includes all of the Four Ps—Product, Price, Place and Promotion

b

The major challenge in developing a global communication strategy is A) finding countries that speak the marketer's language so the communication will be clear. B) identifying the elements that need to be adapted to be effective in the global marketplace. C) making sure the firm's logo and brands are not copied by competitors. D) finding good translators who can translate current advertising into other languages precisely, with no changes. E) All of the above are major challenges.

e

Which of the following is NOT an ethical concern associated with global marketing? A) environmental damage. B) working conditions. C) wages paid to factory workers. D) cultural imperialism. E) All of the above are ethical concerns.

b

Which of the following is one of Hofstede's cultural dimensions? A) aesthetic symbolism B) time orientation C) religion D) commercial speech E) collectivism

a

Which of the following sequences correctly lists the least risky to the riskiest global entry strategy? A) exporting, strategic alliance, direct investment B) exporting, joint venture, franchising C) joint venture, strategic alliance, direct investment D) exporting, direct investment, joint venture E) franchising, joint venture, exporting

b

______ is the most widely used measure of market potential of an economy. A) GNI B) GDP C) PPP D) CPI E) MSR

c

________ refers to the processes by which goods, services, capital, people, information, and ideas flow across national borders. A) International marketing B) The international marketing mix C) Globalization D) Transnational shipping E) Offshoring

strategic alliance

a collaborative relationship between independent firms though the partnering firms do not create an equity partnership that is they do not invest in one another

franchising

a contractual agreement that allows the franchisees to operate a business using a name and format developed and supported by the franchiser

tariff

also called a duty; a tax levied on a good improved into a country

gross domestic product

defined as the market value of the goods and series produced by a country in a year; the most widely used standardized measure of output

quota

designates the maximum quantity of a product that may be brought into a country during a specified period

exporting producing

goods in one country and selling them in another. requires the least financial risk and only a limited return to the exporting firm.

Trade surplus

higher level of exports than imports

trade agreements

intergovernmental agreements designed to manage and promote trade activities for specific regions

globalization

refers to the processes by which goods, services, capital, people, information and ideas flow across national borders

exchange control

refers to the regulation of a countrys currency

trade deficit

results when a country imports more goods than it exports. The u.s. suffers from it.

infrastructure

the basic facilities, services and installations needed for a community or society to function such as transportation and communications systems, water and power lines, and public institutions like schools, post offices, and prisons

exchange rate

the measure of how much one currency is worth in relation to another