Practice Questions MKTG 4633

What occurred that caused tariffs imposed on Vietnam by the U.S. to go from 40 percent to less than 3 percent?

A bilateral trade agreement

A heavy equipment manufacturer is in talks with several other similar businesses about moving into a foreign market. Their primary goal for working together is to lower their financial risk, so they are considering a consortium. What should they know about consortia?

A consortium usually operates in a country where none of the participants is currently active.

What is true of economic unions? A) Economic, political, geographical, and cultural factors are important for the success of an economic union. B) Individual differences do not affect the success quotient of that union. C) Economic integration is not influenced by the existence or absence of transportation networks. D) Geographic and temporal proximity are absolutely imperative for members of a customs union. E) A political union has the least amount of integration compared to all the other types of regional economic integrations.

A) Economic, political, geographical, and cultural factors are important for the success of an economic union

What company is most likely to have a direct sales force in the foreign country where it intends to sell its products? A) a company manufacturing fiber optics B) a company manufacturing decorative candles C) a company manufacturing shirts D) a company manufacturing kitchenware E) a company manufacturing plasticware

A) a company manufacturing fiber optics

________ is a unique forum that has evolved into the primary regional vehicle for promoting trade liberalization and economic cooperation in the Asia Pacific region

APEC

Part of the problem Disney had in Europe, and specifically in France, may be attributed to the lack of _________________ by the French culture of the Disneyland concept and the ineffective nature of the corporate structure

Acceptance

Ideally, a website should be translated into the languages of the target markets. At a minimum, the most important pages of the site should be translated.

Adaptation

A U.S. manufacturer is willing to assume the trading risk in a foreign country but maintains the right to establish policy guidelines and prices and to require its agents to provide sales records and customer information. What type of middleman should the company choose?

Agent Middlemen

In Japan, wholesalers typically act as ________ and extend the manufacturer's control through the channel to the retail level.

Agent Middlemen

Although India is a geographically large country, Mary Kay has only regional distribution centers and Mary Kay Beauty Centers in Delhi and Mumbai. This is most likely because, when compared with the rest of the country, they

Are wealthy, populous cities

Which of the following actions best describes an EMC's role in promoting a firm's goods? A) Corresponding in the necessary foreign languages B) Exhibiting the client's products at international trade shows C) Making sure that goods being shipped are suitable for local conditions D) Advising on overseas patent and trademark protection requirements E) Handling the routine details in getting the product to the foreign customer

B) Exhibiting the client's products at international trade shows

Identify the true statement about indirect exporting. A)It involves more investments than direct foreign investment. B) It carries a lower risk than other modes of foreign-market entry. C) It has the highest rate of return. D) It offers the highest possible control than any other modes of foreign market entry. E) It accounts for about 90 percent of global economic activity.

B) It carries a lower risk than other modes of foreign-market entry.

The country-of-origin effect refers to the influence of the

Country of manufacture or design on a consumer's perception of a product

The website must fit the uniqueness of a particular country's market and take the country's sensibilities into consideration.

Culture

Joffrey is a part of the marketing team in his company. There is a conflict between the finance team and the marketing team of the company on the issue of market segmentation. While the finance team is arguing for a standardized approach toward market segmentation, Joffrey and his team members feel that it is more important to understand customer requirements on an individual basis for greater customer satisfaction. Which of these terms best describes the approach adopted by Joffrey's team?

Customization

What is true of the distribution process? A) It excludes the physical handling of goods. B) It includes activities related to the promotion of goods and services. C) The ownership title remains with the distributor even on completion of the transaction. D) It includes buying and selling negotiations between middlemen and customers. E) Middlemen do not play a role in the distribution process.

D) It includes buying and selling negotiations between middlemen and customers.

Mary Louise is conducting tactical planning, which means that she is

Dealing with specific actions that are used to implement strategic planning goals.

For companies operating in the United States, shipping small parcels via surface mail is the most cost-effective, though it takes the longest time.

Delivery

What is the first step in adapting a product to a foreign market?

Determining how new a product is to a market and how people react to newness

Brenden's Coffee, a coffee chain, has recently decided on the mode of entry into a particular market. Which phase of the planning process is the coffee chain currently in?

Developing a marketing plan

To some extent, Disney produces a product and a service. When it went to Japan, it represented an innovation to the Japanese market. The fact that it did well speaks to the ___________ of that innovation and the role that the Japanese partner played in addressing the specific cultural issues

Diffusion

Why type of distribution channel does Mary Kay use in India?

Direct Sellers

An American fabric manufacturing company sells its products to Big Box Store, a Japanese retailer. Big Box Store retails these products in major Japanese cities. Which form of entry best describes the strategy that the American company is engaged in?

Direct exporting

Which mode of foreign market entry is the riskiest?

Direct foreign investment

In the context of building strategic international alliances, ________ is usually the last step in the relationship activity and primarily deals with relying on mature and established relationships and facilitating interaction and relationships with future successors.

Fine-tuning

Doreen is a looking into franchising in a foreign country. What should she be aware of when making her decision?

Franchising provides an effective blending of skill centralization and operational decentralization.

At which level of economic integration do member countries maintain individual tariff schedules for external countries but reduce customs duties and nontariff trade barriers among themselves?

Free Trade Area

What best describes the view toward market segmentation in the 1990s?

Global integration versus local responsiveness

Traditionally, marketing to the poor who make up the bottom of the pyramid has primarily involved

Ignoring them

An EMC can help firms get their product to foreign customers by handling which of the following items?

Insurance Shipping and customs documentation Export declarations Instructions for special export packing and marking

If Mary Kay were to open more distribution centers around India to make it easier for its sales representatives to collect their products, it could affect delivery times, warehousing costs, and the cost of its product. This is an example of the ______ of physical distribution activities.

Interdependence

Which of the following primary relationship activities best describes this statement: "... executives from both companies have made multiple trips to Apple's Cupertino, California headquarters."

Interfacing

A sign of globalization is the fact that Au Manoir de Khai has been successful. To some extent this restaurant represents a new product. How so?

It has changed the concept of where people celebrate.

ASEAN+3 consists of the members of ASEAN plus South Korea, China, and

Japan

The vigorous economic growth of the ASEAN countries is linked to the emergence of ________ as a major provider of technology and capital necessary to upgrade manufacturing capability and develop new industries.

Japan

What country suffered a serious disadvantage in the information age because its complex language hindered software innovations appropriate for world markets.

Japan

The fundamental market metrics for the eight most populous countries of the Asia Pacific region reveals that the general excellence of the ________ healthcare system produces the longest lifespans in the world.

Japanese

When two or more participating companies join forces to create a separate legal entity to facilitate doing business in a country where at least one of them is currently active, it is called a

Joint Venture

In import-oriented systems, distributions systems are ________ in scope

Local

Companies fully committed to foreign markets are buying server space and creating mirror sites, whereby a company has a voice mail or fax contact point in key markets.

Local Contact

What problem of marketing to the bottom of the pyramid did Unilever solve through the development of its Shakti Amma network in India?

Low-cost distribution

What is a part of the relationship-oriented business philosophy that characterizes Japanese distribution channels?

Loyalty

In Eastern Europe, countries are trying to move from

Marxist-socialism to capitalism

At present, which industry accounts for the majority of Shanghai's industrial employment?

Medium value-added industries

Which of the following facts best demonstrates the value that the Japanese market has for Apple?

Nearly 100 million mobile phone users buy new phones every two years, on average.

The consumer should be able to use a credit card number—by e-mail (from a secure page on the website), by fax, or over the phone.

Payment

Ladies Nights, a lingerie company, has developed a marketing plan for its target market. Budgets, sales, and profit expectations have been penciled out. Now, Ladies Nights has begun to implement its specific plans and is anticipating great success in its chosen market. Which of the following phases of the international marketing process is Ladies Nights currently in?

Phase 4

The biggest problem for luxury brands in the world today is

Piracy

Fifteen countries agree to a form a regional economic integration, which involves complete political and economic integration. This form of regional cooperation would most accurately be described as a

Political Union

If Fugetsudo decided to operate in Vietnam and adapt to the flavors most preferred by the Vietnamese, the act of doing so may be viewed as a

Product Homologation

Search engine registration, press releases, local newsgroups and forums, mutual links, and banner advertising are used to attract visitors to the website.

Promotion

If we control for ________, which takes into account deflation and reflects the average well-being of the Japanese people, in the per capita GDP calculations, Japanese growth simply wavered during the 1990s.

Purchase Price Parity

Multinational market regions include countries that seek mutual economic benefit from

Reducing interregional trade and tariff barriers.

Online B2B enables companies to enhance their performance by

Reducing procurement costs

Private brands are those that are owned by

Retailers

In Japan, the distribution system is dominated by

Small middlemen dealing with many small retailers

China has a dual economy that embraces aspects of

Socialism and capitalism

Most of what Walmart sells in China is

Sourced locally

Hyundai, Kia, Samsung, and Lucky-Goldstar (LG) are among the familiar brand names in automobiles, microwaves, and televisions from

South Korea

Robert wants to export goods manufactured by his company to a new foreign market. He needs to select a middleman. He discusses the matter with some experienced exporters. Which way of selecting a middleman are they most likely to suggest?

Speak to the consumers of the product personally to find whom they consider to be the best distributors

An electronics manufacturer in Norway has developed a training program to train its support staff in foreign markets on the repair and maintenance of its products. The firm also ensures that there is enough stock of spare parts in all its distribution centers. According to the Product Component Model, the company is making improvements in the ________ component of the product.

Support Services

Which region in China is the world's manufacturing base for the IT industry?

The Pearl River Delta

Mainland-Taiwanese economic relations continue to improve as both have entered ________, ending many restrictions on trade.

The World Trade Organization

What is the basic orientation for every type of economic union?

The development and enlargement of markets

What demonstrates the importance of market potential being viewed in the context of regions of the world rather than country by country?

The dissolution of the Soviet Union into independent states

In Japan, Fugetsudo sells fish, sea slug, whale meat, turtle, and cedar chip-flavored ice cream. Considering what you've learned about products in chapter 13, what do these different flavors do for ice cream in Japan?

They give the consumer another expression of quality.

Services are classified as intangible because

They have an intrinsic value that results from a process, a performance, or an occurrence.

An important attraction for a luxury handbag purchase is its

Timelessness

What is part of a physical distribution system?

Transportation mode

Apple's expansion into the United States and Europe by means of distribution deals and into Asia through partnership arrangements reflects which type of planning?

Corporate, Strategic, and Tactical planning

What is true with respect to economic integration? A) As businesses become stronger and more experienced in dealing with large market groups that form as a result of market integration, world competition will become less complex. B) Many national markets, too small to bother with individually, take on new dimensions and significance when combined with markets from cooperating countries. C) Economic integration gives rise to smaller markets. D) The creation of multinational groups increases tariff barriers and restrictions between members. E) Problems of language, customs, and instability are negligible in international markets.

B) Many national markets, too small to bother with individually, take on new dimensions and significance when combined with markets from cooperating countries

What is true of the existing multinational market groups? A) Among the EU institutions, the European parliament initiates policy and supervises its observance by member states. B) The European Union, European Economic Area, and the European Free Trade Area (EFTA) are the most established cooperative groups in Europe. C) Of all the multinational market groups, NAFTA is the most secure and most important economically. D) The European Commission, the Council of Ministers, the European Parliament, and the Court of Justice are all part of the EFTA. E) The European Parliament is the decision-making body of the European Union.

B) The European Union, European Economic Area, and the European Free Trade Area (EFTA) are the most established cooperative groups in Europe.

Mary Kay's distribution pattern fits with the growth and optimism of India's consumer classes in part because it directly enables people to

Become entrepreneurs

C. K. Prahalad and his associates referred to consumers who had been relatively ignored by international marketers because of misconceptions about their lack of resources as the ________ market.

Bottom-of-the-Pyramid

Which of the following statements best exemplifies corporate planning? A) More than 10 domestic mobile phone makers work closely with the three major operators to develop phones tailored to Japanese consumers' tastes. B) The iPhone has been successful thus far in countries where it has been launched. C) Apple has an oft-stated goal of gaining a 1 percent share of the global cell phone business. D) Apple planned to ship about 10 million iPhones between the product's launch in late June 2007 and the end of 2008. E) The iPhone has been one of the top-selling smart phones in the United States.

C) Apple has an oft-stated goal of gaining a 1 percent share of the global cell phone business.

What is true of China? A) The People's Republic of China and Hong Kong are referred to as "The Greater China." B) The Chinese legal system is perceived by American companies to be efficient in providing legal protection. C) The United States granted normal trade relations (NTR) to China on a permanent basis (PNTR) had a profound impact on the country's economy. D) The PNTR status and China's entry to the WTO increased import barriers imposed on American products and services. E) It is more convenient to treat China as a single country rather than a group of regions.

C) The United States granted normal trade relations (NTR) to China on a permanent basis (PNTR) had a profound impact on the country's economy.

The European ________ Community was the first institution that was created to restore prosperity, stability, and peace in Europe after World War II.

Coal and Steel

Countries X, Y, and Z have eliminated all tariffs and other restrictions on internal trade, adopted a set of common external tariffs, and removed all restrictions on the free flow of capital and labor among member nations. However, they lack political unity. These countries are most likely in a

Common Market

The marketing team at Tovio Technologies is drafting a plan to convey the benefits of its newly developed software to users in its international markets. In this scenario, the marketing team is working on improving the ________ of the product.

Complexity

Which characteristic of an innovation is most likely to have a negative impact on the acceptance of a product in the intended market?

Complexity

Marco is conducting strategic planning, which means that he is

Conducting his planning at the highest levels of management

With the Internet, an argument can be made that the ________ is in control of marketing and distribution globally.

Consumer

________ is one of the six Cs of distribution channel strategy.

Continuity

The government of a small country has made it mandatory for international banks and insurance firms to obtain the consent of individuals before exchanging their personal data with other branches of the firm in foreign countries. These firms cannot share the personal details of an individual such as income, employment details, and debt repayment histories, even with their branches in other countries, without the approval of the individual. Which barrier to the functioning of service firms is demonstrated?

Controls on transborder data flows

As illustrated by the Product Component Model, which component of a product will be altered if a company makes changes to the design of the product to improve its functionality?

Core

A product's ________ is among the most important criteria to influence consumers' purchase decisions

Cost

What statement is true regarding matrix structures? A) They work best when a close relationship with national and local governments is important. B) They fail to accommodate customers who themselves have global operations and global requirements. C) They are the most unpopular form of organizational structures. D) They are the least extensive of the other forms of organizational structures. E) They are designed to encourage sharing of experience, resources, and expertise among global business units.

E) They are designed to encourage sharing of experience, resources, and expertise among global business units.

The ________, a provision of the Maastricht Treaty, established the parameters of the creation of a common currency for the European Union, the euro, and established a timetable for its implementation.

Economic and Monetary Union

The institutions of the ________ consist of executive, parliamentary, and judicial branches.

European Union

What has been the most successful multinational market region since World War II?

European Union

IKEA has used which mode(s) of foreign market entry?

Exporting and franchising