f3
ad valorem
% of the value of the goods imported
To ensure that middlemen will continue to be enthusiastic about selling its products, a company should
-stay in touch via newsletters, for example. -offer sufficient financial compensation. -handle disputes with tact.
Identify a true statement about international sales representatives.
Different techniques should be used to motivate marketing employees from different countries.
Identify a factor that contributes to the invocation of countervailing duties.
Direct harm to producers in the importing country due to dumping
Core component
Purpose of product
Intangibility
Services cannot be possessed.
Perishability
Services must be consumed as soon as they are created.
Countertrades are also called _____.
barter
Institutions or organizations that are involved in trade of goods acquired through countertrade are called _____.
barter houses
The advantage of dollar drafts for a seller is that they _____.
can be discounted for instant payment at a bank
A pricing tool that international marketers can use to create a competitive advantage is ______.
countertrading
local nationals
low maintenance cost
One major reason many people resist repatriation is _____.
pay
Examples of companies' green marketing efforts include
reducing the fuel emissions of vehicles using recycled components in products reducing packaging waste
It is particularly important for firms to maintain good rapport with their middlemen in countries where the most important cultural factor is
relationships
Middlemen spend money (and therefore ultimately drive up the price of the merchandise) when
they advertise products locally. they move and store merchandise. they sell products as the representatives of the manufacturer. transport/storing breaking bulk providing credit advertising locally paying for sales reps negotiating
A product with more features
usually costs more.
When a firm is concerned only with the minimal or incremental cost of producing goods to be sold in foreign markets, it often uses _____.
variable-cost pricing
Which scenario best describes a global brand?
A coffeehouse's logo of coffee beans is recognized by consumers in 10 countries.
Identify the correct statements about a traditional distribution structure. (Check all that apply.)
A limited amount of merchandise is available. The merchandise is usually sold to wealthy people. This type of distribution structure creates a seller's market. The merchandise is sold locally, not nationally.
Identify the ways in which governments control pricing in their countries. (Check all that apply.)
By establishing margins By setting price ceilings and floors By granting subsidies
Why do international advertisers seldom bother with foreign national consumer magazines?
Circulation figures may not always be dependable. Placement problems may be caused due to paper shortages. Magazines may accept more advertisements than they have space to run.
What facilitates a company's success when innovative products are commercially launched?
Conversion-ability
Packaging component
Cost of product
_____ are discounted at banks only with recourse.
Dollar drafts
Which statement is true?
Electronic currencies are expected to replace existing hard national currencies.
What will happen if television coverage is expanded? (Check all that apply.)
Global standardized messages will become more prevalent. Advertiser creativity will be challenged.
Identify an accurate statement about administered pricing.
Its legality varies among countries.
Select the methods by which manufacturers reduce the cost of production.
Manufacturing goods in a country that supplies cheap skilled labor Eliminating expensive functional features
Inseparability
One cannot separate creation of services from their consumption.
Which of the following statements are true regarding the impact of global competition on business? (Select all that apply.)
Product life cycles are increasingly shorter. Companies must emphasize competitive prices.
An aircraft manufacturing company launches a new aircraft model. Due to poor market response, the company nearly stops manufacturing it. However, the company later decides to display the model in a trade show. Identify a benefit that the company will reap by attending the trade show.
Relationships with potential distributors and franchisees can get started
Identify the circumstances under which an exporting company would deny sale of products to its customers on credit. (Check all that apply.)
Restrictions within a buyer's country delaying payment indefinitely Exporter chooses not to sell the products on credit terms
How are small stores in Japan different from their counterparts in the United States?
They account for a larger percentage of total retail sales.
Dollar drafts can be discounted for immediate payment at a bank only after they are _____.
accepted by the buyer
One way a government can control prices is to _____.
act as a selling monopoly
A name, term, sign, symbol, or design that serves to identify a seller's goods or services and differentiate them from those of competitors worldwide is known as a global ____
brand
Two factors that are considered important requisites for international marketing positions are _____.
breadth of knowledge and a positive outlook maturity emo stability breadth of knowledge pos outlook flex cultural empathy enjoy travel
In foreign countries, adequate market coverage may require
changing the way products are distributed.
One technique that companies use to recoup from inflation pressure and price controls is to _____.
charge for additional services
Thanks in part to the smartphone, marketplace power is held by
consumers
When the value of a seller's currency is weak compared to the buyer's currency, companies usually use ______.
cost-plus
A _____ restricts the amount a country will import and may be imposed on foreign goods benefiting from subsidies, whether in production, export, or transportation.
countervailing duty
The World Wide Web is used to sell industrial goods, in addition to consumer services and merchandise, via
e-commerce.
Free trade zones (FTZs) enable price control by _____.
exempting duty on overhead costs
The problems that families face when they are repatriated are _____.
financial readjustments and lifestyle changes
Which of the following generates demand for client followers?
growth of global markets
A disadvantage of leasing is that contracts that include maintenance and supply of parts for capital equipment may incur ______.
heavy losses
Two challenges that can lead to the failure of a business if the seller is unable to offer long-term financing options to customers are _____.
inconvertible currencies and cash-short customers
To be successful in a deflationary market, an exporter must _____.
increase brand value while keeping prices low
From a sociological point of view, when a group perceives any idea as new, that idea is a(n) _____.
innovation
In the context of the Product Component Model, an importance of the core component is that _____.
it can be altered to meet local preference
There is an increasing preference for _____ in a company's foreign sales team.
local nationals
The total distribution process of an international trade channel is handled through
logistics management.
Most of the problems in training programs for both expatriates and local nationals originate from _____.
long-established behaviors and attitudes
"Standardization versus adaption" is a dilemma that arises mostly when a business is
marketing consumer goods.
Identify a true statement about maintaining quality in today's global competitive market. (Check all that apply.)
necessary desirable
IS0 9000 certification
often increases a company's stock price.
Firms must establish _____ before choosing channel middlemen.
operational policies
A policy used to stimulate market and sales growth by intentionally offering products at low prices is called a ______ policy.
penetration pricing
The additional costs incurred due to exporting products from one country to another are known as _____.
price escalation
Local product and service standards mandate certain changes. These changes are described as _____.
product homologation
In some countries, policies related to radio and television advertising have changed in recent years because _____.
production costs are high
Some countries are fast-forwarding through the stages of economic development by making use of
technology
Uncontrolled causes of the escalated price of exported goods confine the sale of a product to _____.
wealthy customers, who are insensitive to the price of a product
Select the debatable arguments of those in favor of cartel associations.
Cartels eliminate unprincipled competition. Cartels permit greater progress of technology.
Identify the accurate statements about a distribution process. (Check all that apply.)
Commercial negotiations occur among producers, middlemen, and buyers. Ownership or title is passed.
Heterogeneity
Services are individually produced and are unique.
Select the hurdles faced by companies that would like to offer services in foreign countries. (Check all that apply.)
Tariffs Restrictions of data movement between countries Copyright issues
Which media do governments most commonly prohibit from accepting advertising materials?
Television and radio
Identify the features of export management companies. (Check all that apply.)
They are independent companies but answer directly to the manufacturers. They handle international marketing for manufacturers that do not have large global sales revenues.
Identify an accurate statement about private brands.
They benefit from in-store advertising in retail stores.
An increase in forward hedging during international trade can be attributed to the absence of ______.
a relatively stable currency
One of the reasons for the increasing preference for hiring locals over expatriates is the locals' _____.
ability to overcome cultural and legal barriers
A company supplies printing machines to newspaper agencies across the world. Though the product supplied to different countries is standardized, the product must be customized somewhat to suit the requirements of different agencies. This scenario is an example of
adaptation of industrial products.
An attempt to establish prices for an entire market is _____ pricing.
administered
The most important elements of marketing communications for most companies are _____ and personal selling.
advertising
Unlike letters of credit, dollar drafts _____.
are drawn by a seller on a buyer and presented to the seller's bank
In context of the country-of-origin effect, stereotypes _____.
are responsible for creating perceptions of products
Cartel associations _____.
are unable to maintain control for long periods
In countertrading negotiation, one major problem is _____.
ascertaining the value of goods being offered as payment
The cost of reaching a prospect using advertising depends on the _____.
bargaining ability of agents
The most important advantage of recruiting expatriates in a foreign sales force is that they ______.
can communicate influentially with their headquarters' personnel
A(n) ______ is involved in setting prices of its members' common products, distributing profits and assigning market territories.
cartel
When several companies manufacturing similar goods cooperate to control the markets for their products, they have formed a(n) ___.
cartel
The form of payment that places an unwanted burden on the customer is a(n) _____ arrangement.
cash in advance
Torque Corp., a multinational hardware manufacturer, must deliver a shipment of ATV parts to an importer. However, due to the expensive nature of goods being transported, Torque demands a payment of 30 percent in ready money before delivery of the goods. The type of payment method required by Torque Corp., is _____.
cash in advance
A U.S.-based law firm establishes a branch office in the United Kingdom. A U.K.-based steel manufacturing company hires the law firm to take care of its legal issues. The law firm is an example of a(n)
client follower.
Identify the factors that dictate product adaption. (Check all that apply.)
climatic economic technological political legal economic political technological climatic requirements
One of the great creative challenges in advertising in diverse cultures is the problems associated with ______.
communicating to individuals
The need to develop cultural awareness among expatriates is increasing because _____.
companies are growing dependent on foreign revenue
A company in Europe launched a new laundry detergent into the market. The promotional advertisement claimed that the detergent was superior to all other leading detergent brands in the market. After a few days, the advertisement was banned. The reason for the ban was that the advertisement was ______.
comparative
The largest difficulties in _____ occur in conglomerates that employ domestic and foreign personnel.
compensation planning
ISO 9000 standards can affect businesses in the European Union in what ways?
competitively legally
The Internet is expected to enable an online electronic barter economy by _____.
complementing and expanding real-world barter exchanges
The last people involved in the distribution channel process are the
consumers
A company takes a partial payment in advance from a buyer when the nature of a product can result in the _____.
contract being unfinished, leading to major loss for the company
Identify the components of the Product Component Model. (Check all that apply.)
core support packaging
The idea behind exporting companies restricting the supply of products to meet only local requirements is that
countries should just be able to match their citizens' demand with supply.
The country in which products are manufactured, assembled, or designed has an impact on a consumer's perception of a product. This influence is known as _____.
country-of-origin effect
To ensure that a candidate will operate effectively in a foreign culture, a company's international marketing positions should include _____ along with a description of the position.
country-specific requirements
A majority of expatriate failures are attributed to a lack of _____.
cross-cultural understanding
_____ is necessary for international salespeople because it helps them avoid feeling antagonism toward and confusion in foreign environments.
cultural empathy
Even in high-tech nations, perceptions of a product's quality can vary, depending on the
cultural group.
The number, features, and assignments of sales representatives are decisions regarding the _____ of a sales force.
design
_____ is the first step in managing a sales force.
design
To combat media limitations, advertisers in some countries have
developed their own media.
Home-country middlemen are also known as _____ middlemen.
domestic middlemen.
Radio and television have become major communications media worldwide, likely because of their ______ value.
entertainment
___ ___ is the term used to identify concern with the environmental consequences of a variety of marketing activities.
green marketing
When stores are owned by manufacturers and used as channels of distribution, those stores are known as
manufacturers' retail stores.
Barter is an important part of trading because _____.
many countries do not have hard currency at hand
How can global brands compete with private brands?
price aggressively offer products with high value
The types of documentation required for a sale, the currency to be utilized, and the credit terms are specified in _____.
price quotations
Identify Europe-wide promotional strategies.
-Market segments across European countries should be identified. -Advertising concepts should be designed to appeal to market segments.
Parent companies exert control over middlemen by monitoring
sales volume. coverage of market. services offered. prices and payment of bills. advertising and profit.
A(n) ______ presents company offerings, gathers information on consumers, and serves as the last link in the execution of a company's marketing and sales strategy.
salesperson
To improve the efficiency of their distribution systems, marketers around the world are experimenting with
selling via the Internet. selling via hypermarkets, shopping malls, and discount houses. door-to-door selling. direct marketing.
International personnel officially represent their company abroad and are required to be _____.
sensitive to the variations in behavior across countries
Companies that offer services to other businesses often enter foreign markets so that they can
service their local clients abroad.
When companies employ the variable-cost approach to pricing, they are able to _____.
set competitive prices for their products in foreign markets
Exports accelerate when
the currency of the exporting country is weaker than the currency of an importing country.
The rapid growth of international business services has been hampered by
the imposition of direct and indirect trade barriers. restrictions that prevent foreign companies from competing in domestic markets.
The designs of industrial products offered by suppliers need to be regularly updated because
the markets are always changing, and so are the customer's needs.
When selecting a distribution channel, a company should consider
the product's size. whether the product is apt to spoil easily. whether the sale of the product will involve a complex procedure. whether the product will require any sales service. how much money the product is worth.
Ken is the marketing executive of a multinational company. The company launches a new product into the market, and Ken is responsible for globally promotion of the product. However, the effort undertaken by Ken to communicate the message internationally fails. In this case, a probable reason for failure is that ______.
the requirements and desires of the target markets were not assessed properly
Marketing services are sometimes provided by individuals located in a producing firm's home country. This arrangement is useful when
the seller does not want to invest the time and money required to develop a global marketing system.
When a market has a traditional distribution structure, mass distribution and market penetration are not necessary, because
there is not enough product to meet customer demand.
The impact of satellite television is a matter of concern for governments because _____.
they are afraid of losing control of the media
Open account transactions tend to be rare in foreign trade because _____.
they are disadvantageous to sellers
A company that follows the full-cost pricing approach prices its products based on the product's _____.
total fixed and variable cost
In some countries, numerous different media have split markets into ______.
uneconomical advertising segments
What happens when media limits companies' creative strategies? (Check all that apply.)
-Advertising becomes a smaller part of the promotional program. -Marketers must stress other components of the promotional mix.
Which step immediately succeeds encoding in the international communication process?
Transmitting a message to a receiver
Identify a local practice that makes companies reluctant to place ads in foreign national consumer magazines.
Use of raffles to select advertisements for magazines shortly before press time
One of the best ways for monolingual, English-speaking expatriate sales representatives to communicate effectively with their foreign customers is to _____.
attempt to understand their language and culture
A factor that causes a foreign country to limit the number of non-nationals a company brings into the country is the ______.
concern about foreign corporate domination
In _____, a seller makes a one-time arrangement with a bank to collect a client's impending payment, whereas in _____, the seller and the bank have an ongoing relationship.
forfaiting, factoring
The approach a company uses when it has high variable costs in comparison to its fixed costs is called _____.
full-cost pricing
The price quotation and contract should define _____.
quality and quantity
What are the components of integrated marketing communications?
-Advertising -Direct selling -Personal selling -Sales promotions -Trade shows
Identify Europe-wide promotional strategies.
-Advertising concepts should be designed to appeal to market segments. -Market segments across European countries should be identified.
Select the two ways of viewing pricing.
-As an active instrument of accomplishing marketing objectives -As a static element in a business decision
Why are highly developed advertising strategies needed?
-Because competition for world markets has intensified -Because sophistication of foreign consumers has increased
A company has introduced into a foreign market a highly technical product that requires personnel with extensive background information to sell it. What kind of sales personnel are likely to best sell the product?
Expatriates
Identify an element that is included in the support services component.
Fixing of malfunctioning product
Select the criteria under which companies may make sales on open accounts. (Check all that apply.)
For customers with exceptional credit standings For subsidiaries of the seller
Which of the following is the United States' principal services export?
Tourism
Identify the advantages of an expatriate sales force.
-They add to the prestige of a product line. -They are dependable and can influence headquarters. -They have more technical and product-line knowledge.
Which linguistic limitations do advertisers face? (Check all that apply.)
-Translation issues -Low literacy rates -Diverse education and social norms
When do companies across Europe seek commonality in branding and advertising?
-When they need to avoid confusion related to multiple label names -When they need to ensure efficiency
When distribution channels are lengthened,
-control over promotion decreases. -control over price decreases. -control over outlet variety decreases. -control over volume decreases.
A company may limit or decrease print advertising _______.
-if printing is of poor quality -if high-grade paper is not available
Identify the measures to manage middlemen's activities. (Check all that apply.)
-quotas -reports -sending personnel from the company to visit the middlemen
Logistics management involves the physical transportation of
-raw materials. -inventory that is ready to ship to customers. -merchandise that is being processed.
Throughout the world, traditional distribution channels are becoming more efficient, which has led to
-the introduction of direct marketing and discounting. -the emergence of e-commerce and supermarkets. -the rise of mass merchandising. -a preference for self-service.
Drew's Corp., a baby-product manufacturing company, eliminated middlemen in its product distribution process. Instead, it entrusted the task to one of its managers. In this scenario, the company increased its
control over channels.
Support services component
Handbook that explains how to use product
In the context of the Product Component Model, the tangible or material aspect of the product is considered the
core component.
Identify a solution to the primary problems faced by countertraders.
Initial market research
Identify the accurate statements about a product. (Check all that apply.)
It is a collection of fulfillments that a consumer purchases. It is dependent on the prestige enjoyed by its brand.
Identify an accurate statement about a consumer's preference for one company's technical products over another's.
It is affected by a seller's availability to install the products.
Identify an accurate statement about leasing in international markets.
It is an important approach to selling capital equipment in foreign markets.
Whirling Dervish is a U.S.-based company that manufactures Floor-It, an all-in-one floor-cleaning device that cleans, mops, and shines. The product has been on the market for over a decade and has been very successful and widely accepted by consumers. The company plans to introduce Floor-It to international markets that have few products in the floor-cleaning category. Which of the following should be a concern for the company?
It must realize that Floor-It may be perceived as new in the foreign markets.
Identify the potential disadvantages of advertising in newspapers. (Check all that apply.)
Lack of separation between advertising and editorial content Long time lag before publication of advertisements Lack of space due to equipment limitatio
What benefits do consumer product firms derive by marketing internationally? (Check all that apply.)
Life cycles of products can be extended. Competition with other companies can be maintained. Sales and profits can be enhanced.
Which types of advertising agencies might a company choose to hire when it is seeking local modification and the best cultural interpretation of its advertising message?
Local domestic agencies Company-owned agencies Multinational agencies with local branches
Some companies use different brand names in foreign markets because
certain brand names do not make sense when directly translated into a different language. certain brand names have unacceptable connotations in another culture.
In Europe, there are variations in laws that control ______ advertising from country to country.
comparative
Identify typical reasons why marketers can lower their costs by shipping unassembled goods to a free trade zone (FTZ) in an importing country. (Select all that apply.)
Lower tariffs on unassembled goods Lower labor costs in the importing country
What are the consequences of using technology in factories or industries? (Check all that apply.)
Manufacturing is becoming more science-oriented. Access to inexpensive labor is less important. Access to raw materials is less important.
Identify the advantages associated with trade shows. (Check all that apply.)
Many customers cannot be contacted in any other way. Products can be demonstrated to customers. A company can begin to develop a relationship with distributors, agents, and suppliers.
What must a company's management do in order to meaningfully select personnel for international marketing positions?
Specifically define the expectations it has of its people
Which factor is crucial in delivering a quality product?
Standardization
Why is a product that generates 40,000 units per hour, when customers need only 10,000 units per hour, considered to be of low quality?
The extra capacity is not required or expected.
What are the benefits of obtaining full-market coverage? (Check all that apply.)
The product can become so well known that most people in the market will recognize it. The company can claim a substantial share of the market.
Anne's Diadem is a multinational jewelry giant that exports its goods to the country of Elwonia. The economy in Elwonia is undergoing a deflationary spell. To prosper during deflation, Anne's Diadem must _____.
discount its prices to gain more customers
All types of import taxes and tariffs function to
discriminate against all overseas goods.
If products are sold below their cost of production, those products are ______ on foreign markets.
dumped
Which of the following occurs when a company sells goods in a foreign market below the price of the same goods in the domestic market?
dumping
Identify the major categories of U.S. exports. (Check all that apply.)
durable nondurable service
A country's industrial market can be estimated by ascertaining its level of _____ development.
economic
The recent rapid change in retail markets around the world is apparently a result of
economic development.
A nation's economic development can be assessed by examining the quality of its
educational system.
An important trait for international personnel, not needed in domestic sales positions, is _____.
emotional stability
In the international communication process, before a source message is transmitted to a receiver, a sender first converts it into effective symbolism. This step is known as _____.
encoding
The first step in the international communication process is ______.
encoding by an information source
A practice that can encourage parallel importing is _____.
exclusive distribution
Crimson is a high-end brand of leather products. It encourages its retailers to provide personalized services to their customers. It also ensures that they stock a variety of products in their stores and that each product is unique. In this scenario, Crimson is implementing _____.
exclusive distribution
Consumer product firms enter global markets to
expand their customer base across countries.
As world trade grows and more companies hire locals for marketing jobs, there is an increase in the number of companies that rely on ______ when the products being sold are highly technical.
expatriate personnel
True or false: Demand in international industrial markets is less volatile than demand in consumer markets.
f
True or false: Local prerequisites for successful product adaptation facilitate the entry of service companies into foreign markets.
f
Unlike forfaiting, in _____ a bank repeatedly buys short-term accounts receivable at a discount from the exporting company.
factoring
The most common reasons for a manager to refuse an assignment abroad are concerns for _____.
family and career
True or false: ISO 9000 certification guarantees that a manufacturer produces a high-quality product or service.
ffffffffuuck this ISO 9000 is a certification of the production process only and does not guarantee that the product itself is of high quality.
True or false: The volatility of industrial demand remains unaffected by derived demand.
ffffffu
expatriate employees
find it easier to adjust to new cultures, as they are often isolated from cultural differences
expatriates' families
find it harder to adjust to new cultures, as they constantly encounter cultural differences
specific duty
flat charge per physical unit
A characteristic of international salespeople that enables them to be sensitive to foreign market habits and adapt to foreign company requirements is _____.
flexibility
training for expatriated
focuses on culture and special sales problems
training for local nationals
focuses on the company's products, technical info, and selling methods
A financing technique for situations in which a company lacks large cash reserves to finance its customers is _____.
forfaiting
Change in culture can be brought about through _____.
global mass media advertising
Panara and Durang are two countries that import corn seeds from Cormallen Inc., a multinational agricultural company. Cormallen exports these seeds to Durang at a higher cost than to Panara. As a result, retailers in Durang import these corn seeds from Panara, giving competition to Cormallen's original product. In Durang, these seeds are ______.
gray market products
Sophie wants to buy medicines from her own country. However, the medicines are very expensive in her country. She decides to buy them over the Internet from another country at a cheaper price, although doing so is illegal. In this scenario, the medicines are considered to be _____.
gray market products
Employing home-country middlemen proves advantageous when companies
have not previously competed very much in the global market. are not making many sales globally. want to participate in the global market without committing much money to the effort.
expatriates
high maintenance cost
The choice of expatriates over locals is often complicated by the ______.
host government's feelings about foreign workers
The international market for goods and services required in the production sector is affected significantly by an environmental factor. This factor is
how industrialized the country has become.
Before choosing middlemen, a company should consider
how many people and how much money will be devoted to global marketing. goals such as how much sales volume the venture needs to generate. markets that will be targeted, in specific countries and across broad regions.
Rules governing comparative advertising in Europe allow ______.
implicit comparisons if they do not name competitors
Transportation and related additional costs lead to price escalation because
import duties in various countries are dependent on the landed cost of goods.
The probability of parallel imports increases due to _____.
import quotas and high tariffs
A traditional distribution structure is also known as a(n) __________ distribution structure.
imported-oriented
After cash in advance, _____ provide the most protection for a seller because they guarantee the payment of dollars to the seller on presenting appropriate shipping documents.
letters of credit
Cartel members' greed leads to _____.
limited control of the industry in the long run
In the industrial products market, the primary goal of buyers is
making considerable profit.
ISO 9000 standards were established to certify and register a
manufacturer's quality system.
The first people involved in the distribution channel process are the
manufacturers
ISO 9000s were designed to ensure that
manufacturers would establish quality control systems.
Envy Corp., a textile company, launches a line of women's wear that is sold in stores owned by the company. These stores are examples of
manufacturers' retail stores.
Due to the high level of required independence while working abroad, expatriate and third-country personnel must possess ______.
maturity
If an internationally assigned salesperson is ineffective due to his or her inability to make independent ethical decisions, the salesperson most likely lacks ______.
maturity
Both marketers and communication researchers who study diffusion seek to
minimize the interval between the launch and acceptance of an idea or a product
A countervailing duty is also known as _____.
minimum access volume
In developing economies, the ______ is an important factor in marketing.
price-quality relationship
A countervailing duty may be invoked when _____.
prices are lower in the importing country than the exporting country
Which of the following factors form a customer's perception of quality? (Check all that apply.)
prices of rival products support services and follow-through level of technology reflected in a product
Manufacturers can minimize price escalation by
reducing the general quality of the product.
A laptop manufacturing company shares information about its progress online to reach out to its prospective clients and franchisees. It also provides links to its inventories and catalogs. This scenario is an example of
relationship marketing.
The largest investment of funds is required when a firm
relies on its own sales force.
Manufactures can negate price escalation by lowering tariffs through ______.
repackaging
To meet the needs of advertisers and agencies for high-quality information, ______ is growing increasingly reliable.
research data
True or false: Classification criteria vary across countries; therefore, a thorough investigation of tariff schedules and classification criteria often results in lower tariffs.
t
True or false: For a company trading with developing countries, some background on handling countertrades should be a part of every pricing toolkit.
t
If long-term contracts do not carefully consider exchange rates, then companies provide ______.
unintentional discounts
What are the advantages of using middlemen in foreign lands? (Check all that apply.)
They help connect companies that make goods with the people who will buy them. They are better able to deal with difficulties arising from the distribution of products, funding, and foreign languages.
What causes international communications to fail?
-The needs and wants of a target market may not have been assessed properly. -Different cultural interpretations may hinder the understanding of messages. -Media inadequacy may hinder the flow of messages.
relationship-oriented cultures
performance measures are based on close observation and opinions
individualistic cultures
performance measures are based on sales revenues generated
Quality is defined on which of the following dimensions?
performance quality market-perceived quality
Advertising campaigns often fail due to perceptions based on heritage and _____.
tradition
Identify techniques used by advertisers that can lead to difficulties for translators. (Check all that apply.)
-Terse writing -Word economy -Abstractions
What objectives do good public relations accomplish? (Check all that apply.)
-Companies are helped to communicate messages to their customers. -Unfavorable events, rumors, and stories about companies are managed. -Media and press are encouraged to cover positive stories about companies.
In the context of advertising strategy and goals, why do multinational companies strive to increase control and efficiency without sacrificing local responsiveness?
-Companies desire a broader company or product image. -Costs of advertising have increased. -Promotional programs in multiple countries have given rise to coordination problems
Identify the parties to whom companies aim to convey their messages. (Check all that apply.)
-Governmental regulators -General public -Customers
Identify the conditions in which creativity in advertising holds special importance.
-If production limitations exist -If a budget is small
Identify the changes in the new millennium that have altered the way that companies choose their chief executives. (Check all that apply.)
-Increasing globalization of companies -Increasing international competition -Accelerated changes in technology
What are the leading exports of the United States? (Check all that apply.)
-Industrial supplies -Capital goods
Identify the concerns that are being raised in the advertising industry. (Check all that apply.)
-It is difficult to define and control decency in advertisements. -Companies are practicing deception in advertising. -Certain advertisements demean women.
What are the various sales promotion devices that are designed to supplement advertising and personal selling in the promotional mix? (Check all that apply.)
-Product tie-ins and sponsorship of special events -In-store demonstrations -Samples and cents-off -Coupons and gifts -Contests and sweepstakes
Identify factors that have contributed to the emergence of virtual expatriates. (Check all that apply.)
-Reluctance of executives to move abroad -Advancements in communications technologies
Identify the problems that are associated with advertising coverage.
-Some demographic groups cannot be reached. -Sufficient information about coverage cannot be obtained.
What happens in the first step of the international communication process?
A product message is selected for transmission.
What happens if a market is segmented by too many newspapers?
Advertisers cannot afford to buy sufficient coverage.
Identify an accurate statement about using variable costs in pricing.
Companies view any foreign sales as bonus sales.
Select the circumstances that advance conversion in the global pharmaceutical sector. (Check all that apply.)
Concentration on a handful of significant innovations Ability and resources to wait a long time to see results Previous experience launching innovative products
Identify a scenario that best describes the influence of after-sales service on demand for technical products.
Consumers buy cars from a particular manufacturer because that manufacturer has reliable maintenance facilities.
In contrast to expatriates, local nationals have _____.
better knowledge about a country's business structure and systems
Identify the reasons why many producers don't know the final price of a product. (Check all that apply.)
Diverse channels Lack of standardized middlemen profits
True or false: Consumers care exclusively about the physical forms of a product.
F
Goods are sold and physically moved in
a distribution process.
ISO 9000 certification tends to improve
a firm's general performance.
In the context of relationship marketing, identify the primary functions of global account managers. (Check all that apply.)
adapting as situations change collecting information working in harmony with the customer's personnel
Pricing that can be determined through cooperation of competitors; through national, state or local governments; or by international agreement is called _____ pricing.
administered
Highly skilled, career-minded employees typically will not go abroad unless there is proof of _____.
advance planning to protect career development
The development and execution of advertising campaigns are generally managed by ______ agencies.
advertising
Export management companies operate under the authority of the manufacturers as
affordable autonomous marketing organizations.
Waves Inc. and Nica Inc. are two firms that manufacture laptops for the same market. However, buyers prefer the laptops manufactured by Waves Inc. because of the easy accessibility of company-owned repair outlets. In this scenario, identify a factor that has influenced buyers' preference.
after-sales service
To reduce price escalation, manufacturers can _____.
alter goods to qualify for a lower tariff rate
In a traditional distribution structure, a limited amount of merchandise is controlled by
an importer.
Work councils in Europe help determine compensation plans and _____.
approve the plans before their implememtation
compound
both specific and an ad valorem charge
Factors that increase risk for leasing companies are
currency devaluation and expropriation.
Global advertising expenditures tend to be _____.
cyclical
Which of the following middlemen are likely to be loyal to their vendors? (Check all that apply.)
dealers distributors
In the international communication process, symbols that are transmitted from information sources are interpreted by receivers in the _____ step.
decoding
Experts believe that the dissatisfaction of expatriates' families with the compensation they receive when they are repatriated can be reduced by _____.
decreasing the benefits provided overseas
A tractor manufacturer stops supplying tractors to farmers in Parain because of the availability of low-cost labor there and the consequent lack of demand for tractors. Because per capita income in Parain is low, workers willingly work for minimal wages. In this scenario, low-cost labor is easily available in Parain because it has a _____ economy.
developing
Which of the following are problems associated with countertrading?
insufficient time to carry out market analysis uncertain potential demand for goods offered in payment
Select the characteristics of services. (Check all that apply.)
intangibility inseparability heterogeneity perishability
ISO 9000 is a system of
international industrial standards.
When companies use foreign-country middlemen,
international marketers achieve more control over their distribution systems.
Price escalation is a tricky situation because _____.
it can rocket upward once it begins
A company assigns a smaller number of home-country nationals to foreign posts when the foreign country has a(n) ______.
large number of experienced and trained locals
The Japanese distribution system is characterized by
laws that safeguard small retailers. laws that safeguard small retailers. a business philosophy based on a distinctive culture. manufacturers who control the channels that distribute merchandise.
The _______ is an important selling technique to reduce high prices and capital shortages for capital equipment or high-priced durable goods.
leasing system
In most countries, media prices are ______.
negotiable
Companies that use variable-cost pricing may be subject to charges of dumping because _____.
net sales prices overseas are lower than domestic net sales prices
Penetration pricing policy is most commonly used as a competitive strategy to
obtain and hold foreign market share
According to the Product Component Model, the box a smart phone arrives in is an aspect of its ________ component.
packaging
When the difference in prices is greater than the cost of transportation between two markets, the possibility of a ___ ___ occurs.
parallel market
Identify a factor that affects demand in industrial markets.
professional buyers acting in concert
Proponents of cartel organizations argue that cartels
promote lower prices to customers.
Companies find that recruiting executives for international assignments is simplified when these candidates are given _____.
promotions for their good performance
The expansion of global business services has been seriously threatened by
protectionism.
When a global brand is relatively unfamiliar in a country market, companies _____.
purchase familiar brands and revitalize their product components
Geographic coverage is generally known for _______.
radio and television
Companies exporting goods attempt to lower tariffs on their goods by _____.
reclassifying them under categories that charge lower duties
After their initial efforts were halted by European authorities, some industries now try to curb parallel trade by _____.
restricting the supply of products to meet the local requirements restricting suppliers to meet only local demand according to formulas based on prior demand and anticipated growth
The most direct connection between a customer and a company is a ______, who is viewed as the embodiment of the company by most customers.
salesperson
The _____ assumes all the risk of receiving the payment with bills of exchange.
seller
A disadvantage of discount drafts is that if a buyer does not accept the draft, the _____.
seller must pay the amount due
An important factor that decides if a consumer wishes to buy technical products from a particular company is the
seller's willingness to provide training.
Letters of credit are advantageous for a seller because they _____.
shift the risk of a buyer's payment to a bank that issues them
Reducing or eliminating middleman mark-ups can lower distribution costs due to ______.
shorter channels
Cumulative value-added taxes provide incentives for ______.
shorter distribution channels
As growing markets and domestic-only competition have faded in recent years, fewer chief executives are coming from _____.
single-discipline backgrounds
Companies assign a number of marketing personnel to foreign countries based on the ______.
size of the operation and the availability of qualified locals
When a company's objective is to reach the part of the market that is somewhat price insensitive and willing to pay a premium, it uses _____.
skimmin
Identify the pricing approach used by companies to maximize earnings and to match demand to supply.
skimming
When consumers stop buying a brand for a particular period of time, middlemen tend to
soon stop selling those products.
When distribution agreements are made with middlemen, firms must
specify what will be expected of the company and the middleman.
In the context of the Product Component Model, identify the elements included in the packaging component. (Check all that apply.)
style package labeling trademark -brand name -quality -price other packaging aspects
Exporting companies may inflate selling prices of exported products because _____.
the companies are affected by inflation and price regulations that are not under its control
pricing as a static element
the company places a low priority on foreign business, exports only excess inventory, and does not view its export sales as active contributions to sales volume
pricing as an active instrument
the company sets prices to achieve specific goals, including targeted returns on profit and targeted sales volumes
A disadvantage of seeking aid from barter houses is that
the time required puts financial stress on the company seeking aid.
___-___ nationals are expatriates from their own countries who are employed by foreign companies in a third country.
third-country
According to Everett Rogers, diffusion is differentiated from other types of communications research with respect to the element of _____.
time
Much of the world's desire for international services is driven by
trade
The most common reason expatriates become dissatisfied and decide to return home from their assignments early is _____.
unsuccessful family adjustment
Identify a factor that reduces the amount of money a firm must invest in channel management.
use of distributors
Employees in a company's international sales force who manage the company's operations in a foreign market without moving to the other country are known as _____.
virtual expatriates
Demand in global industrial markets is influenced by
volatility. the technological level of products and services. each country's economic and industrial stage of development.
Internal labor union committees in Europe that are involved in setting rules about compensation for the whole company are known as ___ ___.
work councils
