International Marketing Final - Quiz Answers
Which of the following is NOT a reason for branding? A: Give a product credibility B: Make market entry easier C: Leave market quicker D: Help consumers identify products
C
Which of the following may have to be altered as a discretionary adaptation?
Color, scent, sound (All of the above)
Tea is preferred in certain cultures; in other cultures coffee is the drink of choice. In some countries, white is the color worn at a funeral, but in other countries, black is commonly worn. In Turkey, cheese, tomatoes, cucumbers, and olives are common for breakfast, but cereal, milk, and juice are more common in the United States. These normative differences are due to cross-national differences in ___________.
Culture
Tanner Tractors is considering licensing its new line of tractors to its joint venture in India. Which of the following facts would make this unfeasible? A: You cannot license products to your own joint venture. B: Tariffs on tractors are low in India. C: Tariffs on tractors are high in India. D: Correct None of the given answers.
D
Tunetoy Industries, a U.S. MNC, has been invited to join a cartel. What advice would you give the firm?
Don't. It's illegal
When the value of the euro drops against the US dollar
European products become cheaper in the US
At the concept-testing stage, products only need to be tested in the home market.
False
T/F: A push strategy is suitable in countries that have very good advertising media.
False
T/F: Comparative advertising is common in Japan.
False
T/F: Developing countries have better trademark protection that developed countries.
False
T/F: Global citizens are brands that are environmentally conscientious.
False
T/F: In Korea, making eye contact is considered a sign of trustworthiness.
False
T/F: Licensing agreements are standard across all industries and have to follow WTO regulations.
False
T/F: Reaching markets through an intermediary located in the exporter's home country is called direct exporting.
False
T/F: The EU follows the principle of international exhaustion.
False
T/F: The United States, Britain, and Australia can be grouped together in a regional organizational structure because English is the first language in all of these countries.
False
T/F: The WTO works with member countries to raise tariffs to protect their local industries.
False
T/F: You should always test market a product in the country where it will be launched.
False
Which product is too costly to transport long distances and is therefore a poor choice for export?
Fresh orange juice
General Motors is considering a global theme approach. What advice would you give GM?
Incorporate input from the subsidiaries in the original design of a global theme campaign
Wholesale channels are longest in
Japan
Which of the following is not part of the process of developing a global brand strategy?
Leave markets quicker
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.
Low trust
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
Indopharm is planning to export to Taiwan and is investigating local distributors. A large, well-respected firm is interested, but this firm will likely become the channel captain. Is this good for Indopharm?
No. Indopharm will lose control over its pricing.
What is the type of selling in which a customer is met in person by a representative of the marketing company?
Personal selling
Which of the following countries serve as an example of a polychronic culture?
Saudi Arabia
Cancellation of distribution rights may be problematic in foreign markets due to
Social norms, the cost involved, local laws (All of the above)
The highest penetration of on-line purchasers is found in
South Korea
An alliance involving two or more global firms in which each partner brings a particular skill or resource is called a
Strategic alliance
Taberet, a German company, is planning an extensive move into Brazil. How will Taberet's personal selling model be affected in this new market?
The compensation package may need to be adapted
T/F: A common problem with global account management is that customers demand lower prices.
True
T/F: A pull strategy is directed at the final buyer or end user of a product or service.
True
T/F: Acquisition is an attractive strategy when a market is already dominated by established brands and saturated with competitors.
True
T/F: Affective cultures express emotions openly, and persons from affective cultures can unnerve persons from neutral cultures
True
T/F: An international transfer price is the price paid by the importing or buying unit of a firm, to the exporting unit of the same firm.
True
T/F: China, Korea, and Japan are examples of neutral cultures.
True
T/F: For products whose customer needs vary from country to country, a decentralized approach to decision making for advertising is preferred.
True
T/F: In Asia, consumers are more positive towards advertisements than are consumers in the United States.
True
T/F: In a matrix organizational structure, there is dual or multiple lines of command, with individuals reporting to more than one superior.
True
T/F: International divisions are proactive compared to export departments and actively seek out market opportunities in foreign countries.
True
T/F: Japanese television commercials are full of US themes.
True
T/F: Mandatory adaptations are necessary for the product to be sold in the local market.
True
T/F: Many companies charge higher prices in foreign markets than in their domestic markets because of transportation costs
True
T/F: Most translation problems occur when global advertisements are literally translated.
True
T/F: NGOs may compete with other NGOs for funding but at the same time cooperate to accomplish a common goal.
True
T/F: OPIC insurance covers losses due to currency inconvertibility.
True
T/F: Trade fairs offer companies a chance to promote new products and meet with prospective customers in a less formal atmosphere.
True
T/F: Using licensing as a method of market entry, an MNC can gain market presence without an equity investment.
True
Which is a source of foreign distributor information for US firms?
US Department of Commerce
Which of the following offers good protection against counterfeits?
Unique packaging
Market entry through acquisitions is an attractive option when
a market is saturated with competitors.
French Bakery Breads utilizes couponing and advertising extensively in Argentina. It is pursuing which of the following?
a pull strategy
Shelf space is difficult to find in Saudi Arabia and advertising is limited and expensive. In Saudi Arabia, Karavel Foods should consider
a push strategy
A monochronic culture is one in which
activities are addressed one at a time, and schedules and agendas are respected
ABC Autos is planning a new advertising campaign in the Japanese market. It should
appeal to consumers' emotions
Taberet is considering moving from a regional organization to a product-regional matrix structure. What can the company hope to accomplish from this?
better global roll-outs
When operating in Muslim countries, U.S. fast-food chains respect local traditions by
certifying their products as halal
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
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.
When Ford brought its Fiesta model into the Indian market, the product design team made several product adaptations. Since many women wear saris, or long, flowing dresses in India, they made the door open wider to make it easier for them to get in and out of the car. This is an example of a(n) _________ product adaptation.
discretionary
The practice of selling a product at a price below actual costs is referred to as
dumping
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
Tottenham Tartans is concerned about parallel imports entering the German market from France. The firm should
establish a uniform pricing policy across Germany and France
When management of a multinational firm remains centered on its home market, it is said to be
ethnocentric
When Taiwan Graphics first entered Indonesia, all decisions for the new market were made in Taiwan. Now all decisions for Indonesia are made by the subsidiary there. Taiwan Graphics has changed orientations from
ethnocentric to polycentric
T/F: Negotiating with the Chinese takes much less time than negotiating with people from the United States or other Western countries.
false
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
To avoid duplication of efforts across countries, a global firm should adopt a __________ structure.
functional
Coca-Cola and Levi are examples of ________ names.
global brand
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
A country that contains an operational unit of an international company is called a ___
host country
Government subsidies are most likely to be given to firms that
increase national revenue through export sales.
Harmonization of advertising regulations in the European Union will
increase the potential for a Pan-European campaign
Sales people from monochronic cultures who travel to polychronic cultures should expect their customers to be
late for meetings
Most translation problems occur when advertisements are
literally translated
A channel in which newcomers cannot easily convince any channel member to participate despite both market and economic reasons suggesting otherwise is called a ___________ channel.
locked-up
Which has not been a contributing factor to the expansion of international retailers?
lower political risk
Governments examine international transfer prices because transfer prices can
lower tax revenue
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
Products that contain standard modules that can be easily connected with other standard modules are said to have a(n) __________ design.
modular
Channel length refers to
number of intermediaries between a firm and its customers
Retailers such as Ahold that expand globally by acquiring existing retail businesses that retain their independent identities are
performance managers
A South Korean company has registered the Vakko brand in the United States. This prevents the Turkish company, Vakko, from entering the US market unless they want to buy the brand name rights from the South Korean company or create a new brand for the US market. The South Korean company has _________ the Vakko brand name.
pre-empted
The main role of public relations personnel is to
promote goodwill toward the company
In July 2005, the U.S. Congress blocked China's plans to acquire the U.S. oil and gas company, Unocal. Congress argued that crucial raw materials, such as oil, should not be controlled by an economic rival. This action is motivated by the American government's interest in ____
protecting national security
Under Islamic banking practices, Muslims prefer to invest in banks that
provide profit-loss accounts, allowing customers to invest their savings in businesses that banks preselect
Indopharm is negotiating for a major contract to supply pharmaceuticals to the Brazilian health care system. However, the Brazilian government wants the firm to take half payment in Brazilian commodities. The firm should
raise its proposed price for the contract.
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
It can take 153 days to establish a business in Mozambique compared with three days in Canada. It takes twenty-one steps to register a commercial property in Nigeria compared with only three steps in Finland. These are examples of cross-national differences in ____.
regulatory environments
Retailers such as Carrefour that employ standardized back-end systems and processes while creating largely tailored retail formats for each overseas market are called
reinventors
Who might report to the head of an international division?
sales, marketing and production managers (all of the above)
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.
In Australia, foreign ownership of television stations is limited to no more than 20 percent. It is feared that if a foreign country controlled the media, it could influence public opinion and national sovereignty. This regulation is motivated by the Australian government's interest in ____.
self-preservation
Mr. Clean, Monsuier Propre, and Meister Proper are examples of ________names.
single-country brand
Heinz first used its new teenager-oriented ketchup advertising campaign in a limited Canadian market, then rolled it out worldwide with minor modifications based on consumer surveys in Canada. The Canadian advertising campaign is an example of a __________.
test market
A product organizational structure is best suited for companies
that have several unrelated product lines
In a global theme approach towards advertising
the same advertising theme is used worldwide but varied slightly with each local execution
Firms prefer international divisions over export departments when
the volume of exports increases
Groups such as Canadian Standards Association formulate standards
to assure buyers of a stated level of product quality