Question 1

The impact of country of origin is independent of the type of product.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following causes a difference between marketing in developed countries and marketing in developing countries?

Accepted Answer

A)   The cost of production varies substantially between the developed and the developing world.
B)   The disparity between the rich and the poor in the developing world is reducing.
C)   There are substantial cultural differences between the developed and the developing world.
D)   Marketing in developing countries is far more expensive than in the developed world.
E)   The developing countries have more trade barriers in place than the developed countries.F) A) and D)
G) A) and C)

Question 3

When companies sell on the Internet, price becomes transparent, and price differentiation between countries declines.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a risk that firms must consider prior to expanding abroad?

Accepted Answer

A)   The domestic consumers prefer low-priced products.
B)   The market in the foreign country may be too similar to the domestic market.
C)   Consumers in the foreign country are very particular about the quality of the goods they consume.
D)   The foreign country has very low pollution control standards.
E)   The foreign country's business culture may be too different from the domestic country.F) A) and E)
G) B) and E)

Question 5

As people in developing countries often prefer to buy in smaller quantities, ________ is one of the most important functions of intermediaries in developing countries and helps perpetuate the long channels of distribution, which are a major obstacle to the expansion of retailing.

Accepted Answer

A)   product adaptation
B)   breaking bulk
C)   diversification
D)   transfer pricing
E)   dual adaptationF) A) and E)
G) B) and C)

Question 6

The New Zealand Way program was an initiative by the government of New Zealand to raise awareness and attract tourists by showing the dramatic landscapes featured in "The Lord of the Rings" film trilogy. This is an example of a government trying to strengthen its ________.

Accepted Answer

A)   country-of-origin perceptions
B)   international subsidiaries
C)   internationalization
D)   contract manufacturing
E)   distributor relationshipsF) A) and E)
G) A) and D)

Question 7

As a result of the ad campaigns depicting Brazil as a multicultural land of carnivals and beaches, any mention of the country makes people think of sun and sand. This is an example of ________.

Accepted Answer

A)   collectivism
B)   target market impact
C)   ethnocentric thinking
D)   country-of-origin effect
E)   cognitive dissonanceF) A) and B)
G) B) and C)

Question 8

The Organization for Economic Cooperation & Development (OECD) cautions that economic reforms have stagnated and ranks Russia as one of the most corrupt countries in the world.

Accepted Answer

A) True 
 B)False

Question 9

Once a company decides to target a particular country, it must determine the best mode of entry. Each of its market entry strategies involves more commitment, risk, control, and profit potential. List these market entry strategies in order from low risk to high risk.

Accepted Answer

The five modes of entry into foreign mar...

Question 10

Which of the following statements is true about licensing?

Accepted Answer

A)   It is one of the most complex ways to engage in international marketing.
B)   The licensor gains entry into the new market at low risk.
C)   The licensee has no access to proprietary information.
D)   The licensee receives a fee or royalty.
E)   The only benefit for a licensee is the production expertise it gains.F) A) and E)
G) C) and D)

Question 11

International companies must decide how much to adapt their marketing strategy to local conditions. Identify and explain the two strategies companies can use.

Accepted Answer

A company foraying into the internationa...

Question 12

Indirect exports have two advantages for a firm: less investment and less ________.

Accepted Answer

A)   paperwork
B)   intrusion by the government
C)   risk
D)   competition
E)   customer suitsF) All of the above
G) A) and C)

Question 13

Important developing or emerging markets include Brazil, Russia, India, Canada, and South Africa, often called "BRICS" for short.

Accepted Answer

A) True 
 B)False

Question 14

In a sprinkler approach to international expansion, ________.

Accepted Answer

A)   countries are entered when competition is limited
B)   countries are gradually entered sequentially
C)   countries in which the supply of raw material is greatest are entered first
D)   countries in which the demand for the product is greatest are entered first
E)   many countries are entered simultaneouslyF) A) and E)
G) A) and D)

Question 15

It often makes sense to operate in fewer countries, with a deeper commitment and penetration in each.

Accepted Answer

A) True 
 B)False

Question 16

Various governments force companies to charge the ________ price, which is charged by other competitors for the same or a similar product.

Accepted Answer

A)   gray market
B)   implicit
C)   arm's-length
D)   authorized
E)   contingentF) A) and E)
G) B) and D)

Question 17

When the licensor provides the licensee with a complete brand concept and operating system, the arrangement is called contract manufacturing.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following can cause a firm to choose joint ventures as a mode of expansion into foreign markets?

Accepted Answer

A)   excellent managerial resources
B)   lack of sufficient finances
C)   lack of conflicting regulations in the host country
D)   preferences of target consumers in the host country
E)   psychic proximity of the host countryF) C) and E)
G) C) and D)

Question 19

Domestic-based export merchants seek and negotiate foreign purchases for a commission.

Accepted Answer

A) True 
 B)False

Question 20

Contract manufacturing is one mode of licensing that allows a company to start faster, with the opportunity to form a partnership or buy out the local manufacturer later.

Accepted Answer

A) True 
 B)False

Exam 8: Tapping Into Global Markets

When the licensor provides the licensee with a complete brand concept and operating system, the arrangement is called contract manufacturing.

Correct AnswerverifiedShow Answer

Which of the following can cause a firm to choose joint ventures as a mode of expansion into foreign markets?

Correct AnswerverifiedShow Answer

In a sprinkler approach to international expansion, ________.

Correct AnswerverifiedShow Answer

When companies sell on the Internet, price becomes transparent, and price differentiation between countries declines.

Correct AnswerverifiedShow Answer

Various governments force companies to charge the ________ price, which is charged by other competitors for the same or a similar product.

Correct AnswerverifiedShow Answer

Important developing or emerging markets include Brazil, Russia, India, Canada, and South Africa, often called "BRICS" for short.

Correct AnswerverifiedShow Answer

The New Zealand Way program was an initiative by the government of New Zealand to raise awareness and attract tourists by showing the dramatic landscapes featured in "The Lord of the Rings" film trilogy. This is an example of a government trying to strengthen its ________.

Correct AnswerverifiedShow Answer

It often makes sense to operate in fewer countries, with a deeper commitment and penetration in each.

Correct AnswerverifiedShow Answer

As people in developing countries often prefer to buy in smaller quantities, ________ is one of the most important functions of intermediaries in developing countries and helps perpetuate the long channels of distribution, which are a major obstacle to the expansion of retailing.

Correct AnswerverifiedShow Answer

Contract manufacturing is one mode of licensing that allows a company to start faster, with the opportunity to form a partnership or buy out the local manufacturer later.

Correct AnswerverifiedShow Answer

As a result of the ad campaigns depicting Brazil as a multicultural land of carnivals and beaches, any mention of the country makes people think of sun and sand. This is an example of ________.

Correct AnswerverifiedShow Answer

The Organization for Economic Cooperation & Development (OECD) cautions that economic reforms have stagnated and ranks Russia as one of the most corrupt countries in the world.

Correct AnswerverifiedShow Answer

Which of the following statements is true about licensing?

Correct AnswerverifiedShow Answer

Domestic-based export merchants seek and negotiate foreign purchases for a commission.

Correct AnswerverifiedShow Answer

Which of the following is a risk that firms must consider prior to expanding abroad?

Correct AnswerverifiedShow Answer

International companies must decide how much to adapt their marketing strategy to local conditions. Identify and explain the two strategies companies can use.

Correct AnswerverifiedA company foraying into the internationa...View AnswerShow Answer

Indirect exports have two advantages for a firm: less investment and less ________.

Correct AnswerverifiedShow Answer

Which of the following causes a difference between marketing in developed countries and marketing in developing countries?

Correct AnswerverifiedShow Answer

Once a company decides to target a particular country, it must determine the best mode of entry. Each of its market entry strategies involves more commitment, risk, control, and profit potential. List these market entry strategies in order from low risk to high risk.

Correct AnswerverifiedThe five modes of entry into foreign mar...View AnswerShow Answer

The impact of country of origin is independent of the type of product.

Correct AnswerverifiedShow Answer

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A company foraying into the internationa...
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The five modes of entry into foreign mar...
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