Deck 1: Rationale for International Marketing

Question 1

The WTO replaced which of the following?

A) GATT
B) EU
C) GSM
D) WAP
E) ASEAN

Answer 1

A

Question 2

Explain the difference between an ethnocentric approach and a polycentric approach to international marketing. Why might marketers choose to adopt a regiocentric or geocentric approach?

Answer 2

An ethnocentric approach results from management that believes the home country is superior and that the marketing undertaken in the home market should be applied to all offshore markets. A polycentric approach results from management that believes each country is different, with no country being necessarily inferior. Marketers often shift their approach to reflect changing circumstances, such as in economic and market development. With a regiocentric approach, a particular region (group of countries) is viewed as a market with integrated strategies developed that reflect both the differences and similarities between the home market and the region. For markets outside the region, management might still adopt an ethnocentric or polycentric approach. With a geocentric approach, the entire world is viewed as a market and a global approach is developed that is flexible enough to respond to local needs and wants as required.

Question 3

A firm that implements a polycentric management orientation towards its overseas marketing activities believes that:

A) each country is the same, although the home country is superior.
B) each country is different, but none is necessarily inferior.
C) each overseas operation needs to develop its own marketing approach.
D) the world is viewed as a single market that needs a specific strategy.
E) both B and C are correct.

Answer 3

E

Question 4

The transnational approach to international marketing is the most appropriate strategy for small to medium-scale exporters.

Question 5

Holistic marketing involves:

A) relationship marketing.
B) pressure groups.
C) social responsibility marketing.
D) all of the above.
E) options A and C only.

Question 6

In 2014 which country/bloc was the source of the largest number of major multinational enterprises?

A) European Union
B) USA
C) China
D) Singapore
E) Japan

Question 7

Which of the following is part of the universal stakeholder model?

A) Customer satisfaction
B) Employee satisfaction
C) Financial performance
D) Employee orientation
E) All of the above

Question 8

The management orientation that views the home country as being superior to the overseas country, and believes that the marketing approach used in the home country should be applied to every other country is an example of a(n) ________ orientation.

A) geocentric
B) heliocentric
C) polycentric
D) ethnocentric
E) regiocentric

Question 9

Which of the following is an example of a proactive internal marketing approach?

A) Utilising excess capacity
B) Reducing the advantage of seasonality
C) Diversifying risk
D) Unsolicited orders
E) Opportunities in foreign markets

Question 10

Asia has the largest percentage of the world's multinational enterprises (MNEs).

Question 11

A restraining force on international marketing is that of real or perceived risk. Cavusgil categorises these as:

A) commercial risks.
B) financial risks.
C) cross-cultural risks.
D) country risks.
E) all of the above.

Question 12

Which of the following can be identified directly with international marketing?

A) Firms undertaking business transactions across national boundaries
B) Greater buyer awareness of and demand for new product innovations
C) The need for firms to adjust to macroenvironmental differences
D) All of the above
E) Options A and B only

Question 13

Economies of scale, gained by supplying more than just the domestic market, can drive down the costs of R&D, engineering and manufacturing.

Question 14

There will always be differences between national markets, some of which can be significant enough to discourage a firm from entering an overseas market. Which of the following could be viewed as a restraining factor for international marketing?

A) Government tariff barriers
B) Controls to protect domestic industry
C) Government non-tariff barriers
D) Options A, B and C
E) Options B and C only

Question 15

Market needs and the creation of government policies that facilitate international involvement are two of the driving forces behind international marketing.

Question 16

Most governments attempt to control the flow of trade into their country by regulating the trading conditions. This government regulation can be motivated by:

A) domestic-industry issues, including protection for local producers.
B) national sovereignty, including protecting national values.
C) local relevance, including changing designs to meet local needs.
D) all of the above.
E) options A and B only.

Question 17

Discuss the various factors that might encourage a successful domestic firm to accept the risk inherent in going international and choose to sell its product in an overseas market.

Question 18

Which of the following is a driving force in international marketing?

A) Cross-cultural differences
B) Ethnocentric attitudes
C) Commercial risks
D) Cost
E) All of the above

Question 19

International marketing is the process of planning and carrying out trading transactions across national boundaries. Which one of the following is NOT a valid form of international marketing?

A) An overseas joint venture
B) Exporting
C) A wholly owned overseas acquisition
D) Licensing
E) Each of the above is a valid form of international marketing.

Question 20

The driving forces that can encourage business firms to undertake international marketing include:

A) market needs, legal differences and communications.
B) export commitment, technology and communications.
C) market needs, economies of scale and technology.
D) product enhancement, costs and economies of scale.
E) communications, legal differences and economies of scale.

Question 21

In 2010 coal was Australia's leading export.

Question 22

When entering international markets, firms can take different approaches based on varying levels of commitment. Discuss the various approaches and when each approach may be appropriate.

Question 23

When a firm adopts an internalisation approach to international trade, it is attempting to gain advantage by:

A) making use of joint venture partners in the overseas market.
B) replicating its domestic operation in the overseas market.
C) buying only from its domestic suppliers.
D) employing an export merchant in the home country.
E) making use of agents in the overseas market.

Question 24

The small size of the domestic market is an example of a reactive-internal driver.

Question 25

The product trade cycle is:

A) a major component of the overseas external environment.
B) the sequence of activities necessary to undertake international marketing.
C) a key element of holistic marketing.
D) a concept that incorporates the life cycle of markets.
E) none of the above.

Question 26

Explain the different reasons a company might have for undertaking international marketing.

Question 27

The theory of comparative advantage is based on the idea that a country should focus on what it does best rather than trying to produce everything.

Question 28

The product trade cycle, which is an extension of the product life cycle, relates to:

A) the emergence of the global village.
B) the WTO agreement that enables nations to trade goods and services.
C) the shift of product manufacture to lower-cost sources of production.
D) the increasing use of the internet for trading purposes.
E) none of the above.

Question 29

The theory of comparative advantage states that a nation can gain from international trade ONLY if it:

A) supplies products that other nations don't produce.
B) has a disadvantage against other nations in the production of particular goods.
C) produces the best of everything.
D) exports products at a lower cost than other nations.
E) none of the above.

Question 30

A holistic approach to international business requires the marketer to:

A) satisfy the needs of both the individual consumer and the wider society.
B) adopt a strategy that concentrates the firm's efforts in one market at a time.
C) market the product in those countries where there are fewer trade barriers.
D) develop several international markets simultaneously.
E) none of the above options is correct.

Question 31

In general, international trade in services has been in decline, while trade in primary industries has risen.

Question 32

Historically, the main source of Australia's exports has been the primary sector, but over the next decade, services are expected to produce the greatest level of growth.

Question 33

A regiocentric orientation views the region as the market, and ensures that the integrated strategies developed for the region take into account both the similarities and differences between the home market and the rest of the region.

Question 34

Advances in communications technology have revolutionised international marketing activities.

Question 35

An ethnocentric orientation towards foreign markets reflects the approach that the home country is superior and that its approach should be applied to other countries.

Question 36

Firms always use an export intermediary such as an export agent in foreign markets.

Question 37

Exports in agricultural products, minerals and energy products are no longer the mainstay of Australia's export activity.

Question 38

Since World War II, international trading has become more complex and:

A) interdependencies between firms in different countries are much greater.
B) an export approach is preferred to a holistic focus.
C) organisations are moving from foreign direct exporting to indirect exporting.
D) options A and C.
E) option A only.

Question 39

Explain how changes in the world trading environment, communication and transport and technology have facilitated international marketing.

Question 40

How does the theory of comparative advantage allow smaller economies to develop a niche position in the international trade market?

Question 41

The explosion of electronic business questions a number of fundamental principles in international marketing including:

A) incremental internationalisation.
B) country screening.
C) barriers to internationalisation by SMEs.
D) the need for overseas intermediaries.
E) all of the above.

Question 42

In 2014, which of the following nations was Australia's top two-way trading partner?

A) Thailand
B) Republic of Korea
C) India
D) New Zealand
E) China

Question 43

From a macro perspective, high-income, mass-producing nations (such as the USA and Australi

A) were initially exporters of basic manufactures, but have ultimately become importers of such products.

Question 44

In the trickle down/waterfall pattern international, trade cycle moves in order through:

A) advanced, developing and less-developed countries.
B) less-developed, developing and advanced countries.
C) developing, less-developed and advanced countries.
D) developing, advanced and less-developed countries.
E) less-developed, advanced and developing countries.

Question 45

In 2014, which of the following nations was New Zealand's second largest two-way trading partner?

A) Thailand
B) Republic of Korea
C) India
D) Australia
E) China

Question 46

Outline the main trends in the Australian trade environment over the past 50 years. How do you see Australia's trade developing over the next 20 years?

Question 47

The component parts of the wheel of international marketing are the:

A) rim, the hub and the centre.
B) hub, the spokes and the inner.
C) hub, the spokes and the rim.
D) hub, the spokes and the edge.
E) rim, the edge and the spokes.

Question 48

The adoption of the internet has been fastest in countries that:

A) have English as the first or second spoken language and the organisation has a physical presence in the country.
B) have a high GDP and English is widely spoken.
C) are most closely aligned with the USA and there are a number of SMEs.
D) have a large number of intermediaries.
E) have few SMEs and English is widely spoken.

Question 49

Explain the model of the wheel of international marketing and use an example to demonstrate its use in practice.

Question 50

Explain the different stages for the international product trade cycle and provide two reasons why this cycle might encourage a domestic firm to enter an overseas market.

Question 51

Which of the following is NOT a strength of the internet in terms of a marketing channel?

A) Does not overload businesses and consumers with information
B) Allows unprecedented one-to-one communications
C) Leads to cost-effective operations for marketers
D) Is an inexhaustible resource
E) Offers unique ways to present information

Question 52

In 2014, which country was a major supplier of Australian imports?

A) Singapore
B) United States
C) Japan
D) China
E) All of the above

Question 53

The hub of the wheel of international marketing consists of environmental factors that need to be taken into account when developing the firm's international marketing mix.

Question 54

With the advent of the internet, firms do not have to internationalise by moving from elementary modes of international behaviour to more advanced modes of international behaviour to the same extent.

Question 55

Companies that produce for the world market are most commonly referred to as ________ companies.

A) multi-domestic .
B) global
C) transnational
D) local
E) international marketing specialist

Question 56

In 2014, Australia's leading export was:

A) beef.
B) iron ore.
C) natural gas.
D) coal.
E) wheat.

Question 57

Exporting a product to an overseas market cannot extend the life of a product in the decline stage of the product life cycle.

Question 58

How has the development of the internet changed the way a firm approaches international marketing? What strengths does the internet bring to an international marketer?

Question 59

The product life cycle paradigm is a market-specific approach.

Question 60

In 2015 the top country in terms of internet access was China.