Deck 1: Scope, Concepts, and Drivers of International Marketing

Question 1

Firms with a regiocentric orientation are guided by a multidomestic market concept.

Answer 1

False
Polycentric firms are guided by the multidomestic market concept. Firms with a regiocentric orientation are guided by the global marketing concept.

Question 2

International marketing is defined as the processes involved in the creation, production, distribution, promotion and pricing products, services, ideas and experiences for international markets.

Answer 2

True
International marketing activities require a substantial focus on international consumers in a particular country or countries. International marketing is thus defined as the processes involved in the creation, production, distribution, promotion and pricing products, services, ideas and experiences for international markets.

Question 3

Firms with a regiocentric or a geocentric orientation are guided by a global marketing concept.

Answer 3

True
Both regiocentric and geocentric firms are guided by the global marketing concept. Companies adopting a regiocentric orientation view world regions as distinct markets that share economic, political and/or cultural traits such that they would be viable candidates for a region-wide marketing approach.

Question 4

Disney has an ethnocentric philosophy that is manifest in its international operations.

Question 5

Firms with an ethnocentric orientation consider that the purpose of their international operations is to identify markets that could absorb surplus domestic production.

Question 6

Export marketing requires a substantial focus on consumers in the international target market.

Question 7

Polycentric firms are likely to be highly centralized.

Question 8

International companies such as General Motors, Mitsubishi, Microsoft, and Exxon earn profits greater than the Gross Domestic Product of many developing countries.

Question 9

The objective of a geocentric company is most often to achieve a position as a low-cost manufacturer and marketer of its product line.

Question 10

Firms with a regiocentric or a polycentric orientation are guided by a global marketing concept.

Question 11

A company engaging in domestic marketing has the least commitment to international marketing.

Question 12

In the future, postal services might constitute the new competitive territory of international companies.

Question 13

The U.S. consumes more than 25% of worldwide products and services.

Question 14

McDonald's has been successful because of its ethnocentric philosophy.

Question 15

Firms with a polycentric orientation are guided by a multidomestic market concept.

Question 16

Each subsidiary in an ethnocentric organization has its own marketing plans and objectives and operates autonomously as an independent profit center on an individual country basis.

Question 17

A company engaging in export marketing has the least commitment to international marketing.

Question 18

Global marketing activities are not coordinated across different countries, nor across different regions.

Question 19

Firms with an ethnocentric orientation are guided by a domestic market extension concept.

Question 20

Companies from small countries have difficulty in succeeding internationally, as their income cannot be supported by a large market at home.

Question 21

IBM has always had a geocentric orientation.

Question 22

Colgate-Palmolive developed its successful Axion paste for washing dishes by hand after observing the dish washing behavior of Latin American women.

Question 23

During the introduction stage of the product lifecycle, the core product is likely to achieve a standard in a particular industry.

Question 24

Companies investing in large transition economies, such as China, reap the greatest return on their investment.

Question 25

A main driver of international expansion is a firm's attempt to prolong the life cycle of its products.

Question 26

Organizing the firm on the basis of function, rather than on the basis of country of operations, demonstrates a geocentric internationalization philosophy.

Question 27

New Product Development costs are not at all related to the product life cycle.

Question 28

Much of the outsourcing of customer service to developing countries is largely attributed to improvements in telecommunication.

Question 29

Economic growth is not an important driver of internationalization.

Question 30

Competitive pressure is frequently a driver of internationalization.

Question 31

Economic integration does not benefit companies from non-member states.

Question 32

Competition, regional economic integration, and technology are examples of Business Environment Drivers.

Question 33

Emerging economies in general are less open to foreign trade and severely limit international firms operating in these markets.

Question 34

The U.S. market is very large. As a result, companies are likely to quickly recover their product development costs and make a profit as well, if its sales are limited to the U.S.

Question 35

Local firms targeting their products to local consumers are dependent on equipment, parts, and/or raw materials originating abroad.

Question 36

A subsidiary of a company from the United States incorporated in any country of the European Union is a corporate citizen of the European Union.

Question 37

Firms in the introductory stage of the product life cycle are most likely to move manufacturing operations and facilities abroad, to developing countries, in an attempt to take advantage of significantly lower labor costs.

Question 38

Uniform consumer segments worldwide are every marketer's hope. However, it is impossible to have uniform segments as long as consumer preferences are so diverse.

Question 39

An important outcome of the transition of the former Eastern Bloc countries to a market economy has been the deregulation and privatization of former government monopolies.

Question 40

Although the product life cycle is an important marketing consideration in domestic marketing, it has little affect on the international expansion of a firm.

Question 41

Companies attempting to establish and maintain an international presence are likely to encounter obstacles to internationalization both from within the company and from outside.

Question 42

The self-reference criterion helps the firm to adapt as it expands operations to international markets.

Question 43

It is important for the firm to adapt to the local business environment in order to serve the needs of local consumers.

Question 44

Eli Lilly is a(n):

A)ethnocentric firm
B)polycentric firm
C)polychronic firm
D)regiocentric firm

Question 45

The United States provides about ____ of the worldwide products and services

A)5%
B)15%
C)25%
D)35%

Question 46

Members of regional economic integration agreements such as NAFTA frequently use tariffs as a means of restricting international expansion of companies in the countries' territories.

Question 47

Which type of marketing best describes a company's approach to international marketing if the company is present in different countries with sales offices, subsidiaries, or is an active partner in strategic alliances with local companies and that does not coordinate activities across the different countries or regions.

A)Domestic marketing
B)Export marketing
C)International marketing
D)Global marketing

Question 48

Which of the following approaches to international marketing involvement best describes a company that coordinates activities across different countries or regions?

A)Domestic marketing
B)Export marketing
C)International marketing
D)Global marketing

Question 49

Competition can be both a driver of internationalization and a barrier to new entrants in a market.

Question 50

Which type of marketing involves marketing activities across different countries without focusing primarily on national or regional segmentation?

A)Domestic marketing
B)Export marketing
C)Multinational marketing
D)Global marketing

Question 51

In which type of marketing does a firm have the least commitment to international marketing?

A)Domestic marketing
B)Export marketing
C)International marketing
D)Global marketing

Question 52

Recently, privatization in countries where government monopolies have dominated for decades has made it possible for multinationals to compete in each of the following industries EXCEPT:

A)airlines
B)postal services
C)railway
D)telecommunications

Question 53

Marlboro's primary defensive marketing strategy in foreign countries is to decrease prices by as much as one-third.

Question 54

In Japan, similarly to the U.S., looking one's counterpart in the eyes conveys directness and honesty.

Question 55

The EPRG Framework of international orientation stands for:

A)economics, psychographics, regulations, & geographics
B)enter, produce, react, & group
C)ethnicity, polychronic, regulations, & global expansion
D)ethnocentric, polycentric, regiocentric, & geocentric

Question 56

Local content requirements are sometimes used by national governments to restrict or impede the entrance of international firms.

Question 57

The first step in minimizing the impact of the self-reference criterion is selecting appropriate personnel for international assignments.

Question 58

The firm is most likely to have an ethnocentric orientation when it engages in ____.

A)Export marketing
B)International marketing
C)Multinational marketing
D)Global marketing

Question 59

Experience transfers are limited to product manufacturers.

Question 60

When a company believes that domestic strategies, techniques, and personnel are superior to foreign ones it is using a(n):

A)ethnocentric orientation
B)polycentric orientation
C)regiocentric orientation
D)geocentric orientation

Question 61

Which of the following is NOT a driver of international expansion?

A)Competition
B)Regional economic integration
C)Import quotas
D)Technology

Question 62

When a company from the United States exporting products to multiple countries in the European Union only has to go through customs once, this is an example of:

A)Competition
B)Regional economic & political integration
C)Import quotas
D)Technology

Question 63

Firms that view international markets solely as markets where they could unload excess production have a(n):

A)ethnocentric orientation
B)polycentric orientation
C)regiocentric orientation
D)geocentric orientation

Question 64

When Ford stopped making the Escort look different in every market and moved to an identical look for all markets, it moved from a polycentric strategy to this kind of strategy.

A)ethnocentric orientation
B)polycentric orientation
C)regiocentric orientation
D)geocentric orientation

Question 65

Firms where top management adopts a geocentric orientation perceive the world:

A)to be similar to the home country
B)to have regional segmentation possibilities
C)to lack national and regional distinctions
D)to have heterogeneous preferences

Question 66

When consumers traveling abroad demand brands that may not be available in the home-country market and retailers convey this information up the distribution chain to wholesalers, they demonstrate:

A)push demand
B)pull demand
C)the benefits of diversification
D)improved communication within the supply chain due to advances in technology

Question 67

Nike, on the average, spends close to a year to develop, test, and manufacture new product designs that then last on the shelves in the United States for about:

A)3 months
B)6 months
C)1 year
D)over a year

Question 68

At which stage of the product life cycle is a firm most likely to move manufacturing operations and facilities abroad?

A)Introduction
B)Growth
C)Maturity
D)It is equally likely among the stages.

Question 69

Firms with a geocentric orientation:

A)pursue a differentiation strategy
B)position themselves as a low-cost manufacturer
C)frequently need to engage in "guerilla" marketing
D)none of the above

Question 70

Which of the following are advantages of uniform consumer segments worldwide?

A)lower costs
B)increased profits
C)lower tariffs
D)a and b only

Question 71

The product life cycle:

A)does not affect ethnocentric firms
B)is a driver of international expansion
C)is used by governments to erect entry barriers
D)is important in domestic marketing but is not relevant to global marketing

Question 72

Generation X consumers in the United States and in Southeast Asia:

A)are loyal to the same soft-drink brands
B)are very different even though they are in the same age demographic
C)wear the same brands of clothing but have different musical preferences
D)are targeted by firms with an ethnocentric orientation

Question 73

The improved telecommunications in Burundi is an example of:

A)infrastructure improvements
B)economic growth
C)experience transfers
D)an entry barrier

Question 74

Colgate's development of Axion paste for washing dishes for its Latin American market and its later deployment in some European countries is an example of:

A)standardization advantages
B)economies of scale
C)experience transfers
D)self reference criterion

Question 75

Companies view world regions as distinct markets that share economic, political, and/or cultural traits such that they would be viable candidates for a regionwide marketing approach.

A)ethnocentric orientation
B)polycentric orientation
C)regiocentric orientation
D)geocentric orientation

Question 76

Uniform consumer segments:

A)are emerging worldwide
B)do not exist
C)are pursued by firms with a regiocentric orientation
D)are too small to be profitable

Question 77

An important outcome of the transition of the former Eastern Bloc countries to a market economy is:

A)increasing forced domestication policies
B)increased product development costs
C)decreased foreign direct investment
D)deregulation and privatization of former government monopolies

Question 78

A subsidiary of a company from the United States incorporated in any country of the European Union is:

A)subject to foreign exchange restrictions
B)forced to pay multiple tariffs
C)exempt from U.S. taxation
D)a corporate citizen of the European Union

Question 79

Firms with a regiocentric orientation are guided by a:

A)domestic market extension concept
B)multidomestic market concept
C)global marketing concept
D)none of the above

Question 80

Firms with a polycentric orientation are guided by a:

A)domestic market extension concept
B)multidomestic market concept
C)global marketing concept
D)none of the above