Question 1

If a society is collectivist, it would imply that the self-worth of the people is rooted in individual achievements.

Accepted Answer

If a society is collectivist, self-worth is based on the success and well-being of the group as a whole, rather than individual achievements.

Question 2

Gray market activities harm distributor relations, tarnish the manufacturer's brand equity, and undermine the integrity of the distribution channel.

Accepted Answer

Gray market activities involve selling products through unauthorized channels, which can lead to strained relations between manufacturers and authorized distributors. It can also harm the manufacturer's brand equity because the product may be sold at lower prices or in unauthorized markets, which can create confusion and damage the brand's reputation. Additionally, gray market activities undermine the integrity of the distribution channel by bypassing authorized distributors and undercutting their pricing and sales efforts.

Question 3

Country-of-origin perceptions, once formed, are very difficult to change.

Accepted Answer

The answer of Country-of-origin perceptions, once formed, are very difficult...

Question 4

If Kellogg's offered different varieties of breakfast cereals in India as compared to Australia, and also positioned its products differently in the two countries, then Kellogg's would be engaging in dual adaptation.

Accepted Answer

Dual adaptation refers to a company's strategy of adapting its products and marketing tactics to fit the unique characteristics of different markets or regions. In this case, Kellogg's is adapting to the different preferences and cultural differences between India and Australia by offering different cereal varieties and positioning its products differently in each country.

Question 5

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

Accepted Answer

When companies sell online, customers can easily compare prices from different countries and the competition among businesses also increases, leading to a reduction in price differentiation.

Question 6

The international division that is responsible for a firm's worldwide marketing activities is headed by a division president who sets goals and budgets and is in charge of the company's international growth.

Accepted Answer

The statement accurately describes the role and responsibilities of the head of the international division in a firm.

Question 7

Product adaptation not only involves altering the product to meet local preferences, but also calls for a change in the communication strategy.

Accepted Answer

The answer of Product adaptation not only involves altering the...

Question 8

The use of media may require international adaptation because media availability varies from country to country.

Accepted Answer

Media availability and access can differ greatly between countries due to factors such as censorship, government regulations, and technological infrastructure. Therefore, the use of media may require international adaptation to ensure that it is accessible and effective in different regions.

Question 9

Forward invention refers to reintroducing earlier product forms that are well adapted to a foreign country's needs.

Accepted Answer

Forward invention involves creating new products or significantly modifying existing ones to meet the needs of a foreign market, not reintroducing earlier product forms.

Question 10

People are often ethnocentric and favorably predisposed to their own country's products, unless they come from a less developed country.

Accepted Answer

Ethnocentrism is a common phenomenon where people tend to favor their own culture or country. This often translates into a preference for local products over foreign ones, although this bias can be less pronounced when it comes to products from less developed countries.

Question 11

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

Accepted Answer

The impact of country of origin varies depending on the type of product. For example, food products are often impacted more by the country of origin than electronic products.

Question 12

A firm normally gets into international marketing simply by shipping out its goods.

Accepted Answer

This is true as the act of exporting goods to other countries can be considered a form of international marketing. However, a firm may also engage in other activities, such as conducting market research, adapting products to local markets, or developing promotional strategies, in order to effectively enter and expand in international markets.

Question 13

Country-of-origin effects refer to the attitude anything produced by the home country is better than imported goods.

Accepted Answer

Country-of-origin effects refer to the perception and influence that the country of production has on the consumer's evaluation of a product, not necessarily that it is better than imported goods. It can refer to positive or negative perceptions based on the country's reputation for quality, innovation, or cultural values.

Question 14

When forces for both global integration and national responsiveness prevail to some extent, a "global" strategy that standardizes certain elements and localizes other elements can be the way to go.

Accepted Answer

When there are forces pushing for both global integration and national responsiveness, a global strategy that includes standardization of certain elements and localization of others can be an effective approach. This allows a company to achieve economies of scale and consistency in certain areas, while also adapting to local market needs and preferences.

Question 15

Web-crawling technology searches for counterfeit storefronts and sales by detecting domain names similar to legitimate brands.

Accepted Answer

Web-crawling technology uses algorithms to search for domain names that are similar to legitimate brands, which may indicate the presence of counterfeit storefronts or sales.

Question 16

If a company charges its subsidiary in a foreign country too low a transfer price, it can be accused of dumping.

Accepted Answer

Dumping refers to the practice of charging lower prices in a foreign market compared to the prices in the home market. If a company charges its subsidiary in a foreign country too low a transfer price, which is below the market rate, it can be accused of unfairly subsidizing its operations in that country and engaging in dumping. This can harm domestic producers in the foreign market as they won't be able to compete with such low prices.

Question 17

Many manufacturers think their job is done once the product leaves the factory. They should instead pay attention to how the product moves within the foreign country.

Accepted Answer

Manufacturers should not only focus on production but also ensure that their product reaches their target audience in foreign countries successfully. They need to understand local regulations, logistics, and customs procedures to avoid delays, damage, or loss of goods during transportation.

Question 18

Communication adaptation occurs when companies change marketing communications for each local market.

Accepted Answer

Communication adaptation is a process of modifying marketing communication strategies to suit the cultural, linguistic, and social differences of each target market. This involves the customization of advertising, promotional messages, visual content, and media channels to align with local tastes, preferences, and communication norms. Therefore, option A is correct.

Question 19

Straight extension means using an established product's brand name for a new item in the same product category.

Accepted Answer

The answer of Straight extension means using an established product's...

Question 20

Most companies would prefer to remain domestic if their domestic market were large enough. Yet several factors are drawing more and more companies into the international arena. List some of these factors.

Accepted Answer

The answer of Most companies would prefer to remain domestic...

Quiz 21: Tapping Into Global Markets