Question 1

Straight extension means introducing the product in the foreign market without any changes to the brand.

Accepted Answer

Straight extension means that the product is introduced into a foreign market without any changes to the brand or product. It is often used for products with strong brand recognition or where the target market has similar cultural preferences and needs as the domestic market.

Question 2

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

Accepted Answer

A "glocal" strategy allows for both global standardization and local adaptation, making it a good choice when both forces are present.

Question 3

Product invention consist of creating something new.It can take two forms.Forward invention is reintroducing earlier product forms that are well adapted to a foreign country's needs.

Accepted Answer

The answer of Product invention consist of creating something new.It...

Question 4

Global marketers know that buyers hold distinct attitudes and beliefs about brands or products from different countries.These country-of-origin perceptions do not affect consumer decision making directly or indirectly.

Accepted Answer

Country-of-origin perceptions can indeed affect consumer decision making directly or indirectly. Consumers may have preconceived notions about the quality or characteristics of products from different countries, which can influence their purchasing decisions. Additionally, country-of-origin information can serve as a cue for other product attributes, such as perceived quality or cultural fit, that may also impact consumer decision making.

Question 5

The main disadvantage of direct investment is that the firm exposes a large investment to risks such as blocked or devalued currencies,worsening markets,or expropriation.

Accepted Answer

Direct investment involves a significant financial commitment and can expose a firm to various risks, including currency devaluation, market decline, and expropriation. These risks can result in significant losses for the company.

Question 6

Attitudes toward country of origin are highly consistent over time and rarely change.

Accepted Answer

Attitudes toward country of origin can change over time due to various factors such as political events, cultural shifts, and economic changes. People's personal experiences and exposure to different information can also alter their attitudes towards a country.

Question 7

If the company adapts both the product and the communications,the company engages in dual adaptation.

Accepted Answer

When a company adapts both the product and the communication, it is known as dual adaptation.

Question 8

Companies can run the same marketing communications programs as used in the home market or change them for each local market,a process called communication adaptation.

Accepted Answer

Companies can choose to run the same marketing communications programs or adapt them for each local market. This process is called communication adaptation.

Question 9

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

Accepted Answer

When companies sell online, customers are able to easily compare prices across different regions and countries, which can lead to a decrease in price differentiation. This is because customers may choose to purchase from a company located in a different country if the price is significantly lower than what is offered in their own region. Additionally, companies may choose to set a uniform price across different countries in order to increase their competitiveness and maintain customer loyalty.

Question 10

Consumer behavior is highly consistent across different markets.

Accepted Answer

Consumer behavior can vary greatly across different markets due to cultural, social, economic, and other factors. Thus, companies must understand the specific characteristics of each market to effectively address consumer needs and preferences.

Question 11

Product adaptation involves altering the product to meet local conditions or preferences.

Accepted Answer

Product adaptation involves modifying the product to better fit the needs and wants of a specific local market. This can include changes in design, packaging, flavor, or features.

Question 12

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

Accepted Answer

Media availability, including the types of media and the extent of access to it, can vary greatly from country to country. Therefore, adapting media strategies for international audiences may be necessary to effectively reach and engage with those audiences.

Question 13

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

Accepted Answer

A firm can initially start international marketing by exporting its goods to foreign markets.

Question 14

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 the tendency to view one's own culture as superior to others, which often leads to a preference for products from one's own country. However, people may be less favorable towards products from less developed countries due to perceptions of lower quality or cultural biases.

Question 15

As required levels of distribution increase,so do customer prices relative to the importer's price.

Accepted Answer

As the levels of distribution increase, there are more middlemen involved in the supply chain, each of whom adds their own margin for profit. This results in the price of the product increasing for the end customer relative to what the importer paid for it.

Question 16

Distribution channels within countries can vary considerably.

Accepted Answer

Distribution channels can vary depending on many factors such as the size of the country, the infrastructure, the population density, and the market demand. Factors such as the availability of retail space, transportation networks, and technology also influence the distribution channels within a country. Therefore, distribution channels within countries can vary considerably.

Question 17

The ultimate form of foreign investment is direct ownership of foreign-based assembly or manufacturing facilities.

Accepted Answer

Direct ownership of foreign-based assembly or manufacturing facilities is considered the ultimate form of foreign investment as it allows for full control over the production process and access to local markets.

Question 18

Transfer prices can be set arbitrarily because,as an internal transaction,there are no financial implications to charging transfer prices that are too high or too low.

Accepted Answer

Transfer prices should not be set arbitrarily as they can have financial implications on both the sending and receiving divisions. Setting transfer prices too high can result in a profit for the sending division but may result in a loss for the receiving division, while setting transfer prices too low can result in a loss for the sending division and a profit for the receiving division. Therefore, transfer prices should be set at an appropriate level that reflects the market value of the goods or services being transferred.

Question 19

Research has shown that gray market activity is most effectively deterred when the penalties are severe,when manufacturers are able to detect violations or mete out punishments in a timely fashion,or both.

Accepted Answer

This answer is supported by the statement in the sentence "Research has shown that gray market activity is most effectively deterred when the penalties are severe, when manufacturers are able to detect violations or mete out punishments in a timely fashion, or both."

Question 20

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

Accepted Answer

The impact of country of origin can vary depending on the type of product. For example, consumers may place more importance on the country of origin for luxury goods or electronics, whereas they may not place as much importance on it for everyday household items.

Quiz 21: Tapping Into Global Markets