Question 1

Marta's company treats the world, including the home market in Spain, as one market. Market segmentation decisions no longer focus on national borders. Instead, market segments are defined by income levels, usage patterns, and other factors that span countries and regions. Which of the following stages best characterizes the stage of international marketing involvement for Marta's company?

Accepted Answer

Marta's company is in the global marketing stage, as it views the world as a single market and segments it based on factors other than national borders, such as income levels and usage patterns. This approach is characteristic of global marketing, where companies operate and market their products or services worldwide with a unified strategy.

Question 2

Which firm seems better equipped for internationalization?

Accepted Answer

A firm with a production capacity larger than home market demand is better equipped for internationalization because it can meet the additional demand from international markets without needing to significantly expand its production capabilities.

Question 3

When considering the stages of international marketing involvement, it is important to remember that

Accepted Answer

A firm can indeed operate in multiple stages of international marketing involvement at the same time, reflecting the complexity and dynamic nature of global business operations.

Question 4

While Heidi's company does not typically sell internationally, they have a temporary surplus in the small appliances they manufacture and decide to promote them in other countries. Which stage of international marketing involvement does this represent?

Accepted Answer

The infrequent foreign marketing stage is characterized by temporary surpluses in products that a company decides to sell abroad. This is not a regular activity but rather an occasional effort to sell excess inventory, fitting Heidi's company's situation.

Question 5

Which firm has a better chance of accelerating the internationalization process?

Accepted Answer

Firms with key managers who are well-networked internationally are more likely to have better access to foreign market insights, potential partners, and opportunities, thus accelerating the internationalization process.

Question 6

In the infrequent foreign marketing stage of international marketing involvement, firms

Accepted Answer

In the infrequent foreign marketing stage, firms do not aim to maintain continuous market representation in foreign markets. Instead, they might engage in international sales sporadically, often as a result of surplus inventory or other occasional opportunities, rather than as part of a strategic, ongoing effort to establish a presence in those markets.

Question 7

A globally aware manager is characterized by

Accepted Answer

A globally aware manager is characterized by tolerating cultural differences and allowing others to be different and equal. This involves understanding and respecting the diversity of cultures without necessarily adopting them as one's own or imposing one's own cultural standards on others.

Question 8

Tomas is a manager at a frozen food company and wants to understand the way people in different countries think and act so that the company can respond to their needs appropriately. What is the best aid he can use to accomplish this?

Accepted Answer

Understanding the history of a foreign country can provide insights into its culture, values, and societal behaviors, which is crucial for effectively responding to the needs and preferences of its people. This knowledge can help Tomas tailor the company's products and marketing strategies to better align with the local culture and consumer expectations.

Question 9

Natasha's company seeks markets all over the world and attempts to sell products that are a result of planned production for markets in various countries. Which stage best characterizes the stage of international marketing involvement for Natasha's company?

Accepted Answer

Natasha's company is in the international marketing stage because it actively seeks markets all over the world and plans its production to meet the needs of these various international markets.

Question 10

Brett, who is from Ohio, has taken a job in Thailand. Last week, he was confronted with a personnel issue and resolved it by saying that "In the U.S., you would be given one warning and then fired for this type of behavior." Brett did not take into account that company standards might differ in Thailand and the employee was acting appropriately. Which obstacle to international marketing does this demonstrate?

Accepted Answer

Brett's approach demonstrates the self-reference criterion, which is the unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions. He assumed that the norms and rules from his home country (the U.S.) applied in Thailand without considering local practices and standards.

Question 11

In what stage of international marketing involvement do companies primarily focus all their operations and production to service domestic market needs, even though they have a permanent productive capacity devoted to the production of goods to be marketed in foreign markets?

Accepted Answer

In the regular foreign marketing stage, companies have permanent productive capacity devoted to the production of goods to be marketed in foreign markets, but their primary focus remains on servicing domestic market needs. This stage indicates a firm commitment to engage in foreign marketing, with ongoing efforts and resources allocated to international markets, yet with a significant portion of the business still concentrated on the domestic market.

Question 12

What is true of firms in the first two stages of international marketing involvement-no direct foreign marketing and infrequent foreign marketing?

Accepted Answer

In the first two stages of international marketing involvement, firms are more reactive than proactive, often embarking on internationalization in an ad hoc or unplanned manner, rather than through strategic planning or maintaining continuous market representation abroad.

Question 13

What factor is favorable when determining whether or not a company should consider internationalization efforts?

Accepted Answer

A company with high-technology resources already in place is favorable for internationalization efforts because it provides a competitive advantage in global markets.

Question 14

To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion (SRC) influences. What is the first step in this analysis?

Accepted Answer

The first step in cross-cultural analysis is to define the business problem or goal in terms of the home-country's cultural traits, habits, or norms. This establishes a baseline for understanding how the SRC might influence perceptions and decisions.

Question 15

Why does understanding one's own culture require additional study?

Accepted Answer

Understanding one's own culture requires additional study because much of the cultural influence on behavior, including market behavior, operates at a subconscious level. People may not be aware of these influences without deliberate study and reflection.

Question 16

What is the most effective way to achieve organizational global awareness?

Accepted Answer

Having a culturally diverse senior executive staff or board of directors is the most effective way to achieve organizational global awareness. This approach ensures that decision-making and strategic planning are influenced by a broad range of cultural perspectives, which can enhance the organization's ability to operate effectively in a global market.

Question 17

The most effective way to control the influence of ethnocentrism and the self-reference criterion is to

Accepted Answer

Recognizing the effects of ethnocentrism and the self-reference criterion on our behavior is crucial for effectively controlling their influence. This awareness helps individuals and organizations adapt their strategies and communications to be more culturally sensitive and inclusive.

Question 18

Kentax Corporation makes industrial cleaning products and decides to enter the international marketing arena by marketing its products to China, Japan, and South Korea, with separate marketing strategies for each country. Which of the following approaches is most likely used by Kentax Corporation to formulate its international policies and strategies?

Accepted Answer

Kentax Corporation is using a multidomestic market approach by tailoring its marketing strategies to fit the specific needs and preferences of each country (China, Japan, and South Korea), rather than using a one-size-fits-all strategy.

Question 19

Watson's, a firm that specializes in dog food and grooming products, has a very well-established domestic market. The company does not actively sell its products outside national borders but provides goods to customers who contact them directly or place orders with them through the Internet. Watson's is currently in the ________ stage of international marketing involvement.

Accepted Answer

Watson's is in the "no direct foreign marketing" stage because it does not actively seek out international customers but will sell to them if they make direct contact or place orders online.

Question 20

In the context of stages of international marketing involvement, a company's product reaches a foreign market without any conscious effort on the part of a marketer during which stage of the process?

Accepted Answer

In the no direct foreign marketing stage, a company's product may reach a foreign market without any intentional effort from the marketer, often through the actions of third parties or external demand.

Quiz 1: The Scope and Challenge of International Marketing