Question 1

Which of the following is a composite measure of life expectancy at birth, educational attainment, and whether the average incomes are sufficient to meet basic needs of life in a country?

Accepted Answer

HDI (Human Development Index) is a composite measure that takes into account life expectancy at birth, educational attainment, and income level to evaluate a country's overall development status. GDP (Gross Domestic Product) and GNP (Gross National Product) only reflect economic performance, while GNH (Gross National Happiness) and PPP (Purchasing Power Parity) are not directly related to development indicators.

Question 2

The dimension of culture that refers to the extent to which the dominant values in a society are male-oriented is called:

Accepted Answer

The dimension of culture that refers to the extent to which the dominant values in a society are male-oriented is called masculinity. This dimension is reflected in societies where there is a strong emphasis on assertiveness, achievement, and competitiveness, and where success is defined in terms of material possessions and personal reputation.

Question 3

A clothing company wants to explore new markets to increase sales of its clothing line.It has identified Kenya as a potential new market but wants to initially look at a low-risk, low-return option to assess the market.Which of the following entry strategies is the most suitable for the firm?

Accepted Answer

Exporting is a low-risk, low-return strategy that allows the company to test the market without significant investment or commitment.

Question 4

Which of the following market entry strategies requires the least financial risk but also allows for only a limited return to the firm?

Accepted Answer

Exporting involves selling goods or services to another country with minimal investment in the foreign market, thus posing the least financial risk but also limiting potential returns compared to other strategies that involve more significant investment and control.

Question 5

Which of the following is a market entry strategy in which the parent company allows a host country firm to use its name and format and to operate its business in their market?

Accepted Answer

Franchising is a market entry strategy where the parent company allows a host country firm to use its name, format, and business operations.

Question 6

According to Geert Hofstede, the dimension of power distance refers to:

Accepted Answer

The dimension of power distance refers to the extent to which people in a society are willing to accept social inequality as natural. This can manifest in a number of ways, such as differences in wealth, social status, and power between individuals and groups. Hofstede suggests that societies with high power distance tend to have more hierarchical structures, where people in positions of authority are expected to be respected and obeyed without question. In contrast, societies with low power distance tend to be more egalitarian and value individual autonomy and independence.

Question 7

The Economist's Big Mac Index is a measure that employs to assess the relative economic buying power among nations.

Accepted Answer

The Big Mac Index uses Purchasing Power Parity (PPP) to compare the relative value of currencies by assessing the price of a Big Mac in different countries.

Question 8

Which of the following factors of Geert Hofstede's cultural dimensions concept have to be considered by firms when they conduct a socio-cultural analysis of a country's market?

Accepted Answer

Power distance is a factor that firms need to consider when conducting a socio-cultural analysis of a country's market because it can affect the way that businesses operate and interact with customers and employees.

Question 9

Which of the following is defined as the basic facilities, services, and installations needed for a community or society to function?

Accepted Answer

Infrastructure is defined as the basic facilities, services, and installations needed for a community or society to function.

Question 10

According to Geert Hofstede, the dimension of individualism refers to:

Accepted Answer

Geert Hofstede's dimension of individualism refers to the perceived obligation to and dependence on groups. It is the extent to which individuals are expected to take care of themselves and their immediate family only, rather than being integrated into a larger social network. A high individualism score signifies that people are more self-reliant and have more personal freedom, while low individualism scores signify interdependence and group harmony.

Question 11

The market entry strategy in which a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared is called:

Accepted Answer

The strategy described is that of a joint venture, where two companies pool their resources to form a new company with shared ownership, control, and profits. Licensing involves granting permission to use a trademark or technology, strategic alliances are agreements between two or more firms to cooperate on a specific project or in a specific market, direct investment involves a firm taking full ownership and control of a foreign operation, and franchising agreements involve a company granting permission to use its business model and branding in exchange for a fee.

Question 12

CREDAI serves a group of member hospitals that are located in many countries.The partnering members do not invest in each other's institutions, but CREDAI coordinates with members on mutual interests, helping them create value through collaboration.This is an example of:

Accepted Answer

A strategic alliance is a collaboration between organizations to achieve mutual benefits without investing in each other's institutions, which aligns with CREDAI's role.

Question 13

Which of the following approaches involves producing goods in one country and selling them in another?

Accepted Answer

Exporting involves producing goods in one country and selling them in another.

Question 14

Which of the following is the extent to which the society relies on orderliness, consistency, structure, and formalized procedures to address situations that arise in daily life?

Accepted Answer

Uncertainty avoidance refers to the degree to which members of a society feel uncomfortable with uncertainty and ambiguity, leading them to rely on orderliness, consistency, structure, and formalized procedures.

Question 15

A popular fast-food chain decides to enter the foreign market by allowing a local food chain to produce and market its products in return for a fee.This type of entry strategy is known as:

Accepted Answer

Franchising is a strategy where a company allows a local entity to produce and market its products in exchange for a fee, which matches the scenario described.

Question 16

Which of the following is an example of direct exporting?

Accepted Answer

The answer of Which of the following is an example...

Question 17

A collaborative relationship between independent firms in which the partnering firms do not create an equity partnership is called:

Accepted Answer

A strategic alliance is a business relationship formed by two or more independent firms to achieve a specific goal. These firms collaborate without forming an equity partnership or joint venture.

Question 18

A popular ice cream chain enters a new market in another country by allowing local retailers to market its products, including the use of its brand name and format.This form of entry strategy into a new market is known as:

Accepted Answer

The described form of entry strategy is franchising, where a company allows local retailers to market its products under the company's brand name and format in exchange for fees and royalties.

Question 19

The theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, expressed in the same currency is referred to as:

Accepted Answer

Purchasing power parity (PPP) theory states that if two countries have a stable exchange rate, then the cost of goods and services in one country should be equivalent to the cost of the same goods and services in the other country, when both are expressed in the same currency. This helps to determine currency exchange rates and is important in international trade and investment decisions.

Question 20

Which of the following is an example of indirect exporting?

Accepted Answer

Indirect exporting involves selling products to a foreign market through intermediaries or local retailers, as in option C.

Quiz 16: Marketing in the Global Environment Global Marketing