Question 1

According to Hofstede's cultural dimensions concept, which BRIC country posts high scores in the dimension of power distance?

Accepted Answer

Brazil is known for having a high power distance score, indicating a society that accepts hierarchical order and unequal distribution of power.

Question 2

When Porsche filmed an advertisement in which its vehicles ran over the Great Wall of China, Chinese consumers were left more confused than intrigued. To address or avoid such issues, one important cultural classification scheme that firms can use is Geert Hofstede's cultural dimensions concept. Hofstede proposes that cultures differ on all of the following dimensions except

Accepted Answer

The answer of When Porsche filmed an advertisement in which...

Question 3

Gandolph's Tires sells the same tire globally, but it uses different advertisements based on the country and culture. This is an example of

Accepted Answer

Gandolph's Tires is adapting its marketing approach to be both global and local, hence glocalization. This approach accommodates for cultural and regional differences while still maintaining their overall global branding message. This strategy helps to establish brand positioning and create a personalized experience for each market without abandoning their central identity.

Question 4

A publishing company plans to outsource its production-related tasks to a BRIC country. They are assessing opportunities and are attracted to this country due to its population of young, well-educated, technically-skilled workers who are fluent in English.

Accepted Answer

India has a large population of young, well-educated, technically-skilled workers who are fluent in English. This makes it an attractive option for outsourcing production-related tasks. Additionally, India has a well-established IT industry and a strong focus on education, making it an ideal location for outsourcing technological and knowledge-based services.

Question 5

Unilever discovered that people in emerging economies could not afford to buy standard sizes of toothpaste or shampoo, so Unilever started selling single-serve packets at very low prices. Later, Unilever discovered that the same approach worked in the United States and started also selling them there. This is an example of

Accepted Answer

This is an example of reverse innovation as Unilever discovered a new approach to selling their products in emerging economies and then applied it to the United States market.

Question 6

If you visit a Kentucky Fried Chicken restaurant in China, you will find on its menu not only KFC's regular items, but also congee, a rice porridge that can feature pork, pickles, mushrooms, and preserved egg. This is an example of which global product strategy?

Accepted Answer

The answer of If you visit a Kentucky Fried Chicken...

Question 7

Once a firm has done an analysis of the most viable markets for its products, then it must next

Accepted Answer

After identifying the most viable markets for its products, a firm must conduct an internal assessment of its capabilities to determine if it can meet the demands of those markets. This includes evaluating its resources, strengths, weaknesses, and overall readiness to enter those markets. Only after this assessment can the firm begin developing strategies to overcome competition, understanding the target market's economy, culture, and regulatory barriers, and creating a product to meet the needs of those markets. Achieving success in the home market is also important, but it is not the immediate next step after identifying viable markets.

Question 8

Which country is Europe's largest Internet market, with Internet users growing at a rate of 10 percent annually?

Accepted Answer

Russia is Europe's largest Internet market by user base, and it has been experiencing significant growth in the number of Internet users, with rates around 10 percent annually. This growth is driven by the country's large population and increasing internet penetration.

Question 9

A U.S. company is analyzing its business prospects in Brazil. Marketing executives understand which of the following statements to be true regarding this market?

Accepted Answer

Brazil, as a democracy, generally welcomes foreign investors, making it an attractive market for U.S. companies.

Question 10

Which country has embraced market-oriented economic development in spite of maintaining communist political ideals?

Accepted Answer

China has maintained its communist political ideals while embracing market-oriented economic development, leading to significant economic growth in recent years. Brazil, Russia, Iran, and Afghanistan do not have communist political ideals.

Question 11

Sydney's Emporium has 59 stores in the United States and wants to expand globally. Sydney's wants to achieve the highest possible returns, and is not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Sydney's is most likely

Accepted Answer

Since Sydney's is not concerned with high-risk strategies and wants to maintain complete control over its stores, the best option for them would be direct investment, where they can fully own and manage their stores in the global market. This will provide them with the highest possible returns and complete control over their operations.

Question 12

Which of the following statements is true with regard to growth in global markets?

Accepted Answer

Changes in technology, especially communications, have been a driving force for growth in global markets for decades. This statement is true as technology and communication have made it easier for businesses to operate globally and reach new markets. A country's infrastructure, such as internet availability and transportation systems, can impact growth in the global market. The number of Russian internet users actually increased by 3.3 million in 2019, so statement B is false. While Russia's population is expected to decline slightly in the next few decades, it will not increase by one-third as stated in statement C. Finally, Brazil actively encourages foreign investment, so statement E is false.

Question 13

In China, state control of media is high, so companies are challenged to find ways to get their message to customers. This demonstrates one of the difficulties in crafting a global ________ strategy.

Accepted Answer

The sentence explicitly states that the challenge for companies in China is to find ways to communicate their message to customers due to high state control of media. This highlights the importance of crafting a communication strategy that is effective in reaching the target audience despite local cultural nuances and restrictions.

Question 14

China has three main languages, and many more dialects. This presents a particular challenge to developing a global ________ strategy.

Accepted Answer

China's multiple languages and dialects make communication a challenge when developing a global strategy. It's important to consider language barriers when creating marketing materials or communicating with local consumers or business partners.

Question 15

A U.S. firm is analyzing its business prospects in China. Marketing executives understand which of the following to be true of this potential market?

Accepted Answer

China has a thriving retail market, even though its GDP growth has slowed.

Question 16

Which statement about India's population is true?

Accepted Answer

The answer of Which statement about India's population is true?
...

Question 17

Franco wants to start a business in his home city of Madrid, Spain. He does not have an existing firm or a product, and he doesn't have a lot of capital, but since he loves Five Guys food, he decides to

Accepted Answer

Franchising is a common way to start a business with an established brand, especially when capital is limited. Franco can open a Five Guys franchise, which allows him to operate a restaurant under the Five Guys brand with support from the franchisor.

Question 18

Which country has a rapidly aging population due to its one-child policy?

Accepted Answer

China implemented a one-child policy in 1979 to control population growth. As a result, the birth rate decreased significantly, leading to an aging population. The policy was relaxed in 2015, allowing couples to have two children, but the effects of the one-child policy can still be seen in China's demographic composition, with a large proportion of the population over the age of 65.

Question 19

Core Publishing Company learned that when selling overseas, local fulfillment can be more cost-effective, and it also can decrease delivery time and improve customer service. This is an example of a global ________ strategy.

Accepted Answer

The mention of "local fulfillment" indicates a distribution strategy, making option D the correct answer. The other options (communication, product, promotion, pricing) are not relevant to the topic being discussed.

Question 20

Mary wants to sell her products in Europe, since they are doing well in the United States. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with

Accepted Answer

Exporting requires less capital and lower risk than other options such as opening a franchise, forming a strategic alliance, entering a joint venture, or making a direct investment. Additionally, exporting allows Mary to test the market and demand for her products in Europe before committing more resources to expanding into the region.

Quiz 8: Global Marketing