Question 1

When multinational firms use different strategies,each one tailored to a particular local market,they are said to adopt a
A)foreign policy.
B)local strategy.
C)domestic strategy.
D)multidomestic strategy.

Accepted Answer

Multidomestic strategy refers to the approach where a multinational company tailors its strategies according to the local market in each country. This means that the company’s products, branding, and marketing strategies may differ from region to region. This approach acknowledges the cultural, economic, and social differences in different countries and adapts accordingly to maximize success in each market.

Question 2

A global marketing strategy involves a
A)single strategy for the global market with minor adaptations.
B)different strategy for each market.
C)significant product adaptation across markets.
D)None of the above.

Accepted Answer

A global marketing strategy involves developing a single strategy for the global market with minor adaptations. This allows a company to maintain consistency across markets while also adjusting for cultural or other differences in each region. Option B and C involve developing multiple strategies that may not be efficient or effective for a global brand.

Question 3

Proctor & Gamble focuses its marketing efforts in the detergent category on brands such as Tide that are sold with a similar market strategy across its subsidiaries in foreign markets.Henkel KGaA differentiates itself from P&G by focusing its marketing efforts on brands such as Dixan in Italy and Wipp in Spain that are tailored to local preferences and needs.Proctor & Gamble's strategy can be described as a ____ strategy.
A)global marketing
B)pan-regional marketing
C)multidomestic marketing
D)None of the above

Accepted Answer

Proctor & Gamble's marketing strategy for its detergent brands, such as Tide, is consistent across its subsidiaries in different countries, which is the characteristic of global marketing.

Question 4

Vakko,a Turkish apparel producer,makes silk scarves in Istanbul.The scarves are sold to clothing distributors in Germany and the United Arab Emirates who,in turn,sell the scarves to clothing retailers in their respective countries.This is an example of
A)domestic marketing.
B)export marketing.
C)joint venture marketing.
D)international marketing.

Accepted Answer

This scenario describes export marketing, where Vakko sells its products to distributors in other countries (Germany and the UAE) for resale.

Question 5

Coca-Cola offering life insurance to small retailers in Mexico is an example of adapting to local markets.

Accepted Answer

Coca-Cola offering life insurance to small retailers in Mexico is a strategy to adapt to the local market needs and overcome the challenges faced by small retailers in the country.

Question 6

The volume of international trade is decreasing due to globalization.

Accepted Answer

Globalization has led to an increase in the volume of international trade as countries are able to trade with each other more easily due to advancements in technology, transportation, and communication.

Question 7

When practicing international marketing,a company becomes more involved in local marketing environments than it does in export marketing.

Accepted Answer

When practicing international marketing, a company needs to consider the local market conditions, cultural differences, legal regulations, and political factors of each country it operates in. Therefore, the company becomes more involved in local marketing environments rather than just exporting its products without much adaptation to the local market conditions. This involvement helps the company to tailor its marketing mix to suit the local market needs and preferences and to achieve better results with its target customers.

Question 8

Companies pursue foreign markets to increase sales and profits.

Accepted Answer

Pursuing foreign markets allows companies to tap into new customer bases and potentially increase sales and profits.

Question 9

Ebay discovered that entering Asian markets was relatively difficult.

Accepted Answer

According to various reports and articles, Ebay did face difficulties in entering and establishing itself in Asian markets. Some of the challenges included language barriers, cultural differences, and competition from established local players.

Question 10

Regional and political integration favor a pan-regional marketing strategy.

Accepted Answer

Regional and political integration bring together different markets and increase the flow of goods and services within a region. This creates opportunities for businesses to adopt a pan-regional marketing strategy that targets the entire region rather than individual countries. A pan-regional marketing strategy can be more effective and efficient in reaching a larger customer base, promoting regional brand recognition, and reducing costs associated with developing and implementing individual country-specific marketing plans.

Question 11

Coca-Cola offering life insurance to small retailers in Mexico is an example of product globalization.

Accepted Answer

This is an example of market development, where a company expands its operations into new markets or segments, offering existing or new products to meet the needs of those markets. Product globalization would involve offering a standardized product across various global markets.

Question 12

Competition is becoming increasingly domestic.

Accepted Answer

Competition is becoming increasingly global due to factors like technological advancements, trade liberalization, and the rise of multinational corporations, which allow for more international business interactions and competition.

Question 13

ItaliaNow!,an Italian apparel producer,makes silk clothing in their production facilities in Hungary,Austria,Germany,and Switzerland and sells this clothing in retail stores in these countries.ItaliaNow! is a(n)
A)intranational enterprise.
B)domestic corporation.
C)multinational corporation.
D)interdependent enterprise.

Accepted Answer

ItaliaNow! is a multinational corporation because it has production facilities in multiple countries and sells its products in those countries.

Question 14

The J.M.Smuckers Company produces a wide variety of baking and other food products in the United States.The company maintains a large sales subsidiary in Canada and has developed brands and other marketing strategies for the Canadian market.This is an example of
A)domestic marketing.
B)export marketing.
C)international marketing.
D)joint venture marketing.

Accepted Answer

The fact that the J.M.Smuckers Company has developed brands and marketing strategies specifically for the Canadian market shows that it is engaging in international marketing, which involves tailoring these strategies to meet the unique needs of a foreign market. This is different from domestic marketing (which targets only the company's home market) and export marketing (which involves simply selling products abroad without necessarily adapting them to foreign markets), and does not involve joint ventures (which involves partnering with a foreign company to jointly develop a product or service).

Question 15

A pan-regional marketing strategy can be used for which of the following pairs of countries?
A)Britain and China
B)Japan and India
C)United States and Canada
D)South Africa and Germany

Accepted Answer

The United States and Canada share cultural similarities and a common language, making a pan-regional marketing strategy more feasible compared to the other pairs, which have significant cultural and language differences.

Question 16

Marketing aimed at a firm's home market is known as ____ marketing.
A)international
B)global
C)domestic
D)introductory

Accepted Answer

Domestic marketing refers to marketing activities that take place within a firm's home country. This can include targeting specific regions or demographic groups within the country, but it is still considered domestic because the focus is on the firm's original market. International and global marketing, on the other hand, involve targeting markets outside of a firm's home country. Introductory marketing is not a commonly used term, but it may refer to marketing efforts aimed at introducing a new product or company to the market, regardless of whether it is domestic or international.

Question 17

Proctor & Gamble focuses its marketing efforts in the detergent category on brands such as Tide that are sold with a similar market strategy across its subsidiaries in foreign markets.Henkel KGaA differentiates itself from P&G by focusing its marketing efforts on brands such as Dixan in Italy and Wipp in Spain that are tailored to local preferences and needs.Henkel's strategy can be described as a ____ strategy.
A)global marketing
B)pan-regional marketing
C)multidomestic marketing
D)None of the above

Accepted Answer

Henkel's strategy of tailoring its marketing efforts to local preferences and needs indicates a multidomestic marketing strategy.

Question 18

The formation of NAFTA encourages more multinational companies to adopt multidomestic strategies.

Accepted Answer

NAFTA (North American Free Trade Agreement) aimed to eliminate barriers to trade and investment between the U.S., Canada, and Mexico, encouraging companies to adopt global or transnational strategies rather than multidomestic strategies, as it facilitated easier access to a larger, integrated market rather than requiring companies to tailor operations and products to each individual country.

Question 19

Coca-Cola offering life insurance to small retailers in Mexico is an example of standardizing services across markets.

Accepted Answer

Coca-Cola offering life insurance to small retailers in Mexico is an example of adapting services to meet local market needs, not standardizing them.

Question 20

Mediterranean Cellars,located in Warrenton,Virginia,produces wine.This wine is sold in grocery stores in Northern Virginia.This is an example of
A)domestic marketing.
B)export marketing.
C)international marketing.
D)joint venture marketing.

Accepted Answer

The product is being produced and sold within the same country, which is the United States in this case. The wine is being sold in grocery stores in Northern Virginia, which indicates that the company is targeting the local market.

Quiz 1: Introduction to Global Marketing

When multinational firms use different strategies,each one tailored to a particular local market,they are said to adopt a

A global marketing strategy involves a

Vakko,a Turkish apparel producer,makes silk scarves in Istanbul.The scarves are sold to clothing distributors in Germany and the United Arab Emirates who,in turn,sell the scarves to clothing retailers in their respective countries.This is an example of

Coca-Cola offering life insurance to small retailers in Mexico is an example of adapting to local markets.

The volume of international trade is decreasing due to globalization.

When practicing international marketing,a company becomes more involved in local marketing environments than it does in export marketing.

Companies pursue foreign markets to increase sales and profits.

Ebay discovered that entering Asian markets was relatively difficult.

Regional and political integration favor a pan-regional marketing strategy.

Coca-Cola offering life insurance to small retailers in Mexico is an example of product globalization.

Competition is becoming increasingly domestic.

ItaliaNow!,an Italian apparel producer,makes silk clothing in their production facilities in Hungary,Austria,Germany,and Switzerland and sells this clothing in retail stores in these countries.ItaliaNow! is a(n)

The J.M.Smuckers Company produces a wide variety of baking and other food products in the United States.The company maintains a large sales subsidiary in Canada and has developed brands and other marketing strategies for the Canadian market.This is an example of

A pan-regional marketing strategy can be used for which of the following pairs of countries?

Marketing aimed at a firm's home market is known as ____ marketing.

The formation of NAFTA encourages more multinational companies to adopt multidomestic strategies.

Coca-Cola offering life insurance to small retailers in Mexico is an example of standardizing services across markets.

Mediterranean Cellars,located in Warrenton,Virginia,produces wine.This wine is sold in grocery stores in Northern Virginia.This is an example of