Question 1

Global firms plan, operate, and ________ their activities on a worldwide basis.

Accepted Answer

Global firms need to coordinate their activities on a worldwide basis in order to ensure efficiency and consistency in their operations. Pricing, servicing, distributing, and producing are all important aspects of a global firm's activities, but coordination is necessary in order to effectively manage these activities across different countries and regions.

Question 2

A "waterfall" approach to international marketing is defined as

Accepted Answer

The waterfall approach to international marketing involves gradually entering countries sequentially, which is represented by a "waterfall" effect. This approach allows a company to learn from each market and adjust its strategy accordingly before expanding into the next country. It is a methodical and strategic way to approach international expansion.

Question 3

The major decisions in international marketing include which of the following steps?

Accepted Answer

All of the above steps are major decisions in international marketing. Deciding on the marketing program involves determining the product, price, promotion, and distribution strategies. Deciding whether to go abroad involves assessing and evaluating the potential benefits and risks of entering into foreign markets. Deciding how to enter the market involves evaluating the various modes of entry, such as exporting, licensing, joint ventures, or wholly owned subsidiaries. Deciding which markets to enter involves conducting market research and analysis to identify viable opportunities and assess the demand for the firm's product or service.

Question 4

The internationalization process has four stages. In which stage does the company replace the export department with an international department?

Accepted Answer

The establishment of one or more sales subsidiaries is the stage where the company replaces the export department with an international department. This stage involves setting up local sales offices and delegating more autonomy to them.

Question 5

Exports represent approximately ________ of our gross domestic product; the highest percentage of any of the G-8 economies.

Accepted Answer

According to the statement, exports represent the highest percentage of any of the G-8 economies. Among the given options, only option C (30 percent) is higher than the other options and is the correct answer.

Question 6

A "sprinkler" approach to international marketing is defined as

Accepted Answer

A "sprinkler" approach to international marketing means entering many countries simultaneously like a sprinkler watering a lawn. This allows for a broader market reach and potential for greater profits.

Question 7

Emerging markets that embrace capitalism and _____ are especially attractive targets for marketers.

Accepted Answer

Emerging markets that embrace capitalism and consumerism are particularly appealing to marketers because these elements indicate a growing interest in purchasing goods and services, which is a key aspect of consumer behavior that marketers seek to tap into.

Question 8

Most firms work with a(n) ________ and enter a nearby or similar country.

Accepted Answer

Most firms start their international expansion by working with an independent agent, who helps them enter a nearby or similar country by leveraging local market knowledge and networks.

Question 9

A small firm has decided to enter the international market. At the present time, the firm has decided to enter only one country. What is the next step in the decision making process if the firm is to continue with its plans?

Accepted Answer

After deciding to enter an international market and choosing a specific country, the next step is to decide how to enter the market. This involves choosing between options such as exporting, licensing, franchising, establishing joint ventures, or setting up a subsidiary.

Question 10

NAFTA established a free trade zone between what three countries?

Accepted Answer

NAFTA established a free trade zone between Canada, Mexico, and the United States.

Question 11

Developed nations account for about ________ of the world's population.

Accepted Answer

The term "developed nations" typically refers to countries with high levels of economic development and industrialization. These countries generally have smaller populations than less developed nations. According to United Nations data, as of 2020, the total population of developed nations was approximately 1.3 billion people, which represents roughly 20% of the world's total population. Therefore, answer choice A) is correct.

Question 12

A global firm is one that

Accepted Answer

A global firm is one that operates in more than one country and captures R&D, marketing, and other financial advantages not available to purely domestic competitors. This distinguishes it from a multinational corporation, which may have a presence in multiple countries but does not fully integrate its operations across borders. Therefore, option D is the best choice.

Question 13

A global industry is defined as

Accepted Answer

The answer of A global industry is defined as
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Question 14

The European Union, founded in 1957, brings its total membership to ____ countries.

Accepted Answer

As of 2021, the European Union has 27 member countries. The most recent country to join was Croatia in 2013.

Question 15

Approximately 80 percent of the world's population lies outside of the developed nations and prosperous part of the world. Which of the following is the best tactic for serving markets with much less purchasing power?

Accepted Answer

Offering lower sale prices is necessary for serving markets with much less purchasing power. However, providing smaller packaging sizes can also be an effective strategy since it makes the product more accessible and affordable to customers with limited income. Option A suggests larger packaging sizes, which could be seen as insensitive to local market needs. Option B may not be effective or appropriate, as it only relates to branding and image rather than addressing market needs. Conducting business as usual in these countries (Option C) may not be the best approach since it may not take into account local challenges and preferences, resulting in potential brand or product rejection. Dismissing local competition (Option D) could harm relations with local stakeholders and even lead to legal or ethical issues.

Question 16

Amway expanded from the U.S. into Canada in the 1950s and into Australia in 1971. Amway India was established in 1998. Amway is an example of which type of entry strategy?

Accepted Answer

The waterfall approach describes a sequential entry into international markets, similar to Amway's gradual expansion from the U.S. to Canada, then Australia, and much later to India. This strategy involves entering one market at a time, often ensuring stability and success in one region before moving to the next.

Question 17

Regional economic integration is defined as

Accepted Answer

Regional economic integration refers to the agreements between blocs of countries that are designed to promote free trade and economic cooperation. Examples include the European Union, ASEAN, and Mercosur. It goes beyond merely individual countries or firms making trading agreements, as it involves a broader effort to integrate economies and create a single market.

Question 18

Trade is Canada's primary engine of economic growth. Exports represent approximately ____ percent of our GDP.

Accepted Answer

The answer of Trade is Canada's primary engine of economic...

Question 19

When Microsoft introduces a new form of Windows software, the first-mover approach is preferred. Microsoft would then tend to use which form of entry strategy?

Accepted Answer

The first-mover approach is a type of market entry strategy in which a company introduces new products or services to the market before their competitors do. The sprinkler approach involves simultaneously entering several geographic areas with a product or service, which is not relevant in this case. The waterfall approach is a type of project management methodology, not an entry strategy. Born global is a strategy used by startups that target multiple countries from their inception. Market attractiveness is an assessment of the potential of a particular market, not a strategy. The continuous approach involves regularly improving and updating existing products or services, not entering new markets. Therefore, the best choice for Microsoft would be the first-mover approach, which is a form of market entry strategy.

Question 20

Factors that influence the "attractiveness" of a country to enter include which of the following?

Accepted Answer

The answer of Factors that influence the "attractiveness" of a...

Quiz 21: Tapping into Global Markets