Question 1

Hofstede identifies four cultural dimensions that can differentiate countries. These are individualism versus collectivism, high versus low power distances, ________, and weak versus strong uncertainty avoidance.
A) masculine versus feminine
B) total quality management versus JIT deliveries.
C) customer relationship management versus power distances.
D) strategic management versus marketing management.
E) marketing management versus customer relationships.

Accepted Answer

The fourth cultural dimension identified by Hofstede is Masculinity versus Femininity.

Question 2

Your firm thinks the job is done once the product leaves the factory for the foreign country. If you want them to pay attention to how the product moves within the foreign country, you'll have explain the three major links between seller and ultimate buyer in the foreign country. Which link is where the export department or international division makes decisions about channels and other marketing activities?
A) channel partners
B) advertising agencies
C) corporate headquarters
D) host country corporate offices
E) seller's international marketing headquarters

Accepted Answer

The correct link where the export department or international division makes decisions about channels and other marketing activities is the seller's international marketing headquarters. This is because this department or division is responsible for strategizing and overseeing the international marketing efforts, including channel selection and other marketing activities in foreign markets.

Question 3

The international division's corporate staff consists of functional specialists who provide services to various operating units. Operating units can be organized several ways. Your firm has a president of your division who reports to the president of the international division. This defines your organization as having
A) international subsidiaries.
B) an international company.
C) global organization.
D) a geographical organization.
E) a world product group.

Accepted Answer

The answer of The international division's corporate staff consists of...

Question 4

If you were the CEO of a company that was truly a global organization, you would have some decisions to make regarding corporate strategy. Bartlett and Ghoshal have distinguished three organizational strategies one of which is to
A) treat the world as a set of international markets.
B) treat the world as a single market.
C) treat the world as a number of regions.
D) treat the world as a subset of the "global" market.
E) treat the world as a multiple markets.

Accepted Answer

Treating the world as a single market would allow for the most streamlined and efficient approach to global operations, as it would eliminate the need for separate strategies for each individual market or region. This approach would also help to promote a cohesive and consistent brand image and messaging across all markets.

Question 5

Marketers must also adapt sales promotion techniques to different markets. Several European countries have laws preventing or limiting sales promotion tools such as discounts. In India and Brazil, Lands' End could not advertise its
A) sale price.
B) close-out specials.
C) comparative ads.
D) woman's bathing suits.
E) end-of-the-season sale.

Accepted Answer

Comparative advertising, where a company directly or indirectly compares its product to another in the market, faces restrictions in many countries due to legal and cultural reasons. In places like India and Brazil, such practices can be limited by law, making it difficult for companies like Lands' End to use this approach in their marketing strategies.

Question 6

Many multinationals are plagued by the grey market problem. The grey market consists of
A) branded products diverted from one country to another.
B) branded products diverted from authorized distribution channels either in-country or across international borders.
C) products not having full warranties by the manufacturer.
D) products being repackaged from the intended country to a diverted country.
E) the marketing of products to older consumers.

Accepted Answer

The grey market consists of branded products that are diverted from authorized distribution channels either in-country or across international borders. These products are sold outside of the manufacturer's intended channels of distribution and often at lower prices, causing harm to the manufacturer's profits and reputation.

Question 7

In an increasingly connected, highly competitive global marketplace, government officials, and marketers are concerned with how attitudes and beliefs about their country affect consumer and business decision-making. ________ is(are) the mental associations and beliefs triggered by a country.
A) Materials used in manufacturing
B) Corporate ownership of the firm
C) Competitive positions in the marketplace
D) Brand names and trademarks
E) Country-of-origin perceptions

Accepted Answer

Country-of-origin perceptions refer to the mental associations and beliefs triggered by a country, and they are particularly important in shaping consumer and business decision-making in an increasingly interconnected, competitive global marketplace. Materials used in manufacturing, corporate ownership of the firm, competitive positions in the marketplace, and brand names and trademarks are all important factors in determining a product's appeal, but they are not the same as country-of-origin perceptions.

Question 8

The use of media requires international adaptation because media availability varies from country to country. Norway, Belgium, and France do not allow cigarettes and alcohol to be advertised on TV. Norway and Sweden regulate TV advertising
A) using women in advertising.
B) not allowed to direct at children under 12.
C) between the hours of 9 p.m. and 6 a.m.
D) regarding content and clarity.
E) for those under the age of majority.

Accepted Answer

Norway and Sweden have specific regulations that prohibit TV advertising directed at children under the age of 12, reflecting a concern for protecting young audiences from commercial pressures.

Question 9

Companies can manage their international marketing activities in three ways. These include, through export departments, international divisions,
A) and through local marketing efforts.
B) and franchises.
C) or from a fixed corporate headquarters.
D) or through a strong marketing department in the "host" country.
E) or a global organization.

Accepted Answer

Managing international marketing activities through a global organization allows for a centralized approach to marketing and the ability to coordinate strategy across different markets. This approach is especially beneficial for companies with a strong global brand presence or those operating in multiple markets with similar needs and characteristics.

Question 10

Kraft uses different ads for Cheez Whiz in different countries, such as Peurto Rico, where the cheese is put on everything. This is an example of which of the following adaptation strategies?
A) allowing country managers to create country-specific ads
B) using the same theme globally, but adapting the copy
C) using one message everywhere, but varying the language, name, and colours
D) developing a global pool of ads, from which countries select those most appropriate
E) adapting sales promotion techniques based on media availability

Accepted Answer

This strategy involves allowing country managers to create country-specific ads tailored to local preferences and cultural nuances, as seen with Cheez Whiz in Puerto Rico.

Question 11

Bartlett and Ghoshal have identified three organizational strategies for international firms. These are: (1) a global strategy treats the world as a single market; (2) a multinational strategy treats the world as a portfolio of national opportunities; and (3)
A) a "regcal" strategy standardizes broad brand concepts but customizes for regional differences.
B) a "glocal" strategy standardizes certain elements and localizes other elements.
C) the marketing strategy identifies those elements assigned to a country and uses those elements plus corporate's contribution in the marketing plan.
D) a local strategy standardizes all of the local elements.
E) assumes that there are no "local" or multinational differences in formulating the marketing mix.

Accepted Answer

The third organizational strategy identified by Bartlett and Ghoshal is a "glocal" strategy which standardizes certain elements and localizes other elements. This means that while some aspects of the organization's operations and marketing may be standardized across different national markets, other aspects may be adapted to suit local market conditions and consumer preferences. Option A describes a "regcal" strategy which is not one of the strategies identified by Bartlett and Ghoshal. Option C describes a specific aspect of the marketing strategy rather than an organizational strategy. Option D describes a local strategy which would not be appropriate for an international firm. Option E is incorrect because Bartlett and Ghoshal have explicitly identified three different organizational strategies.

Question 12

The cost escalation problem exists for multinationals and varies from country to country; the question is: How to set prices in different countries? Companies have three choices. One is to set a uniform price everywhere, two is to set a market-based price in each country, and three is to
A) set a cost-based price in each country.
B) set the transfer price at marginal costs + marginal revenue.
C) set a final "cost plus" price in each country.
D) vary the price/market/country on a daily basis to reflect consumer demand.
E) let the market dictate price/country.

Accepted Answer

The answer of The cost escalation problem exists for multinationals...

Question 13

The favourability of country-of-origin perceptions must be considered both from a domestic and foreign perspective. Molson Canadian is an example of a product in the domestic market, where country-of-origin perceptions stirred consumers'
A) diversification.
B) regional pride.
C) familiarity with foreign products.
D) patriotic spirit.
E) product perceptions.

Accepted Answer

Country-of-origin perceptions can stir patriotic spirit among consumers in the domestic market. In the case of Molson Canadian, consumers may feel a sense of pride in supporting a Canadian product, contributing to the favourability of its country-of-origin perception.

Question 14

The "whole channel concept for international marketing" includes the following steps:
A) sellers to channels between nations to final buyers.
B) sellers to channels within foreign nations to final buyers.
C) seller to seller's international marketing headquarters to channels between nations to channels within foreign nations to final buyers.
D) seller to marketing headquarters to channels within foreign markets to final buyers.
E) sellers to international markets to channels within foreign nations to final buyers.

Accepted Answer

The "whole channel concept for international marketing" involves starting from the seller to the seller's international marketing headquarters, then to channels between nations and further on to channels within foreign nations before reaching the final buyers. This means that the product goes through a series of intermediaries before reaching the end customer. Option C is the only one that correctly encompasses all these steps.

Question 15

In 2000 Stelco, a Canadian steelmaker, successfully fought dumping changes against steelmakers in Brazil and other countries. "Dumping" is defined or occurs when
A) a company unloads an excess supply of the product at the best possible prices to the consumer.
B) a company must increase its prices/product prior to importing the product.
C) the company's pricing plans are below current domestic prices.
D) the company charges less that its costs but more than it charges in its home market.
E) a company charges either less than its costs or less than it charges in its home market.

Accepted Answer

Dumping occurs when a company sells a product in a foreign market at a price either below its costs or below the price it charges in its home market. This practice can harm domestic industries in the importing country, leading to anti-dumping measures or tariffs.

Question 16

To sell soap in Japan, Procter & Gamble sells to a general wholesaler, which sells to a product wholesaler, which sells to a product-specialty wholesaler, which sells to a regional wholesaler, which sells to a local wholesaler, which sells to retailers. This scenario represents the third link in the chain between sellers and final buyers, which is
A) seller's corporate offices.
B) channels between nations.
C) seller's international marketing headquarters.
D) host country executive offices.
E) channels within foreign nations.

Accepted Answer

The scenario described represents the channels within foreign nations, specifically the third link in the distribution chain in Japan. This demonstrates the complexity of distribution channels within foreign markets and the need for understanding and navigating these channels in order to successfully sell products in a foreign country.

Question 17

In which of the following modes of licensing does the firm hire local producers to produce the product, giving the company less control over the manufacturing process?
A) management contracts
B) direct investment
C) joint venture production
D) franchising
E) contract manufacturing

Accepted Answer

Contract manufacturing is a mode of licensing where a firm hires local producers to manufacture their product under certain conditions. The company has less control over the manufacturing process in this mode of licensing because they do not directly own the production facilities.

Question 18

A firm that charges a price to another unit in the company sets the ________ for goods that it ships to its foreign subsidiaries.
A) original price
B) margin price
C) customer value price
D) transfer price
E) break-even price

Accepted Answer

The term used for the price charged by one unit of a company to another unit of the same company is called the transfer price. This price is set by the selling unit and impacts the profit and cost of goods sold for the buying unit. Therefore, the correct option is D) transfer price. The other options are not relevant to this scenario - A) original price is not the right term for this context, B) margin price and E) break-even price are not related to internal pricing, and C) customer value price refers to the value that customers place on a product, which is not the same as transfer pricing within a company.

Question 19

In the United States, Tim Hortons has only seen around a 3-percent annual growth as it faces strong competition from Dunkin' Donuts. The company may need to market itself differently in the United States. The process of changing the communications programs used in the home market for each new local market is called
A) straight extension.
B) communication adaptation.
C) product adaptation.
D) regionalized approach.
E) dual adaptation.

Accepted Answer

The process of changing the communications programs used in the home market for each new local market is called communication adaptation. This involves adapting and tailoring the communication programs and messages to fit the cultural, social, and linguistic nuances of the local market. This would likely be necessary for Tim Hortons to effectively market itself in the United States, given the strong competition from established brands like Dunkin' Donuts.

Question 20

A Gucci bag sells for $120 in Italy and $240 in Canada. This is an example of a problem faced by firms trying to sell products abroad. This phenomenon is called a
A) tactical pricing problem.
B) strategic marketing pricing problem.
C) transfer pricing problem.
D) price escalation problem.
E) market pricing problem.

Accepted Answer

The situation described is an example of price escalation, where the price of a product increases as it moves from the manufacturing location to a foreign market due to various factors such as transportation costs, taxes, and tariffs. This poses a problem for firms trying to sell products abroad as they need to determine an optimal price that takes into account all these additional costs while remaining competitive in the foreign market.

Quiz 21: Tapping into Global Markets

Hofstede identifies four cultural dimensions that can differentiate countries. These are individualism versus collectivism, high versus low power distances, ________, and weak versus strong uncertainty avoidance.

If you were the CEO of a company that was truly a global organization, you would have some decisions to make regarding corporate strategy. Bartlett and Ghoshal have distinguished three organizational strategies one of which is to

Marketers must also adapt sales promotion techniques to different markets. Several European countries have laws preventing or limiting sales promotion tools such as discounts. In India and Brazil, Lands' End could not advertise its

Many multinationals are plagued by the grey market problem. The grey market consists of

In an increasingly connected, highly competitive global marketplace, government officials, and marketers are concerned with how attitudes and beliefs about their country affect consumer and business decision-making. ________ is(are) the mental associations and beliefs triggered by a country.

The use of media requires international adaptation because media availability varies from country to country. Norway, Belgium, and France do not allow cigarettes and alcohol to be advertised on TV. Norway and Sweden regulate TV advertising

Companies can manage their international marketing activities in three ways. These include, through export departments, international divisions,

Kraft uses different ads for Cheez Whiz in different countries, such as Peurto Rico, where the cheese is put on everything. This is an example of which of the following adaptation strategies?

Bartlett and Ghoshal have identified three organizational strategies for international firms. These are: (1) a global strategy treats the world as a single market; (2) a multinational strategy treats the world as a portfolio of national opportunities; and (3)

The cost escalation problem exists for multinationals and varies from country to country; the question is: How to set prices in different countries? Companies have three choices. One is to set a uniform price everywhere, two is to set a market-based price in each country, and three is to

The favourability of country-of-origin perceptions must be considered both from a domestic and foreign perspective. Molson Canadian is an example of a product in the domestic market, where country-of-origin perceptions stirred consumers'

The "whole channel concept for international marketing" includes the following steps:

In 2000 Stelco, a Canadian steelmaker, successfully fought dumping changes against steelmakers in Brazil and other countries. "Dumping" is defined or occurs when

In which of the following modes of licensing does the firm hire local producers to produce the product, giving the company less control over the manufacturing process?

A firm that charges a price to another unit in the company sets the ________ for goods that it ships to its foreign subsidiaries.

A Gucci bag sells for $120 in Italy and $240 in Canada. This is an example of a problem faced by firms trying to sell products abroad. This phenomenon is called a