Question 1

Countries in the triad region are United States, Canada, and Honduras.

Accepted Answer

Countries in the triad region are United States, Japan, and Western Europe. Honduras is not part of the triad region.

Question 2

The media revolution is creating a common fabric of attitudes and tastes among teenagers

Accepted Answer

The media revolution, with social media and other forms of technology, has allowed for the widespread sharing of information and cultural products, leading to the creation of a common global culture among teenagers. This can include shared attitudes towards music, fashion, celebrities, and other cultural phenomena.

Question 3

In highly contested consumer goods sectors, launching a new brand may cost as much as $100 million.

Accepted Answer

Launching a new brand in highly contested consumer goods sectors can indeed cost as much as $100 million, considering the expenses related to market research, brand development, manufacturing, distribution, advertising, and promotion. However, the actual cost may vary depending on factors such as the category, target audience, competition, and geographic scope of the brand.

Question 4

Globalization strives to reduce costs by pooling production or other activities or exploiting factor costs or capabilities within a system.

Accepted Answer

Globalization aims to reduce costs by sharing or pooling production or activities, or by finding the most cost-effective factors or capabilities within a system. This can involve outsourcing, offshoring, or using technology to streamline processes and increase efficiency. Ultimately, the goal is to increase competitiveness and profitability by tapping into global resources and markets.

Question 5

Glocalization is a mindset that says, "Go locate a product category" in an effort to substantiate target markets.

Accepted Answer

Glocalization is actually a combination of the words "globalization" and "localization" and refers to the adaptation of a product or service to meet both global and local needs. It involves taking a global idea or product and making it relevant to a local market by adapting it to local customs, language, and culture.

Question 6

A focus strategy is defined by its emphasis on a single industry within which the orientation may be toward either low cost or differentiation.

Accepted Answer

A focus strategy does emphasize on a single industry, but the orientation may be towards either low cost or differentiation. Therefore, the statement is true.

Question 7

Segmentation is the standardization of benefits and approaches the markets on a regional basis, ignoring political boundaries.

Accepted Answer

Segmentation is based on dividing the market into regions with similar needs and characteristics, regardless of political boundaries, in order to tailor marketing strategies and benefits to those regions. This means that segmentation does not limit itself to political boundaries, but rather focuses on meeting the needs of the region as a whole.

Question 8

NIH is an acronym for Not-Invented-Here syndrome.

Accepted Answer

The answer of NIH is an acronym for Not-Invented-Here syndrome....

Question 9

Cross-subsidization is the use of resources accumulated in one part of the world to fight a competitive battle in another.

Accepted Answer

Cross-subsidization is a commonly used business strategy, where the profits gained in one area of a business are used to fund activities in another area. This is usually done to gain a competitive advantage over rivals.

Question 10

Global marketing can be seen as a culmination of a process of international market entry and expansion.

Accepted Answer

This statement is true. Global marketing refers to a company's marketing activities across different countries and regions, and it typically follows a process of first entering and expanding into international markets before establishing a global presence.

Question 11

Many industries have become global industries. Which one of the following is not one of the major global industries?

Accepted Answer

While consumer electronics, pharmaceuticals, and home appliances have become major global industries, charcoal manufacturing is not a significant global industry.

Question 12

Leading companies, by their very actions, drive the globalization process.

Accepted Answer

This statement reflects the idea that multinational corporations play a significant role in promoting the worldwide integration of markets and economies. Their investments, expansion strategies, and supply chain networks often lead to increased trade and financial interdependence between countries, which are key features of globalization.

Question 13

Two of the most powerful globalization drivers involve avoiding cost inefficiencies and duplication of effort.

Accepted Answer

Cost inefficiencies and duplication of effort are key factors that drive globalization as companies seek to optimize their operations and reduce costs by leveraging economies of scale and shared resources across borders. By leveraging these drivers, companies can increase their efficiency, competitiveness, and profitability in the global marketplace.

Question 14

Mininationals are consortiums of companies (like Chambers of Commerce) that act as a lobbying force for global issues.

Accepted Answer

Mininationals are small to medium-sized enterprises that operate internationally, not consortiums or lobbying groups.

Question 15

In pursuing cost leadership, the global marketer offers an identical product at a higher cost than the competition.

Accepted Answer

Pursuing cost leadership means offering a product at a lower cost than the competition, not at a higher cost.

Question 16

Strategic Business Units represent groupings based on product-market similarities.

Accepted Answer

Strategic Business Units (SBUs) are groupings based on product-market similarities, allowing for more focused and efficient decision-making within a company. SBUs often have their own distinct strategies, objectives and resources.

Question 17

Institutionalization reflects a business orientation based on the belief that the world is becoming more homogenous and that distinctions between national markets are not only fading, but for some products, will eventually disappear.

Accepted Answer

The statement describes globalization, not institutionalization. Globalization refers to the process of markets becoming more interconnected and similar, while institutionalization refers to the establishment of norms and structures within organizations or societies.

Question 18

Executing global account management takes an account executive from a local firm and sends them around the world to situations of extreme need.

Accepted Answer

The statement is not accurate. Global account management involves managing key accounts for multinational corporations and requires coordination across different countries and regions, but it does not typically require sending an account executive to locations of extreme need.

Question 19

A global strategy does not imply that a company should serve the entire globe.

Accepted Answer

A global strategy refers to a company's plan for how to compete and operate in multiple countries or regions around the world. However, it does not necessarily mean that the company must serve every market or customer around the globe. Instead, companies often focus on specific regions or segments where they can be most successful and competitive.

Question 20

The quest for cost savings and improved transportation and transfer methods has allowed some marketers to concentrate customer service activities rather than have them present in all country markets.

Accepted Answer

By centralizing customer service activities, companies can streamline operations and reduce costs while still providing efficient and effective customer support across multiple markets.

Quiz 6: Strategic Planning