Question 1

Which of the following statements best describes multinational firms?

Accepted Answer

Multinational firms often develop their global businesses in stages as they expand into new markets and adapt to local cultural, legal, and economic conditions. This allows them to gradually build their presence in a sustainable way, rather than trying to enter all markets at once or relying on a single strategy that may not be effective in every market. The other choices are not accurate definitions of multinational firms.

Question 2

British Telecom is heavily engaged in trade throughout Europe and the far-east. It is able to shift resources, goods, services, and skills across national borders. What type of organization is it?

Accepted Answer

British Telecom is considered a multinational corporation because it operates in multiple countries and is able to transfer resources and skills across national borders. This level of global integration and coordination is a defining characteristic of multinational corporations.

Question 3

Why do Canadian managers develop a global vision?

Accepted Answer

Developing a global vision is important for Canadian managers to recognize and react to international markets, which can lead to increased opportunities for growth and competitiveness.

Question 4

The same Timex, Seiko, and Citizen wristwatches you buy in North America can be purchased around the world. Why is there is no difference in a watch purchased in Russia, in Mexico, or in Singapore?

Accepted Answer

The fact that there is no difference in a watch purchased in different countries suggests that the manufacturers are using a global marketing standardization approach, where they offer the same product with little to no customization for local markets. This approach aims to achieve economies of scale, simplify marketing efforts, and maintain a consistent brand image worldwide.

Question 5

Cardiac Science, a Canadian manufacturer of heart-monitoring devices and other medical devices, sells 85 percent of its products outside Canada. It sells basically the same product to a hospital in London, Tokyo, Pretoria, or Sydney. It uses the same promotional tactics in all of its markets. Which of the following most likely describes Cardiac Science?

Accepted Answer

Cardiac Science's approach of using the same product and promotional tactics in all of its markets suggests that it uses global marketing standardization, aiming to create a globally consistent image and message for its brand.

Question 6

When European demand for a certain solvent declined, Dow Chemical instructed its German plant to switch to manufacturing a chemical that had been imported from Louisiana and Texas. How would Dow Chemical best be described?

Accepted Answer

Dow Chemical's instructions to its Germany plant to switch to manufacturing a different chemical based on changes in European demand shows that the company operates across multiple countries and adapts to changes in global markets. This fits the definition of a multinational corporation. Option A (global enterprise) could also be arguable, but it does not capture the multinational aspect of the organization. Options B and C are not accurate descriptions based on the given information.

Question 7

Rolex has decided to market its new sports watch product line using a uniform strategy. How else could such a strategy be described?

Accepted Answer

A uniform strategy implies that the marketing approach is standardized across all markets, which is the core concept of global marketing standardization approach. Therefore, the best choice is B.

Question 8

Otis Elevators has entered into a strategic alliance with a company in France from which it gets its elevator door systems. It has a similar agreement with a manufacturer in Japan that provides it with special motor drives. The parts are assembled at its plant in the United States. Otis elevators can be found in buildings all over the world. What is Otis Elevators an example of?

Accepted Answer

Otis Elevators is a multinational corporation (MNC) as it has operations and partnerships in multiple countries and operates in a variety of markets around the world.

Question 9

How does having a global vision assist a manager?

Accepted Answer

A global vision helps managers understand international marketing opportunities and react to them effectively.

Question 10

World merchandise trade volume is expected to continue to demonstrate growth year after year, but the strength of the growth is weakening. What is the reason for that?

Accepted Answer

Slowing GDP can lead to a decrease in demand for goods and services, leading to weaker growth in world merchandise trade volume.

Question 11

Basketball is played nearly everywhere in the world. The National Basketball Association (NBA) finals reached more than 600 million televisions in 195 countries. From this information, what should you be able to infer about the NBA?

Accepted Answer

The fact that the NBA finals reached more than 600 million televisions in 195 countries suggests that the NBA is practising global marketing, meaning that it is tailoring its marketing efforts to different regions and cultures around the world. This is different than standard international marketing, which involves creating a standardized marketing campaign that is used in all countries. Additionally, the statement does not provide any evidence to suggest that the NBA is developing international selling schemes (A), implementing standard international marketing (B), or supplementing its foreign vision (D).

Question 12

Many consumers experience the benefits of globalization, including lower prices and access to exotic products; however, others are concerned with the massive expansion of companies such as Walmart. Why are these consumers concerned?

Accepted Answer

Some consumers are concerned about the negative impact of globalization on employment, as it can lead to job loss in certain industries as production shifts abroad. Walmart, as a large global corporation, has been criticized for contributing to this trend by outsourcing jobs to countries with cheaper labor, which can have a negative impact on local communities.

Question 13

Which of the following describes a common criticism of multinational companies?

Accepted Answer

Multinational companies are often criticized for transferring inappropriate or outdated technology to developing nations, which may not be suitable for local conditions or needs.

Question 14

Target entered the Canadian market in 2013 and was not successful. What was the most important reason?

Accepted Answer

Target's supply chain management system was not equipped to handle the complexity of the Canadian market. This led to widespread inventory issues, resulting in empty shelves and frustrated customers. Additionally, Target's pricing strategy was not competitive, and they failed to differentiate themselves from existing retailers like Walmart and Canadian Tire.

Question 15

General Motors has just sold a new line of robots to manufacture cars to Indian auto company Tata Motors. This purchase can be described as capital intensive. What will this mean for Tata Motors?

Accepted Answer

The purchase of a new line of robots to manufacture cars indicates that Tata Motors will be spending more on equipment than on labor, making it a capital-intensive strategy. This will likely lead to increased efficiency and productivity but may also require significant upfront investment.

Question 16

What are the organizations that utilize a global vision to effectively market goods and services across national boundaries engaged in?

Accepted Answer

Organizations that utilize a global vision to effectively market goods and services across national boundaries are engaged in practicing global marketing. This involves developing a fully integrated global marketing program that considers and addresses cultural, linguistic, and other differences across markets while maintaining a consistent brand image and message.

Question 17

Which of the following best describes global marketing standardization?

Accepted Answer

Global marketing standardization presumes markets throughout the world are becoming more alike, and therefore seeks to create a standardized marketing mix that can be used globally. This can lead to economies of scale and lower production costs, as well as consistent branding and messaging across markets.

Question 18

What was the result of the 2013 Bangladesh garment factory collapse?

Accepted Answer

The answer of What was the result of the 2013...

Question 19

Which of the following statements best describes global marketing?

Accepted Answer

Developing a global vision is crucial for firms to expand overseas and maintain their competitiveness in their domestic market. It means that enterprises must have a clear understanding of the worldwide marketing environment, including customers, regulations, and competitors.

Answer: D 
 Global marketing can help firms expand their markets, increase revenues and profits, and reduce dependence on a particular market. However, it cannot compensate for weak domestic performance entirely. If a company's operations in its home market are weak, it will face difficulties in achieving success globally.

Question 20

Which of the following statements describes one of the benefits of increased globalization?

Accepted Answer

Increased globalization has led to more world trade, which has increased competition among companies. This has in turn led to price reductions in certain products due to increased efficiency and lower production costs. As a result, Canadians have benefited from lower prices on imported goods.

Quiz 4: Developing a Global Vision