Question 1

With respect to global marketing management, the argument for market segmentation for the 1990s was framed as:

Accepted Answer

In the 1990s, the market segmentation argument was framed as it was "global integration versus local responsiveness".

Question 2

Mike Jordan's company has just entered into an agreement with a German firm that will create a separate legal entity. This new firm will be allowed to conduct business and actively compete in the European Union's various markets. A good description of the new company would be a "joint venture."

Accepted Answer

A joint venture is a partnership of two or more participating companies that have joined forces to create a separate legal entity.

Question 3

Korea's Samsung invested about $500 million to build television tube plants in Tijuana, Mexico. This form of international business is aptly named international licensing.

Accepted Answer

The case of Samsung is an example of direct foreign investment. In this type of investment, companies may invest locally to capitalize on low cost labor, to avoid high import taxes, to reduce the high costs of transportation to market, to gain access to raw materials and technology, or as a means of gaining market entry.

Question 4

Nestlé focuses on dominating markets in the world arena. The company has four primary points in its highly successful international strategy. Which of the following would not be among those four points?

Accepted Answer

The "Nestlé way" is to dominate its markets. Its overall strategy can be summarized in four points: (1) think and plan long term, (2) decentralize, (3) stick to what you know, and (4) adapt to local tastes.

Question 5

KFC began selling Youtiau, a kind of Chinese doughnut, at its outlet in China. The Youtiau is considered an important part of a Chinese breakfast menu. In marketing terms, KFC is practicing a _____ strategy.

Accepted Answer

Localization is the process of adapting a product for a particular market. In this KFC, localized it menu and came out with the Youtiau to appeal to its Chinese market.

Question 6

Part of the trend back toward localization is caused by increasingly flexible manufacturing processes and:

Accepted Answer

The trend back toward localization is caused by the efficiencies of customization made possible by the Internet and increasingly flexible manufacturing processes.

Question 7

Building a strategic international alliance (SIA) takes several steps to be successful. The first step in building strategic alliances is called "dating."

Accepted Answer

The first step in building strategic alliances is indeed called "dating," where potential partners get to know each other and assess whether a strategic alliance would be mutually beneficial.

Question 8

An advantage of a matrix organization structure in international business is that it permits management to respond to the conflicts that arise among functional activity, product, and geography.

Accepted Answer

A matrix structure permits management to respond to the conflicts that arise among functional activity, product, and geography.

Question 9

International corporate planning is essentially:

Accepted Answer

International corporate planning is essentially long term, incorporating generalized goals for the enterprise as a whole.

Question 10

Ten high tech companies joined together to make a concentrated business effort in China. By joining together, the various companies were able to enter the Chinese market for the first time. A good name for this type of arrangement would be a consortium (consortia).

Accepted Answer

Consortia are similar to joint ventures and could be classified as such except for two unique characteristics: (1) They typically involve a large number of participants and (2) they frequently operate in a country or market in which none of the participants is currently active.

Question 11

In the 1970s, international marketers framed the approach towards market segmentation as:

Accepted Answer

In the 1970s, the market segmentation argument was framed as standardization versus adaptation.

Question 12

The statement, "Only in America can international market requirements be an afterthought" is an example of American ____.

Accepted Answer

From the European or even the Japanese perspective, markets are by definition international, and the special requirements of the huge American market must be considered from the beginning. However, it is only in America that international market requirements are an afterthought. This tendency to believe that one's ethnic or cultural group is centrally important, and that all other groups are measured in relation to one's own is called ethnocentrism.

Question 13

All of the following are benefits of global marketing EXCEPT:

Accepted Answer

Marketing globally ensures that marketers have access to the toughest customers. When large international market segments can be identified, economies of scale result. Transfer of experience and know-how across countries through improved coordination and integration of marketing also takes place. Moreover, diversity of markets served carries with it additional financial benefits.

Question 14

Where legal and cultural barriers exist, it is preferable to buy an existing business than to enter into a joint venture.

Accepted Answer

Where companies face unfamiliar legal and cultural barriers, joint ventures are preferred to buying existing businesses.

Question 15

When large market segments can be identified, _____ can be important competitive advantages of global companies.

Accepted Answer

When large international market segments can be identified, economies of scale in production and marketing can be important competitive advantages for multinational companies.

Question 16

A recent study of North American and European corporations indicated that the need to ____ was considered the most important external issue affecting their marketing strategies.

Accepted Answer

A recent study of North American and European corporations indicated that nearly 75 percent of the companies are revamping their business processes, that most have formalized strategic planning programs, and that the need to stay cost competitive was considered the most important external issue affecting their marketing strategies.

Question 17

A hallmark of global companies today is the establishment of manufacturing operations throughout the world. This is the core reason behind direct foreign investment.

Accepted Answer

A hallmark of global companies today is the establishment of manufacturing operations throughout the world.

Question 18

The ideal market segment size, if customer satisfaction is the goal, is:

Accepted Answer

The ideal market segment size, if customer satisfaction is the goal, is one.

Question 19

Which of the following companies has been known for its ability to adapt to local needs and wants in the international marketplace since its inception in 1866?

Accepted Answer

Nestlé has been international almost from its start in 1866 as a maker of infant formula.

Question 20

In order to enhance their competitiveness and to capitalize on global marketplace opportunities, comprehensive decisions need to be made by multinational companies regarding key strategic choices such as: integration vs. independence, concentration vs. dispersion, and ____.

Accepted Answer

Comprehensive decisions must be made regarding key strategic choices, such as standardization versus adaptation, concentration versus dispersion, and integration versus independence.

Quiz 12: Global Marketing Management: Planning and Organization