Question 1

Bistrone corn canned soup was made expressly for the Japanese market by Coca-Cola Japan.This is an example of ___________________.

Accepted Answer

Product invention: Create a new product specifically for an international market.

Question 2

Many countries restrict marketing to children more severely than in the United States.A firm considering direct foreign investment would report this finding under the heading of _____.

Accepted Answer

In direct foreign investment, risks go up substantially. A company must consider marketing communication barriers because local marketing practices vary a great deal.

Question 3

Aligning the firm's philosophy with that of a potential channel partner would be identified in the channel strategy of ___________.

Accepted Answer

The long-term nature of channel decisions makes character an issue in selecting the best channel partner. The capabilities, reputation, and skills of the local channel partner should match the company's characteristics.

Question 4

Coca-Cola changes the taste of its soft drinks to meet local market preferences.This is an example of ___________.

Accepted Answer

Product adaptation: Alter an existing product to fit local needs and legal requirements. Adaptation can range from regional levels all the way down to city-level differences.

Question 5

The use of local distribution networks is identified in the channel factor of ___________.

Accepted Answer

Local distribution networks around the world may lack full exposure to a given market. Even in the United States, for example, complete coverage of a consumer market necessitates multiple distribution channels. As a result, it is necessary to evaluate which distribution network best reaches the target customers, which may not necessarily be the network with the widest distribution.

Question 6

All but the most accomplished global marketers rely on local distribution networks in foreign markets.It is very expensive to build the company's own distribution network.This issue would be identified in the channel strategy of ___________.

Accepted Answer

The more control the company wants in the channel, the more expensive it is to maintain. As a result, companies generally look for a balance between channel control and cost. The complexity of global supply chains coupled with lack of local market knowledge make the task of creating a distribution system so expensive that all but the most accomplished global marketers rely on local distribution networks in foreign markets.

Question 7

The issue of initial investment in creating a channel and the cost of then maintaining it is identified in the channel strategy of ___________.

Accepted Answer

Estimating channel costs includes (1) the initial investment in creating the channel and (2) the cost of maintaining the channel.

Question 8

Tyrone wants to get his girlfriend an impressive gift of chocolates for Valentine's Day.He chooses candy that was made in Belgium.This is an example of how consumers respond to ____________.

Accepted Answer

Increasingly, customers apply what is known as the country-of-origin effect in their purchase decisions. The country-of-origin effect is the influence of the country of manufacture, assembly, or design on a customer's positive or negative perception of a product.

Question 9

Outdated cell phones used in Europe or Asia have been introduced into the Latin American markets.This is an example of ____________.

Accepted Answer

Sometimes old products discontinued in one market can be reintroduced in a new market, a process known as backward invention. Cell phone manufacturers have adopted this strategy, taking phones that have been replaced in European or Asian markets and introducing them in Latin America.

Question 10

You Are Here,a personal navigation system company,has contracted its manufacturing to a firm in Malaysia for five years.Now that You Are Here has explosive growth,it wants to purchase the manufacturing facility.This market entry method is _________.

Accepted Answer

The market entry strategy with the greatest long-term implications is direct foreign investment. Risks go up substantially when a company moves manufacturing into a foreign market. Although this is the riskiest market entry strategy, future market potential can position it for long-term growth.

Question 11

The value of the Japanese yen has fluctuated widely during the 2000s compared to the U.S.dollar.A firm considering direct foreign investment would report this finding under the heading of _____.

Accepted Answer

Transaction costs-production and other costs stated in various currencies.

Question 12

The market entry strategy with the greatest long-term implication is __________.

Accepted Answer

The market entry strategy with the greatest long-term implications is direct foreign investment.

Question 13

When Ford Motor Co.introduced the Nova model in Mexico,it faced certain ridicule because "No va" in Spanish means "It doesn't go." Oops! This illustrates a problem with __________________.

Accepted Answer

Cultural differences exert tremendous influence on consumer product choices and are critical in international markets. Brand names as well as product colors and features are heavily influenced by the culture in local foreign markets.

Question 14

__________ is not a product issue for international product marketers.

Accepted Answer

Four specific product issues face international consumer marketers-quality, fitting the product to the culture, brand strategy, and country of origin.

Question 15

When Coca-Cola introduced Diet Coke in Japan,sales were poor because Japanese women don't like the concept of dieting and associate "diet" with sickness.Sales improved when the name was changed to Coke Light.This illustrates a problem with ______________.

Accepted Answer

When Coca-Cola introduced Diet Coke in Japan, initial sales were disappointing until the company realized that Japanese women do not like the concept of dieting and the Japanese culture relates dieting to sickness (not a desired connection with a product). The company changed the name to Coke Light, which has been much more effective around the world.

Question 16

When local government relationships are critical to the success of international operations the best organizational structure for a firm would be __________.

Accepted Answer

Geographic regions divide international markets by geography, building autonomous regional organizations that perform business functions in the geographic area. This model works particularly well when local government relationships are critical to the success of international operations as it affords company management a closer connection to local customers.

Question 17

The most well established local distributors might already have relationships with competitors.This problem for new market entrants would be identified in the channel strategy of ___________.

Accepted Answer

Continuity: Changing a distribution system creates anxiety among customers and gives competitors an opportunity to take advantage of inevitable inefficiencies and disruption of service. Identifying channel partners with a long-standing presence in the market provides some security; however, the best local partners are also the most difficult to establish a relationship with as they frequently already have established involvement with competitors.

Question 18

The organizational structure used by most companies is ______________.

Accepted Answer

The matrix structure is the third form and is a hybrid of the first two. Not surprisingly, most companies today use some form of matrix structure that encourages regional autonomy while building product competence in key areas around world.

Question 19

The degree of centralization is a critical decision a firm makes before deciding on an international organizational structure.Options include _________.

Accepted Answer

The degree of centralization is a second critical decision since it affects resource allocation and personnel. Three primary organizational patterns employed by organizations around the world are centralized, decentralized, and regionalized.

Question 20

Ask your friends which country produces the best perfume and most likely the answer will be "France." This shows the issue that international consumer marketers face of _________.

Accepted Answer