Question 1

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

Accepted Answer

Staying cost competitive is often a critical factor for corporations as it directly impacts their ability to price products attractively and maintain market share in a globalized economy.

Question 2

The text cites studies that report firms committed to international marketing gain competitive advantages from __________.

Accepted Answer

The answer of The text cites studies that report firms...

Question 3

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

Accepted Answer

This is true. The first step in building a strategic international alliance is often referred to as "dating," which involves exploring potential partners and identifying common goals and values before committing to a more formal partnership.

Question 4

The primary reason for using an international joint venture in China is that it is the only form of business that is allowed to make a profit.

Accepted Answer

International joint ventures are not the only form of business that is allowed to make a profit in China. Other options include wholly foreign-owned enterprises (WFOEs), representative offices, and equity joint ventures. However, an international joint venture may be preferred for reasons such as sharing resources and expertise with a local partner, accessing the domestic market, and navigating complex regulations and cultural differences.

Question 5

With respect to global marketing management,the argument for managing in international arena for the 1990s was framed as:

Accepted Answer

The argument for managing in the international arena for the 1990s was framed as global integration versus local responsiveness. This refers to the tension between standardizing products and marketing activities across different countries (global integration) versus adapting them to the specific needs and preferences of local markets (local responsiveness). This has been a key issue for global marketing management, as companies need to balance the benefits of economies of scale and scope with the need to meet local customer needs and preferences in order to stay competitive.

Question 6

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

Accepted Answer

A market segment size of one allows for personalized attention and customization, leading to higher customer satisfaction.

Question 7

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

The key strategic choice that needs to be made by multinational companies is standardization vs adaptation. This refers to whether a company should adopt a standardized approach to products, services, and marketing strategies across all markets or adapt them according to local preferences, culture, and regulations. Choosing the appropriate mix of standardization and adaptation is crucial for multinational companies to succeed in the global marketplace. Too much standardization may fail to appeal to local markets, while too much adaptation may result in high costs and inefficiencies.

Question 8

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

Accepted Answer

International licensing refers to a contractual agreement, where a company in one country allows another company in a different country to use its intellectual property, such as patents, trademarks, or technology, in exchange for royalties or fees. Samsung's investment in building TV tube plants in Tijuana, Mexico, is an example of foreign direct investment, where a company invests in building and operating facilities in a foreign country, rather than licensing its technology or products.

Question 9

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

Accepted Answer

When large market segments can be identified, economies of scale in production and marketing can be important competitive advantages for global companies. This means they can benefit from lower production costs due to larger production volumes and can also spread marketing costs over a wider target audience, resulting in a lower cost per customer.

Question 10

Competition and the ease of global communications is forcing managers around the world to __________.

Accepted Answer

The answer of Competition and the ease of global communications...

Question 11

International planning must blend the changing parameters of external country environments with ____________________________.

Accepted Answer

International planning needs to consider not only the external country environment but also the company's objectives and capabilities in order to create an effective strategy that aligns with the company's goals and is achievable with its resources. The other options listed do not provide as relevant or comprehensive an answer.

Question 12

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 type of business arrangement where two or more parties come together to establish a separate legal entity, typically for a specific project or purpose. In this case, Mike Jordan's company has entered into an agreement with a German firm to create a new company that will operate in the European Union's markets, which qualifies as a joint venture.

Question 13

In the 1970s international marketers framed their management emphasis in foreign markets as a question of:

Accepted Answer

During the 1970s, international marketers focused on whether to standardize their products and marketing strategies across different countries or to adapt them to meet local preferences and conditions.

Question 14

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

Accepted Answer

Ethnocentrism is the belief in the inherent superiority of one's own culture or nation, leading to a tendency to view other cultures or nations through the lens of one's own. The statement suggests that Americans believe that their domestic market is so dominant that they don't need to pay attention to international market requirements, which is an example of ethnocentric thinking.

Question 15

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 four primary points in Nestlé's highly successful international strategy are thinking and planning long term, decentralizing, sticking to what they know, and adapting to local tastes. Standardizing so that all becomes one is not one of their primary points.

Question 16

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

Accepted Answer

A consortium is a group of companies or organizations that work together on a joint project or endeavor. In this scenario, the ten high tech companies joined together to enter the Chinese market, which would make them a consortium.

Question 17

International corporate planning is essentially:

Accepted Answer

International corporate planning is a strategic process that involves setting long-term goals and identifying actions necessary to achieve those goals. It usually covers a period of three to five years and is focused on the overall direction and growth of the organization.

Question 18

A hallmark of global companies today is the establishment of manufacturing operations throughout the world.This is a characteristic of what is called direct foreign investment.

Accepted Answer

Direct foreign investment refers to the establishment of manufacturing operations or other business activities in a foreign country by a company based in another country. This is a common practice among global companies as it allows them to tap into new markets and take advantage of lower labor costs or better access to resources in different parts of the world.

Question 19

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 organization structure combines functional and product or geographic structures, allowing for cross-functional teams to address conflicts and leverage expertise from various areas of the company. This makes it an effective choice for international business operations where there may be multiple functional areas and geographic regions involved.

Question 20

All of the following are benefits of global marketing EXCEPT:

Accepted Answer

The benefits of global marketing include access to tough customers, economies of scale, transfer of experience and know-how, and financial benefits. However, international travel benefits are not necessarily a direct benefit of global marketing, as it is not a primary goal but rather a potential perk for those involved in international business.

Quiz 11: Global Marketing Management: Planning and Organization