Question 1

NCD company wants to expand into the Mexican market.They have financial resources,want to control business operations,and have had considerable success marketing to Hispanics in the United States.NCD will likely use __________ to expand into the Mexican market.

Accepted Answer

Direct investment would allow NCD to have full control over their business operations in the Mexican market and use their financial resources to set up operations. They already have experience in marketing to Hispanic populations, which could give them an advantage in the Mexican market. Franchising and exporting would not give them as much control over their operations, and a joint venture or strategic alliance may not align with their desire for full control.

Question 2

Global marketers typically find distribution in developing countries is more complex because

Accepted Answer

In developing countries, there may be a lack of well-established infrastructure and transportation networks, making it more difficult to distribute products. This can result in the need for companies to go through multiple types of distribution channels, which adds complexity to the distribution process. Additionally, in some cases, there may be regulatory barriers or red tape that further complicate distribution.

Question 3

Cultural nuances,subcultures,and consumers' different views of their roles in different countries can make __________ complicated.

Accepted Answer

Segmentation, targeting, and positioning involve understanding and adapting to the cultural nuances, subcultures, and consumers' different views of their roles in different countries. This can be complicated due to the diversity of perspectives and behaviors across different markets. Purchasing power parity, trading bloc coordination, exchange control planning, and reducing trade surpluses are not directly related to the complexities of cultural differences in marketing.

Question 4

The term "trade deficit" refers to

Accepted Answer

A trade deficit occurs when a country imports more goods and services than it exports. This means that the country is spending more on imports than it is earning from exports, which can lead to a negative impact on the economy.

Question 5

Which of the following is one of the global entry strategies?

Accepted Answer

Direct investment is one of the global entry strategies, as it involves a company investing in and controlling foreign operations, such as through setting up subsidiaries or acquiring existing companies. The other options listed do not specifically refer to entry strategies into foreign markets, but rather different types of business activities or agreements that can occur within those markets.

Question 6

During the early stages of globalization,in the 1950s and 1960s,_______________ were uniquely positioned because they had the skills necessary to develop,promote,and market brand name consumer products.

Accepted Answer

During the early stages of globalization, large U.S. firms had the knowledge, resources, and technologies to develop, promote, and market brand name consumer products. This enabled them to expand their reach beyond national boundaries and become multinational corporations. These firms played a crucial role in shaping the global economy and paving the way for further globalization.

Question 7

When shopping for a car you notice a significant price gap between domestic and imported cars,with the imported cars being much more expensive.This could be the result of

Accepted Answer

A tariff is a tax imposed on imported goods, which can increase the price of imported cars, making them more expensive than domestic cars. This price gap may be the result of the government's effort to protect domestic industries by making imported goods less competitive through the added cost of the tariff.

Question 8

Global marketers are under constant pressure to shorten distribution channels in order to

Accepted Answer

Shortening distribution channels helps reduce costs for global marketers by eliminating intermediaries in the distribution process. This can help improve profit margins and make the pricing more competitive for consumers.

Question 9

Global pricing strategies should be consistent with

Accepted Answer

Global pricing strategies should be consistent with positioning strategies, which include considerations such as branding, target market, and competitive environment. Offshore distribution facilities, cost of materials, domestic pricing, and trade surplus guidelines may also be factors to consider, but they are not the primary driver of pricing strategy.

Question 10

Graham had developed an extremely successful advertising and promotion campaign for a client in the United States.The client wanted to roll out the same campaign to markets worldwide,but Graham cautioned against doing this because

Accepted Answer

Differences in languages, customs, and culture can greatly affect the effectiveness of advertising campaigns, and it's important to tailor campaigns to each specific market. Therefore, Graham is right to caution against rolling out the same campaign worldwide without considering these factors.

Question 11

The most important consideration,when a firm chooses a global product strategy,should be

Accepted Answer

The most important consideration when choosing a global product strategy should be the needs of the target market. It is crucial for the firm to understand the unique needs and preferences of the consumers in each country or region they plan to operate in. Failure to do so may result in products that do not meet the needs of local consumers, leading to poor sales and market share. Opportunities for countertrade or the effectiveness of the marketing team, while important, are not as critical as understanding the local market. Provisions of GATT and WTO regulations may impact the implementation of the global product strategy but are not the most important consideration in developing the strategy.

Question 12

Global segmentation,targeting,and positioning (STP)is more complicated than local STP because

Accepted Answer

Global STP involves understanding cultural differences, different consumer behaviors and attitudes, and variations in market conditions in different countries. Consumers may have different needs, preferences, and perceptions of products and brands in different regions, which makes segmentation, targeting, and positioning more complex. Additionally, consumers may view their roles differently in different countries depending on cultural and societal norms. Therefore, global STP requires a deeper understanding and adaptation to different markets, which requires more effort than local STP.

Question 13

Celia's firm has developed a breakfast cereal targeted toward children.Rather than compete in the mature U.S.market,she has decided instead to introduce the product in Europe,where she feels it will be innovative.Her ad agency urged caution because

Accepted Answer

Advertising regulations vary by country, and in some European countries, there are restrictions on advertising to children. Therefore, Celia's ad agency urged caution to ensure that their advertising complies with local regulations.

Question 14

Global segmenting,targeting and positioning is more complicated than domestic segmenting and positioning because of cultural nuances,significant subcultures within countries,and

Accepted Answer

Global segmenting, targeting, and positioning is more complicated than domestic segmenting and positioning because of the differences in the way consumers see themselves and in the way they see products and services, as well as cultural nuances and significant subcultures within countries. Understanding these differences is critical to developing effective global marketing strategies. Currency differences, anti-discrimination regulations, franchising issues, and taxes imposed by foreign countries may also pose challenges, but they are not the primary reason why global segmenting, targeting, and positioning is more complex than domestic marketing.

Question 15

In the 1970s and 1980s,__________ dominated the global marketplace because they could exploit their skills in production,materials management,and new product development.

Accepted Answer

During the 1970s and 1980s, Japanese firms dominated the global marketplace due to their expertise in production, materials management, and new product development. This period is often referred to as the "Japanization" of business, as Japanese companies such as Toyota, Sony, and Honda gained significant market share and recognition for their innovative approaches to manufacturing and product design.

Question 16

Tariffs,quotas,and currency exchange policies affect global

Accepted Answer

Tariffs, quotas, and currency exchange policies can affect the pricing strategies of global businesses. Tariffs and quotas increase the cost of importing goods, which may result in higher prices for consumers. Currency exchange policies can also affect pricing strategies, as fluctuations in exchange rates can impact the cost of goods and services in different markets. Therefore, businesses may need to adjust their pricing strategies to account for these factors.

Question 17

When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries,this is known as

Accepted Answer

Exporting refers to the practice of sending goods and services produced in one country to another country for sale. This method is often used by companies that want to minimize risk and test the waters in a global market before making more significant investments in that market. Franchising, strategic alliances, joint ventures, and direct investment all involve greater risks and investments than exporting.

Question 18

Brands can be extremely valuable domestically,but international use can be challenging.Companies can help to overcome language difficulties in using brands by

Accepted Answer

The answer of Brands can be extremely valuable domestically,but international...

Question 19

Of the five strategies for entering new markets,direct investment creates the

Accepted Answer

Direct investment typically involves the highest investment cost and the greatest potential risk, as the company is directly establishing operations in the new market.

Question 20

Which of the following best describes the direct investment global entry strategy?

Accepted Answer

Direct investment involves a firm setting up and maintaining its own facilities, plants, and offices in a foreign country, thus maintaining total ownership and control.

Quiz 8: Global Marketing