Deck 13: International Marketing

Question 1

_____________ is the process through which individuals, organisations and governments become increasingly _____________, with consequences for national identity, national sovereignty, economic activities, laws and culture.

A) Transportation, interconnected
B) Globalisation, interconnected
C) Globalisation, separated
D) e-business, independent

Answer 1

Globalisation, interconnected

Question 2

Which of the following statements is false?

A) Dubbing local actors' voices over a television commercial is a type of customisation of the market offering.
B) Globalisation is a twenty-first century phenomenon brought about by communications technologies.
C) Standardisation enables an organisation to achieve economies of scale.
D) Pricing products at different points in response to income differentials in international markets is a type of customisation of the market offering.
E) Competition from local businesses in a foreign market is likely to increase the need to make a customised market offering.

Answer 2

Globalisation is a twenty-first century phenomenon brought about by communications technologies.

Question 3

In a speech given by the President of the American Marketing Association, it is claimed that the association is part of the 'global village'. In this instance, the President is referring to:

A) the internet.
B) the United Nations.
C) the World Trade Organization.
D) the concept that the different nations of the world are increasingly interdependent.
E) the concept that the different nations of the world are increasingly fragmented.

Answer 3

the concept that the different nations of the world are increasingly interdependent.

Question 4

Which of the following is not a factor encouraging an international marketer to customise their offering?

A) Cultural differences between countries.
B) Competition from domestic marketers in the target foreign market.
C) Facilitation of innovation in the foreign market.
D) Creation of competitive advantage.
E) Economies of scale.

Question 5

An Australian company manufacturing chocolate coated macadamia nuts decides to export their product to France. The packaging is changed from a cardboard carton to a foil bag, the ingredients list and nutritional information is written in French and the price point is increased to reflect the 'premium' nature of the product. This company is using:

A) globalisation.
B) customisation.
C) standardisation.
D) homogenisation.

Question 6

In Australia, Fosters Lager is sold as an everyday beer. It is one of the cheaper full strength beers on the market. In Europe however, the marketing mix is very different; Fosters is sold as a premium beer at higher than average prices. This approach by Fosters to tailor its offer for each market can be regarded as:

A) standardisation.
B) customisation.
C) quotas.
D) embargos.
E) tariffs.

Question 7

The marketing manager for Mad Mex is sure that a customised offering for each international market they enter would be the best approach to take. One of his staff members disagrees with his view, suggesting that a standardised offer would provide Mad Mex:

A) economies in research and development.
B) economies of scale in production.
C) economies in marketing.
D) ease of control of the marketing approach.
E) All of the options listed.

Question 8

Denmark is the world leader in sustainable development through their significant investment into clean energy sources. The ________ could be used to evaluate the efforts of Denmark to other countries.

A) increase in foreign trade.
B) Sustainability Index.
C) Global Green Economy Index.
D) growth of innovation.
E) None of the above.

Question 9

As with domestic markets, the international marketing environment is comprised of political, economic, _____________, technological and _____________ forces.

A) cultural, social
B) sociocultural, international
C) social, legal
D) sociocultural, legal

Question 10

Asia-Pacific Economic Cooperation (APEC) is an example of:

A) a regional trade area.
B) a bilateral trade arrangement.
C) a European union.
D) globalisation.

Question 11

One of the most important economic factors for international marketers is:

A) the quality of national infrastructure.
B) business and consumer confidence.
C) the global economy.
D) exchange rates.

Question 12

Diageo is a multi-national company exporting and distributing many major liquor products around the world. As the company expanded internationally, they realised that international marketing is generally more complex than domestic marketing due to:

A) cultural differences.
B) language differences.
C) legal differences.
D) political differences.
E) All of the options listed.

Question 13

During the apartheid era, South Africa was subject to trade _____________ and sanctions.

A) increases
B) decreases
C) embargos
D) illegalisation

Question 14

The World Trade Organization aims to:

A) liberalise trade between nations.
B) establish rules to govern e-commerce.
C) discourage unhelpful trade practices.
D) Both a and b.
E) All of the options listed.

Question 15

Cars imported into Australia incur a duty which has the effect of increasing the price relative to cars made locally. This duty is known as:

A) an embargo.
B) a quota.
C) a tariff.
D) legalisation.

Question 16

Which of the following is true?

A) Australia and New Zealand are members of APEC.
B) Australia and New Zealand are members of the EU.
C) Australia and New Zealand are members of MERCOSUR.
D) Australia and New Zealand are members of ASEAN.
E) Australia and New Zealand are members of NAFTA.

Question 17

During 2012 the value of the Australian dollar rose due to the perception that the Australian economy was strong. The rise in value was a good thing for Australians travelling overseas for their holidays; it also:

A) made Australian exports less expensive for overseas buyers.
B) made Australian exports more expensive for overseas buyers.
C) made Australian exports parallel with imports.
D) had no effect on Australian exports.
E) is known as hedging.

Question 18

The ethical standards expected of businesses vary between countries. This is due to variations in which country-specific macro-environmental factor?

A) Political.
B) Economic.
C) Sociocultural.
D) Technological.
E) Legal.

Question 19

The Australian government applies charges when cars are imported into the country in a bid to protect the local car industry. These charges are an example of:

A) standardisation.
B) customisation.
C) quotas.
D) embargos.
E) tariffs.

Question 20

If Japan restricts an Australian company to selling 5000 units of its product in Japan, Japan has imposed a(n):

A) quota.
B) embargo.
C) sanction.
D) tariff.
E) import duty.

Question 21

Which of the following is not a trade barrier?

A) Tariff.
B) Quota.
C) Sanction.
D) Foreign exchange fluctuations.
E) Foreign ownership restrictions.

Question 22

Which of the following statements about organisations going international is not correct?

A) The increasingly free trading environment makes international marketing easier.
B) Businesses that internationalise also increase their potential to gain new knowledge.
C) It is less risky for a company to enter an international market which shares similar cultural and business practices.
D) Gathering demographic data about a potential international market is part of the second stage of the international market research process.
E) All of these options are correct.

Question 23

Roogenic, an Australian producer of native bush foods and tea has recently expanded to Singapore and Japan. They have recently decided to further their expansion to the USA after screening the market. What do you think Roogenic considers in their screening process?

A) Income.
B) Competitors.
C) Population.
D) Sales potential.
E) All of the above.

Question 24

An approach to exporting in which the marketing organisation deals directly with the international market is known as:

A) contract manufacturing.
B) direct exporting.
C) exporting.
D) indirect exporting.

Question 25

As a manufacturer of children's toys, you sell your products domestically and also to a locally-based export merchant. This export merchant sells your toys into international markets. Your approach to exporting is known as:

A) contract manufacturing.
B) direct exporting.
C) exporting.
D) indirect exporting.

Question 26

After a brand has shortlisted international countries that have potential, they would then undertake research to understand the __________:

A) appropriate mode of entry.
B) required product positioning.
C) required marketing mix.
D) cost implications.
E) All of the above.

Question 27

The arrangement where many 'European' beers are bottled in Australia, is called:

A) franchising.
B) contract manufacturing.
C) licensing.
D) international strategic alliance.

Question 28

When Qantas, Cathay Pacific and Japan Airlines formed code-sharing arrangements in order to penetrate smaller markets, it was an example of:

A) an international joint venture.
B) contract manufacturing.
C) foreign direct investment.
D) an international strategic alliance.

Question 29

When Australian company 'True Blue Boats' and 'Manila Manufacturing' in the Philippines formed the company 'True Blue Manufacturing' in order to form a new identity and gain acceptance into the foreign market, it was an example of:

A) an international joint venture.
B) contract manufacturing.
C) foreign direct investment.
D) an international strategic alliance.

Question 30

An Australian company decides to pursue outright ownership of a foreign operation. The decision involves a long-term commitment, considerable investment and acceptance of risk. This is an example of:

A) an international joint venture.
B) contract manufacturing.
C) foreign direct investment.
D) an international strategic alliance.

Question 31

Online auction site eBay is a prime example of a business that views the whole world as its market from the outset. This type of business is termed:

A) e-business.
B) born global.
C) foreign.
D) international.

Question 32

An Australian company, 'True Blue Boats' pays a foreign company to manufacture its product and market it in that foreign country under the 'True Blue Boats' name. This is an example of:

A) an international joint venture.
B) contract manufacturing.
C) foreign direct investment.
D) an international strategic alliance.

Question 33

Blue Horizons surfboard shaper John, decides that he would like to expand his business internationally. In order to expand internationally Blue Horizons can:

A) export their products.
B) produce their products in other businesses' factories in other countries.
C) produce their products in their own factories in other countries.
D) Both a and c.
E) All of the options listed.

Question 34

Which of the following statements is true?

A) Organisations that restrict their operations to the domestic market can avoid competition from international competitors.
B) On average, businesses that engage in exporting are more profitable than businesses that do not.
C) On average, businesses that do not engage in exporting are more profitable than businesses that do.
D) International marketing increases per unit production costs.
E) International marketing is only feasible for medium to large organisations.

Question 35

Which of the following options do most organisations choose for their first step into international markets?

A) Exporting.
B) Franchising.
C) Contract manufacturing.
D) Foreign direct investment.
E) Born global.

Question 36

Chunky's Fresh Pizzas is a fast food take-way business that wants to expand into South-East Asian markets. Which of the following is Chunky's most likely to pursue?

A) Direct exporting.
B) Indirect exporting.
C) Franchising.
D) Contract manufacturing.
E) A born global operation.

Question 37

Export agents:

A) buy products and sell them overseas.
B) have wide-ranging autonomy to customise their clients' market offerings.
C) manufacture products in an international market on behalf of a domestic organisation.
D) match buyers and sellers from different countries
E) are foreign-owned subsidiaries.

Question 38

Blue Horizons decides that for their initial steps into export marketing, they will follow the path that most exporters take and rely on:

A) export managers.
B) export agents or trading companies.
C) international strategic alliances.
D) travel agencies.
E) competitors.

Question 39

Contract manufacturing:

A) is the same as franchising.
B) is the same as licensing.
C) involves paying a foreign business to manufacture and market products under the domestic business's name.
D) involves paying a foreign business to manufacture and market products under the foreign business's name.
E) None of the options listed.

Question 40

Business rivals sometimes form cooperative partnerships to provide services to customers across different international markets. This is known as a:

A) joint venture.
B) franchise.
C) strategic alliance.
D) licensing arrangement.
E) born global organisation.

Question 41

Of the following internationalisation options, which requires the largest commitment?

A) Strategic alliance.
B) Direct exporting.
C) Direct ownership.
D) Contract manufacturing.
E) Direct importing.

Question 42

A born global organisation is one that:

A) faces strong competition from international competitors in its domestic market.
B) views the entire world as its market from the outset.
C) is based in tax havens.
D) operates entirely online using e-commerce.
E) standardises its products across all markets.

Question 43

You have a business idea that you plan to launch when you complete your university studies. The business will be a 'born global' organisation because the company will:

A) face strong competition from international competitors in its domestic market.
B) view the entire world as its market from the outset.
C) be based in tax havens.
D) operate entirely online using e-commerce.
E) standardise its products across all markets.

Question 44

Once the decision to internationalise is made, a marketing organisation must choose an entry mode. Most businesses start with the relatively simple approach of _____________ and rely on specialist _____________. As they gain experience, success and ambition they may evolve to more direct means of international marketing.

A) joint venture, brokers
B) direct investment, alliances
C) exporting, intermediaries
D) international strategic alliance, carriers

Question 45

International marketing, by definition, introduces an enormous range of distribution challenges including the need to transport products over much larger _____________, and _____________ fluctuations that substantially and quickly affect costs.

A) distances, exchange rate
B) countries, sales
C) distances, demand
D) time periods, advertising

Question 46

Which of the following is not a barrier to standardisation of marketing communications across international markets?

A) Language differences.
B) Differences in advertising regulations.
C) Differences in communications infrastructure.
D) Budget.
E) Differences in market maturity.

Question 47

Customisation of a market offering may involve changes to:

A) pricing.
B) product.
C) distribution.
D) All of the options listed.
E) Both a and c.

Question 48

Language barriers can be minimised by customising the promotional message using the technique of:

A) translation and back translation.
B) standardisation.
C) customisation of physical process.
D) international branding
E) rebadging.

Question 49

A promotional message that contains material offensive to the target market has misjudged which country-specific factor?

A) Political.
B) Economic.
C) Sociocultural.
D) Technological.
E) Legal.

Question 50

Which of the following components of a service product would most likely need to be adjusted to suit the different meaning of symbols in international markets?

A) Physical evidence.
B) Process.
C) People.
D) Place.
E) None of the options listed are.

Question 51

It is popular in Australia and New Zealand for women to bleach their hair blonde, but not in Asia, where there is little market for hair-colouring products for socio-cultural reasons. Marketers of hair styling products hoping to penetrate the Asian market may therefore have to adjust their ___________ mix.

A) promotion
B) product
C) price
D) distribution
E) None of the options listed.