Deck 13: Global Marketing
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Deck 13: Global Marketing
1
In the context of global marketing,which of the following best represents a defensive goal?
A)An American entertainment company's desire to secure technological innovation developed in France
B)An Italian multiplex corporation aiming to increase its long-term growth and profit prospects by expanding its services to other nations
C)An automobile manufacturer planning to go overseas in the hopes of increasing its sales revenue
D)A fast food chain planning to improve its overall market position across different nations by catering to the local needs of each nation
A)An American entertainment company's desire to secure technological innovation developed in France
B)An Italian multiplex corporation aiming to increase its long-term growth and profit prospects by expanding its services to other nations
C)An automobile manufacturer planning to go overseas in the hopes of increasing its sales revenue
D)A fast food chain planning to improve its overall market position across different nations by catering to the local needs of each nation
A
2
One of the offensive goals multinational firms seek to achieve when investing in other countries is to:
A)take advantage of economies of scale.
B)compete with foreign firms on their own turf instead of in the United States.
C)take advantage of significant differences in operating costs between countries.
D)preempt competitors' global moves.
A)take advantage of economies of scale.
B)compete with foreign firms on their own turf instead of in the United States.
C)take advantage of significant differences in operating costs between countries.
D)preempt competitors' global moves.
A
3
According to Michael Porter's diamond model of national advantage,which of the following factors refers to a nation's ability to turn its natural resources,skilled labor,and infrastructure into a competitive advantage?
A)Factor conditions
B)Related and supporting industries
C)Company strategy,structure,and rivalry
D)Demand conditions
A)Factor conditions
B)Related and supporting industries
C)Company strategy,structure,and rivalry
D)Demand conditions
A
4
A defensive goal multinational firms seek to achieve when investing in other countries is to:
A)increase long-term growth and profit prospects.
B)avoid being locked out of future markets by arriving too late.
C)take advantage of economies of scale.
D)improve overall market position.
A)increase long-term growth and profit prospects.
B)avoid being locked out of future markets by arriving too late.
C)take advantage of economies of scale.
D)improve overall market position.
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5
By investing solely in domestic operations or not being willing to adapt products to foreign markets,U.S.companies:
A)will find it easier to preempt competitors' global moves.
B)can maximize their potential to achieve economies of scale.
C)are more susceptible to foreign incursions.
D)are likely to have diminished operating costs.
A)will find it easier to preempt competitors' global moves.
B)can maximize their potential to achieve economies of scale.
C)are more susceptible to foreign incursions.
D)are likely to have diminished operating costs.
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6
One of the defensive goals multinational firms seek to achieve when investing in other countries is to:
A)increase long-term growth and profit prospects.
B)maximize total sales revenue.
C)take advantage of economies of scale.
D)preempt competitors' global moves.
A)increase long-term growth and profit prospects.
B)maximize total sales revenue.
C)take advantage of economies of scale.
D)preempt competitors' global moves.
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7
The workforce of Pluton is highly skilled and dedicated.It possesses excellent linguistic abilities which enable it to communicate well with people from different countries,and,as a result,exports and tourism have flourished more in Pluton than its neighboring countries.Pluton has established a competitive advantage over its neighboring countries due to:
A)favorable demand conditions.
B)a good country strategy and structure.
C)good related and supporting industries.
D)favorable factor conditions.
A)favorable demand conditions.
B)a good country strategy and structure.
C)good related and supporting industries.
D)favorable factor conditions.
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8
In the context of global marketing,which of the following best represents a defensive goal?
A)An international apparel brand's goal to conduct research across its areas of operation in order to find customer preferences and improve overall market position
B)A Swiss chocolate firm's plan to expand its operations to India to reap the benefits of economies of scale
C)An American candy manufacturer's ambition to take advantage of the differences in operating costs between countries
D)An Italian pizzeria's desire to enter into a franchising agreement with a firm in the United States to enhance its profit prospects
A)An international apparel brand's goal to conduct research across its areas of operation in order to find customer preferences and improve overall market position
B)A Swiss chocolate firm's plan to expand its operations to India to reap the benefits of economies of scale
C)An American candy manufacturer's ambition to take advantage of the differences in operating costs between countries
D)An Italian pizzeria's desire to enter into a franchising agreement with a firm in the United States to enhance its profit prospects
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9
According to Michael Porter's diamond model,which of the following factors includes the nature of domestic requirement and the sophistication of domestic customers for an industry's product or service?
A)Demand conditions
B)Company strategy,structure,and rivalry
C)Related and supporting industries
D)Factor conditions
A)Demand conditions
B)Company strategy,structure,and rivalry
C)Related and supporting industries
D)Factor conditions
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10
In the context of global marketing,which of the following best exemplifies an offensive goal?
A)An American software firm planning to take advantage of the significant differences in the operating costs between America and Japan
B)A leather manufacturer aiming to expand its operations to other nations to enjoy the benefits of economies of scale
C)An oil dealer aiming to preempt its competitors' global moves
D)A Finnish electronic goods manufacturer planning to acquire technological innovations developed in the United States
A)An American software firm planning to take advantage of the significant differences in the operating costs between America and Japan
B)A leather manufacturer aiming to expand its operations to other nations to enjoy the benefits of economies of scale
C)An oil dealer aiming to preempt its competitors' global moves
D)A Finnish electronic goods manufacturer planning to acquire technological innovations developed in the United States
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11
Which of the following is true of global marketing?
A)A marketing manager has different controllable decision variables in domestic and nondomestic markets.
B)Marketing globally is not similar to marketing at home.
C)Environmental differences do not affect the development of marketing programs in both domestic and nondomestic markets.
D)Firms invest in foreign countries for the same basic reasons they invest in their own country.
A)A marketing manager has different controllable decision variables in domestic and nondomestic markets.
B)Marketing globally is not similar to marketing at home.
C)Environmental differences do not affect the development of marketing programs in both domestic and nondomestic markets.
D)Firms invest in foreign countries for the same basic reasons they invest in their own country.
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12
Which of the following factors of Michael Porter's diamond model refers to the existence or absence in a country of supplier industries that are also internationally competitive?
A)Demand conditions
B)Company strategy,structure,and rivalry
C)Related and supporting industries
D)Factor conditions
A)Demand conditions
B)Company strategy,structure,and rivalry
C)Related and supporting industries
D)Factor conditions
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13
The country of Arcadia has clusters of associated businesses and suppliers which include individual dye and textile manufacturing firms,chemical plants,and leather manufacturing companies,most of which are well reputed and internationally competitive.This has made Arcadia a major force in the global economic market.Which of the following factors of Michael Porter's diamond model is responsible for giving Arcadia an edge over its competitors?
A)Related and supporting industries
B)Demand conditions
C)Company strategy,structure,and rivalry
D)Factor conditions
A)Related and supporting industries
B)Demand conditions
C)Company strategy,structure,and rivalry
D)Factor conditions
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14
Chopstick,a restaurant based in Los Angeles,is well known for its authentic Japanese delicacies,its traditional Japanese ambience,and its respectful staff.Los Angeles' high population of Asian-American citizens,who prefer Japanese cuisine,has strongly contributed to Chopstick's success.Chopstick has a competitive advantage because of:
A)company strategy,structure,and rivalry.
B)favorable demand conditions.
C)related and supporting industries.
D)favorable factor conditions.
A)company strategy,structure,and rivalry.
B)favorable demand conditions.
C)related and supporting industries.
D)favorable factor conditions.
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15
Mars Inc. ,an oil and gas incorporation,opened its first unique service station in Mexico.The service station consisted of pumping islands,convenience stores,and separate food courts.Owing to the station's success,the company opened more than 300 service stations worldwide.Identify the offensive strategic goal that can explain why Mars expanded its services globally.
A)To increase long-term growth and profit prospects
B)To prevent global consolidation
C)To preempt competitors from opening similar stores
D)To avoid being locked out of markets by arriving too late
A)To increase long-term growth and profit prospects
B)To prevent global consolidation
C)To preempt competitors from opening similar stores
D)To avoid being locked out of markets by arriving too late
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16
Autumn Wines Inc. ,a successful French wine company,has turned the wide availability of high-quality grapes in France into a competitive advantage.Which of the following factors of Porter's model has been exemplified in this scenario?
A)Demand conditions
B)Factor conditions
C)Related and supporting industries
D)Company strategy,structure,and rivalry
A)Demand conditions
B)Factor conditions
C)Related and supporting industries
D)Company strategy,structure,and rivalry
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17
With regard to global marketing,which of the following is an example of an offensive goal?
A)A mutual fund firm headquartered in New York aiming to increase its sales targets in its European branches
B)An American automobile manufacturer planning to gain access to technological innovations developed in Japan
C)An information technology company based in Texas attempting to take advantage of the low costs of operations in India by outsourcing its services
D)An American clothing company aiming to expand its operations to India to compete with the local brands there
A)A mutual fund firm headquartered in New York aiming to increase its sales targets in its European branches
B)An American automobile manufacturer planning to gain access to technological innovations developed in Japan
C)An information technology company based in Texas attempting to take advantage of the low costs of operations in India by outsourcing its services
D)An American clothing company aiming to expand its operations to India to compete with the local brands there
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18
The board of directors of Synergie Incorporation discussed a few goals for the new fiscal year.The chief goals included maximizing total sales revenue and improving the overall market position of the firm.These goals are categorized as:
A)defensive goals.
B)guerilla goals.
C)offensive goals.
D)niche goals.
A)defensive goals.
B)guerilla goals.
C)offensive goals.
D)niche goals.
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19
Which of the following is a defensive goal multinational firms seek to achieve when investing in other countries?
A)To gain access to technological innovations developed in other countries
B)To maximize total sales revenue
C)To increase long-term growth and profit prospects
D)To improve overall market position
A)To gain access to technological innovations developed in other countries
B)To maximize total sales revenue
C)To increase long-term growth and profit prospects
D)To improve overall market position
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20
With regard to global marketing,one of the offensive goals a firm seeks to achieve is to:
A)gain access to technological innovations which are developed in other countries.
B)increase long-term growth and profit prospects.
C)avoid being locked out of future markets by arriving too late.
D)take advantage of significant differences in operating costs between countries.
A)gain access to technological innovations which are developed in other countries.
B)increase long-term growth and profit prospects.
C)avoid being locked out of future markets by arriving too late.
D)take advantage of significant differences in operating costs between countries.
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21
Which of the following factors of Michael Porter's diamond model refers to the conditions in a nation that govern how companies are created,organized,and managed,and how intensely they compete domestically?
A)Company strategy,structure,and rivalry
B)Demand conditions
C)Related and supporting industries
D)Factor conditions
A)Company strategy,structure,and rivalry
B)Demand conditions
C)Related and supporting industries
D)Factor conditions
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22
In the context of the problems faced when entering foreign markets,which of the following refers to political uncertainty?
A)Differences in communication,spatial boundaries,perception of time,and behavior
B)Unstable governments,social unrest,and armed conflict
C)Differences in language,customs,norms,and customer preferences
D)Economic conditions and policies of a country that could harm a firm's operations within that country
A)Differences in communication,spatial boundaries,perception of time,and behavior
B)Unstable governments,social unrest,and armed conflict
C)Differences in language,customs,norms,and customer preferences
D)Economic conditions and policies of a country that could harm a firm's operations within that country
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23
Which of the following statements is true about multidomestic companies?
A)Multidomestic companies tend to view the world as one market and pit their resources against competition in an integrated manner.
B)Local managers of multidomestic companies are given the authority to make necessary decisions and are held accountable for results.
C)Multidomestic companies pursue the same strategies in each of their foreign markets.
D)Multidomestic companies standardize marketing activities when there are cultural similarities and adapt them when cultures are different.
A)Multidomestic companies tend to view the world as one market and pit their resources against competition in an integrated manner.
B)Local managers of multidomestic companies are given the authority to make necessary decisions and are held accountable for results.
C)Multidomestic companies pursue the same strategies in each of their foreign markets.
D)Multidomestic companies standardize marketing activities when there are cultural similarities and adapt them when cultures are different.
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24
Sashes and Bows Inc. ,a clothing company headquartered in Milan,specializes in producing exquisite designer wear.All its materials are sourced indigenously,and all the members of the design team are of Italian descent.According to Michael Porter's model,Sashes and Bows Inc.has established a competitive advantage over its rivals because of:
A)favorable demand conditions.
B)a good company strategy and structure.
C)the presence of related and supporting industries.
D)favorable factor conditions.
A)favorable demand conditions.
B)a good company strategy and structure.
C)the presence of related and supporting industries.
D)favorable factor conditions.
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25
Serenity Incorporation is a leading international watch manufacturer and has established several stores across Europe.The company competes on a market-by-market basis,and each of its international subsidiaries operates autonomously.This indicates that Serenity Incorporation is a:
A)global corporation.
B)state-owned corporation.
C)national corporation.
D)multidomestic corporation.
A)global corporation.
B)state-owned corporation.
C)national corporation.
D)multidomestic corporation.
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26
The national government of Turnbury regulates the amount of earned and invested funds that can be withdrawn from it.It only permits government bodies to engage in currency dealings.It also places limits on the percentage of investments that can be made by foreign companies.These rules and regulations are attributed to which of the following?
A)Import restrictions
B)Exchange controls and ownership restrictions
C)Political uncertainty
D)Cultural misunderstandings
A)Import restrictions
B)Exchange controls and ownership restrictions
C)Political uncertainty
D)Cultural misunderstandings
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27
Which of the following is true about import quotas and tariffs?
A)They promote global business across different continents.
B)They can be a huge roadblock for a multinational firm.
C)They help companies in nations with political uncertainties to do business overseas.
D)They do not promote self-sufficiency.
A)They promote global business across different continents.
B)They can be a huge roadblock for a multinational firm.
C)They help companies in nations with political uncertainties to do business overseas.
D)They do not promote self-sufficiency.
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28
A&B Ltd. ,a cellphone manufacturer headquartered in the Netherlands,has expanded its operations to many nations,including Afghanistan.However,due to civil unrest,violent terrorism,and the country's unstable government,the company's branch in Afghanistan has not been able to function successfully.Which of the following problems has affected A&B's operations in Afghanistan?
A)Exchange controls and ownership restrictions
B)Political uncertainty
C)Import restrictions
D)Cultural misunderstanding
A)Exchange controls and ownership restrictions
B)Political uncertainty
C)Import restrictions
D)Cultural misunderstanding
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29
The central government of Arcadia requires that 80 percent of the proprietorship of a corporation should be held by its citizens.This particular requirement of the government is attributed to which of the following?
A)Exchange controls and ownership restrictions
B)Export restrictions
C)Import restrictions
D)Cultural misunderstandings
A)Exchange controls and ownership restrictions
B)Export restrictions
C)Import restrictions
D)Cultural misunderstandings
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30
Singapore is one of the leading producers of coffee in the world.However,there are a few companies in Singapore that import coffee from Brazil and India.Which of the following can Singapore establish to promote self-sufficiency?
A)Import liberalization
B)Export incentives
C)Import quotas
D)Complementary import policy
A)Import liberalization
B)Export incentives
C)Import quotas
D)Complementary import policy
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31
Franklin Inc. ,an apparel manufacturer based in Scotland,opened a new store in the United States.Franklin's designs were well received by consumers in the host country.However,the firm incurred very high expenses due to high rent and high costs of labor.Also,there was a hike in the price of fuel in the United States.This led to increased expenditures on the transportation of goods.This indicates that Franklin Inc.had serious issues in the United States due to poor:
A)political conditions.
B)legal conditions.
C)economic conditions.
D)cultural conditions.
A)political conditions.
B)legal conditions.
C)economic conditions.
D)cultural conditions.
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32
The nation of Lancaster is embroiled in civil war.Its citizens,who are against the government,have resorted to armed conflict.Consequently,which of the following problems is a foreign company operating in Lancaster likely to face?
A)Cultural misunderstanding
B)Import restrictions
C)Legal risks
D)Political uncertainty
A)Cultural misunderstanding
B)Import restrictions
C)Legal risks
D)Political uncertainty
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33
RL Inc. ,an American insurance company,attempted to sell life insurance in Spain.However,the company failed to understand that life insurance policies are viewed with a negative attitude in Spain.People are averse to profiting from someone else's death,and hence the company failed to reach its sales target.In this scenario,RL Inc.experienced:
A)legal risk.
B)political uncertainty.
C)economic risk.
D)cultural misunderstanding.
A)legal risk.
B)political uncertainty.
C)economic risk.
D)cultural misunderstanding.
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34
Some nations establish limits on the amount of earned and invested funds that can be withdrawn from it.These exchange controls are usually established by nations that:
A)have a high trade surplus.
B)are a part of larger trade agreements.
C)are experiencing balance-of-payment problems.
D)have an open economy.
A)have a high trade surplus.
B)are a part of larger trade agreements.
C)are experiencing balance-of-payment problems.
D)have an open economy.
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35
Identify a true statement about a global company.
A)It pits its resources against the competition in an integrated fashion.
B)It de-emphasizes cultural similarities across countries.
C)It standardizes marketing activities when there are cultural differences.
D)It competes on a market-by-market basis.
A)It pits its resources against the competition in an integrated fashion.
B)It de-emphasizes cultural similarities across countries.
C)It standardizes marketing activities when there are cultural differences.
D)It competes on a market-by-market basis.
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36
Daffy Inc.is an international gaming corporation.Each of its overseas subsidiaries is autonomous,and the manager in each unit is given the authority to make necessary decisions and is held accountable for the results.From this information,we can conclude that Daffy Inc.is a:
A)global corporation.
B)multidomestic corporation.
C)national corporation.
D)state-owned corporation.
A)global corporation.
B)multidomestic corporation.
C)national corporation.
D)state-owned corporation.
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37
Alice Inc. ,an American firm,signed a contract with an Indian retailer to sell its latest range of furniture.Due to wrong analysis about the buying power and preferences of the Indian population,the furniture was priced high,consequently leading to low sales.From this scenario,we can infer that Alice Inc.did not succeed due to the _____ existing in India.
A)political conditions
B)legal conditions
C)cultural conditions
D)economic conditions
A)political conditions
B)legal conditions
C)cultural conditions
D)economic conditions
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38
Mark,an employee of Easel Co. ,an American-based multinational firm,was transferred to Japan to oversee the operations there.He was surprised to find that the Japanese employees addressed their coworkers only by their last names and rarely made eye contact with each other.Moreover,Mark found it difficult to adjust to the local customs.Which of the following problems with entering a foreign market did Mark face?
A)Legal risk
B)Political uncertainty
C)Economic risk
D)Cultural misunderstanding
A)Legal risk
B)Political uncertainty
C)Economic risk
D)Cultural misunderstanding
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39
Identify a true statement about a multidomestic company.
A)It pursues different strategies in each of its foreign markets.
B)It pits its resources against the competition in an integrated fashion.
C)Its overseas subsidiaries are all dependent on one another.
D)Its managers lack any decision-making authority.
A)It pursues different strategies in each of its foreign markets.
B)It pits its resources against the competition in an integrated fashion.
C)Its overseas subsidiaries are all dependent on one another.
D)Its managers lack any decision-making authority.
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40
Which of the following is true of a global corporation?
A)It emphasizes cultural differences across countries.
B)It emphasizes universal consumer needs and wants rather than differences.
C)It competes on a market-by-market basis.
D)Each of its international subsidiaries operates independently.
A)It emphasizes cultural differences across countries.
B)It emphasizes universal consumer needs and wants rather than differences.
C)It competes on a market-by-market basis.
D)Each of its international subsidiaries operates independently.
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41
HSV Electronics Ltd.manufactures computers,laptops,digital cameras,and several other electronic products.It operates in many countries and standardizes its marketing activities when there are cultural similarities and adapts them when the cultures are different.The company has established universal product divisions,each responsible for selling its own products throughout the world.The information in this scenario implies that the electronic firm has adopted a _____ strategy.
A)multidomestic
B)transnational
C)global
D)vertical integration
A)multidomestic
B)transnational
C)global
D)vertical integration
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42
Which of the following statements is true about organizing a multinational company?
A)The integration of markets forces companies that wish to stay successful to remain domestic.
B)In determining whether or not to globalize a particular business,managers should look first at their industry.
C)A multidomestic strategy,as a competitive strategy,is inherently more vulnerable to risk than a domestic strategy or a global strategy.
D)Structure,management processes,and culture are some of the external factors that facilitate a company's efforts to undertake a global approach to marketing strategies.
A)The integration of markets forces companies that wish to stay successful to remain domestic.
B)In determining whether or not to globalize a particular business,managers should look first at their industry.
C)A multidomestic strategy,as a competitive strategy,is inherently more vulnerable to risk than a domestic strategy or a global strategy.
D)Structure,management processes,and culture are some of the external factors that facilitate a company's efforts to undertake a global approach to marketing strategies.
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43
Which of the following statements is true of a global strategy?
A)The integration of markets forces companies that wish to remain successful to apply a domestic strategy.
B)At present,companies have the option of remaining domestic or going multinational due to the separation of markets.
C)The integration of markets forces companies that wish to remain successful not only to become multinationals but also to take a global perspective.
D)A multidomestic strategy,as a competitive strategy,is inherently more vulnerable to risk than a domestic strategy or a global strategy.
A)The integration of markets forces companies that wish to remain successful to apply a domestic strategy.
B)At present,companies have the option of remaining domestic or going multinational due to the separation of markets.
C)The integration of markets forces companies that wish to remain successful not only to become multinationals but also to take a global perspective.
D)A multidomestic strategy,as a competitive strategy,is inherently more vulnerable to risk than a domestic strategy or a global strategy.
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44
A Japanese automobile manufacturer,Nuriko,expanded its operations to the United States.The research executives at the company examined the homogenous market needs of its customers and released sedans and SUVs,both of which achieved immediate success in the U.S.market.The automobile manufacturer's triumph can be attributed to _____.
A)environmental factors
B)economic factors
C)competitive factors
D)market factors
A)environmental factors
B)economic factors
C)competitive factors
D)market factors
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45
_____ is an internal factor that can either facilitate or impede a company's efforts to undertake a global approach to marketing strategies.
A)Government policies
B)Homogeneous market needs
C)Management processes
D)Transferable brands
A)Government policies
B)Homogeneous market needs
C)Management processes
D)Transferable brands
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46
RUV Bank,an American bank,has branches across 22 nations.Each branch has a well-organized team of highly skilled employees.The banking corporation coordinates all its activities by holding important meetings and conference calls.The bank has also been successful in conducting global performance reviews and implementing global compensation plans.Which of the following internal factors that can either facilitate or impede a company's efforts to undertake a global approach to marketing strategies has been illustrated in this scenario?
A)Management processes
B)Culture
C)People
D)Structure
A)Management processes
B)Culture
C)People
D)Structure
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47
With regard to the internal factors that can either facilitate or impede a company's efforts to undertake a global approach to marketing strategies,which of the following best describes management processes?
A)The ease of installing a centralized global authority and the absence of rifts between present domestic and international divisions or operating units
B)The ability to project a global versus national identity,a worldwide versus domestic commitment to employees,and a willingness to tolerate interdependence among business units
C)The availability of employable foreign nationals and the willingness of current employees to commit to multicounty careers,frequent travel,and having foreign superiors
D)The capabilities and resources available to perform global planning,budgeting,and coordination activities
A)The ease of installing a centralized global authority and the absence of rifts between present domestic and international divisions or operating units
B)The ability to project a global versus national identity,a worldwide versus domestic commitment to employees,and a willingness to tolerate interdependence among business units
C)The availability of employable foreign nationals and the willingness of current employees to commit to multicounty careers,frequent travel,and having foreign superiors
D)The capabilities and resources available to perform global planning,budgeting,and coordination activities
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48
Market factors include:
A)shorter product life cycles,transferable brands and advertising,and the ability to globalize distribution channels.
B)worldwide economies of scale in manufacturing and distribution,steep learning curves,and worldwide sourcing efficiencies.
C)improving communications,favorable government policies,and the increasing speed of technological change.
D)competitive interdependencies among countries,global moves of competitors,and opportunities to preempt a competitor's global moves.
A)shorter product life cycles,transferable brands and advertising,and the ability to globalize distribution channels.
B)worldwide economies of scale in manufacturing and distribution,steep learning curves,and worldwide sourcing efficiencies.
C)improving communications,favorable government policies,and the increasing speed of technological change.
D)competitive interdependencies among countries,global moves of competitors,and opportunities to preempt a competitor's global moves.
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49
The increasing speed of technological change is associated with which of the following external factors?
A)Economic factors
B)Environmental factors
C)Market factors
D)Competitive factors
A)Economic factors
B)Environmental factors
C)Market factors
D)Competitive factors
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50
Environmental factors include:
A)homogeneous market needs,global customers,shorter product life cycles,transferable brands and advertising,and the ability to globalize distribution channels.
B)worldwide economies of scale in manufacturing and distribution,steep learning curves,and worldwide sourcing efficiencies.
C)improving communications,favorable government policies,and the increasing speed of technological change.
D)competitive interdependencies among countries,global moves of competitors,and opportunities to preempt a competitor's global moves.
A)homogeneous market needs,global customers,shorter product life cycles,transferable brands and advertising,and the ability to globalize distribution channels.
B)worldwide economies of scale in manufacturing and distribution,steep learning curves,and worldwide sourcing efficiencies.
C)improving communications,favorable government policies,and the increasing speed of technological change.
D)competitive interdependencies among countries,global moves of competitors,and opportunities to preempt a competitor's global moves.
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51
With regard to the internal factors that can either facilitate or impede a company's efforts to undertake a global approach to marketing strategies,_____ is the factor that refers to the ability of a company to project a global versus national identity,a worldwide versus domestic commitment to employees,and a willingness to tolerate interdependence among business units.
A)structure
B)management process
C)culture
D)political system
A)structure
B)management process
C)culture
D)political system
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52
Big Bite Ltd. ,an American fast food chain,has franchises in several countries.Big Bite regularly provides extensive marketing and promotional support to its franchises,and there is a complete absence of rifts between its domestic and international divisions.This indicates that Big Bite Ltd.has an admirable _____.
A)social culture
B)structure
C)political system
D)management process
A)social culture
B)structure
C)political system
D)management process
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53
Which of the following is true of a global corporation?
A)It emphasizes cultural differences across countries.
B)It standardizes marketing activities when there are cultural similarities.
C)It views each nation as an entirely different market.
D)It pursues different strategies in each of its foreign markets.
A)It emphasizes cultural differences across countries.
B)It standardizes marketing activities when there are cultural similarities.
C)It views each nation as an entirely different market.
D)It pursues different strategies in each of its foreign markets.
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54
With regard to the internal factors that can either facilitate or impede a company's efforts to undertake a global approach to marketing strategies,_____ refers to the ease of installing a centralized global authority and the absence of rifts between present domestic and international divisions or operating units.
A)structure
B)culture
C)heuristics
D)mnemonics
A)structure
B)culture
C)heuristics
D)mnemonics
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55
The favorable trade policy of Creasio enables the nation's firms to engage in extensive foreign trade.The lack of trade barriers enables foreign companies to invest directly in the local market.The maintenance of a proper balance between the exports and the imports of the nation has led to a positive balance of trade.As a result,the global operations of firms in Creasio are strong.The favorable trade policy relates to which of the following external factors?
A)Economic factors
B)Environmental factors
C)Market factors
D)Competitive factors
A)Economic factors
B)Environmental factors
C)Market factors
D)Competitive factors
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56
Which of the following is an economic factor?
A)Worldwide sourcing efficiencies
B)Favorable governmental policies
C)Increasing speed of technological change
D)Global moves of competitors
A)Worldwide sourcing efficiencies
B)Favorable governmental policies
C)Increasing speed of technological change
D)Global moves of competitors
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57
Which of the following statements is true about organizing a multinational company?
A)Globalization,as a competitive strategy,is inherently less vulnerable to risk than a multidomestic or domestic strategy.
B)In determining whether or not to globalize a particular business,managers should look first at their competitors instead of their own industry.
C)Market,economic,environmental,and competitive factors do not influence the potential gains to be realized by following a global strategy.
D)Whether a company should undertake a multidomestic or global approach to organizing its international operations will largely depend on the nature of the company and its products.
A)Globalization,as a competitive strategy,is inherently less vulnerable to risk than a multidomestic or domestic strategy.
B)In determining whether or not to globalize a particular business,managers should look first at their competitors instead of their own industry.
C)Market,economic,environmental,and competitive factors do not influence the potential gains to be realized by following a global strategy.
D)Whether a company should undertake a multidomestic or global approach to organizing its international operations will largely depend on the nature of the company and its products.
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58
When Swift Inc. ,an American footwear manufacturer,opened an outlet in Thailand,it discovered that productions costs were much higher in its home country.Consequently,the firm decided to shift its production to Thailand to profit from the lower costs of labor,transportation,and raw material.The benefits gained by the footwear manufacturer can be attributed to which of the following external factors?
A)Market factors
B)Environmental factors
C)Economic factors
D)Competitive factors
A)Market factors
B)Environmental factors
C)Economic factors
D)Competitive factors
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59
_____ include steep learning curves,worldwide sourcing efficiencies,rising product development costs,and significant differences in host-country costs.
A)Competitive factors
B)Economic factors
C)Environmental factors
D)Market factors
A)Competitive factors
B)Economic factors
C)Environmental factors
D)Market factors
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60
Alpha Partners Ltd. ,an international auditing firm,audits the accounts of various multinational corporations.The firm specializes in conducting audits for the hospitality sector by organizing global performance reviews.The ability of Alpha Partners Ltd.to conduct global performance reviews is associated with which of the following internal factors?
A)Structure
B)Culture
C)People
D)Management processes
A)Structure
B)Culture
C)People
D)Management processes
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61
Which of the following statements regarding global distribution strategy is most accurate?
A)Global distribution strategy involves creating a single channel,common to the home country and the foreign country.
B)Wholesalers do not assume title to the manufacturers' products,while agents do.
C)If manufacturers assume the functions of foreign agents or wholesalers,their control over their global distribution system decreases.
D)The role of a distribution network in facilitating the transfer of goods and titles and in the demand stimulation process is as important in foreign markets as it is at home.
A)Global distribution strategy involves creating a single channel,common to the home country and the foreign country.
B)Wholesalers do not assume title to the manufacturers' products,while agents do.
C)If manufacturers assume the functions of foreign agents or wholesalers,their control over their global distribution system decreases.
D)The role of a distribution network in facilitating the transfer of goods and titles and in the demand stimulation process is as important in foreign markets as it is at home.
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62
Which of the following is true of a company undertaking a global approach?
A)A global approach should not be delayed as success is dependent on a swift and hasty strategic process.
B)A multidomestic strategy,as a competitive strategy,is inherently more vulnerable to risk than a domestic strategy or a global strategy.
C)Market factors and economic conditions are internal factors that influence the potential gains to be realized by following a global strategy.
D)Successful global brands carefully stake out their markets,allowing plenty of time to develop their overseas marketing efforts.
A)A global approach should not be delayed as success is dependent on a swift and hasty strategic process.
B)A multidomestic strategy,as a competitive strategy,is inherently more vulnerable to risk than a domestic strategy or a global strategy.
C)Market factors and economic conditions are internal factors that influence the potential gains to be realized by following a global strategy.
D)Successful global brands carefully stake out their markets,allowing plenty of time to develop their overseas marketing efforts.
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63
Axis Pvt.Ltd. ,an international financial services firm,assigns projects to employees in different nations.Since these multinational projects and careers provide employees with global exposure,they are more than willing to cooperate.With regard to organizing a multinational company,which of the following internal factors has been covered in this example?
A)Structure
B)People
C)Culture
D)Management process
A)Structure
B)People
C)Culture
D)Management process
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64
Which of the following is true of obtaining detailed household demographics on foreign markets?
A)The procuring costs involved will be low.
B)Census data cannot be obtained from the Internet as per U.S.law.
C)Demographic data is always published in English.
D)The time required will be significant.
A)The procuring costs involved will be low.
B)Census data cannot be obtained from the Internet as per U.S.law.
C)Demographic data is always published in English.
D)The time required will be significant.
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65
Which of the following is true of selecting media in foreign markets?
A)All countries have severe restrictions on the use of broadcast media for advertisements.
B)Media that are traditionally used in the domestic market may not be available in foreign markets.
C)Where data are available,their accuracy is always conclusive.
D)If media are available,they are able to reach all potential buyers.
A)All countries have severe restrictions on the use of broadcast media for advertisements.
B)Media that are traditionally used in the domestic market may not be available in foreign markets.
C)Where data are available,their accuracy is always conclusive.
D)If media are available,they are able to reach all potential buyers.
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66
In the context of global marketing research,which of the following is a measure that should be most likely examined in order to assess the ability of consumers in a foreign market to buy?
A)Number and size of families
B)Status and position in society
C)Educational qualifications
D)Distribution of income
A)Number and size of families
B)Status and position in society
C)Educational qualifications
D)Distribution of income
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67
Which of the following is true of global advertising agencies?
A)By using global advertising agencies,companies can take advantage of economies of scale and other efficiencies.
B)Global advertising agencies in emerging markets take a more entrepreneurial and fresher approach to advertising than local agencies.
C)Advertising through global agencies can always be used more successfully than advertising through local agencies.
D)Global advertising agencies can better adapt a firm's message to the local culture.
A)By using global advertising agencies,companies can take advantage of economies of scale and other efficiencies.
B)Global advertising agencies in emerging markets take a more entrepreneurial and fresher approach to advertising than local agencies.
C)Advertising through global agencies can always be used more successfully than advertising through local agencies.
D)Global advertising agencies can better adapt a firm's message to the local culture.
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68
Which of the following is true of global distribution strategy?
A)Manufacturers have no control over distribution when they select agents and distributors located in foreign markets.
B)Both agents and distributors perform dissimilar functions,and agents assume title to the manufacturers' products,while wholesalers do not.
C)If manufacturers establish their own foreign branch,they greatly increase control over their global distribution systems.
D)Manufacturers are not directly involved in the global distribution system when they select agents and distributors located in foreign markets.
A)Manufacturers have no control over distribution when they select agents and distributors located in foreign markets.
B)Both agents and distributors perform dissimilar functions,and agents assume title to the manufacturers' products,while wholesalers do not.
C)If manufacturers establish their own foreign branch,they greatly increase control over their global distribution systems.
D)Manufacturers are not directly involved in the global distribution system when they select agents and distributors located in foreign markets.
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69
Most foreign nations do not include an income question on their census,while others omit such items as marital status or education levels.What problem is a market researcher most likely to encounter here?
A)Language
B)Timeliness
C)Data content
D)Availability in the United States
A)Language
B)Timeliness
C)Data content
D)Availability in the United States
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70
In the context of global marketing research,which of the following can be assessed by examining per capita national income,extent of available financing,and distribution of income?
A)Culture
B)Ability to buy
C)Willingness to buy
D)Political conditions
A)Culture
B)Ability to buy
C)Willingness to buy
D)Political conditions
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71
Axon Automobiles Ltd. ,an American automobile manufacturing company,manufactures cars in left-hand drive configuration,in which the driving seat and controls are positioned on the left-hand side of the vehicle.On exporting its products to select automobile dealers in India,the company witnessed a significant dip in its sales as Indians require vehicles in right-hand drive configuration.This failure can be best attributed to:
A)the lack of personal selling on the part of the sales force.
B)entering a domestic market without extensive product planning.
C)the lack of adequate pricing strategies in foreign markets.
D)problems encountered in effectively using census data.
A)the lack of personal selling on the part of the sales force.
B)entering a domestic market without extensive product planning.
C)the lack of adequate pricing strategies in foreign markets.
D)problems encountered in effectively using census data.
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72
Which of the following is a major constraint faced by global marketers in devising global pricing strategies?
A)Restrictions on advertising
B)Export incentives
C)Non-availability of media
D)Import duties
A)Restrictions on advertising
B)Export incentives
C)Non-availability of media
D)Import duties
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73
After conducting market research in India and China,Rockford Automobiles Inc. ,an American company,discovers that only people belonging to the upper- and middle-income groups in these countries are likely to buy its cars.Which of the following organizational issues has the company based its marketing research on?
A)Population characteristics
B)Culture
C)Management process
D)Structure
A)Population characteristics
B)Culture
C)Management process
D)Structure
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74
Global marketing research:
A)can help determine whether there is an unsatisfied need for a new product.
B)cannot be used by companies entering developing countries.
C)is typically used to determine the supply chain dynamics.
D)helps in understanding the difference between vertical and horizontal integration.
A)can help determine whether there is an unsatisfied need for a new product.
B)cannot be used by companies entering developing countries.
C)is typically used to determine the supply chain dynamics.
D)helps in understanding the difference between vertical and horizontal integration.
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75
Which of the following is true of local advertising agencies?
A)Companies using local advertising agencies are able to take advantage of economies of scale.
B)Local advertising agencies in emerging markets take a more entrepreneurial and fresher approach to advertising than global agencies.
C)Local advertising is always more successful than advertising through global agencies.
D)Local advertising agencies are better than global agencies in adapting a firm's message to different cultures.
A)Companies using local advertising agencies are able to take advantage of economies of scale.
B)Local advertising agencies in emerging markets take a more entrepreneurial and fresher approach to advertising than global agencies.
C)Local advertising is always more successful than advertising through global agencies.
D)Local advertising agencies are better than global agencies in adapting a firm's message to different cultures.
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76
Which of the following is true of the processes and tasks used to carry out market research?
A)All nations take censuses and publish their census reports in English.
B)Data contained in a census do not vary from country to country.
C)Data contained in a census often omit items of interest to researchers.
D)Since a market researcher does not encounter problems in using census data,it is considered the best source of demographic information.
A)All nations take censuses and publish their census reports in English.
B)Data contained in a census do not vary from country to country.
C)Data contained in a census often omit items of interest to researchers.
D)Since a market researcher does not encounter problems in using census data,it is considered the best source of demographic information.
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77
With regard to global marketing research,which of the following is true of using census data for in-depth demographic information?
A)Some countries publish census reports only in their native language.
B)Data contained in a census are uniform across all countries.
C)Census reports are the most reliable sources for securing in-depth demographic information.
D)All countries take a census once in five years.
A)Some countries publish census reports only in their native language.
B)Data contained in a census are uniform across all countries.
C)Census reports are the most reliable sources for securing in-depth demographic information.
D)All countries take a census once in five years.
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78
The availability of employable foreign nationals is a dimension of which internal factor?
A)Structure
B)Management processes
C)Culture
D)People
A)Structure
B)Management processes
C)Culture
D)People
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79
Pluto Inc. ,an American leather goods manufacturer,produces and sells a wide range of leather bags,wallets,purses,and belts.It recently opened an outlet in Mexico.However,since Mexico's per capita income is approximately one-third that of the United States,Pluto's sales have dipped.Moreover,the extent of available financing in the country is limited.With regard to global marketing research,the dip in Pluto's sales can be attributed to which of the following organizational issues?
A)Political conditions
B)Culture
C)Willingness to buy
D)Ability to buy
A)Political conditions
B)Culture
C)Willingness to buy
D)Ability to buy
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80
In the context of global market research,which of the following statements is true about the use of census data for in-depth demographic information?
A)All countries have census data.
B)All foreign nations must include an income-based question on their census.
C)Data contained in a census vary from country to country.
D)All nations publish their census reports in English.
A)All countries have census data.
B)All foreign nations must include an income-based question on their census.
C)Data contained in a census vary from country to country.
D)All nations publish their census reports in English.
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