Deck 8: Global Marketing

Question 1

India is one of the fastest-growing markets and has one of the youngest populations in the world.

Answer 1

True

Question 2

Entering into a global franchise agreement exposes a company to higher risk than if the company had entered into direct investment in the country.

Answer 2

False

Question 3

The BRIC countries are Bolivia,Russia,Italy,and China.

Answer 3

False

Question 4

Colin wants information about the infrastructure in the countries his company is planning to export to,so he should gather information about the transportation and communications capabilities in each country.

Question 5

In a joint venture,the burden of ownership,control,and profits is not shared.

Question 6

Tariffs artificially lower prices and therefore lower demand.

Question 7

To maximize potential,segments and target markets can and should be defined by more than just geography.

Question 8

There is only one global product strategy: to sell a product or service similar to that sold in the home country,but include minor adaptations.

Question 9

Among the various international trade agreements,the North American Free Trade Agreement represents the highest level of integration across individual nations.

Question 10

Brazil is characterized by strong upper and lower classes,but the middle class has declined in recent years.

Question 11

Russia lags behind most European countries in use of the Internet.

Question 12

The EU recently recommended common guidelines for its member countries regarding advertising to children.

Question 13

The greater the wealth of a country,generally,the better the opportunity a firm will have in that particular country.

Question 14

The Big Mac Index is a measure of economic health in a country.

Question 15

China is now the second-largest economy and the third-largest market for U.S.exports.

Question 16

Most Americans tend to take access to global products and services for granted.

Question 17

An effective global pricing strategy can be easily established by setting the same prices in every market around the world.

Question 18

Exporting refers to a situation where a company maintains ownership of its plants,operational facilities,and offices in a foreign country in which it sells its products.

Question 19

Global expansion often begins when a firm receives an order for its product from another country.

Question 20

Glocalization refers to a global marketing strategy in which each of the four Ps is customized for each country.

Question 21

The most common measure of market potential of an economy is a country's

A) GNI.
B) GDP.
C) PPP.
D) CPI.
E) APR.

Question 22

Today,many developed countries are experiencing __________ population growth.

A) slight
B) zero or negative
C) rapid
D) moderate
E) significant

Question 23

Manufacturers would prefer to produce in a country with a trade __________,because it signals a greater opportunity to export products to more markets.

A) surplus
B) deficit
C) discrepancy
D) bonus
E) balance

Question 24

The shift of population from rural to urban areas in countries such as India helps global marketers by

A) decreasing pollution.
B) simplifying the supply chain needed to make goods and services available.
C) increasing the human development index.
D) decreasing competition for intellectual capital.
E) increasing nonmaterial GDP output.

Question 25

Sophia owns a string of boutiques in Italy.As such she is allowed to have sales only twice a year,in January and June or July.

Question 26

GDP is defined as

A) the value of a country's exports minus its imports.
B) the difference between two country's exchange rates.
C) the market value of goods and services produced in a country in a year.
D) national income minus national taxes.
E) the gross purchasing power of domestic goods and services plus international income.

Question 27

Chris is gathering information about the general economic environment in Nepal.In doing so,he will look for information about the general economic environment,market size and population growth rate,and

A) culture.
B) real income.
C) airport capabilities.
D) political status.
E) religious institutions.

Question 28

A consumer products company produces inexpensive goods in underdeveloped markets,then repackages them as cost-effective innovations for Western buyers.This is an example of glocalization.

Question 29

Using intermediaries in global distribution networks generally lowers costs and prices for products.

Question 30

Firms with global appeal can run global advertising campaigns and simply translate the wording in the advertisements and product labeling.

Question 31

Direct investment offers the firm complete control over its operations in the foreign country.

Question 32

Gross national income equals GDP

A) minus net consumer spending.
B) plus government spending on international trade.
C) minus purchasing power parity.
D) plus the net investment income earned from abroad.
E) plus gross domestic international investment.

Question 33

Globalization refers to the processes by which goods,services,capital,people,information,and ideas

A) are onshored and offshored.
B) flow across national borders.
C) are integrated through IMF facilitation.
D) are similar in various markets.
E) affect corporate culture.

Question 34

The Big Mac Index is a novel measure of

A) GDP.
B) purchasing power parity.
C) per capita GNI.
D) economic growth.
E) international trade surplus.

Question 35

When considering global marketing opportunities in Bangladesh,Tom asked the question,"How will we get it there?" Tom is concerned about __________ capabilities in Bangladesh.

A) production capacity
B) pricing
C) advertising
D) infrastructure
E) cultural

Question 36

Economic measures like GDP and GNI do not fully account for a country's economic health because they measure only

A) material output.
B) international trade.
C) global expectations.
D) purchasing power parity.
E) poverty potential.

Question 37

To determine the market potential for its particular product or service,a firm should use

A) GDP data.
B) unemployment data.
C) purchasing power parity data.
D) inflation data.
E) as many metrics as it can obtain.

Question 38

Cory is working on a global marketing assessment team looking out well into the future to help determine the most attractive market areas around the world.He is evaluating market sizes and growth rates.Based on population growth rates in different regions,he should consider that

A) countries with high purchasing power today may not continue to show the same growth in the future.
B) the United States and Western Europe will have dramatic increases in population growth leading to overcrowding.
C) the middle class in India will continue to shrink as the rich get richer and the poor get poorer.
D) in places like India,urban population centers will become increasing unattractive and the rural areas will experience major growth in population.
E) the global population is expected to grow at staggering rates indefinitely.

Question 39

According to purchasing power parity theory,if __________ is(are)in equilibrium,products will cost the same in each country.

A) imports and exports
B) consumer spending
C) interest rates
D) domestic products
E) exchange rates

Question 40

The components of global market assessment include all of the following except

A) ethnic analysis.
B) infrastructure and technological analysis.
C) analysis of government actions.
D) sociocultural analysis.
E) economic analysis.

Question 41

Which of the following is not one of the major trade agreements affecting global marketing?

A) NAFTA
B) EU
C) GNI
D) ASEAN
E) CAFTA

Question 42

Exchange control refers to the regulation of a country's

A) comparative inflation rate.
B) countertrade exchange.
C) quota rate of exchange.
D) exchange tariffs.
E) currency exchange rate.

Question 43

Which of these trade agreements represents the highest level of integration among participating nations?

A) NAFTA
B) EU
C) GNI
D) ASEAN
E) CAFTA

Question 44

A __________ limits the quantity of imported merchandise,thus minimizing competition faced by domestic products.

A) tariff
B) duty
C) trading bloc
D) trade agreement
E) quota

Question 45

Marketers considering operations and trade with a specific country must consider whether or not the country belongs to a trading bloc.A trading bloc is a group of countries

A) that have established a formal agreement to manage trade activities.
B) using the same currency.
C) with similar cultural shopping patterns.
D) located next to each other.
E) with similar political views.

Question 46

When the value of the dollar declines in relation to other currencies,it benefits U.S.marketers who

A) export goods to other countries.
B) import goods from other countries.
C) engage in countertrade.
D) enforce import quotas.
E) outsource labor.

Question 47

Which of the following is not one of Hofstede's cultural dimensions?

A) power distance
B) certainty assurance
C) masculinity
D) individualism
E) time orientation

Question 48

Generally,firms entering foreign markets begin with

A) less risky strategies first.
B) direct investment.
C) importing.
D) decentralized production.
E) the riskiest,but most profitable endeavor.

Question 49

Culture affects

A) how consumers decide to make their purchases.
B) what consumers decide to purchase.
C) when consumers decide to make their purchases.
D) where consumers decide to make their purchases.
E) every aspect of consumers' purchase decisions.

Question 50

Changes in tariffs and quotas are

A) business actions stimulating imports.
B) corporate strategies designed to maximize profits.
C) government actions that reduce competition from international firms.
D) efforts to stimulate choices among government agencies.
E) a means of slowing outsourcing.

Question 51

Chris laughed at some of the cultural mistakes companies made in advertising and promotion in international trade while he was in school.Now he was trying to determine what had gone wrong with the campaign he had planned in Latin America for his company's product,and it didn't seem quite as amusing.He narrowed the issues to sociocultural factors.He was looking at both __________ and __________.

A) product uses; currency rates
B) language; trading blocs and social structure
C) potential tariffs; symbols
D) visible artifacts; underlying values
E) verbal communication; logistics

Question 52

Global businesses often find it particularly difficult to understand the __________ of a country's culture.

A) symbols
B) underlying values
C) ceremonies
D) exhibited behavior
E) visible artifacts

Question 53

When entering a foreign market,the least risky strategy is

A) franchising.
B) exporting.
C) joint venture.
D) direct investment.
E) strategic alliance.

Question 54

Global expansion often begins with

A) franchising.
B) exporting of goods.
C) joint ventures.
D) direct investment.
E) strategic alliances.

Question 55

When Ben evaluated the commercial infrastructure in Mauritius,he considered the island's

A) population control measures.
B) legal,banking,and regulatory systems.
C) retailing capabilities.
D) per capita income estimates.
E) climate and culture.

Question 56

Tariffs protect domestic producers by

A) making imported products more expensive.
B) increasing brand recognition.
C) reducing the cost of production.
D) offering subsidies to exports.
E) avoiding regulation.

Question 57

Marketers sometimes use Hofstede's cultural dimensions to design marketing campaigns

A) with low individualism symbolism when confronted with a time-oriented culture.
B) that use uncertainty avoidance to reduce power distance.
C) with significant power distance.
D) consistent with underlying cultural values in a country.
E) with more consistent time orientation.

Question 58

Geert Hofstede's cultural dimensions concept focuses on five dimensions of __________ in a country.

A) symbols
B) underlying values
C) buying patterns
D) personality
E) visible artifacts

Question 59

As part of efforts to stimulate economic development in Africa,the Gates Foundation announced that it would provide cellular phones to farmer cooperatives.The Gates Foundation recognized that problems in __________ exist in many African markets.

A) transportation
B) communication
C) distribution
D) commerce
E) population

Question 60

In most cases,countries use tariffs to reduce foreign competition,but tariffs are also used

A) to shorten supply chains.
B) as a response to perceived unfair trade practices.
C) to offer domestic discounts.
D) to stimulate consumer demand.
E) as a way to equalize quotas.

Question 61

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

A) they must go through many different types of distribution channels.
B) distribution is more heavily regulated in developing countries.
C) most consumers in developing countries live in densely populated cities.
D) the infrastructure is more advanced in most developing countries.
E) consumers in developing countries have very specific preferences.

Question 62

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,most likely because

A) differences in languages,customs,and culture might make the campaign meaningless and ineffective in some markets.
B) copyright and intellectual property concerns prevented him from wanting to share his good ideas outside of the U.S.market.
C) he had not applied for or received international certification that was required for working outside the United States.
D) he was unfamiliar with the code of ethics for advertising in other countries.
E) he did not have the budget for a global rollout.

Question 63

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 advertising agency urged caution because

A) advertising regulations differ in other countries,including advertising to children.
B) print media are different in Europe,and it would be difficult to create a global campaign.
C) literacy rates are significantly lower in Europe,and print ads would be ineffective.
D) research indicates that European children do not eat breakfast as often as American children.
E) domestic advertising agencies cannot earn commissions on advertising they place overseas.

Question 64

Which of the following are the two components of a global marketing strategy?

A) understanding foreign currency fluctuations and developing products that can be priced accordingly
B) determining which target markets to pursue and developing a marketing mix to obtain a competitive advantage
C) understanding the supply chain and distribution networks in foreign markets
D) developing culturally appropriate advertising messages and cultivating "domestic" habits among foreign consumers
E) adapting to foreign regulations and targeting as many people as possible

Question 65

India,like some other countries,may require entering firms to create _________ when expanding into their markets,limiting outsiders' control of businesses.

A) franchises
B) export promotions
C) joint ventures
D) direct investments
E) strategic alliances

Question 66

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

A) purchasing power parity
B) segmentation,targeting,and positioning
C) trading bloc coordination
D) exchange control planning
E) reducing trade surpluses

Question 67

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

A) keeping the brand name the same in all languages,regardless of meanings,as long as the brand logo and symbol are displayed prominently.
B) avoiding the use of the brand name in advertising and focusing on feature and benefits.
C) translating advertising copy for the entire ad except the brand name.
D) developing brand names that have no preexisting meaning in any known language.
E) adhering to the UN Convention on Naming Rights.

Question 68

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

A) opportunities for countertrade.
B) the effectiveness of the marketing team.
C) the needs of the target market.
D) the overall cost of the strategy.
E) WTO regulations.

Question 69

Tariffs,quotas,and currency exchange policies affect global

A) offshore product design.
B) pricing strategies.
C) advertising.
D) logistics.
E) promotion.

Question 70

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

A) least investment cost.
B) greatest potential risk.
C) most franchisee control.
D) best opportunity for strong strategic alliances.
E) greatest coordination of efforts of global and local partners.

Question 71

Global pricing strategies should strive to be consistent with

A) offshore distribution facilities.
B) the cost of materials.
C) positioning strategies.
D) domestic pricing.
E) trade surplus guidelines.

Question 72

When a firm pools its resources with that of a local firm to enter a new market,they create a(n)

A) franchise.
B) export promotion.
C) joint venture.
D) direct investment.
E) strategic alliance.

Question 73

Which of the following statements regarding global segmentation,targeting,and positioning is true?

A) Companies must continually adjust products and marketing strategies to meet the changing needs of global markets.
B) Global segmentation,targeting,and positioning activities are far less complicated than the same activities in the domestic market.
C) When developing a global STP strategy,it is best to define segments by geography alone.
D) Segmentation,targeting,and positioning activities for global markets do not differ substantially from that of domestic markets.
E) The "golden rule" for global STP activities for firms is to never alter a firm's marketing mix to serve the needs of global markets.

Question 74

Domestic firms developing a global entry strategy might consider franchising; however,the disadvantages need to be considered.Which of these is not a disadvantage of franchising?

A) The franchisor has limited ability to ensure that foreign operations follow all the concepts and ideas that made the firm successful domestically.
B) The franchisee might end up becoming a competitor.
C) Franchising limits profit potential,since profits will have to be split with the franchisee.
D) Franchising is the riskiest way to enter a foreign market.
E) All of these are disadvantages a firm must consider.

Question 75

Gerald is assessing global entry strategies for his gourmet sandwich business.He does not want to take a lot of risk and he is willing to limit his control of international stores.Gerald will most likely use a(n)__________ strategy.

A) franchising
B) exporting
C) joint venture
D) direct investment
E) strategic alliance

Question 76

Global segmentation,targeting,and positioning (STP)are more complicated than local STP,in part because

A) consumers may view their roles differently in different countries.
B) there are fewer franchising opportunities in global markets.
C) global consumer markets are almost totally homogeneous,making segmentation difficult.
D) most governments have rules against targeting consumers.
E) positioning almost always fails when attempted in a foreign country.

Question 77

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

A) improve promotion efficiency.
B) reduce trade deficits.
C) afford tariffs.
D) meet trade agreement guidelines.
E) reduce costs.

Question 78

Many of the best-known American retailers,like Starbucks and McDonalds,have contractual agreements with another firm or individuals,allowing its businesses to operate overseas.These companies expanded globally using

A) franchising.
B) exporting.
C) joint ventures.
D) direct investment.
E) strategic alliances.

Question 79

As noted in your text,global segmenting,targeting,and positioning are more complicated than domestic segmenting and positioning because of cultural nuances,significant subcultures within countries,and

A) currency differences.
B) antidiscrimination regulations prohibiting segmentation and targeting in developing countries.
C) differences in the way consumers see themselves and in the way they see products and services.
D) complications due to franchising issues.
E) the taxes imposed by some foreign countries on marketing activities.

Question 80

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

A) franchising
B) exporting
C) a joint venture
D) direct investment
E) a strategic alliance