Question 1

When Procter & Gamble introduced Pampers disposable diapers into Japan, it used the same pricing strategy as it used in the United States. P&G did not realize the typical Japanese mother changes her baby's diapers about 14 times a day-twice as often as her U.S. counterpart. Thus, Pampers were too expensive for the Japanese market. What kind of a problem did P&G experience when it introduced Pampers in Japan?

Accepted Answer

Differences in the cultural environment of foreign countries may be misunderstood or not even recognized because of the tendency for marketing managers to use their own cultural values and priorities as a frame of reference.

Question 2

All of the following are stated offensive goals of firms investing in foreign countries except to

Accepted Answer

Competing with foreign companies on their own turf instead of in the United States is a defensive goal.

Question 3

How does the multidomestic corporation differ from the global corporation?

Accepted Answer

The multidomestic company pursues different strategies in each of its foreign markets. The global company views the world as one market and pits its resources against the competition in an integrated fashion.

Question 4

Chrysler pulling out of a deal with China worth billions of dollars as the Chinese government refused to protect Chrysler's rights to limit access to technological information illustrates which aspect of problems associated with entering foreign markets?

Accepted Answer

Tariffs, import quotas, and other types of import restrictions hinder global business. These are usually established to promote self-sufficiency and can be a huge roadblock for the multinational firm.

Question 5

The Chinese are not big consumers of dairy products. In China, Frito-Lay introduced its popular Cheetos snack food as cheeseless and consisting of flavors such as "Savory American Cream" and "Zesty Japanese Steak." This action taken by Frito-Lay is an example of

Accepted Answer

An example of a successful adaptation to cultural differences is Frito-Lay introducing new flavors of its popular Cheetos snack food in China.

Question 6

According to Michael Porter's Diamond Model, all of the following are factors that determine the competitive advantage or disadvantage of a nation, except

Accepted Answer

According to Michael Porter's Diamond Model the factors that determine the competitive advantage or disadvantage of a nation are: factor conditions, demand conditions, related and supporting industries, and company strategy, structure, and rivalry.

Question 7

At the turn of the century, firms scaled back their investment plans in Russia due to an economy troubled by runaway inflation and a plummeting ruble. Identify one of the main problems faced by firms entering Russian markets.

Accepted Answer

Political uncertainty: At the turn of the century, firms scaled back their investment plans in Russia due to, among other reasons, an economy troubled by runaway inflation and a plummeting ruble.

Question 8

Exxon Mobile opened its first 'On the Run' store in Chile. The service station/store combines the familiar pumping islands, convenience stores, and separate food courts. The success of the store led to the opening of more than 300 'On the Run' stores worldwide. Identify the offensive strategic goal that can explain why Exxon Mobil opened 'On the Run' stores worldwide.

Accepted Answer

Offensive goals are to (1) increase long-term growth and profit prospects; (2) maximize total sales revenue; (3) take advantage of economies of scale; and (4) improve overall market position.

Question 9

There is a small, but growing market for golfing equipment in China. Which of the following is an example of a defensive strategic goal that can be used to explain why American manufacturers of golfing equipment like Wilson and Titleist are eager to export their products to the Chinese?

Accepted Answer

One defensive goal is to not be locked out of future markets by arriving too late.

Question 10

Which of the following is an example of a defensive strategic goal that might be used to explain why MTV developed MTV European, a pan-European cable and satellite system that transmits music-based programming across the continent?

Accepted Answer

One of the defensive goals is to preempt competitors' global moves.

Question 11

Which of the following statements pertaining to differences in cultures across the world is true?

Accepted Answer

Physical Contact: patting a child on the head is a grave offense in Thailand or Singapore, since the head is revered as the location of the soul.

Question 12

By investing solely in domestic operations or not willing to adapt products to foreign markets, U.S. companies are more susceptible to

Accepted Answer

By investing solely in domestic operations or not being willing to adapt products to foreign markets, U.S. companies are more susceptible to foreign incursions.

Question 13

Governments are unstable in many countries; social unrest and even armed conflict must sometimes be reckoned with. This problem that a firm faces while entering the market pertains to

Accepted Answer

Governments are unstable in many countries, and social unrest and even armed conflict must sometimes be reckoned with is an element of political uncertainty.

Question 14

Shaking your head from side to side means yes in Bulgaria and Sri Lanka. This is an example of cultural differences pertaining to _____ and could lead to marketing problems for firms attempting to enter global markets.

Accepted Answer

Shaking your head from side to side means yes in Bulgaria and Sri Lanka. This is an example of cultural differences pertaining to body language.

Question 15

Which of the following is an example of an offensive strategic goal that might be used to explain why Eastman Kodak is eager to expand into new international markets?

Accepted Answer

One offensive goal is to increase long-term growth and profit prospects.

Question 16

According to Michael Porter's Diamond Model, which factors refer to a nation's ability to turn its natural resources, skilled labor, and infrastructure into a competitive advantage?

Accepted Answer

Factor conditions: The nation's ability to turn its natural resources, skilled labor, and infrastructure into a competitive advantage.

Question 17

Before Michael Porter developed the Diamond Model, he studied companies in more than 100 industries. While most successful companies differed in many ways and employed different strategies, a very important common theme that emerged was that

Accepted Answer

While most successful companies differed in many ways and employed different strategies, a very important common theme emerged which was that a company that succeeds on a global scale, first succeeded in intense domestic competition.

Question 18

Foreign holdings in business ventures in India were limited to a maximum of 40 percent until recently. Once this ban was lifted, numerous global companies rushed to invest in this market. This delay in investment in India can be attributed to

Accepted Answer

In addition, many nations have a requirement that the majority ownership of a company operating there be held by nationals. These and other types of currency and ownership regulations are important considerations in the decision to expand into a foreign market.

Question 19

Breath Right nasal strips are adhesive pads with a small spring inside them; when attached to the nose, they pull the nasal passages open and make it easier to breathe. Their manufacturer, CNS Inc., sells the nasal strips to countries in four different continents by using standardized marketing activities. CNS Inc., is an example of a

Accepted Answer

The global company views the world as one market and pits its resources against the competition in an integrated fashion.

Question 20

All of the following are stated defensive goals of firms investing in foreign countries except

Accepted Answer

Improving overall market position is an offensive goal.

Quiz 13: Global Marketing