Question 1

The underlying dimensions of which of these refer to 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?

Accepted Answer

Culture stands for 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.

Question 2

_____ companies pursue different strategies in each of their foreign markets. They could have as many different product variations, brand names, and advertising campaigns as countries in which they operate.

Accepted Answer

The multidomestic company pursues different strategies in each of its foreign markets. It could have as many different product variations, brand names, and advertising campaigns as countries in which it operates.

Question 3

Tariffs, import quotas and other types of import restrictions hinder global business. These are usually established to promote _____ and can be a huge road block for multinational firms.

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 4

Which external environmental factor conducive to a global strategy pertains to steep learning curves, worldwide sourcing efficiencies, and significant differences in host-country costs?

Accepted Answer

Economic factors include worldwide economies of scale in manufacturing and distribution, steep learning curves, worldwide sourcing efficiencies, rising product development costs, and significant differences in host-country costs.

Question 5

All of the following are ground rules that marketers can use when planning a global branding campaign, except

Accepted Answer

Commandments that marketers can use when planning a global branding campaign includes implementing a global brand equity measurement system.

Question 6

To assess the ability of consumers in a foreign market to buy, some broad measures need to be examined. Which of the following is not one among them?

Accepted Answer

To assess the ability of consumers in a foreign market to buy, four broad measures should be examined: (1) gross national product or per capita national income, (2) distribution of income, (3) rate of growth in buying power, and (4) extent of available financing.

Question 7

Global customers, shorter product life cycles, and the ability to globalize distribution channels pertain to which external factor conducive for a global strategy?

Accepted Answer

Market factors include homogeneous market needs, global customers, shortening product life cycles, transferable brands and advertising, and the ability to globalize distribution channels.

Question 8

In 1990, Tyco, the toy manufacturer, believed it needed to expand into the European market to keep up with the global expansion of Toys R Us. Tyco immediately began building manufacturing operations in Belgium, Italy, Spain, and Germany. Tyco's rapid push to enter the global market strained the ranks of its senior executives who knew little about running an international company, but did not wish to relinquish control to foreign superiors. The toy company eventually had to close or consolidate many of its European holdings. From this information, it can be assumed that Tyco's growth was impeded by internal problems due to

Accepted Answer

Overall, 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, how different foreign cultures are from the domestic market, and the company's ability to implement a global perspective.

Question 9

Several internal factors can either facilitate or impede a company's efforts to undertake a global approach to marketing strategies. These factors and their underlying dimensions are structure, culture, people and

Accepted Answer

Several internal factors can either facilitate or impede a company's efforts to undertake a global approach to marketing strategies. These factors and their underlying dimensions are structure, management processes, culture, and people.

Question 10

Factors constituting the external environment that are conducive to a global strategy include

Accepted Answer

Factors constituting the external environment that are conducive to a global strategy are market factors, economic factors, environmental factors, and competitive factors.

Question 11

In the United States, the use of cosmetics is common among women of all income classes. However, in Latin America, upper-income women want high-quality cosmetics promoted in prestige media and sold through exclusive outlets. In some rural and less prosperous areas, cosmetics must be inexpensive; in other rural areas, women do not accept cosmetics. Identify the organizational issue that must be considered here by marketing managers seeking to enter the Latin American market.

Accepted Answer

Population characteristics are one of the major components of a market, and significant differences exist between and within foreign countries.

Question 12

Playboy Enterprises has seen the U.S. circulation of Playboy magazine decline by more than 50 percent since 1972, but its international circulation is growing rapidly. It publishes seventeen foreign editions and successfully markets its bunny logo merchandise in Asia. Which of the following is an example of a market factor that can be used to explain the success of its global marketing strategy?

Accepted Answer

Market factors: Homogeneous market needs, global customers, shorter product life cycles, transferable brands and advertising, and the ability to globalize distribution channels.

Question 13

To be successful, organizations must collect and analyze pertinent information to support the basic go/no-go decision before entering foreign markets. All of the following are organizational issues that must be considered toward this end, except

Accepted Answer

Some organizational issues that must be considered toward this end are population characteristics, ability to buy, willingness to buy, and differences in research tasks and processes.

Question 14

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

Accepted Answer

Exchange controls are usually established by nations that are experiencing balance-of-payment problems.

Question 15

When planning a global branding campaign, if the meanings of the brand names and all related trademarked identifiers are clear, they can be an invaluable source of brand equity worldwide. Which of the following does this pertain to?

Accepted Answer

Leverage brand elements: If the meanings of the brand name and all related trademarked identifiers are clear, they can be an invaluable source of brand equity worldwide.

Question 16

With regard to global branding balancing global and local control is very important in all of the following areas, except

Accepted Answer

Balancing global and local control is very important in the following areas: organization structure, entry strategies, coordination processes, and mechanisms.

Question 17

All of the following are "market factors" that are conducive to a global strategy except

Accepted Answer

Steep learning curves are an economic factor conducive to a global strategy.

Question 18

The underlying dimensions of which of the following internal factors relates to the capabilities and resources available to perform global planning, budgeting, and coordination activities?

Accepted Answer

Management processes are the capabilities and resources available to perform global planning, budgeting, and coordination activities, coupled with the ability to conduct global performance reviews and implement global compensation plans.

Question 19

The ease of installing a centralized global authority and the absence of rifts between present domestic and international divisions or operating units is the underlying dimensions of which of the following internal factors?

Accepted Answer

Structure represents the ease of installing a centralized global authority and the absence of rifts between present domestic and international divisions or operating units.

Question 20

Local managers at General Foods are given the authority to make necessary decisions and are held accountable for results. From this information, General Foods can be categorized as a

Accepted Answer

The multidomestic company pursues different strategies in each of its foreign markets. Honeywell and General Foods are U.S. firms that have operated this way.

Quiz 13: Global Marketing