Question 1

________ consumers drank an average of only 14 eight-ounce bottles of Coke in 2012, compared with an average of 241 bottles in Brazil and 745 bottles in Mexico, leading Coca-Cola to announce a $5 billion investment over 2012-2020.

Accepted Answer

Indian consumers are the correct answer because they had a significantly lower consumption rate of Coke compared to Brazil and Mexico, which prompted Coca-Cola to invest heavily in the Indian market to boost consumption.

Question 2

Regional economic integration has intensified in recent years, which makes it more difficult for marketers to expand globally.

Accepted Answer

Regional economic integration, by reducing trade barriers and harmonizing regulations, actually makes it easier for marketers to expand globally by creating larger, more accessible markets.

Question 3

While choosing countries to invest in, companies often choose psychic proximity to their own country. Psychic proximity can best be defined as countries ________.

Accepted Answer

Psychic proximity refers to the psychological distance between countries, which includes factors such as language, culture, and laws. Companies prefer to invest in countries where they feel comfortable and familiar with these factors, hence A is the best choice.

Question 4

Many US firms prefer to sell in Canada, England, and Australia - rather than in larger markets such as Germany and France - because they feel more comfortable with the languages, laws, and culture, which reflect the ________ between these countries and the United States.

Accepted Answer

Psychic proximity refers to the similarity in culture, language, and institutions between countries that makes it easier for firms to conduct business. This explains why many US firms prefer to sell in Canada, England, and Australia instead of larger markets like Germany and France.

Question 5

Nestlé, Unilever, and Modelēz get close to or above 40 percent of their total business coming from emerging markets.

Accepted Answer

According to a report by Euromonitor International, Nestlé, Unilever, and Modelēz all get close to or above 40 percent of their total business coming from emerging markets.

Question 6

Which of the following modes of entry into a foreign market involves the maximum commitment and risk?

Accepted Answer

Direct investment involves the highest level of commitment and risk as it requires the company to set up operations in the foreign market and make substantial investments in infrastructure, resources, and personnel. This option also involves greater control and potential for high profits, but also entails the highest risk of failure due to unfamiliarity with the local market and potential political, economic, and social risks.

Question 7

Regional economic integration is defined as the creation of trading agreements between ________.

Accepted Answer

Regional economic integration refers to the arrangement where several countries in a particular region come together to create a trading bloc. Therefore, the best choice is blocs of countries.

Question 8

Domestic-based export agents perform a valuable service for companies seeking to enter foreign markets. The primary function of these agents is to ________.

Accepted Answer

Domestic-based export agents primarily seek and negotiate foreign purchases for a commission, acting as intermediaries between domestic producers and foreign buyers.

Question 9

Which of the following causes a difference between marketing in developed countries and marketing in developing countries?

Accepted Answer

There are substantial cultural differences between the developed and the developing world, which can affect marketing strategies and messaging. Other options may also be true to some extent, but cultural differences have a significant impact on marketing and consumer behavior.

Question 10

Describe the custo Brasil ("the cost of Brazil").

Accepted Answer

The answer of Describe the custo Brasil ("the cost of...

Question 11

________ is the sixth largest economy in the world, and it is expected to move into fourth place by 2050, meaning it would economically be larger than countries like Germany, Japan, and the United Kingdom.

Accepted Answer

The answer of ________ is the sixth largest economy in...

Question 12

Which of the following does NOT contribute to the custo Brasil ("the cost of Brazil") for businesses?

Accepted Answer

While Brazil's disputes with neighboring countries may have political and diplomatic repercussions, they do not directly contribute to the cost of doing business in Brazil. The other options listed directly impact the cost of doing business in Brazil.

Question 13

Companies typically start their international foray with ________, which involves working through independent intermediaries who sell their products abroad.

Accepted Answer

Indirect exporting is the most common way for companies to begin their international expansion. It involves selling products through intermediaries such as distributors or agents who operate in foreign markets. This avoids the need for the company to establish its own sales organization or invest in a foreign subsidiary.

Question 14

NAFTA is a free trade zone comprising of which of the following countries?

Accepted Answer

NAFTA consists of Canada, Mexico, and the United States.

Question 15

"CIVETS" is an acronym for ________.

Accepted Answer

CIVETS stands for Columbia, Indonesia, Vietnam, Egypt, Turkey, and South Africa. These countries are seen as having emerging markets that are likely to experience significant economic growth in the coming years.

Question 16

More than 90 percent of future population growth is projected to occur in the less developed countries.

Accepted Answer

According to the United Nations, over 90 percent of future population growth is expected to occur in the less developed regions of the world, which include countries in Africa, Asia, and Latin America.

Question 17

Smaller packaging and lower sales prices are often critical in markets where incomes are limited.

Accepted Answer

Smaller packaging and lower sales prices help to make products more affordable and accessible in markets with limited incomes.

Question 18

Domestic-based export merchants ________.

Accepted Answer

Domestic-based export merchants buy products from manufacturers and sell them abroad, functioning as intermediaries between the producers and foreign buyers. Option B refers to export management companies, option C is about importers, option D is about import agents, and option E is about export commission houses.

Question 19

A2Z Inc. is a producer of a huge variety of consumer goods, from soaps to shower gels, and shampoos to detergents. It is a market leader in the United States and is planning to tap the immense potential in the emerging markets. Market research, however, indicates that the Brazilian culture and society are substantially different from their American counterparts. If the company wants to target the masses, which of the following options is most likely to succeed?

Accepted Answer

Introducing smaller "sachets" of shampoos and detergents that are priced lower is the most likely to succeed in targeting the masses in Brazil. Market research indicates that the Brazilian culture and society have different consumption patterns and preferences, so adapting to these preferences will be crucial for success. Introducing smaller packs at lower prices is likely to appeal to the cost-conscious consumers in Brazil. The other options may not be as effective in this market, as price skimming may not be viable in a price-sensitive market, existing strategies may not be adapted to the local culture, introducing large family packs at a higher price may not appeal to cost-conscious consumers, and predatory pricing may lead to a price war with competitors.

Question 20

When deciding where to operate internationally, it often makes sense to operate in fewer countries, with a deeper commitment and penetration in each. Mention some of the criteria that a country should possess in order to be a viable and attractive investment destination.

Accepted Answer

The answer of When deciding where to operate internationally, it...

Quiz 8: Tapping Into Global Markets