Question 1

Briefly describe the three stages of the business cycle that all economies go through.

Accepted Answer

The answer of Briefly describe the three stages of the...

Question 2

A ________ exists when an unauthorized party imports products and then sells them for a fraction of the price of authorized products.

Accepted Answer

This describes exactly what a gray market is - when unauthorized parties import goods and then sell them at a lower price than authorized retailers. The other options do not fit this description.

Question 3

In the British Isles,Guinness brewery was given the right to produce and market Budweiser beer by Anheuser-Busch,its U.S.brand owner.Because Guinness pays Anheuser-Busch royalties for the use of its brand,this is an example of a(n)________.

Accepted Answer

This is an example of a licensing agreement where Anheuser-Busch gives Guinness the right to produce and market its Budweiser beer in the British Isles in exchange for royalties.

Question 4

Toyota has opened manufacturing plants in the United States and hires local workers to run these locations.Explain what the local content rules have to do with Toyota increasing its presence in the United States.

Accepted Answer

The answer of Toyota has opened manufacturing plants in the...

Question 5

In a ________,a firm gives another firm the right to produce and market its product in a specific country or region in return for royalties on goods sold.

Accepted Answer

This scenario describes a licensing agreement, where one company (licensor) allows another company (licensee) to use and sell its product in a specific area in exchange for receiving royalties on the units sold. This is a common strategy for companies looking to expand their market presence without the costs associated with establishing their own operations in a new country or region.

Question 6

All of the following are barriers to successful exporting except ________.

Accepted Answer

Export merchants are actually facilitators who help companies export by managing logistics, financing, and other related activities. They are not a barrier to successful exporting. Tariffs, local content laws, import quotas, and economic sanctions are all potential barriers to exporting.

Question 7

Many countries outlaw ________,a practice in which a company prices its products lower than they are priced at home.

Accepted Answer

Dumping is the practice of a company exporting a product to another country at a price lower than the price it charges in its home country. This can harm local businesses and is considered unfair competition. Many countries have laws against dumping.

Question 8

When considering the four Ps in international marketing,advocates of ________ focus on the unique characteristics of cultures and argue for products and promotional messages tailored to each culture.

Accepted Answer

Localization emphasizes the importance of adapting products and promotional messages to the specific cultural and linguistic characteristics of different countries or regions. This approach recognizes that what works in one culture may not be effective or even acceptable in another, and that successful international marketing requires a deep understanding of local values, beliefs, and preferences.

Question 9

Which of the following is true about the market entry strategy of direct investment?

Accepted Answer

Direct investment allows a foreign firm to benefit from the domestic company's market position, local knowledge, and political connections, making it an attractive market entry strategy. It involves establishing a physical presence in the target market, such as setting up a subsidiary, joint venture, or acquiring a local company. It provides a high level of control and enables the firm to manage its operations directly. However, it also involves a higher level of risk due to the substantial investment required in infrastructure, human capital, and other resources.

Question 10

After exporting,the next level of commitment a firm can make to a foreign market is a contractual agreement.Two of the most common types of such agreements are ________.

Accepted Answer

The answer of After exporting,the next level of commitment a...

Question 11

The Tim Hortons chain accounts for more than half of all the donut and coffee stores in Canada.The chain's red-and-white store banners are fixtures in many Canadian communities.In 2001,the first Tim Hortons appeared in the United States through a contractual agreement allowing an independent operation to adopt Tim Hortons' entire way of doing business.This agreement is an example of a(n)________.

Accepted Answer

The contractual agreement between Tim Hortons and the independent operation in the United States is an example of a franchise, as it allows the independent operation to adopt Tim Hortons' entire way of doing business, including its branding, products, and operational procedures.

Question 12

The Federal Trade Commission (FTC)ordered KFC to stop running ads with false claims that its fried chicken is compatible with certain weight loss programs.What law gives the FTC the authority to stop KFC's marketing program and what law was KFC violating?

Accepted Answer

The answer of The Federal Trade Commission (FTC)ordered KFC to...

Question 13

A firm would be most likely to use backward invention in which of the following situations?

Accepted Answer

Backward invention is the process of simplifying a product for use in less developed countries. Therefore, a firm would be most likely to use backward invention when it needs to offer a less complex product in a foreign market than it sells elsewhere.

Question 14

Compare the three product strategy choices a firm like General Electric has when selling in foreign markets.

Accepted Answer

The answer of Compare the three product strategy choices a...

Question 15

The ViVi brand is a line of designer clothing for pregnant businesswomen.If its owner believes that professional women in other countries have a need for conservative maternity wear,the owner of the small company would most likely hire a(n)________ to locate and negotiate with buyers in other countries.

Accepted Answer

An export merchant is a type of intermediary who specializes in helping firms of one country sell their products in other countries. In this case, the ViVi brand owner could hire an export merchant to locate and negotiate with buyers in other countries who are in need of conservative maternity wear for businesswomen. The export merchant would have the expertise and network to facilitate international sales and distribution for the ViVi brand.

Question 16

Franchising is a form of ________.

Accepted Answer

Franchising is a form of licensing where a franchisor grants the right to use their trademark, products, and business processes to a franchisee in exchange for fees and royalties.

Question 17

The telephone system in Argentina is antiquated and is just starting to work properly after years of neglect by the government.What does this tell a marketer about Argentina,and why would a marketer need to know this?

Accepted Answer

The answer of The telephone system in Argentina is antiquated...

Question 18

When considering the four Ps in international marketing,advocates of ________ focus on the similarities among cultures and argue that basic needs and wants are the same everywhere.

Accepted Answer

The advocates of standardization believe that the basic needs and wants of consumers and the market conditions are similar across different countries. Therefore, they suggest using the same marketing mix (product, price, promotion, and place) in different countries.

Question 19

How has the Group of Eight recently expanded the issues it discusses in its annual summits?

Accepted Answer

The answer of How has the Group of Eight recently...

Question 20

To enter the European market,Starbucks joined in a cooperative venture with Bon Appetit Group A.G.in Switzerland.Bon Appetit has the recognized brand name,and Starbucks has the product and the expertise to run coffeehouses.This is an example of a(n)________.

Accepted Answer

This is a strategic alliance where two companies come together to complement each other's strengths and abilities to enter a new market. Starbucks brings in their expertise and products, while Bon Appetit Group A.G. has the recognized brand name in Switzerland.

Quiz 2: Global, ethical, and Sustainable Marketing