Question 1

At Comfort Homes, a manufacturer of furniture and home accessories, the global operating units report directly to the chief executive instead of a head of an international division. The company recruits management from many countries and buys components and supplies where they cost the least. Comfort Homes is most accurately classified as a(n) ________.
A) direct exporter
B) geographical organization
C) international subsidiary
D) global organization
E) world product group

Accepted Answer

Comfort Homes' structure and recruitment practices reflect a global organization, which operates as a single entity in multiple geographical locations and seeks to optimize resources on a worldwide scale. This is distinct from a direct exporter, geographical organization, international subsidiary, or world product group.

Question 2

Refer to the scenario below to answer the following questions.
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-What did Selman & Saks hope to gain by entering the French market?
A) access to new consumer markets
B) access to less expensive labor
C) access to less expensive materials
D) access to foreign investment incentives
E) the ability to offset domestic economic cycles

Accepted Answer

Selman & Saks hoped to gain access to new consumer markets by entering the French market.

Question 3

Assume that a Gucci handbag sells for $60 in Italy and $240 in the United States because Gucci must add the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to its factory price. This information indicates that Gucci faces a ________ problem.
A) dumping
B) tariff
C) licensing
D) product adaptation
E) price escalation

Accepted Answer

The price difference between the Italian and US prices suggests that Gucci is facing a price escalation problem, where the cost of transporting and marketing the product in international markets increases the retail price to cover logistics, tariffs, and other fees.

Question 4

Refer to the scenario below to answer the following questions.
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-If Selman & Saks allowed a French company to produce and market razors and trimmers carrying the company's brand in exchange for a royalty, Selman & Saks would be using the market entry strategy of ________.
A) exporting
B) franchising
C) licensing
D) contract manufacturing
E) joint ownership

Accepted Answer

The market entry strategy being described is licensing, as Selman & Saks would be allowing a French company to produce and market their products under their brand in exchange for a royalty. This is different from exporting, which is simply selling products in a foreign market, and franchising, which involves giving a franchisee the right to operate under the company's brand and business system. Contract manufacturing and joint ownership are not mentioned as options in this scenario.

Question 5

Kraft has adapted its popular Oreo cookie to the unique tastes of consumers all around the world, whether it's mango-and-orange flavored Oreos in the Asia Pacific region, green tea Oreos in China, a chocolate and peanut variety in Indonesia, or banana and dulce de leche in Argentina.. This is an example of ________.
A) product invention
B) straight product extension
C) product adaptation
D) product augmentation
E) communication adaptation

Accepted Answer

Kraft has adapted its Oreo cookie to suit the unique tastes of consumers in different regions, indicating that they have employed product adaptation. Product adaptation involves modifying a product to meet the specific needs and preferences of consumers in different regions.

Question 6

A firm normally gets into international marketing by simply shipping out its goods. If its international sales expand, the company organizes a(n) ________.
A) indirect exporting venture
B) joint ownership
C) export department
D) international division
E) standardized global marketing strategy

Accepted Answer

If a firm's international sales expand, it typically organizes an export department to handle the increased complexity and volume of international transactions.

Question 7

In a(n) ________, executives are trained in worldwide operations, not just domestic or international operations.
A) direct exporting company
B) joint venture
C) international division
D) international subsidiary
E) global organization

Accepted Answer

A global organization is a company that operates in multiple countries and regions, with operations and executives trained to understand and manage the complexities of worldwide operations. This choice is the only one that accurately describes a company that operates globally as a core part of its business model.

Question 8

GigaTalk, a U.S. based computer manufacturing company, found that Japanese commuters had difficulty using standard laptops on crowded rush-hour trains because while standing, commuters cannot use their laptops. So GigaTalk created a standing computer. This computer includes a touch screen and small keyboard that can be used while standing or on the move. This is an example of ________.
A) straight product extension
B) product invention
C) product adaptation
D) dual adaptation
E) communication adaptation

Accepted Answer

GigaTalk's creation of a standing computer is an example of product invention because they created a completely new product to meet the specific needs of the Japanese commuters, rather than simply adapting or extending an existing product.

Question 9

Kellogg ads in the United States promote the taste and nutrition of Kellogg's cereals versus competitors' brands. In France, where consumers drink little milk and eat little for breakfast, Kellogg's ads must convince consumers that cereals are a tasty and healthful breakfast. Which marketing strategy is being followed by Kellogg?
A) straight product extension
B) product adaptation
C) product invention
D) communication adaptation
E) straight communication extension

Accepted Answer

The answer of Kellogg ads in the United States promote...

Question 10

________ consists of creating something new to meet the needs of consumers in a given country.
A) Communication adaptation
B) Joint venturing
C) Product invention
D) Straight product extension
E) Product adaptation

Accepted Answer

Product invention involves creating something new to meet the needs of consumers in a given country. Communication adaptation involves adapting the communication strategies to fit the local culture and language, joint venturing involves partnering with a local company to enter a foreign market, product adaptation involves making minor adjustments to a product to appeal to local tastes and preferences, and straight product extension involves offering the same product in a foreign market without any modifications. Therefore, product invention is the best choice for the given statement.

Question 11

World product groups, geographical organizations, and international subsidiaries are all options for organizing a(n)________.
A) export department
B) indirect exporting venture
C) joint ownership
D) international division
E) standardized global marketing strategy

Accepted Answer

World product groups, geographical organizations, and international subsidiaries are all options for organizing an international division.

Question 12

In Chinese, the KFC slogan "finger-lickin'' good" came out as "eat your fingers off." And Motorola's Hello-moto ringtone sounded like "Hello, Fatty" in India. Which of the following strategies can be used to avoid such mistakes?
A) communication adaptation
B) standardized global marketing
C) straight product extension
D) product adaptation
E) communication extension

Accepted Answer

Communication adaptation allows for customization of language and message to the target audience to avoid mistranslations or unintended meanings. This can help avoid embarrassing mistakes and create a more effective marketing campaign.

Question 13

Changing promotions to suit local markets is known as ________.
A) straight product extension
B) ambush marketing
C) communication adaptation
D) product adaptation
E) standardized global marketing

Accepted Answer

The answer of Changing promotions to suit local markets is...

Question 14

Foreign firms are expanding aggressively into new international markets, and home markets are no longer as rich in opportunity.

Accepted Answer

Many companies are pursuing expansion into new global markets to tap into new growth opportunities as home markets reach saturation.

Question 15

________ are the first link between the seller and the final buyer and they move company products from points of production to the borders of countries within which they are sold.
A) Channels between nations
B) Channels within nations
C) Retail channels
D) Large-scale channels
E) Value chain channels

Accepted Answer

Channels between nations are responsible for moving products from the production point to the borders of the countries where they will be sold, acting as the initial link in the distribution process.

Question 16

The two major links between the seller and the final buyer-channels between nations and channels within nations-make up a ________.
A) whole-channel view
B) direct-distribution channel
C) large-scale channel
D) transportation network
E) retail channel

Accepted Answer

A whole-channel view refers to understanding and managing all the activities involved in delivering a product or service to the final buyer, including both the channels between nations (such as export/import channels) and channels within nations (such as distribution and retail channels). This approach allows companies to optimize their entire distribution network for maximum efficiency and effectiveness.

Question 17

Vidal Sassoon shampoos contain different amounts of scent according to the country in which they are sold. This is an example of ________.
A) straight product extension
B) product invention
C) product adaptation
D) communication adaptation
E) standardized global marketing

Accepted Answer

This is an example of product adaptation, where the company modifies the product according to the preferences and needs of a specific market. In this case, the scent of the shampoo is adjusted according to the country in which it is being sold.

Question 18

________ means marketing a product in a foreign market without making any changes to the product.
A) Product adaptation
B) Product invention
C) Communication adaptation
D) Straight product extension
E) Product augmentation

Accepted Answer

Straight product extension means marketing a product in a foreign market without making any changes to the product.

Question 19

________ involves changing the product to meet local requirements, conditions, or wants.
A) Product invention
B) Straight product extension
C) Standard global marketing
D) Communication adaptation
E) Product adaptation

Accepted Answer

Product adaptation involves modifying the product in order to cater to the requirements, conditions or preferences of a local market. It is a strategy frequently used in global marketing when companies need to modify their existing products in order to satisfy local requirements or preferences.

Question 20

Heineken beer is sold successfully in the same form around the world. Which of the following product strategies is illustrated in this example?
A) product adaptation
B) straight product extension
C) product invention
D) product augmentation
E) communication adaptation

Accepted Answer

The fact that Heineken beer is sold successfully in the same form around the world demonstrates a straight product extension strategy, where the company offers the same product in every market without making any changes to it.

Quiz 19: The Global Marketplace

Assume that a Gucci handbag sells for $60 in Italy and $240 in the United States because Gucci must add the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to its factory price. This information indicates that Gucci faces a ________ problem.

A firm normally gets into international marketing by simply shipping out its goods. If its international sales expand, the company organizes a(n) ________.

In a(n) ________, executives are trained in worldwide operations, not just domestic or international operations.

________ consists of creating something new to meet the needs of consumers in a given country.

World product groups, geographical organizations, and international subsidiaries are all options for organizing a(n) ________.

In Chinese, the KFC slogan "finger-lickin'' good" came out as "eat your fingers off." And Motorola's Hello-moto ringtone sounded like "Hello, Fatty" in India. Which of the following strategies can be used to avoid such mistakes?

Changing promotions to suit local markets is known as ________.

Foreign firms are expanding aggressively into new international markets, and home markets are no longer as rich in opportunity.

________ are the first link between the seller and the final buyer and they move company products from points of production to the borders of countries within which they are sold.

The two major links between the seller and the final buyer-channels between nations and channels within nations-make up a ________.

Vidal Sassoon shampoos contain different amounts of scent according to the country in which they are sold. This is an example of ________.

________ means marketing a product in a foreign market without making any changes to the product.

________ involves changing the product to meet local requirements, conditions, or wants.

Heineken beer is sold successfully in the same form around the world. Which of the following product strategies is illustrated in this example?