Question 1

When U.S. companies face unfamiliar legal and cultural barriers in another country, it is preferable to buy an existing business than to enter into a joint venture.

Accepted Answer

Buying an existing business can provide immediate access to a new market, but it does not inherently solve the challenges of unfamiliar legal and cultural barriers. A joint venture with a local partner can offer valuable insights, resources, and expertise in navigating these specific challenges effectively.

Question 2

In the context of global marketing management, international marketers framed the argument toward market segmentation during the 1970s as

Accepted Answer

During the 1970s, international marketers debated whether to standardize their marketing strategies across different countries or adapt them to fit local markets, hence the argument was framed as standardization versus adaptation.

Question 3

Joint ventures are similar in structure and organization to minority holdings by a multinational company in a local firm.

Accepted Answer

Joint ventures involve a partnership between two or more companies to undertake a specific project or business activity together, sharing resources, risks, and profits. In contrast, minority holdings refer to a multinational company owning less than 50% of a local firm's shares, without necessarily engaging in a collaborative project or sharing operations.

Question 4

A strategic international alliance involves a business relationship established by two or more companies that cooperate out of mutual need and share risk in achieving a common objective.

Accepted Answer

A strategic international alliance is indeed a partnership where two or more companies come together to pursue mutual benefits and share risks in achieving a common goal, often to expand their reach or capabilities in international markets.

Question 5

What statement is a feature of international corporate planning?

Accepted Answer

International corporate planning is essentially long-term in nature, focusing on strategic goals that guide a company's global operations over an extended period.

Question 6

What statement relates to strategic planning?

Accepted Answer

Strategic planning encompasses a broad scope, including decisions about the company's products, capital allocation, and research directions, to ensure long-term success and competitiveness.

Question 7

Free trade areas that are tariff-free among members but have a common tariff for nonmembers create an opportunity that can be capitalized on by direct investment.

Accepted Answer

Free trade areas with a common external tariff encourage direct investment within the member countries by offering access to a larger market without tariffs, while protecting against external competition with common tariffs.

Question 8

What is the crucial question facing international marketers today?

Accepted Answer

International marketers need to efficiently segment markets to tailor their strategies effectively across diverse regions and consumer bases.

Question 9

Dell Corporation is a good example of mass customization because it

Accepted Answer

Dell Corporation is known for its build-to-order approach, allowing customers to customize their computers online before purchase, which is a prime example of mass customization.

Question 10

An American company has just entered into an agreement with a German firm to create a separate legal entity. This new firm will be allowed to conduct business and actively compete in various European Union markets. This is a joint venture.

Accepted Answer

A joint venture is when two or more parties, often from different countries, agree to pool their resources for the purpose of accomplishing a specific task, such as creating a new business entity, which is exactly what is described. This new entity operates independently and can conduct business, including competing in various markets like those in the European Union.

Question 11

Which company has been known for its ability to adapt to local needs and wants in the international marketplace since its inception in 1866?

Accepted Answer

Nestlé, founded in 1866, has a long history of adapting its products to fit the tastes and nutritional needs of consumers in various countries, making it a leader in the global food and beverage industry.

Question 12

Company M was weighing whether it could be competitive if it standardized its products for the global market. It should consider three criteria: ease of control, flexibility, and

Accepted Answer

Global regularity refers to the extent to which a company's products and services meet the requirements of different global markets.

Question 13

Six high-technology companies joined forces to produce and market their products in Japan. By joining together, these companies were able to enter the Japanese market for the first time. This is an example of a consortium.

Accepted Answer

A consortium is a group of companies that join together for a common purpose, such as entering a new market or developing a new product, which aligns with the scenario described.

Question 14

An Australian television manufacturer recently invested in a plant to build tuners in Mexico. This form of international business is aptly named international licensing.

Accepted Answer

This scenario describes foreign direct investment (FDI), where a company invests in facilities to produce or manufacture goods in another country, not international licensing, which involves a company allowing a foreign company to produce its product in exchange for a fee.

Question 15

With respect to global marketing management, the argument for market segmentation in the 1980s was framed as

Accepted Answer

The answer of With respect to global marketing management, the...

Question 16

If a product is culturally sensitive, then decisions related to the product are more likely to be centralized.

Accepted Answer

Culturally sensitive products often require decisions to be decentralized so that local managers, who understand the cultural nuances and consumer preferences better, can make informed decisions tailored to each market.

Question 17

Company G takes advantage of the Internet and flexible manufacturing to create products that vary depending on the market it is sold into. This demonstrates Company G's focus on

Accepted Answer

Localization is the correct answer because Company G is adapting its products to meet the specific needs and preferences of different markets. This approach is characteristic of localization, where products or services are tailored to fit local markets.

Question 18

Alcoa sent line workers and managers to foreign locations to seek out new techniques and processes, and they brought them back to the home country to improve operations. This shows the benefits of

Accepted Answer

This scenario exemplifies transfers of knowledge, where employees learn from global experiences and bring back new techniques and processes to improve operations in their home country.

Question 19

The first step in building strategic international alliances is called dating.

Accepted Answer

In the context of forming strategic international alliances, the term "dating" is used metaphorically to describe the initial phase where potential partners get to know each other, explore common goals and values, and assess compatibility before formalizing the partnership. This step is crucial for building trust and ensuring a successful alliance.

Question 20

An advantage of a matrix organizational structure in international business is that it permits management to respond to the conflicts that arise among functional activity, product, and geography.

Accepted Answer

A matrix organizational structure combines two or more types of organizational structures, typically functional and divisional (by product, service, or geography), allowing for efficient management of conflicts that arise due to the overlapping responsibilities and the need to cater to different dimensions simultaneously. This structure facilitates better coordination and flexibility, enabling a more responsive and adaptable management approach to the diverse and often conflicting demands of global business operations.

Quiz 12: Global Marketing Management: Planning and Organization