Question 1

People seldom stop to think about a reaction; they simply react. Thus, when faced with a problem in another culture, their tendency is to react instinctively and refer to their ________ for a solution.

Accepted Answer

The correct answer is "self-reference criterion," which refers to the unconscious reference to one's own cultural standards when faced with a problem in a different culture. People often use their own cultural context as a basis for judgment and decision-making in unfamiliar situations.

Question 2

Adaptation on the part of an international marketer is best described as

Accepted Answer

Adaptation in international marketing involves adjusting the marketing mix to account for the various uncontrollable factors in both the foreign and domestic markets, aiming to minimize their negative impacts.

Question 3

Shondra McDonald, a marketing manager at a hearing aid manufacturing firm, is asked to review the marketing opportunities of her company in a foreign market. She is aware that she can modify certain elements of the marketing environment to suit the foreign market needs. She focuses her attention on the uncontrollable factors that might affect the firm's business prospects. Which of the following uncontrollable elements is most likely to affect the company's business prospects in the foreign market?

Accepted Answer

The level of technology in the targeted market is an uncontrollable element that can significantly affect a company's business prospects in a foreign market. Factors such as pricing policies, research methodologies, promotional activities, and product distribution channels are generally within the company's control and can be adjusted to suit market needs. However, the existing level of technology in the market can influence product acceptance, usage, and the need for adaptations, making it a critical external factor to consider.

Question 4

With respect to the environment in which a business operates, factors such as competition, political and legal forces, and economic climate would all be classified as

Accepted Answer

These factors are considered uncontrollable elements because businesses cannot directly control the competition, political and legal forces, or the economic climate. They must adapt to these external conditions.

Question 5

The marketing tasks of an international marketer differ from that of a domestic marketer as the

Accepted Answer

The structure of distribution is considered an uncontrollable element for the international marketer because it varies significantly from one country to another and is influenced by local laws, customs, and practices, which are outside the direct control of the marketer.

Question 6

Which scenario best illustrates the political and legal issues faced by companies because of their "alien status" when they attempt to do business in foreign countries?

Accepted Answer

B) illustrates the political and legal challenges faced by foreign companies, as it directly involves government intervention requiring the company to share its core competencies, showcasing the complexities of operating under different legal and political environments.

Question 7

What is an accurate description of the relationship between international business and domestic business?

Accepted Answer

The ability to invest abroad and engage in international business activities is significantly influenced by the strength and vitality of a country's domestic economy. A strong domestic economy provides the necessary resources and stability for businesses to expand internationally.

Question 8

Angelica Wu is preparing a marketing plan for her company for the upcoming year's business activities. She knows that she should begin her plan by examining the variables she has some control over. These controllable variables would include price, product, channels-of-distribution, and

Accepted Answer

The controllable variables in a marketing plan, often referred to as the "4 Ps" of marketing, include price, product, channels-of-distribution, and promotion. These are elements that a company can adjust and control to meet the needs of its target market and achieve its marketing objectives.

Question 9

________ is a controllable element in both domestic and international marketing environments.

Accepted Answer

Price of products is a controllable element because companies can adjust their pricing strategies based on various factors, including market demand, production costs, and competitive landscape, both in domestic and international markets.

Question 10

Compared to the foreign environment variables, which of the following uncontrollable variables is least likely to affect a domestic marketer?

Accepted Answer

Cultural forces are least likely to affect a domestic marketer compared to a foreign marketer because the domestic marketer operates within a cultural environment they are already familiar with, unlike in foreign markets where cultural differences can significantly impact marketing strategies.

Question 11

M&G Inc., a company producing musical instruments, had dominated its home market for several years before venturing into international markets. The company was focusing more on international operations until Beige N, a German company in the same business, entered its home market. Beige N started selling good quality products at prices much lower than M&G's and affected its sales adversely. Which of the following elements in the marketing environment has affected the business of M&G Inc. with the market entry of Beige N?

Accepted Answer

The entry of Beige N into M&G Inc.'s home market and selling products at lower prices directly impacts M&G Inc. through increased competition in the domestic market. This is a clear example of how competition can affect a company's business.

Question 12

How can "alien status" unfavorably affect a company?

Accepted Answer

Alien status can lead to prejudiced treatment by the host country's politicians and legal authorities, which can unfavorably affect a company by creating a hostile or discriminatory business environment.

Question 13

Kelly Reeves is in charge of a new marketing effort directed toward Peru. In order for her company to market effectively and distribute to all of Peru's major cities, Kelly must devise a logistics plan for crossing the Andes Mountains on a daily basis. Which of these foreign environment uncontrollable variables would be a chief concern as Kelly devises her firm's logistics plan?

Accepted Answer

Geography and infrastructure are critical factors when planning logistics, especially in challenging terrains like the Andes Mountains. These factors directly impact how goods can be transported across such areas.

Question 14

A natural off shoot of a person's self-reference criterion is ________ that also creates a concern for the international marketer.

Accepted Answer

The self-reference criterion refers to an individual's tendency to interpret the world based on their own cultural background. This can lead to ethnocentrism, where one views their own culture as superior to others, posing challenges for international marketers in understanding and appealing to diverse markets.

Question 15

Which political action is most likely to favor international marketing?

Accepted Answer

South Africa abolishing apartheid and the U.S. lifting the embargo would favor international marketing by opening up trade opportunities and removing restrictions, thereby facilitating the exchange of goods and services between countries.

Question 16

________ is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions.

Accepted Answer

Self-reference criterion refers to the unconscious use of one's own cultural values and experiences as the standard for making decisions and judgments, often leading to misunderstandings or misinterpretations in cross-cultural interactions.

Question 17

Parul believes that her culture and country know how to do things best and she looks down on the cultural habits of other countries. What is Parul exhibiting?

Accepted Answer

Parul is exhibiting ethnocentrism, which is the belief in the inherent superiority of one's own ethnic group or culture, often accompanied by a feeling of contempt for other cultures.

Question 18

The uncontrollable issue of ________ faced by a company abroad is often amplified by the "alien status" of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate.

Accepted Answer

Politics is often an uncontrollable issue faced by companies operating abroad, and being an "alien" or foreign entity can exacerbate the challenges of navigating and forecasting the political climate in international markets.

Question 19

What characteristic would impede the ability of a person to assess a foreign market in its true light?

Accepted Answer

Ethnocentrism, the belief in the inherent superiority of one's own ethnic group or culture, can impede the ability of a person to assess a foreign market accurately because it can lead to a biased and narrow perspective, overlooking the values, needs, and preferences of the foreign market.

Question 20

Ian works for a sports equipment manufacturer in Boston and is responsible for shipping products across the United States. What is one factor that would be uncontrollable for Ian?

Accepted Answer

The competitive structure is considered an uncontrollable factor because it is determined by the external market environment, over which Ian and his company have no direct control. This includes the actions of competitors, market trends, and consumer preferences.

Quiz 1: The Scope and Challenge of International Marketing