Question 1

Most of the retailing in Canada is done by small, independent retailers.

Accepted Answer

Most retailing in Canada is dominated by large chain stores and multinational corporations, rather than small, independent retailers.

Question 2

The Internet is forcing companies toward more standardized international pricing.

Accepted Answer

With the ease of online shopping and access to information, customers can easily compare prices of the same product across different countries. This has led companies to adopt more standardized international pricing to remain competitive and avoid price discrepancies that could drive customers away.

Question 3

Adapted global marketing is a global marketing approach that adjusts the marketing strategy and mix elements to each international target market.

Accepted Answer

Adapted global marketing involves tailoring the marketing strategy and mix to suit the specific needs and preferences of each international market, rather than using a one-size-fits-all approach.

Question 4

In the global value delivery network, the second link between the sellers and the final buyers moves products from points of production to the borders of countries within which they are sold.

Accepted Answer

The second link in the global value delivery network typically involves moving products from the borders of the countries where they are produced to the final buyers within those countries, not from points of production to the borders.

Question 5

Differentiate between standardized global marketing and adapted global marketing. Describe the advantages and disadvantages of each strategy.

Accepted Answer

The answer of Differentiate between standardized global marketing and adapted...

Question 6

Jazz is a costume jewellery manufacturing company based in Alberta, Canada. The company decides to sell its products abroad, but it faces the major problem of price escalation. What is price escalation? How can Jazz overcome this problem?

Accepted Answer

The answer of Jazz is a costume jewellery manufacturing company...

Question 7

In managing their international marketing activities, most companies first .

Accepted Answer

Most companies first organize an export department to handle international marketing activities, as exporting is typically the initial step in entering foreign markets.

Question 8

Explain product invention with the help of suitable examples.

Accepted Answer

The answer of Explain product invention with the help of...

Question 9

It is common that a multinational company eventually creates or subsidiaries to handle all of its international activity.

Accepted Answer

International divisions are created by multinational companies to manage and coordinate all international activities and operations effectively.

Question 10

Lemon N' Honey is a juice manufacturing company in Canada. It exports its products to Australia, licenses to China, has a joint ownership venture in France, and owns a subsidiary in Brazil. The firm will most likely need to create a(n) _ to handle all its worldwide activities.

Accepted Answer

An international division is necessary for managing and coordinating the diverse international operations and strategies across different countries.

Question 11

Explain the whole-channel view of the distribution process.

Accepted Answer

The answer of Explain the whole-channel view of the distribution...

Question 12

Companies that export goods to one country cannot have a subsidiary in another country because of international trade agreements.

Accepted Answer

There is no restriction on having subsidiaries in different countries for companies that export goods. However, there may be regulations and requirements to comply with in each country where the subsidiary is established.

Question 13

Many organizations no longer have a clearly defined home market. Nor do they have home-office staffs. Instead, multicultural managers operate out of facilities located all around the world, bringing diverse cultural
Perspectives to their brands and operations. They are truly _.

Accepted Answer

Global organizations operate on a worldwide scale, integrating diverse cultural perspectives and managing operations across multiple countries without a central home market or office.

Question 14

Price escalation is caused by transportation costs, tariffs, importer margin, wholesaler margin, and retailer margin. As a result, foreign prices are typically lower than domestic prices for comparable products.

Accepted Answer

Price escalation refers to the increase in the final selling price of goods as they are imported from one country to another, often making foreign prices higher, not lower, than domestic prices due to added costs such as transportation, tariffs, and various margins.

Question 15

Which of the following is most likely true about a global organization?

Accepted Answer

Global organizations typically have worldwide policies planned by top corporate management to ensure consistency and alignment across different regions and markets.

Question 16

Differentiate between straight product extension and product adaptation. Give a few examples of each.

Accepted Answer

The answer of Differentiate between straight product extension and product...

Question 17

Which of the following is an international division organized based on different merchandise categories?

Accepted Answer

World product group is an international division organized based on different merchandise categories, focusing on specific product lines across global markets.

Question 18

Which of the following is true of international divisions that are structured as geographical organizations?

Accepted Answer

Geographical organizations are managed by country managers who oversee salespeople, distributors, and licensees in their respective countries, allowing for localized management and operations.

Question 19

Global companies recruit management from many countries, buy components and supplies where they cost the least, and invest where the expected returns are greatest.

Accepted Answer

Global companies have a global perspective and seek to optimize their operations by sourcing inputs from different countries, hiring talent from around the world, and investing in regions with the highest potential for growth and profit. This approach is known as globalization and is the standard strategy for most successful multinational corporations.

Question 20

Strawberry Fizz is a renowned bottled juice manufacturer in Canada. It exports its products to Mexico, has a joint venture in Hong Kong, and owns a subsidiary in South Africa. The company has organized an export department to manage its international marketing activities. Do you think it has made the right decision? Justify your answer.

Accepted Answer

The answer of Strawberry Fizz is a renowned bottled juice...

Quiz 15: The Global Marketplace