Question 1

Brand name, product characteristics, packaging, and labeling are some of the ______________ marketing mix variables to standardize for international markets.

Accepted Answer

Standardizing the brand name, product characteristics, packaging, and labeling is often easier than standardizing other marketing mix variables (such as pricing and promotion) for international markets. However, it still requires research and adaptation to the local culture and regulations.

Question 2

The North American Free Trade Agreement (NAFTA) ___________ tariffs on goods produced in and traded between Canada, Mexico and the United States.

Accepted Answer

NAFTA eliminated tariffs on goods produced in and traded between Canada, Mexico, and the United States.

Question 3

The international marketplace offers a new set of challenges for the marketer to navigate. There are multiple forces that must be overcome if the firm's marketing strategies are to be successful in international markets. For example, some countries have import tariffs and quotas that restrict the flow of foreign products into their domestic markets. This is an example of which of the following environmental forces present in international markets?

Accepted Answer

Import tariffs and quotas are political, legal, and regulatory forces that restrict the flow of foreign products into domestic markets. Sociocultural forces refer to cultural differences, ethical and social responsibility forces refer to moral and societal expectations, competitive forces refer to the actions of other firms in the market, and economic forces refer to the economic conditions of the market.

Question 4

The trade agreement that links Mexico, Canada and Unites States into one economic market is called which one of the following?

Accepted Answer

NAFTA (North American Free Trade Agreement) is the trade agreement linking Mexico, Canada and the United States into one economic market. The European Union (A) is a regional organization consisting of 27 European countries. MERCOSUR (B) is a South American trade bloc. Central American Free Trade Agreement (C) is a trade agreement between the United States and several Central American countries. APEC (D) is the Asia-Pacific Economic Cooperation forum, which includes countries like China, Japan, and Australia.

Question 5

A ______________ links buyers and sellers in different countries but it has no manufacturing capability. It most important function is ___________ to products and moving them from the domestic country to the foreign country.

Accepted Answer

A trading company is a type of intermediary that connects buyers and sellers in different countries. Unlike a foreign subsidiary, it has no manufacturing capability. The most important function of a trading company is to facilitate the movement of products from the domestic country to the foreign country. This typically involves taking title to the products, which means assuming ownership and responsibility for them during the shipping process. Adding value or customizations may also be part of a trading company's role, but it is not its primary function. Therefore, the best choice is E - trading company; taking title.

Question 6

The ______________ of marketing suggests that firms should adopt marketing strategies as though the entire world was one single marketplace. These firms would then market ___________ products using the same marketing mix everywhere in the world.

Accepted Answer

The question is referring to the concept of globalization in marketing, which suggests standardizing marketing strategies across the entire world. This means using the same marketing mix (product, price, promotion, and place) everywhere, rather than customizing the marketing approach for each individual market. Therefore, the best answer is D) globalization; standardized.

Question 7

U.S. businesses are increasingly recognizing that international markets provide enormous opportunities for growth and profit. ___________companies are entering international markets and quickly realizing as much as 70 percent of their sales outside the domestic market within two years.

Accepted Answer

Born global companies are those that start operating in international markets from inception or shortly after, and focus heavily on rapid internationalization. They have shown to achieve significant sales outside their domestic market within a short period of time, as mentioned in the statement. Joint venture refers to a business partnership between two or more companies to undertake a specific project, while an internationally integrated company has a global presence and seamless integration of operations across borders. Export and trading refer to specific activities of selling goods or services to foreign markets.

Question 8

Baxter Publishing sought to reduce expenditures related to the printing of books in its trade and educational market and contracted with a printing company in China. However, the publishing company soon realized that China has weak enforcement of intellectual property laws and that gray market books began appearing in the marketplace which greatly impacted Cengage's profits. The company found that they had little recourse against the contract manufacturer and learned a very difficult lesson in international marketing. This exemplifies the impact of _______ forces on international business.

Accepted Answer

The answer of Baxter Publishing sought to reduce expenditures related...

Question 9

Tim Baker is an account representative from the United States for an automotive parts supplier and is meeting with a client team in Japan. This is Tim's first trip to Japan, and unfortunately, he wasn't able to review any information about "doing business in Japan" before he left the States. His first meeting with representatives from the prospective client's firm is a dinner and he is immediately surprised at the formality of the event. All of his counterparts are dressed very formally and no one is addressing him by his first name but is referring to him as Mr. Baker. In addition, the members of the client team seem to be waiting on their supervisor to make the first move and Tim is beginning to realize that age and seniority are very important to the team members. Tim is growing a little concerned that he may not be successful in business since he feels like a fish out of water. Which environmental force has the sales representative encountered?

Accepted Answer

Tim has encountered sociocultural forces in Japan that are very different from those he is used to in the United States. These include a formal business culture that values age and seniority, and where first names are not commonly used in business interactions. These cultural differences may impact Tim's ability to do business successfully in Japan.

Question 10

Regardless of the extent to which a firm chooses to globalize its marketing strategy, extensive environmental analysis and marketing research are necessary to understand the needs and desires of the target market(s) and successfully implement the chosen marketing strategy.

Accepted Answer

Environmental analysis and marketing research are crucial for understanding the target market(s) and implementing an effective marketing strategy, whether or not a firm decides to globalize their strategy.

Question 11

Solar Sports is excited about expanding their export opportunities to Cuba since the United States has renewed trade relations with Cuba and plans to utilize a _______ which links buyers and sellers in different countries but is not involved in manufacturing and does not own assets related to manufacturing.

Accepted Answer

A trading company is a business that acts as an intermediary between buyers and sellers in different countries. They facilitate and negotiate trade deals, but do not manufacture or own any assets related to manufacturing. Therefore, Solar Sports can utilize a trading company to expand their export opportunities to Cuba without having to invest in manufacturing facilities or assets in Cuba.

Question 12

_____________ are companies that were started with the knowledge and resources to compete in a global marketplace. They are usually small technology companies that quickly establish themselves in international markets. They reach a point where as much as ________ percent of their sales come from locations outside the United States.

Accepted Answer

Born globals are companies that are established with the intention of doing business globally from the beginning. They often have a technology focus and quickly establish themselves in international markets with a significant portion of their sales coming from outside their home country. The threshold for born globals is usually around 25-50% of sales coming from international markets, but some sources suggest it could be as high as 70%. None of the other options accurately describe this type of company.

Question 13

The internationally integrated structure is one type of organizational structure used by U.S. firms for their international operations. Which of the following statements is true about internationally integrated structures?

Accepted Answer

The product division structure is one type of internationally integrated structure. The other statements are either incorrect or incomplete. There is no universally accepted list of five types of internationally integrated structures, the international subsidiary is a different type of structure, the matrix structure can be used for international operations, and the geographic area structure is also a type of internationally integrated structure.

Question 14

China is the world's largest beer producer and consumer and represents a significant opportunity for American craft breweries. An increasing number of consumers in China-especially middle-class residents prefer imported beers due to their higher quality, flavor options, and enhanced food safety. In stores, restaurants, and bars, the price of an imported beer would be $2 to $4 per liter and vary from 100%-200% more expensive than Chinese domestic mass-produced beers. Part of the price difference is related to the ______ that are imposed on imported beers which raised the price of the product and affect trade. American craft breweries must realize that China is simply attempting to protect its local beer market at the expense of foreign firms competing in China.

Accepted Answer

The price difference between imported beers and Chinese domestic mass-produced beers is related to the import tariffs that are imposed on imported beers, which raised the price of the product and affect trade.

Question 15

Because firms have different resources and core competencies, their international marketing strategies will also be different. Nevertheless, any firm seeking to be successful in international markets must establish the right organizational structure for its core competencies and resources. Which of the following is a valid international organizational structure?

Accepted Answer

The geographic area structure allows a firm to organize its operations based on different geographic regions, which can be useful in adapting to local market differences and establishing a local presence.

Question 16

Sociocultural forces in international markets keep marketer busy trying to understand local preferences, tastes, customs and idioms. The marketer's failure to understand these forces almost certainly leads to failures in the marketing strategies used. Which one of the following statements about the sociocultural forces in international markets is true?

Accepted Answer

Product acceptance in an international market is more likely if similarities exist between buyer and seller cultures. This is because buyers are more likely to feel comfortable with and trust products that align with their own cultural values and preferences. Cultural differences do have significant effects on marketing activities, and it is important for marketers to understand and adapt to these differences to successfully enter and compete in international markets. Buyers' perceptions of other countries can also influence product adoption and use, making it important for marketers to understand and address any negative perceptions or stereotypes that may exist. Finally, transferring marketing logos, trademarks and symbols is not always an easy process due to cultural and linguistic differences.

Question 17

Ikea has opened stores in Beijing and Shanghai and hopes to capitalize on China's growing consumer economy since the potential of China's consumer market is so vast that it is almost impossible to measure. Ikea and other global retailing giants operating in China are beneficiaries of the _____ which was established in 1989 to promote open trade and economic and technical cooperation among member nations. In addition, they are allowed to participate in a wide range of organization activities and have become increasingly competitive regarding global business.

Accepted Answer

APEC (Asia-Pacific Economic Cooperation) was established in 1989 to promote open trade and economic and technical cooperation among member nations in the Asia-Pacific region. China is a member of APEC, and Ikea and other global retailing giants operating in China can benefit from the organization's activities, including participating in trade and investment initiatives.

Question 18

Toyota Motor Company recently announced plans to build a new production facility in Mexico and will be able to take advantage of reduced production costs related to wage rates in the local area. Toyota will sell the vehicles in Mexico and will also export the Corolla model the plant produces around the world. The finished products costs will be based in the Mexican peso which fluctuates but is generally considered to be weaker than the U.S. dollar or euro which will provide Toyota with a price advantage in the export market. This is an example of the _______ force which affects international marketing activities.

Accepted Answer

This situation relates to the economic force as it involves production costs, currency exchange rates, and the export market.

Question 19

Signature Cycles creates sleek and modern bicycles for commuters and cycling enthusiasts using the latest materials such as carbon fiber frames. Signature Cycles are relatively expensive but its urban customers routinely pay $800 to $1,000 for the hand-crafted bicycles. The owners are considering expanding their company's footprint outside the United States and are considering opportunities to export its products to Canada and Mexico. They have learned that _______ eliminated virtually all tariffs on goods produced and traded among Canada, Mexico, and the United States.

Accepted Answer

NAFTA (North American Free Trade Agreement) eliminated virtually all tariffs on goods produced and traded among Canada, Mexico, and the United States, making it easier for Signature Cycles to export its products to these countries.

Question 20

Sebastian Motors is a family-owned car dealership with two locations in central France. The car dealership markets BMW and Mini Coopers and provides servicing. Recently, Sebastian Motors has been impacted by the economic climate in the ________ which has suffered recently due to a weakening of the currency and the poor financial conditions of several member countries including Portugal, Italy, Greece, and Spain-affectionately known as the PIGS of the Common Market.

Accepted Answer

The given economic conditions of weakening currency and poor financial conditions of member countries, including the PIGS, are indicative of the European Union's economic climate.

Quiz 8: Reaching Global Markets