Question 1

Which of the following best describes global marketing standardization?
A)is becoming less popular with the large multinationals
B)encourages product,packaging,and advertising variations for each nation or local market
C)raises production costs
D)presumes markets throughout the world are becoming more alike

Accepted Answer

With a global marketing standardization approach,a firm produces standardized products to be sold the same way worldwide.This approach assumes all customers have the same needs and wants.

Question 2

Which of the following describes a common criticism of multinational companies?
A)the transference of the wrong kind of technology to a developing nation
B)the use of western workers in the third world countries
C)they pay the minimum wage in whatever country they go to
D)dumping of first world excess products on to third world countries

Accepted Answer

Typically,the technology needed to run operations in developing nations is capital intensive and thus does not substantially increase employment.

Question 3

Basketball is played nearly everywhere in the world and is an easily understood sport.The National Basketball Association (NBA)finals reached more than 600 million televisions in 195 countries.From this information,what should you be able to infer about the NBA?
A)It is developing international selling schemes.
B)It is implementing standard international marketing.
C)It is practising global marketing.
D)It is supplementing its foreign vision.

Accepted Answer

The fact that the NBA finals reached over 600 million televisions in 195 countries suggests that the NBA is practising global marketing, which involves targeting a worldwide market by creating a standard marketing mix for all customers. This indicates that the NBA has been successful in expanding its brand and attracting fans worldwide.

Question 4

Which of the following statements best describes multinational firms?
A)Multinationals typically do not change their methods of reaching their global markets if they are successful with their initial strategy.
B)Multinationals are defined as companies heavily engaged in exporting and importing.
C)All multinationals must enter the fourth stage of globalization before they are fully internationalized.
D)Multinationals often develop their global businesses in stages.

Accepted Answer

Multinationals can go through up to four stages in their quest to globalize their business.Generally,only high-tech firms ever reach the fourth stage.Multinationals are companies that heavily engage in international trade,beyond exporting and importing.

Question 5

U.S.wine producers export only about 14 percent of their total annual production of wine.This statement indicates that the U.S.wine industry is which of the following?
A)selling more wine abroad than it does in the United States.
B)an industry in the first stages of globalization.
C)willing to take significant risks in order to sell more wine internationally.
D)producing more wine than it can sell.

Accepted Answer

Exporting is defined as selling domestically produced products to buyers in another country.Businesses in stage one of globalization operate in one country and sell into another.

Question 6

Which of the following statements best describes global marketing?
A)Marketing throughout the world has become optional for businesses.
B)Often a Canadian firm's toughest foreign competition comes from domestic companies.
C)Marketing managers must develop a global vision not only to recognize and react to international marketing opportunities but also to remain competitive at home.
D)Global marketing cannot offset weak domestic performance.

Accepted Answer

Global marketing is essential for businesses to stay competitive in the international market as well as their domestic market. Marketing managers must develop a global vision to recognize and react to international marketing opportunities. This will help them compete globally and domestically. A Canadian firm's toughest foreign competition often comes from domestic companies, but this does not describe global marketing. Global marketing can offset weak domestic performance if businesses are successful in international markets. Therefore, option C is the best choice.

Question 7

What is the term for a company that is heavily engaged in global trade and moves its resources,goods,services,and skills across national boundaries?
A)international facilitator
B)global trader
C)multinational corporation
D)exporter

Accepted Answer

A multinational corporation is a company that has a significant presence in multiple countries and engages in cross-border trade and investment. They often move resources, goods, services, and skills across national boundaries to maximize their global operations and profits. International facilitators may refer to entities that help facilitate international trade, but it does not necessarily imply that they are heavily engaged in it. Global Trader and exporter are terms that are too narrow and only refer to the aspect of trading goods.

Question 8

A firm that produces standardized products to be sold the same way all over the world uses which of the following?
A)a traditional marketing strategy
B)a global marketing standardization approach
C)a product extension approach
D)a culturally based marketing strategy

Accepted Answer

The firm is using a global marketing standardization approach, which involves selling standardized products in the same way across different countries and cultures. This approach allows the firm to achieve economies of scale and reduce costs by using the same marketing mix in all markets.

Question 9

Why do many people fear world trade?
A)It will inevitably lead to inflation.
B)It will cause living standards to increase at a slower rate.
C)It causes some people to lose their jobs as production shifts abroad.
D)It has lowered global wages.

Accepted Answer

Global competition and cheap imports help keep inflation down,and world trade has caused the standards of living for many countries to increase at a faster rate.The other options describe advantages.

Question 10

Cardiac Science,a Canadian manufacturer of defibrillators,heart monitoring devices,and other medical related devices,sells 85 percent of its products outside Canada.It sells basically the same product to a hospital in London,Tokyo,Pretoria,or Sydney.It uses the same promotional tactics in all of its markets.Cardiac Science does which of the following?
A)is not concerned about media and messages used for international promotional efforts
B)uses global marketing standardization
C)assumes cultural uniformity and lifestyle differences occur across cultural settings
D)desires technological receptivity from country to country

Accepted Answer

Global marketing standardization is the production of uniform products that can be sold the same way all over the world.

Question 11

A business thinking of expanding into global markets needs to examine all of the following external environments EXCEPT which of the following?
A)culture
B)political structure and actions
C)its marketing mix
D)demographic makeup

Accepted Answer

The marketing mix is the keystone of a company's internal environment.

Question 12

Which of the following statements describes one of the benefits of increased globalization?
A)Millions of Canadians have filled jobs created by imports and production shifts abroad.
B)Because of world trade,Canadians have seen price reductions in certain products.
C)Because jobs are threatened by exports,employers are issuing pay-cut demands to their workers.
D)Export jobs typically pay less money than other jobs.

Accepted Answer

Millions of Canadians have lost their jobs as a result of world trade,and many more have been forced to take pay cuts.Export jobs often pay more than other jobs.

Question 13

When European demand for a certain solvent declined,Dow Chemical instructed its German plant to switch to manufacturing a chemical that had been imported from Louisiana and Texas.How would Dow Chemical best be described?
A)as a global enterprise
B)as a global trader
C)as a cultural marketer
D)as a multinational corporation

Accepted Answer

A company that is heavily engaged in global trade and moves resources,goods,services,and skills across national boundaries is called a multinational corporation.

Question 14

A Canadian executive had no idea the Japanese go through a very elaborate ritual when exchanging business cards.When he arrived at a meeting in Tokyo,he sat down and tossed some of his business cards across the table at a group of stunned Japanese businesspeople.Due to the Canadian executive's rudeness,the multimillion-dollar deal failed.The executive overlooked the importance of which environmental factor?
A)culture
B)demographics
C)politics
D)economic development

Accepted Answer

Central to any society is its culture-a common set of values shared by its citizens.These values determine what is socially acceptable.

Question 15

A soft drink manufacturer that was thinking of investing in a bottling plant in the Czech Republic should know the nation is proud of the fact it is among the world's biggest beer drinkers.Czechs consume an average of one-half litre of beer a day for every man,woman,and child in the country.Which environment of this country could very easily prevent the soft-drink bottling company from succeeding?
A)demographic
B)economic
C)cultural
D)political

Accepted Answer

Culture influences product preferences.

Question 16

Otis Elevators has entered into a strategic alliance with a company in France from which it gets its elevator door systems.It has a similar agreement with a manufacturer in Japan that provides it with special motor drives.A manufacturer in Spain has worked closely with Otis to create small geared parts necessary for the manufacture of elevators.The component parts are assembled at its plant in the United States.Otis elevators can be found in buildings all over the world.What is Otis Elevators an example of?
A)a cultural marketer
B)a global trader
C)a multinational corporation
D)a global enterprise

Accepted Answer

Otis Elevators is heavily engaged in international trade beyond exporting and importing.

Question 17

The same Timex,Seiko,and Citizen wristwatches you buy in North America can be purchased around the world.Why is there is no difference in a watch purchased in Russia,in Mexico,or in Singapore?
A)The manufacturers of these watches use an ethnocentric strategy.
B)The manufacturers of these watches use a global marketing standardization approach.
C)The manufacturers of these watches use a synergistic approach to globalization.
D)The manufacturers of these watches use a cultural marketing strategy.

Accepted Answer

Global standardization refers to the production of uniform products that can be sold the same way all over the world.

Question 18

What are individuals and organizations utilizing a global vision to effectively market goods and services across national boundaries engaged in?
A)practising international selling schemes
B)implementing standard international marketing
C)implementing global marketing standardization
D)practising global marketing

Accepted Answer

Individuals and organizations utilizing a global vision to effectively market goods and services across national boundaries are engaged in practicing global marketing. This approach involves designing marketing strategies that can be standardized and applied across different countries and cultural contexts. It requires a deep understanding of the local customer needs and preferences, as well as identifying global trends and opportunities for growth. By adopting a global marketing approach, firms can achieve economies of scale, reduce costs, and enhance their competitive advantage in the international marketplace.

Question 19

Central to any society is a common set of values shared by its citizens that determine what is socially acceptable.How do marketers refer to these values collectively?
A)a country's ethical system
B)a country's culture
C)a country's ethnocentricity
D)a country's socialization

Accepted Answer

Marketers refer to these values collectively as a country's culture. Culture includes not only shared values, but also beliefs, customs, behaviors, and artifacts that define a society. It is important for marketers to understand the cultural norms of the society they are operating in to ensure their marketing efforts are effective and appropriate.

Question 20

A company that is capital intensive does which of the following?
A)has an altered fiscal strategy for overseas operations
B)spends more on equipment than on labour
C)makes better use of benchmarking than other types of business
D)creates employment monopolies

Accepted Answer

A company that is capital intensive spends more money on technology, equipment, machinery, and infrastructure than on labor. This means that their business model depends heavily on these fixed assets, and the success of their operations relies on the efficient and effective use of these resources. Similarly, they are more willing to invest in R&D, innovation, automation, and improvements in their supply chain and logistics, rather than rely on human resources to drive their growth. This makes their operations more resilient, scalable and sustainable, but at the same time requires a significant upfront investment and ongoing maintenance costs.

Quiz 20: Developing a Global Vision

Which of the following best describes global marketing standardization?

Which of the following describes a common criticism of multinational companies?

Basketball is played nearly everywhere in the world and is an easily understood sport.The National Basketball Association (NBA) finals reached more than 600 million televisions in 195 countries.From this information,what should you be able to infer about the NBA?

Which of the following statements best describes multinational firms?

U.S.wine producers export only about 14 percent of their total annual production of wine.This statement indicates that the U.S.wine industry is which of the following?

Which of the following statements best describes global marketing?

What is the term for a company that is heavily engaged in global trade and moves its resources,goods,services,and skills across national boundaries?

A firm that produces standardized products to be sold the same way all over the world uses which of the following?

Why do many people fear world trade?

A business thinking of expanding into global markets needs to examine all of the following external environments EXCEPT which of the following?

Which of the following statements describes one of the benefits of increased globalization?

When European demand for a certain solvent declined,Dow Chemical instructed its German plant to switch to manufacturing a chemical that had been imported from Louisiana and Texas.How would Dow Chemical best be described?

The same Timex,Seiko,and Citizen wristwatches you buy in North America can be purchased around the world.Why is there is no difference in a watch purchased in Russia,in Mexico,or in Singapore?

What are individuals and organizations utilizing a global vision to effectively market goods and services across national boundaries engaged in?

Central to any society is a common set of values shared by its citizens that determine what is socially acceptable.How do marketers refer to these values collectively?

A company that is capital intensive does which of the following?