Question 1

Serenity Incorporation is a leading international watch manufacturer and has established several stores across different parts of the European Continent.Each store in each different nation competes on a market-by-market basis and the firm considers each international subsidiary as an autonomous body.This indicates that Serenity Incorporation is a:

Accepted Answer

A multidomestic corporation considers each international subsidiary as an autonomous body. In effect, the company competes on a market-by-market basis.

Question 2

India Gate,a restaurant that serves Indian cuisine,opened a branch in France.Before opening the restaurant,India Gate made detailed research on the tastes of the French and made necessary changes to their menu.This implies that India Gate took necessary steps to avoid:

Accepted Answer

Differences in the cultural environment of foreign countries may be misunderstood or not even recognized because of the tendency for marketing managers to use their own cultural values and priorities as a frame of reference.

Question 3

Which of the following is true about import quotas and tariffs?

Accepted Answer

Tariffs, import quotas, and other types of import restrictions hinder global business. These are usually established to promote self-sufficiency and can be a huge roadblock for the multinational firm.

Question 4

I& F Ltd.is a cell phone manufacturer headquartered in the Netherlands.The firm has its units of operation across many nations.In Afghanistan,there is continuous social unrest,violent terrorism and the government is very unstable.Due to these factors,the firm has not able to function successfully.Which of the following has affected the firm's operations in Afghanistan?

Accepted Answer

Political uncertainties include unstable governments, social unrest, and armed conflict which may affect the operations of a firm in a foreign country. In Afghanistan, the people face continuous social unrest and the government has a very unstable system. There is destruction throughout the nation due to terrorism. Due to these factors, the firm has not able to function successfully in the host country.

Question 5

Some nations establish limits on the amount of earned and invested funds that can be withdrawn from it.These exchange controls are usually established by nations that:

Accepted Answer

Some nations establish limits on the amount of earned and invested funds that can be withdrawn from it. These exchange controls are usually established by nations that are experiencing balance-of-payment problems.

Question 6

HSV Electronics Ltd.manufactures computers,laptops,digital cameras,and several other electronic products.It standardizes marketing activities when there are cultural similarities and adapts them when the cultures are different.The electronic giant has established worldwide product divisions,each responsible for selling its own products throughout the world.This implies that the electronic firm applies a _____ strategy.

Accepted Answer

The global company views the world as one market and pits its resources against the competition in an integrated fashion. It standardizes marketing activities when there are cultural similarities and adapts them when the cultures are different. Since there is no one clear-cut way to organize a global company, three alternative structures are normally used: (1) worldwide product divisions, each responsible for selling its own products throughout the world; (2) divisions responsible for all products sold within a geographic region; and (3) a matrix system that combines elements of both of these arrangements.

Question 7

Book Worm Publishers,an American firm,entered into a contract with a Japanese book retailer to sell its range of exquisite coffee table.These books were priced high.The American publishing firm did not do enough research on Japanese preferences and misjudged their buying power.Sales levels were below average due to this.We can infer that Book Worm Publishers did not succeed due to ______ conditions in Japan.

Accepted Answer

Nations' economies are becoming increasingly intertwined, and business cycles tend to follow similar patterns. However, there are differences, mainly due to political upheaval or social changes, and these may be significant. In determining whether to invest, marketers need to perform in-depth analyses of a country's stage of economic development, the buying power of its populace, and the strength of its currency.

Question 8

Singapore is the leading producer of coffee.However,there are a few companies in Singapore that import coffee from Brazil and India.Which of the following should be established by Singapore to establish self-sufficiency in the nation?

Accepted Answer

Tariffs, import quotas, and other types of import restrictions hinder global business. These are usually established to promote self-sufficiency and can be a huge roadblock for the multinational firm.

Question 9

Nero Foods Ltd.is a coffeehouse chain operating across various nations.The coffeehouse chain serves several kinds of coffee-based drinks,beverages,pastries,and snacks.The firm has different menus in different countries according to the chief elements of each nation's diets.Nero Foods Ltd.is a company which uses a _____ strategy.

Accepted Answer

The multidomestic company pursues different strategies in each of its foreign markets. It could have as many different product variations, brand names, and advertising campaigns as countries in which it operates.

Question 10

Which of the following statements is true about multidomestic corporations?

Accepted Answer

The multidomestic company pursues different strategies in each of its foreign markets. It could have as many different product variations, brand names, and advertising campaigns as countries in which it operates. Local managers of multidomestic corporations are given the authority to make the necessary decisions and are held accountable for results.

Question 11

Which of the following is true of a global corporation?

Accepted Answer

The global company views the world as one market and pits its resources against the competition in an integrated fashion. It emphasizes cultural similarities across countries and universal consumer needs and wants rather than differences. It standardizes marketing activities when there are cultural similarities and adapts them when the cultures are different.

Question 12

Which of the following refers to political uncertainty?

Accepted Answer

Governments are unstable in many countries, and social unrest and even armed conflict must sometimes be reckoned with. Other nations are newly emerging and anxious to seek their independence. These and similar problems can greatly hinder a firm seeking to establish its position in foreign markets.

Question 13

Which of the following is true of a multidomestic company?

Accepted Answer

The multidomestic company pursues different strategies in each of its foreign markets. It could have as many different product variations, brand names, and advertising campaigns as countries in which it operates.

Question 14

The people of Guinland,like to maintain a balance between work and personal life.They prefer not to be categorized as workaholics and like to spare time for personal needs.When Mark,a local,working for an American company based in Guinland,requested for a week's leave,his boss denied the leave request saying that there was too much work.Mark was extremely upset with the boss's response.This created,for the American company,a(n):

Accepted Answer

Differences in the cultural environment of foreign countries may be misunderstood or not even recognized because of the tendency for marketing managers to use their own cultural values and priorities as a frame of reference.

Question 15

Franklin Inc.,an apparel manufacturer based in Scotland,opened its new store in the United States.The Scottish firm's clothes received exceptionally good response from consumers in the host country.However,the firm incurred very high expenditures as the rent for the store was expensive and the cost of labor was higher than expected.Also,there was a hike in the price of fuel in the United States.This led to increased expenditures on transportation of goods.This indicates that Franklin Inc.had serious issues in the United States due to poor:

Accepted Answer

Nations' economies are becoming increasingly intertwined, and business cycles tend to follow similar patterns. However, there are differences, mainly due to political upheaval or social changes, and these may be significant. In determining whether to invest, marketers need to perform in-depth analyses of a country's stage of economic development, the buying power of its populace, and the strength of its currency.

Question 16

The national government of Turnbury regulates the amount of currency that may be exported or imported.It only permits government bodies to engage in currency dealings.It also has limits on the percentage of investments that can be made by foreign companies.These rules and regulations are attributed to which of the following?

Accepted Answer

Some nations establish limits on the amount of earned and invested funds that can be withdrawn from it. These exchange controls are usually established by nations that are experiencing balance-of-payment problems. In addition, many nations have a requirement that the majority ownership of a company operating there be held by nationals. These and other types of currency and ownership regulations are important considerations in the decision to expand into a foreign market. The government of Turnbury imposes exchange controls by imposing controls on exchange of currency and limits on foreign investments.

Question 17

The central government of Country A requires that 80% of the proprietorship of a corporation should be held by citizens of Country A.This particular requirement of the government is attributed to which of the following?

Accepted Answer

Some nations establish limits on the amount of earned and invested funds that can be withdrawn from it. These exchange controls are usually established by nations that are experiencing balance-of-payment problems. In addition, many nations have a requirement that the majority ownership of a company operating there be held by nationals. These and other types of currency and ownership regulations are important considerations in the decision to expand into a foreign market. The compulsory requirement of the government of Country A is an ownership restriction.

Question 18

Daffy Inc.is an international toys and games corporation.Each overseas subsidiary is autonomous and managers of its areas of operation in different nations are given the authority to make necessary decisions and are held accountable for results.From this information,Daffy Inc.can be categorized as a:

Accepted Answer

Each overseas subsidiary is autonomous. Local managers are given the authority to make the necessary decisions and are held accountable for results. The managers of Daffy Inc. in different nations have the authority to make necessary decisions and are held accountable for results.

Question 19

Which of the following is true of a global corporation?

Accepted Answer

The global company views the world as one market and pits its resources against the competition in an integrated fashion.

Question 20

Which of the following is true of a global corporation?

Accepted Answer

The global company views the world as one market and pits its resources against the competition in an integrated fashion. It emphasizes cultural similarities across countries and universal consumer needs and wants rather than differences. It standardizes marketing activities when there are cultural similarities and adapts them when the cultures are different.

Quiz 13: Global Marketing

India Gate,a restaurant that serves Indian cuisine,opened a branch in France.Before opening the restaurant,India Gate made detailed research on the tastes of the French and made necessary changes to their menu.This implies that India Gate took necessary steps to avoid:

Which of the following is true about import quotas and tariffs?

Some nations establish limits on the amount of earned and invested funds that can be withdrawn from it.These exchange controls are usually established by nations that:

Singapore is the leading producer of coffee.However,there are a few companies in Singapore that import coffee from Brazil and India.Which of the following should be established by Singapore to establish self-sufficiency in the nation?

Which of the following statements is true about multidomestic corporations?

Which of the following is true of a global corporation?

Which of the following refers to political uncertainty?

Which of the following is true of a multidomestic company?

The central government of Country A requires that 80% of the proprietorship of a corporation should be held by citizens of Country A.This particular requirement of the government is attributed to which of the following?

Which of the following is true of a global corporation?

Which of the following is true of a global corporation?