Question 1

Advertising in China was once banned but now is encouraged as part of China's:

Accepted Answer

Advertising in China was banned during the Cultural Revolution in the 1960s and 1970s, but since China's economic reforms in the late 1970s and early 1980s, advertising has been encouraged as a part of China's economic development efforts. As China grows into a global economic power, advertising is seen as a critical component of its economic strategy to attract investment and promote its brands worldwide. While China's internet strategy is also crucial to its economic plans, it is not the primary reason for the shift in advertising policy. Similarly, China's political system has always been communist and has not undergone a recent shift from democracy. Therefore, the best choice is A.

Question 2

Which of the following factors is limiting growth opportunities in the U.S.market for many companies?

Accepted Answer

All of the mentioned factors, including slow population growth, saturated markets, and intense competition from both domestic and foreign companies, are limiting growth opportunities in the U.S. market for many companies.

Question 3

The U.S.has been experiencing a continuing balance of trade _____ that _____ the importance of international marketing efforts by U.S.companies.

Accepted Answer

A balance of trade deficit means that a country is importing more goods than it is exporting, which implies that there is a higher demand for foreign products. This emphasizes the importance of international marketing efforts by U.S. companies to increase their sales and profits in foreign markets.

Question 4

Which of the following is NOT a part of the economic environment of a foreign country?

Accepted Answer

The age distribution of the population is a part of the demographic environment of a foreign country, not the economic environment. The economic environment includes factors such as the stage of economic development, economic infrastructure, currency stability, and exchange rates.

Question 5

Many U.S.firms need to market their products and services internationally to:

Accepted Answer

All of the above reasons are valid justifications for U.S. firms to market their products and services internationally. By expanding to foreign markets, they can prolong a product's life cycle, tap into favorable market conditions and opportunities, overcome economic or demographic challenges in domestic markets, and seek growth when demand in domestic markets has slowed.

Question 6

A balance of trade deficit exists when the:

Accepted Answer

A balance of trade deficit occurs when a country's imports exceed its exports in value. In other words, the country is spending more money on purchasing goods and services from other countries than it is earning from selling its own goods and services to other countries.

Question 7

When global marketers of consumer goods first consider expansion into a developing country,they often start by:

Accepted Answer

When global marketers consider expanding into a developing country, it is essential to examine the daily lives of the consumers, including their needs and aspirations. This will help them understand consumer behaviour and preferences to develop effective marketing strategies.

Question 8

Which of the following is NOT an example of a major external environmental factor that must be considered when analyzing the international marketing environment?

Accepted Answer

Pricing factors are typically considered an internal variable within a company's control and not an external environmental factor. The other choices (economic, cultural, demographic, political/legal factors) all represent major external environmental factors that must be considered in international marketing analysis.

Question 9

A U.S.executive in Namibia in Africa experienced trouble negotiating a franchise deal with local investors because the electricity was constantly shutting off.One of the investors was unable to attend the meeting because there is so little public transportation in the country.These problems indicate a problem with Namibia's:

Accepted Answer

The issue with frequent electricity shutdowns and lack of public transportation points to a problem with Namibia's economic infrastructure, which includes the physical and organizational structures and facilities needed to support economic activity.

Question 10

Which country in South America has the largest consumer market?

Accepted Answer

Brazil has the largest population among all South American countries, therefore, it has the largest consumer market as well. As of 2021, Brazil's population is estimated to be around 214 million, which is significantly higher than the other countries in the region. Additionally, Brazil has a diversified economy and a growing middle class, which makes it an attractive destination for international and local businesses looking to sell their products or services.

Question 11

Traditionally,Chinese companies have competed based on price but many are trying to move away from this strategy by:

Accepted Answer

Developing higher-end products with more brand equity is the best choice. This move away from price competition is a strategic shift towards value-based competition, which could create a sustainable competitive advantage and higher profit margins. It also helps build brand loyalty among customers who value quality over low prices. The other options may help companies in different ways, but they do not necessarily address the issue of moving away from price competition.

Question 12

Many tobacco companies and breweries in the U.S.are focusing their efforts on international markets to sustain growth because:

Accepted Answer

The declining sales in the U.S., the lower litigation risks in foreign markets, and the impact of regulatory pressure are all reasons why tobacco companies and breweries are focusing on international markets for growth. Additionally, there are strong market opportunities available in many foreign countries.

Question 13

Factors such as size of the population,age distribution,education,and income levels are part of a country's _____ characteristics.

Accepted Answer

These factors are all related to the composition and characteristics of a population, which falls under the category of demographic characteristics. Economic characteristics would include things like GDP, inflation rate, and unemployment rate, while cultural characteristics would encompass things like language, religion, and values. Political/legal characteristics would focus on a country's government and legal systems, and lifestyle characteristics would be more related to individual choices and behaviors.

Question 14

When the CEO of International Partners,Ltd.was in Katmandu,the capital of Nepal,he found that 90 percent of his telephone calls didn't connect to the party he was calling.This represents a problem with Nepal's:

Accepted Answer

The fact that 90 percent of telephone calls didn't connect suggests that there is a problem with the economic infrastructure of Nepal, specifically with the telecommunications system. It could be due to a lack of investment, outdated technology, or poor maintenance.

Question 15

Which of the following companies spends the most annually on worldwide advertising?

Accepted Answer

Procter & Gamble spends the most annually on worldwide advertising, with a reported $7.2 billion allocated for advertising in 2019.

Question 16

The difference between the monetary value of a nation's exports and imports is its:

Accepted Answer

The difference between a nation's exports and imports is its balance of trade. If the value of exports is higher, the balance of trade is positive, indicating a trade surplus. If the value of imports is higher, the balance of trade is negative, indicating a trade deficit. The balance of trade is a component of the broader balance of payments, which includes other international transactions such as capital flows and remittances.

Question 17

According to an international marketing scholar,the most visible as well as the most culture bound part of a firm's marketing functions is its:

Accepted Answer

Promotion is the most visible and culture-bound part of a firm's marketing functions because it involves communication and advertising messages that are tailored to specific cultures and target audiences. The way promotions are perceived and received can vary greatly across different cultures, making it essential to adapt marketing communication strategies to fit the local market. Pricing, product development, distribution, and inventory management are important functions as well but may not be as visibly impacted by cultural differences.

Question 18

Which of the following companies annually spends the most on advertising outside the U.S.?

Accepted Answer

The answer of Which of the following companies annually spends...

Question 19

The communications,transportation,financial and distribution networks of a country are part of it's:

Accepted Answer

The communications, transportation, financial and distribution networks of a country are all part of its economic infrastructure. This infrastructure plays a crucial role in supporting and facilitating economic activity, including trade and investment, and therefore has a significant impact on a country's overall economic development.

Question 20

Why are international markets so important to many U.S.companies?

Accepted Answer

International markets provide a variety of benefits for U.S. companies, including access to untapped markets with potential for growth (C), the ability to diversify their customer base in the face of domestic market saturation (A), opportunities to mitigate the impact of unfavorable environmental trends affecting their industries (B), and the chance to offset competition from imports in their home markets (D). Therefore, all of these factors contribute to the importance of international markets for many U.S. companies.

Quiz 20: International Advertising and Promotion