Question 1

Sam Watkins just recently ate and, therefore, feels justified in refusing food from his Middle Eastern host. In this instance, Sam's self-reference criterion has just saved him from making a cultural blunder.

Accepted Answer

When faced with a problem in another culture, our tendency is to react instinctively and refer to our SRC for a solution. Our reaction, however, is based on meanings, values, symbols, and behavior relevant to our own culture and usually different from those of the foreign culture. Such decisions are often not good ones.

Question 2

The most profound change in the orientation of a company toward markets and associated planning activities happens at the "regular foreign marketing" stage of the international marketing involvement.

Accepted Answer

At the global marketing level, the most profound change is the orientation of the company toward markets and associated planning activities.

Question 3

Understanding one's own culture normally requires no additional study.

Accepted Answer

Understanding one's own culture may require additional study, because much of the cultural influence on market behavior remains at a subconscious level and is not clearly defined.

Question 4

A company at the "no direct foreign marketing" stage of international marketing involvement does not actively cultivate customers outside national boundaries.

Accepted Answer

A company in this stage does not actively cultivate customers outside national boundaries; however, this company's products may reach foreign markets. Sales may be made to trading companies as well as foreign customers who directly contact the firm.

Question 5

Of all the events and trends affecting global business today, four stand out as the most dynamic. Which of the following would be one of those events?

Accepted Answer

Of all the events and trends affecting global business today, four stand out as the most dynamic, the ones that will influence the shape of international business beyond today's "bumpy roads" and far into the future: (1) the rapid growth of the World Trade Organization and regional free trade areas such as the North American Free Trade Area and the European Union; (2) the trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and eastern Europe; (3) the burgeoning impact of the Internet, mobile phones, and other global media on the dissolution of national borders; and (4) the mandate to manage the resources and global environment properly for the generations to come.

Question 6

Which of the following is a controllable element for an international marketer?

Accepted Answer

Channels of distribution are directly controlled by the marketer and can be adjusted based on the target market's needs and preferences. The other options listed are generally external factors that cannot be directly controlled by the marketer.

Question 7

To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that emphasizes the need for ethnocentrism.

Accepted Answer

To avoid errors in business decisions, the knowledgeable marketer will conduct a cross-cultural analysis that isolates the SRC influences and maintains vigilance regarding ethnocentrism.

Question 8

A self-reference criterion is closely related to ethnocentrism.

Accepted Answer

The self-reference criterion is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions. Closely connected is ethnocentrism, that is, the notion that people in one's own company, culture, or country know best how to do things.

Question 9

John refuses to buy Japanese products because he sees this as a way of selling out to a nation known for its aggressive behavior. John is using a self-reference criterion to make his decision.

Accepted Answer

The SRC is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions. Closely connected is ethnocentrism, that is, the notion that people in one's own company, culture, or country know best how to do things.

Question 10

The most effective approach to build global awareness into an organization is to increase the diversity mix of the employee profile.

Accepted Answer

The most effective approach to build global awareness into an organization is to have a culturally diverse senior executive staff or board of directors.

Question 11

-Which of the following is the reason why the international marketer's task is more complicated than that of the domestic marketer?

Accepted Answer

The international marketer's task is more complicated than that of the domestic marketer because the international marketer must deal with at least two levels of uncontrollable uncertainty instead of one. Uncertainty is created by the uncontrollable elements of all business environments, but each foreign country in which a company operates adds its own unique set of uncontrollable factors.

Question 12

In dealing with unfamiliar markets, marketers must be aware of the frames of reference they are using in making their decisions.

Accepted Answer

In dealing with unfamiliar markets, marketers must be aware of the frames of reference they are using in making their decisions or evaluating the potential of a market, because judgments are derived from experience that is the result of acculturation in the home country.

Question 13

For an international marketer, the _____ can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives.

Accepted Answer

The controllable elements can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives.

Question 14

Which of the following is an uncontrollable element for an international marketer?

Accepted Answer

The structure of distribution is an uncontrollable element for an international marketer because it is determined by the existing distribution channels and infrastructure in the foreign market, which the marketer cannot change.

Question 15

Which of the following is NOT TRUE of the impact of globalization on domestic markets?

Accepted Answer

Companies with only domestic markets have found increasing difficulty in sustaining their customary rates of growth, and many are seeking foreign markets in which to expand.

Question 16

The global marketing concept views the marketplace as consisting of one primary domestic market that is complimented by several smaller regional markets.

Accepted Answer

At the global marketing stage of international marketing involvement, companies treat the world, including their home market, as one market.

Question 17

All of the following events and trends are among the four major trends described in the chapter as having a major impact or effect on global business EXCEPT:

Accepted Answer

Of all the events and trends affecting global business today, four stand out as the most dynamic, the ones that will influence the shape of international business beyond today's "bumpy roads" and far into the future: (1) the rapid growth of the World Trade Organization and regional free trade areas such as the North American Free Trade Area and the European Union; (2) the trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and eastern Europe; (3) the burgeoning impact of the Internet, mobile phones, and other global media on the dissolution of national borders; and (4) the mandate to manage the resources and global environment properly for the generations to come.

Question 18

Research has revealed that smaller home markets and larger production capacities appear to favor internationalization.

Accepted Answer

Research has revealed a number of factors favoring faster internationalization: (1) Companies with either high-technology and/or marketing-based resources appear to be better equipped to internationalize than more traditional manufacturing kinds of companies; (2) smaller home markets and larger production capacities appear to favor internationalization; and (3) firms with key managers well networked internationally are able to accelerate the internationalization process.

Question 19

Which of the following is the most critical difference between domestic marketing and international marketing?

Accepted Answer

The difference lies not with different concepts of marketing but with the environment within which marketing plans must be implemented. The uniqueness of foreign marketing comes from the range of unfamiliar problems and the variety of strategies necessary to cope with different levels of uncertainty encountered in foreign markets.

Question 20

_____ is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit.

Accepted Answer

International marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit.

Quiz 1: The Scope and Challenge of International Marketing