Question 1

Which of the following elements in the marketing environment poses a challenge to both domestic and international marketers due to its dominantly uncontrollable nature?
A) Price
B) Promotion
C) Research activities
D) Political/legal forces
E) Channels of distribution

Accepted Answer

Political/legal forces represent the uncontrollable element that domestic and international marketers need to consider. Refer to Exhibit 1.3-The International Marketing Task.

Question 2

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 3

Which of the following is an uncontrollable element for an international marketer?
A) Firm characteristics
B) Channels of distribution
C) Price
D) Research
E) Level of technology

Accepted Answer

The uncontrollable elements of the foreign environment are political/legal forces, economic forces, competitive forces, level of technology, structure of distribution, geography and infrastructure, and cultural forces. Refer to Exhibit 1.3-The International Marketing Task.

Question 4

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

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 5

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.
A) competitive structure
B) economic climate
C) structure of distribution
D) environmental factors
E) controllable elements

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. The controllable elements include product, price, promotion, distribution, and research activities.

Question 6

The 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 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 maintain vigilance regarding ethnocentrism.

Question 8

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

Accepted Answer

A company in the stage of "no direct foreign marketing" 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 9

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 10

Which of the following is a controllable element for an international marketer?
A) Level of technology
B) Geography and infrastructure
C) Channels of distribution
D) Cultural forces
E) Competitive forces

Accepted Answer

Channels of distribution represent a controllable element for an international marketer. 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. Refer to Exhibit 1.3-The International Marketing Task.

Question 11

_____ 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.
A) Internal marketing
B) Importing
C) Performance appraisal
D) International marketing
E) Domestic trade

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.

Question 12

Which of the following is the most critical difference between domestic marketing and international marketing?
A) The difference in marketing principles being followed
B) The different concepts of marketing
C) The difference in marketing theories being followed
D) The environment in which marketing plans must be implemented
E) The basic processes used to market products and services

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 13

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 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 14

Companies from _____ lead in foreign investment in the United States.
A) Kingdom of Saudi Arabia
B) Japan
C) the Netherlands
D) the United Kingdom
E) Canada

Accepted Answer

Foreign investment in the United States is more than $3 trillion. Companies from the United Kingdom lead the group of investors, with companies from Japan, the Netherlands, Canada, and France following, in that order.

Question 15

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 use 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 16

Which of the following is an essential requirement for already experienced as well as new firms to succeed in international markets?
A) Adhering strictly to their traditional methods of production and operations
B) Focusing primarily on their production to exclusively meet domestic demand
C) Venturing into multiple markets by investing in all of them at once
D) Committing themselves completely to foreign markets
E) Having beneficial relations with lobbyists of foreign markets

Accepted Answer

For firms venturing into international marketing for the first time and for those already experienced, the requirement is generally the same: a thorough and complete commitment to foreign markets and, for many, new ways of operating.

Question 17

Which of the following is the most dynamic trend that is affecting current global business strategies?
A) The trend toward buying American cars in Europe
B) The trend toward the acceptance of the free market system among developing countries
C) The trend toward using English as the global language
D) The trend toward establishing a world currency
E) The trend toward providing aid to developing and less developed nations

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

Sam just ate cookies and, therefore, feels justified in refusing food offered by 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 19

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 uses 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 20

Which of the following is true regarding the impact of globalization on domestic markets in the United States?
A) Companies with only domestic markets have been able to sustain their customary rates of growth.
B) Multinational companies are making more profits from their domestic operations compared to their earnings from the foreign markets.
C) Only multinational companies with large production facilities have outperformed their strictly domestic U.S. counterparts.
D) The domestic companies have reduced their manufacturing employment more than U.S. multinationals.
E) Multinational manufacturing companies in all industries and sizes have outperformed their domestic counterparts.

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. Companies with foreign operations find that foreign earnings are making an important overall contribution to total corporate profits. Multinationals of all sizes and in all industries outperformed their strictly domestic U.S. counterparts. Furthermore, U.S. multinationals reduced their manufacturing employment, both at home and abroad, more than domestic companies.

Quiz 1: The Scope and Challenge of International Marketing

Which of the following elements in the marketing environment poses a challenge to both domestic and international marketers due to its dominantly uncontrollable nature?

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

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

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

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.

The self-reference criterion is closely related to ethnocentrism.

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

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

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

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

_____ 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.

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

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

Companies from _____ lead in foreign investment in the United States.

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

Which of the following is an essential requirement for already experienced as well as new firms to succeed in international markets?

Which of the following is the most dynamic trend that is affecting current global business strategies?

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

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 uses a self-reference criterion to make his decision.

Which of the following is true regarding the impact of globalization on domestic markets in the United States?