Question 1

In terms of the global marketplace there are three primary types of companies: international firms, __________ firms, and transnational firms.

Accepted Answer

The three primary types of companies in the global marketplace are international firms, multinational firms, and transnational firms. Multinational firms operate in multiple countries and have a decentralized management structure where decisions are made at the local level. They may adapt their products or services to fit the local market.

Question 2

Many international firms, multinational firms, and transnational firms have administrative marketing, and manufacturing operations (often called __________) around the world.

Accepted Answer

Divisions or subsidiaries are the common terms used to describe administrative, marketing, and manufacturing operations of international, multinational, and transnational firms. Divisions or subsidiaries are essentially separate entities that operate under the umbrella of the parent company, and they're given a certain degree of autonomy in their operations. The use of divisions or subsidiaries enables companies to better navigate the local business landscape, comply with local laws and regulations, and respond to the unique needs and demands of local markets.

Question 3

Generally speaking, a(n) __________ firm markets their existing products and services in other countries the same way they do in their home country.

Accepted Answer

An international firm markets their existing products and services in other countries the same way they do in their home country. This means that they do not adjust their products or marketing strategies to meet the unique needs and preferences of the foreign market. This approach is often seen as simplistic and may not be effective in competitive global markets.

Question 4

Multidomestic marketing strategy refers to

Accepted Answer

A multidomestic marketing strategy involves tailoring products, brand names, and advertising to fit the specific needs and preferences of each country in which a firm operates.

Question 5

FIGURE 7-2 
-Pepsi-Cola, now available in more than 190 countries and territories.Figure 7-2 above-"How to make jeans last 10 years" - is targeted at

Accepted Answer

The phrase "How to make jeans last 10 years" suggests a focus on practicality and longevity, which would appeal to weight-conscious consumers who may be concerned about maintaining their size and fit over time.

Question 6

When firms originate, produce, and market their products and services worldwide, it is referred to as __________.

Accepted Answer

The answer of When firms originate, produce, and market their...

Question 7

Companies that use a(n) ___________ marketing strategy have as many different product variations, brand names, and advertising programs as countries in which they do business.

Accepted Answer

The multidomestic marketing strategy allows for customization of product variations, brand names, and advertising programs to fit the specific market in each country where the company does business. This strategy recognizes the cultural and regulatory differences between countries and adapts to them.

Question 8

The strategy used by firms that have as many different product variations, brand names, and advertising programs as countries in which they do business is referred to as a(n)

Accepted Answer

The multidomestic strategy involves adapting products, brands, and marketing strategies to meet the specific needs of each country or region in which a firm operates. This often results in a high degree of variation across different markets, with unique product offerings, brand names, and advertising campaigns tailored to local preferences.

Question 9

Three types of companies populate and compete in the global marketplace: international firms, multinational firms, and __________ firms.

Accepted Answer

The term for the third type of company competing in the global marketplace is "transnational." This refers to companies that operate in multiple countries and have a decentralized management structure, while still maintaining a global strategy and identity.

Question 10

A(n) __________ firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.

Accepted Answer

An international firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country. The firm may adapt its marketing strategy to fit local conditions but keeps the same overall approach across all countries. This is different from a multinational or transnational firm, which may have more decentralized operations and adapt their strategies more extensively to local markets. A polycentric firm focuses primarily on each individual local market and may have little coordination or consistency between different country operations. A foreign expansion strategy simply involves expanding into new countries, but does not necessarily imply a specific marketing strategy.

Question 11

Mars, America's second-largest candy company began doing business in Russia in the late 1980s.The Snickers bar is one of the top selling candies in Russia and is marketed in much the same way as it is in the United States.Mars is most likely a(n) __________ firm.

Accepted Answer

Mars is an international firm because it operates in multiple countries, including Russia and the United States.

Question 12

Pepsi-Cola, now available in more than 190 countries and territories, accounts for __________ percent of all soft drinks sold internationally.

Accepted Answer

The answer of Pepsi-Cola, now available in more than 190...

Question 13

In terms of the global marketplace there are three primary types of companies: international firms, multinational firms, and transnational firms.The key factor that distinguishes one from another is

Accepted Answer

The factor that distinguishes the three primary types of companies in the global marketplace is their orientation toward and strategy for global markets and marketing. International firms focus on exporting products to foreign markets, multinational firms have a decentralized approach and adapt their products to local markets, while transnational firms have a global strategy that integrates all their operations to create a seamless experience for customers worldwide. Financial capacity, willingness to embrace diversity, relative position of the product/service, and size of the firm are all relevant factors but not the key factor that differentiates the types of companies in the global marketplace.

Question 14

A firm that views the world as consisting of unique parts and markets to each part differently is referred to as a(n)

Accepted Answer

A multinational firm views the world as consisting of unique parts and markets to each part differently, adapting its products and marketing strategies to fit the local markets.

Question 15

In terms of the global marketplace there are three primary types of companies: international firms, multinational firms, and __________ firms.

Accepted Answer

Transnational firms are similar to multinational firms in that they operate in multiple countries, but they differ in that they have a decentralized management structure where decision-making is distributed among various country offices, rather than being centralized at the home office. This allows for greater flexibility and responsiveness to local markets, making them ideal for the global marketplace. Domestic, intercontinental, and worldwide firms do not accurately describe the types of companies in the global marketplace. Cosmopolitan is not a commonly used term to describe types of companies in the global marketplace.

Question 16

U.S.appliance manufacturers find that different customs about shopping must be used to determine product design.For instance, people in Northern Europe shop only once a week, so they need bigger refrigerators than Southern Europeans who shop daily.Furthermore, Northern Europeans insist that freezers should be on the top just as loudly as Southern Europeans insist that freezers should be on the bottom.Other regions use their appliances differently and have other different product demands.Given this information, you should conclude U.S.appliance manufacturers would be more likely successful if they used a(n) __________ marketing strategy.

Accepted Answer

A multidomestic marketing strategy involves customizing products to fit the unique needs and preferences of different markets, which aligns with the need to adapt to varying customs and demands in different regions.

Question 17

In terms of the global marketplace there are three primary types of companies: __________, multinational firms, and transnational firms.

Accepted Answer

The three primary types of companies in the global marketplace are international firms, multinational firms, and transnational firms. While "worldwide" and "cosmopolitan" could potentially describe some companies in the global marketplace, they are not the three primary types typically recognized by scholars and business professionals. "Conglomerate" is also not an accurate choice as it refers to a company that owns multiple businesses in unrelated industries.

Question 18

A(n) __________ firm views the world as one market and emphasizes universal consumer needs and wants more than differences among cultures.

Accepted Answer

A transnational firm operates with the mindset that the world is one global market and focuses on satisfying universal consumer needs and wants instead of cultural differences. This approach requires a high level of integration and coordination among the different operations of the firm to ensure consistent and efficient operations across different markets.

Question 19

Global competition refers to

Accepted Answer

Global competition refers to firms that originate, produce, and market their products and services worldwide. Option A refers to international marketing, while options C, D, and E do not fully capture the concept of global competition.

Question 20

Lever Europe, a division of Unilever, markets its fabric softener known as Snuggle in the United States in 10 European countries under seven brand names, including Kuschelweich in German, Coccolino in Italy, and Mimosin in France.These products have different packages, different advertising programs, and occasionally different formulas.From this information we can assume that Lever Europe is a(n) __________ company.

Accepted Answer

Lever Europe is a multidomestic company because it adapts its products and marketing strategies to fit the specific needs and preferences of each country it operates in, as evidenced by the different brand names, packaging, advertising, and formulas used in different countries.

Quiz 7: Understanding and Reaching Global Consumers and Markets