Question 1

Otis Elevators has entered into a strategic alliance with a company in France from which it gets its elevator door systems.It has a similar agreement with a manufacturer in Japan that provides it with special motor drives.A manufacturer in Spain has worked closely with Otis to create small geared parts necessary for the manufacture of elevators.The component parts are assembled at its plant in the United States.Otis elevators can be found in buildings all over the world.Otis Elevators is an example of a(n):
A) cultural marketer
B) global trader
C) multinational corporation
D) exporting company
E) global enterprise

Accepted Answer

Otis Elevators operates in multiple countries through strategic alliances and partnerships, indicating that it is a multinational corporation. Cultural marketing, exporting, and global trading typically do not involve such deep involvement in local markets, while a global enterprise typically has complete in-house production capabilities rather than relying on external partners.

Question 2

Global marketing standardization:
A) is becoming less popular with the large multinationals
B) encourages product,packaging,and advertising variations for each nation or local market
C) actually raises production costs
D) presumes markets throughout the world are becoming more alike
E) is more popular with consumer products rather than industrial goods

Accepted Answer

Global marketing standardization presumes that markets throughout the world are becoming more alike, which allows for a consistent global marketing strategy. This strategy can help reduce production costs by using economies of scale and streamlining operations. However, it may require some adaptations to local cultures and regulations. While it may be more popular with consumer products, it can also be used for industrial goods.

Question 3

Your firm,a maker of industrial parts,has never engaged in global marketing.You have just completed an examination of the firm's capabilities and the global environment in which it operates.Which of the following reasons might you employ to convince your boss to think globally?
A) To remain competitive domestically,the firm has to be competitive internationally.
B) A global vision enables managers to understand that customer and distribution networks operate worldwide.
C) The toughest domestic competition is increasingly coming from foreign competition.
D) Global marketing has become imperative for business because many marketing opportunities exist internationally.
E) All of these arguments can and should be offered to your boss.

Accepted Answer

All of these arguments are valid reasons to convince the boss to think globally. The firm needs to be competitive internationally to remain competitive domestically, a global vision helps in understanding global customer and distribution networks, foreign competition is increasing, and there are many marketing opportunities internationally. Therefore, all of these arguments should be offered to the boss.

Question 4

Cardiac Science,a U.S.manufacturer of defibrillators,heart monitoring devices,and other medical related devices,sells 85 percent of its products outside the United States.It sells basically the same product to a hospital in London,Tokyo,Pretoria,or Sydney.It uses the same promotional tactics in all of its markets.Cardiac Science:
A) is not concerned about media and messages used for international promotional efforts
B) uses global marketing standardization
C) assumes cultural uniformity and lifestyle differences occur across cultural settings
D) desires technological receptivity from country to country
E) assumes language acceptance in each country

Accepted Answer

Cardiac Science uses global marketing standardization by selling the same product and using the same promotional tactics in all of its markets. This suggests that the company believes in standardizing its marketing efforts across different countries rather than adapting to local cultures and lifestyles. Therefore, options A, C, D, and E are incorrect.

Question 5

Arista-Buvez,Inc.manufactures a specialized fish food designed to enhance the natural coloration of tropical fish.The product is exported to 27 countries.Arista-Buvez wants to convey similar messages to its target market in each country and has a small promotional budget.To ensure that the company fully meets the needs of all global markets,Arista-Buvez's most logical choice is to develop a new and unique promotional campaign for each country.

Accepted Answer

Developing a new and unique promotional campaign for each country would not be the most logical choice due to the small promotional budget. It would be more practical and cost-effective to develop a universal message and adapt it to each country's culture and language. This can be done through localization and customization of the promotional message.

Question 6

A company that is capital-intensive:
A) has an altered fiscal strategy for overseas operations
B) spends more on equipment than on labor
C) requires more money than commonly needed to expand globally
D) creates employment monopolies
E) must engage in countertrading due to restrictive foreign legislature

Accepted Answer

A capital-intensive company is one that relies heavily on expensive equipment, machinery, and other assets to operate. Therefore, it will spend more money on the purchase and maintenance of these assets than on labor costs.

Question 7

Individuals and organizations utilizing a global vision to effectively market goods and services across national boundaries are engaged in:
A) developing international selling schemes
B) implementing standard international marketing
C) implementing global marketing standardization
D) supplementing their foreign vision
E) practicing global marketing

Accepted Answer

Practicing global marketing involves utilizing a global vision to effectively market goods and services across national boundaries. This encompasses strategies such as standardization of marketing efforts, adapting to cultural differences, and understanding local regulations and business practices. The other options do not fully encompass the breadth of global marketing practices.

Question 8

Which of the following statements describes one of the benefits of increased global marketing?
A) Millions of Americans have filled jobs created by imports and production shifts abroad.
B) Because of world trade,inflation is less likely to arrest economic growth.
C) Because jobs are threatened by exports,employers are issuing pay-cut demands to their workers.
D) Export jobs typically pay less money than other jobs.
E) None of the statements describes an advantage derived from the increase in global marketing.

Accepted Answer

Increased global marketing leads to increased world trade, which in turn reduces the risk of inflation and contributes to economic growth. This is because it allows countries to specialize in areas where they have a comparative advantage and trade for goods and services they cannot produce efficiently themselves. Option A, C, D are not benefits but rather drawbacks or negative consequences of global marketing. Option E is incorrect as option B describes a benefit.

Question 9

A(n)_____ is a company heavily engaged in a global trade that moves its resources,goods,services,and skills across national boundaries.
A) international facilitator
B) global trader
C) multinational corporation
D) exporting company
E) international merchant

Accepted Answer

A multinational corporation (MNC) is a company that has operations and assets in multiple countries, and engages in global trade by moving its resources, goods, services, and skills across national boundaries. MNCs are typically large and powerful entities that have a significant impact on the global economy. The other choices (A, B, D, E) do not accurately describe the characteristics of a multinational corporation.

Question 10

When European demand for a certain solvent declined,Dow Chemical instructed its German plant to switch to manufacturing a chemical that had been imported from Louisiana and Texas.Dow Chemical would be best described as a(n):
A) global enterprise
B) global trader
C) cultural marketer
D) exporting company
E) multinational corporation

Accepted Answer

Dow Chemical is described as a multinational corporation because it has operations in multiple countries and can shift production to meet global market demand.

Question 11

Which of the following statements about global marketing is true?
A) Marketing to target markets throughout the world has become an imperative for business.
B) Often a U.S.firm's toughest domestic competition comes from foreign companies.
C) Marketing managers must develop a global vision not only to recognize and react to international marketing opportunities but also to remain competitive at home.
D) Adopting a global vision can be lucrative for a company,and global marketing can offset weak domestic performance.
E) All of these statements about global marketing are true.

Accepted Answer

All of the statements are true. Global marketing is necessary for businesses to stay competitive, as domestic competition can come from foreign firms. Marketing managers need a global vision to recognize and capitalize on international opportunities, and a successful global strategy can offset weak domestic performance.

Question 12

With a _____,a firm produces standardized products to be sold the same way all over the world.
A) traditional marketing strategy
B) global marketing standardization approach
C) product extension approach
D) culturally-based marketing strategy
E) synergistic approach to marketing

Accepted Answer

The global marketing standardization approach involves producing standardized products to be sold the same way all over the world. This approach aims to achieve economies of scale and cost savings by using a uniform marketing strategy and product design.

Question 13

Basketball is played nearly everywhere in the world and is an easily understood sport.The National Basketball Association (NBA)finals reached more than 600 million televisions in 195 countries.From this information,you should be able to infer that the NBA is:
A) developing international selling schemes
B) implementing standard international marketing
C) implementing global marketing standardization
D) supplementing its foreign vision
E) practicing global marketing

Accepted Answer

The fact that the NBA finals reached more than 600 million televisions in 195 countries suggests that the NBA is practicing global marketing, which involves treating the entire world (or major regions) as a single, integrated market and developing marketing programs to satisfy its needs. This goes beyond simply implementing standard international marketing, which involves using the same marketing mix in different countries, and suggests a more strategic approach to marketing in different regions of the world.

Question 14

The same Timex,Seiko,and Citizen wristwatches you buy in the United States can be purchased around the world.There is no difference in a watch purchased in Russia,in Mexico,or in Singapore because the manufacturers of these watches uses a:
A) ethnocentric strategy
B) global marketing standardization approach
C) synergistic approach to globalization
D) cultural marketing strategy
E) traditional approach to marketing

Accepted Answer

The passage clearly states that the same watches can be purchased in different countries, indicating that the manufacturer is using a global marketing standardization approach. This means that they are offering the same product and marketing strategy across different countries, rather than customizing it to fit local culture or preferences.

Question 15

Many people fear world trade because it:
A) will inevitably lead to inflation
B) will cause living standards to increase at a slower rate
C) causes some people to lose their jobs as production shifts abroad
D) has brought entire nations out of poverty
E) has increased per capita income for some countries

Accepted Answer

One of the drawbacks of world trade is that it can cause some people to lose their jobs as production shifts abroad. This can have a negative impact on the economy as well as individual livelihoods. However, it is important to note that world trade also has many benefits, such as increasing per capita income for some countries and bringing entire nations out of poverty. Therefore, it is important to weigh both the pros and cons of world trade before forming an opinion on the matter.

Question 16

Which of the following statements about multinational firms is true?
A) Multinationals typically do not change their methods of reaching their global markets if they are successful with their initial strategy.
B) Multinationals are defined as companies heavily engaged in exporting and importing.
C) All multinationals must enter the fourth stage of globalization before they are fully internationalized.
D) Multinationals often develop their global businesses in stages.
E) The five stages of globalization closely mirror the five stages of the product life cycle.

Accepted Answer

Multinationals often develop their global businesses in stages, such as exporting, licensing, establishing joint ventures, and acquiring foreign firms. The other options are incorrect: A is not necessarily true, as multinational firms may need to adjust their strategies to adapt to changing market conditions; B is too narrow a definition of multinationals, which engage in a range of cross-border activities beyond importing and exporting; C is not universally applicable, as there may be cases where multinationals do not follow a strict sequence of stages; and E is inaccurate, as the stages of globalization and product life cycle are distinct concepts with some overlap but different emphases.

Question 17

Some distribution strategies that are commonly used in other countries are illegal in the United States.

Accepted Answer

Different countries have different laws and regulations related to distribution strategies. Some strategies that are legal in other countries, such as exclusive dealing or resale price maintenance, are considered antitrust violations in the United States.

Question 18

The same rules that controlled bricks-and-mortar retailers are appropriate for any company that wants to become a part of the Internet economy.

Accepted Answer

The Internet economy operates under different dynamics, such as global reach, digital transactions, and rapid technological changes, which require different rules and strategies compared to traditional brick-and-mortar retail.

Question 19

Wave surfboards are produced in Australia and sold in both Australia and in the United States.The price in the United States for the surfboards is below the price charged for them in Australia.This is an example of dumping.

Accepted Answer

Dumping refers to selling products in a foreign market at a price lower than their normal value, in order to gain an unfair advantage over local competitors. In this case, the price of wave surfboards in the United States is below their normal value in Australia, which could be seen as an attempt to undercut American competitors or gain market share.

Question 20

Which of the following describes a common criticism of multinational companies?
A) the transference of the wrong kind of technology to a developing nation
B) excessive employment information
C) countertrading
D) the transference of labor-intensive technology
E) dumping

Accepted Answer

Multinational companies are often criticized for transferring inappropriate or outdated technology to developing nations, which may not be suitable for their needs or sustainable development.

Quiz 4: Developing a Global Vision27

Global marketing standardization:

Your firm,a maker of industrial parts,has never engaged in global marketing.You have just completed an examination of the firm's capabilities and the global environment in which it operates.Which of the following reasons might you employ to convince your boss to think globally?

A company that is capital-intensive:

Individuals and organizations utilizing a global vision to effectively market goods and services across national boundaries are engaged in:

Which of the following statements describes one of the benefits of increased global marketing?

A(n) _____ is a company heavily engaged in a global trade that moves its resources,goods,services,and skills across national boundaries.

When European demand for a certain solvent declined,Dow Chemical instructed its German plant to switch to manufacturing a chemical that had been imported from Louisiana and Texas.Dow Chemical would be best described as a(n) :

Which of the following statements about global marketing is true?

With a _____,a firm produces standardized products to be sold the same way all over the world.

Basketball is played nearly everywhere in the world and is an easily understood sport.The National Basketball Association (NBA) finals reached more than 600 million televisions in 195 countries.From this information,you should be able to infer that the NBA is:

The same Timex,Seiko,and Citizen wristwatches you buy in the United States can be purchased around the world.There is no difference in a watch purchased in Russia,in Mexico,or in Singapore because the manufacturers of these watches uses a:

Many people fear world trade because it:

Which of the following statements about multinational firms is true?

Some distribution strategies that are commonly used in other countries are illegal in the United States.

The same rules that controlled bricks-and-mortar retailers are appropriate for any company that wants to become a part of the Internet economy.

Wave surfboards are produced in Australia and sold in both Australia and in the United States.The price in the United States for the surfboards is below the price charged for them in Australia.This is an example of dumping.

Which of the following describes a common criticism of multinational companies?