BUS 346 Chapter 8

When shopping for a car, you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of____
a tariff
Cultural nuances, subcultures, and consumers’ different views of their roles in different countries can make __________ complicated.
segmenting, targeting, and positioning
Many of the best-known American retailers, like Starbucks and McDonalds, have expanded globally using
franchising
In the 1970s and 1980s, __________ dominated the global marketplace because they could exploit their skills in production, materials management, and new product development.
Japanese Firms
Franz lives in a country where he and his friends have disposable income, in spite of the fact that their average income is $650 per month, because they have no debt and don’t save money. Franz most likely lives in
Russia
China has three main languages, and many more dialects. This presents a particular challenge to developing a global ________ strategy.
communication
Why should marketers be aware of the BRIC countries?
They are likely to be the source of most market growth
Chris laughed at some of the cultural mistakes companies made in advertising and promotion in international trade while he was in school. Now he was trying to determine what had gone wrong with the campaign he had planned in Latin America for his company’s product, and it didn’t seem quite as amusing. He narrowed the issues down to sociocultural factors. He was looking at both __________ and __________.
visible artifacts; underlying values
Which of the following is a potential negative factor for foreign investment in China?
China’s population is aging rapidly.
In most cases, countries use tariffs to reduce foreign competition, but tariffs are also used
as a response to perceived unfair trade practices
Of the five strategies for entering new markets, direct investment creates the
greatest potential risk
Culture affects
every aspect of consumers’ purchase decisions.
Which of the following trade agreements is designed to manage and promote trade activities for the United States, Canada, and Mexico?
NAFTA
Many developed countries are experiencing __________ population growth.
zero or negative
China, like many other countries, usually requires entering firms to create _________ when expanding into their markets, limiting outsiders’ control of businesses.
joint ventures
The most important consideration when a firm chooses a global product strategy should be
opportunities for countertrade.
Which of the following global entry strategies is being used if a company collaborates with a competitor on a globally based opportunity for mutual benefit, but the competitors do not invest in each other?
direct investment
Changes in tariffs and quotas are
government actions that reduce competition from international firms
Globalization refers to the process by which goods, services, capital, people, and ideas
flow across national borders.
Global segmenting, targeting, and positioning are more complicated than domestic segmenting and positioning because of cultural nuances, significant subcultures within countries, and
differences in the way consumers see themselves and in the way they see products and services.
If you visit a Kentucky Fried Chicken restaurant in China, you will find congee, a rice porridge that can feature pork, pickles, mushrooms, and preserved egg, on the menu. This is an example of which global product strategy?
Sell totally new products or services.
During the early stages of globalization, in the 1950s and 1960s, _______________ were uniquely positioned in the global marketplace because they had the skills necessary to develop, promote, and market brand name consumer products.
large U.S. firms
Global pricing strategies should be consistent with
positioning strategies.
Which country has a large literate population, which has helped it move up to become the world’s seventh largest economy?
Brazil
Which country is projected to become Europe’s largest online market in the next few years, with Internet users growing at a rate of 15 percent annually?
Russia
Global segmentation, targeting, and positioning (STP) are more complicated than local STP, in part because
consumers may view their roles differently in different countries.
Which of these is NOT one of the BRIC countries?
Bulgaria
Domestic firms developing a global entry strategy might consider franchising; however, the disadvantages need to be considered. Which of these is NOT a disadvantage of franchising?
Franchising is the riskiest way to enter a foreign market.
When entering a foreign market, the least risky strategy is
exporting
Brands can be extremely valuable domestically, but challenging internationally. Companies can help to overcome language difficulties in using brands by
developing brand names that are meaningless in known languages.
Mary wants to sell her products in Europe, since they are doing well in the U.S. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with
exporting her products.
The most common measure of market potential of an economy is a country’s
GDP
When Ford Motor Company decided to sell the Fiesta—in the same form and design—around the globe, instead of selling different versions in different countries, this was part of Ford’s global ________ strategy.
product
Graham had developed an extremely successful advertising and promotion campaign for a client in the United States. The client wanted to roll out the same campaign to markets worldwide, but Graham cautioned against doing this, most likely because
differences in languages, customs, and culture might make the campaign meaningless and ineffective in some markets.
As part of efforts to stimulate economic development in Africa, the Gates Foundation announced that it would provide cellular phones to farmer cooperatives. The Gates Foundation recognized problems in __________ exist in many African markets.
communication
To determine the market potential for its particular product or service, a firm should use
as many metrics as it can obtain.
Which of the following is currently a negative factor for foreign investment in Russia?
Russia is known for corruption, creating ethical dilemmas for firms.
Which country has embraced market-oriented economic development in spite of maintaining communist political ideals?
China
Marketers sometimes use Hofstede’s cultural dimensions to design marketing campaigns
consistent with underlying cultural values in a country.
Sydney’s Emporium has 59 stores in the U.S. and wants to expand globally. Sydney’s wants to achieve the highest possible returns, and is not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Sydney’s is most likely
direct investment.
Which of the following best describes the direct investment global entry strategy?
With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country
Which statement about India’s population is TRUE?
India’s workforce is highly skilled, particularly in technology.
When firms pool their resources to enter a new market, they create a
joint venture.
Global expansion often begins with
an order from another country.
NCD company wants to expand into the Mexican market. It has the financial resources, wants to control business operations, and has had considerable success marketing to Hispanics in the United States. NCD will likely use __________ to expand into the Mexican market.
direct investment
Global marketers are under constant pressure to shorten distribution channels to
reduce costs.
GDP is defined as
the market value of goods and services produced in a country in a year.
When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as
exporting.
One Laptop Per Child is a nonprofit initiative with the goal of making extremely low-cost laptops available to children in the developing world to help them learn skills, with the goal of helping them to learn skills needed in today’s workforce. If some of the low-cost technology developed for this laptop found its way into laptops created for U.S. consumers, this would be an example of
reverse innovation.
Exchange control refers to the regulation of a country’s
currency exchange rate.
Geert Hofstede’s cultural dimensions concept focuses on five dimensions of __________ in a country.
a. symbols
b. visible artifacts
c. dress
d. underlying values
e. ceremonies
d
GDP is defined as
Select one:
a. the value of a country’s exports minus its imports.
b. great domestic product.
c. the gross purchasing power of domestic goods and services plus international income.
d. national income minus national taxes.
e. the market value of goods and services produced in a country in a year.
e
The shift of population from rural to urban areas in countries such as India helps global marketers by
Select one:
a. simplifying the supply chain needed to make goods and services available.
b. decreasing pollution.
c. increasing the human development index.
d. decreasing competition for intellectual capital.
e. increasing nonmaterial GDP output.
a
Global expansion often begins with
Select one:
a. an order from another country.
b. direct investment.
c. franchising.
d. joint ventures.
e. strategic alliances.
a
Global marketers are under constant pressure to shorten distribution channels to
Select one:
a. reduce trade deficits.
b. afford tariffs.
c. reduce costs.
d. meet trade agreement guidelines.
e. improve promotion efficiency.
c