International Marketing Pearson My Lab Test Ch. 1-4

In the past one hundred​ years, the most fundamental change in the world economy is​ ________.
the emergence of global markets
Economic growth is measured by gross domestic product​ (GDP) and reflects a​ nation’s ________.
productivity
In​ ________, the state has the broad powers to decide what goods and services are produced and in what quantities. This system is not based on consumer demand.
centrally planned socialism
Which of the following explains why​ Sweden’s economic system is considered a hybrid of capitalism and centrally planned​ socialism?
Sweden operates a​ so-called “welfare​ state.”
The World Bank has developed a classification system that uses​ ________ as a base.
per capita gross national income
Which of the following World Bank classifications includes countries that are developing or​ industrializing?
Upper-middle-income countries
The record of all economic transactions between the residents of a country and the rest of the world is called​ ________.
Balance of Payments
A​ ________ results when the outflow of money to pay for imports exceeds the inflow of money from the sale of exports.
trade deficit
In​ 2012, which of the following countries was the​ world’s leading​ exporter?
China
The United States is a major trader in​ ________, the fastest growing segment of world trade.
services
Currency devaluation impacts buyer behavior because​ ________.
devalued currency can lead decreased consumer buying power
​___________reflects the impact of currency on a​ company’s financial performance.
economic exposure
Which of the following organizations was the predecessor to the​ WTO?
The General Agreement on Tariffs and Trade​ (GATT)
Which of the following is the division of the World Trade Organization responsible for mediating complaints concerning unfair trade​ barriers?
Dispute Settlement Body
The ultimate goal of​ ________ is to have zero duties on goods that cross the borders between free trade partners.
a free trade agreement
Which of the following best describes an economic​ union?
An agreement that seeks to coordinate economic and social policies to facilitate the free flow of​ capital, labor, and goods and services from country to country.
The​ ________ is the trade agreement among the United​ States, Canada, and Mexico.
North American Free Trade Agreement​ (NAFTA)
What is the key difference between NAFTA and an economic​ union?
The economic union provides free flow of labor between countries.
In Latin​ America, the Common Market of the South​ (Mercosur) actually operates as​ a(n) ________.
customs union
Which of the following Mercosur members has a gross domestic product​ (GDP) greater than the combined GDP of the other eight​ members?
Brazil
Which of the following was the most significant challenge to a fully integrated ASEAN economic​ community?
Lack of consensus among all ASEAN member nations
Which of the following is a forum that brings together political leaders with mutual interest in the Asian​ market?
The​ Asia-Pacific Economic Cooperation​ (APEC)
Which of the following measures human​ well-being in a​ country?
Gross National Happiness​ (GNH)
Which of the following helps describe the European Union​ (EU)? ________.
The 28 nation members of the EU constitute the​ world’s largest economy.
Which of the following is the key regional organization in the Middle​ East?
The Gulf Cooperation Council​ (GCC)
A key to conducting business in the Middle East is​ ________.
connection
Which of the following best describes the purpose of the African Growth and Opportunities Act​ (AGOA) signed into law in​ 2000?
To encourage African nations to make progress toward economic liberalization
Which of the following members of the South African Development Community​ (SADC) represents about​ seventy-five percent of the income in the​ region?
South Africa
________ can be defined as​ “ways of​ living, built up by a group of human beings that are transmitted from one generation to​ another.”
culture
Material and​ non-material elements of culture are​ ________.
interrelated and interactive
In a​ high-context cultural​ orientation, which of the following is of low​ importance?
legal documents
Which of the following is most common in a​ low-context culture?
Explicit legal documentation
Which of the following of​ Hofstede’s dimensions of culture can be applied to acquiring money and​ goods, but also valuing relationships and concern for​ others?
Achievement/nurturing
According to​ Hofstede, a culture where people are open to new ideas and are willing to take risks is considered​ ________.
low uncertainty avoidance
Which of the following best defines the​ self-reference criterion?
The unconscious tendency for perceptual blockage and distortion.
Which of the following steps of the framework designed to reduce the distortion from​ self-reference criterion​ (SRC) is most​ critical?
Isolate the SRC influence and examine it carefully to see how it complicates the problem.
________ is the first stage of​ Rogers’ diffusion theory of an adoption process.
Awareness
Of the five adopter​ categories, which of the following would be the first to adopt a new idea or a new​ product?
Innovators
________ reflects the extent to which products must be adapted to the​ culture-specific needs of different national markets.
environmental sensitivity
Which of the following categories of products is considered one with high environmental​ sensitivity?
Food
Which of the following is true about​ Starbucks’ growth​ strategy?
It uses all four of the growth strategies.
Which of the following defines diversification growth​ strategy?
New products for new markets
Which of the following is most important for a company in order to achieve competitive advantage in the global​ marketplace?
Focus
Which of the following best defines competitive​ advantage?
Creating more perceived value for customers than the competitors do
A​ single-country marketing strategy addresses which of the following pairs of fundamental​ issues?
Choosing a target market and developing a marketing mix
In addition to developing a marketing​ strategy, a global marketing strategy​ (GMS) requires managers to recognize the necessary extent to which​ ________ is needed.
adaptation
Fortune​ magazine’s Global 500 rankings are based on which of the​ following?
revenues
Most of the companies in the Global 500 rankings​ ________.
are key players in the global marketplace
Managers who assume that products and strategies that succeed in the home country will succeed anywhere reflect​ a(n) ________ orientation.
ethnocentric
Which of the following best describes the geocentric management​ orientation?
It views the entire world as one potential market and strives to develop integrated global strategies.
Which of the following best states the purpose of the World Trade Organization​ (WTO)?
To promote and protect free trade
Which of the following is a barrier to trade based on hostility towards​ globalization?
Globalaphobia
Maslow’s Hierarchy of Needs
1. self actualization
2. self esteem needs
3. belongingness and love needs
4. safety needs
5. physiological needs
Geographically large
Significant populations
Sizable markets
Growth
Politically important in region
Regional economic drivers
Expansion into neighboring markets
Big Emerging Markets
Low population growth erodes economic growth. How countries react to:
-Aging population
-Shrinking talent pool
#1: People Matter
-Cycles of complacency and revolt fuel economic booms and busts.
-How countries react to change and crisis.
#2: Circle of Life
-Social tension over inequality.
-Which countries most or least threatened by ill-gotten wealth.
-Good to create wealth but balanced.
#3: Good Billionaires, Bad Billionaires
-Degree to which state meddles in the economy.
-Level of government spending as share of GDP – less is better.
-Whether government resources go toward productive ends.
-Misuse of state companies and banks to achieve political goals.
-Extent to which governments allow private companies to grow.
#4: Perils of State
Extent to which countries make the most of their geographic location.
-Opening trade with neighbors and the world.
-Balance growth in major cities and provisional regions
#5: Geographic Sweet Spot
Manufacturing is the ticket out of poverty (over agriculture and services).
-Investing rising or falling – state encourages companies to invest.
-Good and bad investments – innovation and new technology good.
-Developed economies shift to services catering to middle class – investment lower % of GDP.
-Role of productivity.
#6: Factories First
Rate of inflation (high or low).
-Stable low inflation leads to economic growth.
#7: Price of Onions
Currency valuation relative to inflation.
-Real Effective Exchange Rate (REER)
-The Economist “Big Mac Index”
-Deutsche Bank’s annual Mapping the World’s Prices Report (iPhone 6 and Levi 501)
-Cheap and stable currency is good.
-Follow the locals to spot crisis or recovery.
#8: Cheap is Good
Avert it or buckle under it.
-Is private debt growing faster or slower than the economy?
#9: Kiss of Debt
How a country is portrayed by global opinion leaders.
-Media infatuation is a bad sign for the economy.
-Indifference is good.
#10: The Hype Watch
Major international marketing theme
Think global, act local
Other international marketing themes
-standardization vs. adaptation
-risk vs. rewards
-predictable vs. stable
-control
-short term vs. long term
4 P’s of Marketing
-product
-promotion
-price
-placement
SIVA
-satisfy/solve
-inform
-value
-accessible
FAB
-features
-advantages
-benefits
AIDA
-attention
-interest
-desire
-action
4 separations of buyer behavior
-needs
-wants
-demands
-delights
most critical difference between domestic and international marketing
the environment in which marketing plans must be implemented
the number one rule of international marketing
find out consumers’ wants and needs and fulfill them
can understand buyer behavior through…
market research
SWOT
-strengths
-weaknesses
-opportunities
-threats
STEEPLD
-sociocultural
-technology
-environment
-economy
-politics
-legal
-demographics
________ is never a strength or weakness for a company
pricing
______ helps differentiate a company from their competitors
unique selling proposition (USP)
two stages of AIDA
1. share of mind (want their company to be the first you think of)
2. share of heart (how they feel about it)
have to anticipate and predict what your company should do
forecasting
have to make sure you translate correctly, both the slogans and product names
marketing blunders
the heart and soul of any product is the ____ and _____
functionality and attributes
it is a bad thing to have an ________ viewpoint/mindset
ethnocentric
-think that your business is better than everyone else
-clouds your view of the market and the world
-think that since you do it one way in your country that it will work the same in other countries too
ethnocentric
important to have _____ and _____ in global marketing in order to admit your way of doing something is not always the best
empathy and humility
-dated outlook
-tend to view the whole world as your playground
-look at many countries
polycentric orientation
-each company specializes in something and they share it with each other
-countries are stronger through this
Free Trade Agreement (FTA)
higher level of agreement
customs union
-countries are still independent, but said they’d be stronger together
common market
-free flow of goods between Canada, Mexico, and the United States
NAFTA
commercials need to have _______
appeal
things in countries that you don’t want to do
cultural electives
things in countries that you have to do
-ex. in china you have to accept the tea or else it is an insult
cultural imperatives
-when you have to know your place
-ex. buddhist keeps walking in the temple and you need to know when to stop
cultural exclusives
culture based on your words
low context culture
culture based on how you say it
high context culture
-this man put number to countries and ranked them accurately based on their companies
-came up with the 6 dimensions
Gerard Hofstede
What are Hofstede’s 6 dimensions?
1. power distance
2. individualism/collectivism
3. masculinity/femininity
4. uncertainty avoidance
5. long term orientation
6. indulgence/restraint
benefits to customers if it exceeds the price (high/low isn’t relevant)
value
customers that are willing and able to buy
market
when companies go global, they can get competitive advantage through ____ and ____
SWOT and having leverage
looking at segments of the world based on regions (target regions, not whole countries)
regiocentric
flow of information, trade agreements, and protectionism are examples of _____
global forces
countries evolve from rural to finding some factor of production that help them collect _________
foreign direct investment
selling below your manufacturing cost
dumping
three stages of how countries come together
1. free trade areas
2. customs union
3. economic union
Bolivia, Chile, Peru, Colombia, Ecuador and Suriname
countries of Mercosur
the process by which an individual adopts a new idea
-includes the adoption process, characteristics of innovations, and adopter categories
diffusion theory
the mental stages through which an individual passes from the time of his or her first knowledge of an innovation to the time of product adoption or purchase
adoption process
a treaty among nations whose governments agreed to promote trade among members
general agreement on tariffs and trade (GATT)
provides a forum for trade-related negotiations among its 160 members
world trade organization (WTO)