Question 1

In Latvia, only one six-lane highway exists, connecting Riga, its capital, with Moscow. Otherwise, the roads are two lanes and many are made of cobblestones or bricks. This limits the speed with which deliveries can be made and requires that delivery trucks be quite small. The road network in Latvia is an example of problems with a country's

Accepted Answer

A)  capital improvements.
B)  fixed-asset base.
C)  geopolitical wealth.
D)  asset wealth.
E)  economic infrastructure.F) All of the above
G) C) and D)

Question 2

Yum! Brands, the restaurant division of PepsiCo, has 12,600 KFC restaurants abroad, with more than 3,700 restaurants in China. Many of the latter are locally owned and subject to a contractual agreement that allows the owners to operate the business under the established KFC brand name and according to specific rules. Yum! Brands is engaged in

Accepted Answer

A)  contract assembly.
B)  a joint venture.
C)  contract manufacturing.
D)  a partnership.
E)  franchising.F) B) and C)
G) A) and E)

Question 3

Which of the following is an advantage inherent in the use of licensing?

Accepted Answer

A)  The licensor retains control of its product.
B)  The licensor is protected from creating a potential competitor.
C)  It provides an exemption from domestic trade regulations.
D)  There is an increase in potential profit compared with direct investment.
E)  The licensee gains information about the dynamics of the market.F) A) and B)
G) B) and C)

Question 4

What market entry option allows a company to make the least number of changes in terms of its product, its organization, and even its corporate goals?

Accepted Answer

A)  exporting
B)  licensing
C)  joint venture
D)  direct investment
E)  franchisingF) A) and B)
G) A) and C)

Question 5

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. In which step of the distribution channel is it suggested that the channels can be very long or surprisingly short?

Accepted Answer

A)  the seller
B)  the seller's international marketing headquarters
C)  channels between nations
D)  channels within the foreign nation
E)  final consumerF) B) and E)
G) A) and E)

Question 6

Global companies have five strategies for matching products and their promotion efforts to global markets. The strategy of selling virtually the same product in other countries is referred to as

Accepted Answer

A)  product adaptation.
B)  product invention.
C)  brand adaptation.
D)  product extension.
E)  product integration.F) C) and D)
G) B) and C)

Question 7

What option for entering the global marketplace entails a domestic firm actually investing in and owning a foreign subsidiary or division?

Accepted Answer

A)  exporting
B)  joint venture
C)  direct investment
D)  franchising
E)  licensingF) A) and D)
G) C) and D)

Question 8

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

A)  the firm's financial capacity to take risks.
B)  the willingness and ability to embrace diversity and cultural differences.
C)  the firm's orientation toward and strategy for global markets and marketing.
D)  the relative position of the product or service in terms of its life cycle.
E)  the relative size of the firm both in financial terms and in production capacity.F) D) and E)
G) B) and C)

Question 9

A firm's profit potential and control over marketing activities __________ as it moves from exporting to direct investment as a global market entry strategy.

Accepted Answer

A)  becomes more stable
B)  increases
C)  levels off
D)  decreases
E)  becomes more unpredictableF) C) and D)
G) A) and C)

Question 10

The European Union is an economic and political union of __________ member countries that have eliminated most barriers to the free flow of products, services, capital, and labor across their borders.

Accepted Answer

A)  17
B)  20
C)  28
D)  30
E)  37F) C) and D)
G) A) and E)

Question 11

U.S. appliance manufacturers find that different customs about shopping must be used to determine local 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 firmly as Southern Europeans want them on the bottom. Based on this, U.S. appliance manufacturers would more likely be successful if they used __________ marketing strategy.

Accepted Answer

A)  a global
B)  a multidomestic
C)  a transnational
D)  a meganational
E)  an internationalF) A) and B)
G) None of the above

Question 12

The appreciation of fashion, music, and a desire for novelty and trendier designs and images

Accepted Answer

A)  are preferences found more in American teenagers than in most other cultures around the world.
B)  actually begin at age 10, but begin to decline significantly as students enter high school.
C)  ironically are found more for teenagers who cannot afford to make those purchases than for those who can.
D)  are preferences of teenagers around the world regardless of where they live.
E)  are often established early among European teens and they typically linger well into adulthood.F) A) and B)
G) A) and C)

Question 13

Which of the following is a disadvantage associated with licensing?

Accepted Answer

A)  The licensee pays lower wages and sells at lower prices.
B)  The licensor may create its own competition.
C)  The foreign government dislikes it because it does not increase local employment.
D)  This is the most expensive and risky method for global expansion.
E)  The firm's brand does not get international exposure.F) All of the above
G) B) and E)

Question 14

Currency exchange rate refers to

Accepted Answer

A)  the unit equivalency of all international currency.
B)  the ratio of a nation's basic unit of currency relative to the price of silver.
C)  the ratio of a nation's basic unit of currency relative to the price of gold.
D)  the price of one country's currency expressed in terms of another country's currency.
E)  the unit of wealth (gold, oil, diamonds, etc.)  upon which a nation bases its national currency.F) A) and B)
G) None of the above

Question 15

Starbucks and Tata Global Beverage have together formed TATA Starbucks Limited in order to bring Starbucks to India. The global market entry strategy is known as

Accepted Answer

A)  franchising.
B)  a joint venture.
C)  licensing.
D)  direct investment.
E)  exporting.F) C) and D)
G) B) and D)

Question 16

A global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as

Accepted Answer

A)  licensing.
B)  a joint venture.
C)  direct exporting.
D)  contract assembly.
E)  dual adaptation.F) All of the above
G) B) and D)

Question 17

The two global market entry strategies in which a company forgoes control of its product and governmental bureaucracy may bog down the effort are __________, respectively.

Accepted Answer

A)  exporting and licensing
B)  licensing and joint venture
C)  joint venture and direct investment
D)  exporting and direct investment
E)  exporting and joint ventureF) All of the above
G) A) and E)

Question 18

To eliminate the need to continually monitor currency exchange rates, __________ of the countries in the European Union (EU)  have adopted a common currency called the euro.

Accepted Answer

A)  11
B)  16
C)  20
D)  28
E)  32F) C) and D)
G) A) and E)

Question 19

Foreign countries with very low per capita incomes may still be attractive markets for some goods. To get a more reliable picture of a country's purchasing power, a country's __________ must also be considered.

Accepted Answer

A)  total income
B)  total area
C)  geographical location
D)  culture
E)  income distributionF) B) and D)
G) A) and B)

Question 20

Identify and describe the factors a company should consider in order to do a thorough cross-cultural analysis. In your answer, define cross-cultural analysis.

Accepted Answer

Cross-cultural analysis involves the stu...

Exam 7: Understanding and Reaching Global Consumers and Markets

What market entry option allows a company to make the least number of changes in terms of its product, its organization, and even its corporate goals?

Correct Answer
verified

Starbucks and Tata Global Beverage have together formed TATA Starbucks Limited in order to bring Starbucks to India. The global market entry strategy is known as

Correct Answer
verified

Correct Answer
verified

A firm's profit potential and control over marketing activities __________ as it moves from exporting to direct investment as a global market entry strategy.

Correct Answer
verified

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. In which step of the distribution channel is it suggested that the channels can be very long or surprisingly short?

Correct Answer
verified

A global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as

Correct Answer
verified

Which of the following is an advantage inherent in the use of licensing?

Correct Answer
verified

The European Union is an economic and political union of __________ member countries that have eliminated most barriers to the free flow of products, services, capital, and labor across their borders.

Correct Answer
verified

Which of the following is a disadvantage associated with licensing?

Correct Answer
verified

Global companies have five strategies for matching products and their promotion efforts to global markets. The strategy of selling virtually the same product in other countries is referred to as

Correct Answer
verified

To eliminate the need to continually monitor currency exchange rates, __________ of the countries in the European Union (EU) have adopted a common currency called the euro.

Correct Answer
verified

Identify and describe the factors a company should consider in order to do a thorough cross-cultural analysis. In your answer, define cross-cultural analysis.

Correct Answer
verified
Cross-cultural analysis involves the stu...
View Answer

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

What option for entering the global marketplace entails a domestic firm actually investing in and owning a foreign subsidiary or division?

Correct Answer
verified

Currency exchange rate refers to

Correct Answer
verified

The appreciation of fashion, music, and a desire for novelty and trendier designs and images

Correct Answer
verified

Foreign countries with very low per capita incomes may still be attractive markets for some goods. To get a more reliable picture of a country's purchasing power, a country's __________ must also be considered.

Correct Answer
verified

The two global market entry strategies in which a company forgoes control of its product and governmental bureaucracy may bog down the effort are __________, respectively.

Correct Answer
verified

Exam 7: Understanding and Reaching Global Consumers and Markets

What market entry option allows a company to make the least number of changes in terms of its product, its organization, and even its corporate goals?

Correct AnswerverifiedShow Answer

Starbucks and Tata Global Beverage have together formed TATA Starbucks Limited in order to bring Starbucks to India. The global market entry strategy is known as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A firm's profit potential and control over marketing activities __________ as it moves from exporting to direct investment as a global market entry strategy.

Correct AnswerverifiedShow Answer

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. In which step of the distribution channel is it suggested that the channels can be very long or surprisingly short?

Correct AnswerverifiedShow Answer

A global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as

Correct AnswerverifiedShow Answer

Which of the following is an advantage inherent in the use of licensing?

Correct AnswerverifiedShow Answer

The European Union is an economic and political union of __________ member countries that have eliminated most barriers to the free flow of products, services, capital, and labor across their borders.

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage associated with licensing?

Correct AnswerverifiedShow Answer

Global companies have five strategies for matching products and their promotion efforts to global markets. The strategy of selling virtually the same product in other countries is referred to as

Correct AnswerverifiedShow Answer

To eliminate the need to continually monitor currency exchange rates, __________ of the countries in the European Union (EU) have adopted a common currency called the euro.

Correct AnswerverifiedShow Answer

Identify and describe the factors a company should consider in order to do a thorough cross-cultural analysis. In your answer, define cross-cultural analysis.

Correct AnswerverifiedCross-cultural analysis involves the stu...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What option for entering the global marketplace entails a domestic firm actually investing in and owning a foreign subsidiary or division?

Correct AnswerverifiedShow Answer

Currency exchange rate refers to

Correct AnswerverifiedShow Answer

The appreciation of fashion, music, and a desire for novelty and trendier designs and images

Correct AnswerverifiedShow Answer

Foreign countries with very low per capita incomes may still be attractive markets for some goods. To get a more reliable picture of a country's purchasing power, a country's __________ must also be considered.

Correct AnswerverifiedShow Answer

The two global market entry strategies in which a company forgoes control of its product and governmental bureaucracy may bog down the effort are __________, respectively.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Cross-cultural analysis involves the stu...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified