International Marketing-Chapter 1

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Business Marketing

For companies today, becoming international is a luxury only some can afford.

False

Companies from Japan are the leading group of investors in the United States.

False

International marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit.

True

The difference between domestic and international marketing lies in the different concepts of marketing.

False

The international marketer must deal with at least two levels of uncontrollable uncertainty.

True

A good illustration of an uncontrollable variable that might impact international business is a marketing decision with respect to research.

False

The foreign uncontrollable environment is the same as the domestic uncontrollable environment.

False

The level of technology is an uncontrollable element for international marketers.

True

The uncontrollable factors a company has to deal with decreases with the number of foreign markets in which a company operates.

False

The controllable elements can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives.

True

Political and legal forces, economic climate, and competition are some of the domestic environment controllable.

False

Domestic foreign policy is an example of an international uncontrollable element affecting a firm's international marketing success.

True

Abolition of apartheid in South Africa is an example of a positive uncontrollable element in an international marketing scenario.

True

The international marketer is not affected by domestic competition.

False

The process of evaluating the uncontrollable elements in an international marketing program involves substantial doses of cultural, political, and economic shock.

True

One uncontrollable element that is generally well understood is the level of technology.

False

Political and legal issues a company may face abroad are mitigated by the "alien status" of the company.

False

In a domestic situation, political details and the ramifications of political and legal events are often more transparent than they are in some foreign countries.

True

The political and legal environment is a controllable element for international marketers because of the ability to lobby and influence legislation.

False

In a broad sense, uncontrollable elements of the foreign business environment constitute the culture.

True

In dealing with unfamiliar markets, marketers must be aware of the frames of reference they are using in making their decisions.

True

John refuses to buy Japanese products because he sees this as a way of selling out to a nation known for its aggressive behavior. John is using a self-regerence criterion to make his decision.

True

A self-reference criterion is closely related to ethnocentrism.

True

Sam Watkins just recently ate and, therefore, feels justified in refusing food from his Middle Eastern host. In this instance, Sam's self-reference criterion has just saved him from making a cultural blunder.

False

To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that emphasizes the need for ethnocentrism.

False

Understanding one's own culture normally requires no additional study.

False

The most effective approach to build global awareness into an organization is to increase the diversity mix of the employee profile.

False

Research has revealed that smaller home markets and larger production capacities appear to favor internationalization.

True

A company at the "no direct foreign marketing" stage of international marketing involvement does not actively cultivate customers outside national boundaries.

True

The most profound change in the orientation of a company toward markets and associated planning activities happens at the "regular foreign marketing" stage of the international marketing involvement.

False

The global marketing concept views the marketplace as consisting of one primary domestic market that is complimented by several smaller regional markets.

False

Of all the events and trends affecting global business today, four stand out as the most dynamic. Which of the following would be one of those events?

The trend toward the acceptance of the free market system among developing countries.

All of the following events and trends are among the four major trends described in the chapter as having a major impact or effect on the global business EXCEPT:

The trend toward decreasing OPEC profits as oil reserves decline in the 21st century.

Which of the following is NOT TRUE of the impact of globalization on domestic markets?

Companies with only domestic markets have found it relatively easy to sustain their customary rates of growth.

_________ is the performance of business activities designed to plan, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit.

International marketing

Which of the following is the most critical difference between domestic marketing and international marketing?

The environment in which marketing plans must be implemented

Which of the following is a controllable element for an international marketer?

Channels of distribution

Which of the following is the reason why the international marketer's task is more complicated than that of the domestic marketer?

Because the international marketer must deal with at least two levels of uncontrollable uncertainty instead of one.

Which of the following is an uncontrollable element for an international marketer?

Structure of distribution

For an international marketer, the _________ can be altered in the long run, and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives.

Controllable elements

Which of the following is an uncontrollable factor in a domestic environment?

Competitive structure

Which of the following is an example of a positive political action that favored international marketing?

Abolition of apartheid in South Africa

Which of the following reflects the relation between international business and domestic business?

The ability to invest abroad is to a large extent a function of domestic economic vitality.

Which of the following is a possible outcome of the alien status of a company?

The company can be seen as an exploiter

Which of the following is NOT true of the impact of culture?

In dealing with unfamiliar markets, frames of reference are unimportant in evaluating the potential of a market

Current data says that foreign investments in the U.S. amount to _________

$23.4 trillion

Companies from ______ lead in foreign investments in the United States.

United Kingdom

___________ is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit.

International marketing

According to the text, the primary difference in the practice of marketing at the domestic versus the international level is:

The environment within which the marketing plans must be implemented.

With respect to the environment in which a business operates, such factors as competition, legal restrains, government controls, and the weather would all be examples of what are called:

Uncontrollable elements

All of the following would be considered to be controllable elements of marketing decisions EXCEPT:

Government regulations

Considering the model of the international marketing task displayed in the text, which of the following reasons demonstrates the most important difference between the international marketer's task and that of the domestic marketer?

The international marketer must deal with at least two levels of uncontrollable uncertainty instead of one.

Robert Jonas is in charge of a new marketing effort directed toward Peru. In order for his company to effectively market and distribute to all of Peru's major cities, Mr. Jonas must devise a logistics plan for crossing the Andes Mountains on a daily basis. Which of the following foreign environment uncontrollable variables would a chief concern as Mr. Jonas devises his plan?

Geography and infrastructure

Compared to the foreign environment uncontrollable variables, which of the following elements is excluded from the domestic marketer's list of uncontrollable variables?

Cultural Forces

All of the following would be among the domestic marketer's controllable environment variables EXCEPT:

Competitive structure

All of the following appear as a foreign environment uncontrollable variable in the model of the international marketing task shown in the text EXCEPT:

Channels of distribution

Amy Sims has been assigned the task of preparing a marketing plan for a company for the next year's business activities. She knows that she should begin her plan of examining the variables that she has some control over. these controllable variables would include price, product, channels-of-distribution, and:

Promotion

A political decision involving ___________ would most likely have a direct effect on the firm's international marketing success.

Domestic foreign policy

Competition within the home country can have a profound effect on the international marketer's task. Which of the following BEST illustrates this statement?

Fuji opened a $300 million plant in the U.S. and now commands a 12 percent share of the lucrative U.S. firm market.

Ralph Waite has just been assigned the task of reviewing his company's international investment opportunities. He knows that his view of the list of opportunities should be tempered by foreign environment uncontrollable that might be encountered. Which of the following would be the BEST illustration of a foreign environmental uncontrollable that Mr. Waite should investigate?

A country's level of technology.

The __________ is an uncontrollable element that can often be misread because of the vast difference that may exist between developed and undeveloped countries.

Level of technology.

The ___________ and issues abroad are often amplified by the "alien status" of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate.

Political/legal forces

Which of the following would be the BEST illustration of the "alien status" found in the political and legal arena that sometimes cause problems for international marketers as they attempt to doing business in foreign countries?

The Indian government told Coca-Cola that it must reveal its "secret formula" if it wished to continue doing business in India.

The task of ________ is the most challenging and important one confronting international marketers.

Cultural adjustments

__________ is the conscious effort on the part of the international marketer to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then adjust the marketing mix to minimize the effects.

Adaptation

The primary obstacles to success in international marketing are a person's _________ and an associated ethnocentrism.

Self-reference criterion

______________ is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions.

Self-reference criterion

In the United States, unrelated individuals keep a certain physical distance between themselves and others when talking or in groups. We do not consciously think about that distance; we just know what feels right without thinking. Some one from another culture would not necessarily understand this and would apply their own rules for contact when speaking. The preceding is an illustration of what is called applying a _________when reviewing the mentioned social custom of contact.

Self-reference criterion (SRC)

Which of the following is closely related to self-reference criterion?

Ethnocentrism

Your ________ can prevent you from being aware that there are cultural differences or from recognizing the importance of those differences.

Self-reference criterion (SRC)

Which of the following is true of ethnocentrism?

It is generally a problem when managers from affluent countries work with managers and markets in less affluent countries.

The most effective way to control the influence of ethnocentrism and the SRC is to:

Recognize their effects on out behavior.

To avoid errors in business decisions, it is necessary to conduct a cross-cultrual analysis that isolates the self-reference criterion influences. Which of the following would be the first-step to take to avoid the aforementioned errors?

Define the business problem or goal in home-country cultural traits, habits, or norms.

A part of cross-cultural analysis requires understanding of one's own culture. Why is it surprising that understanding one's own culture requires additional study?

Because much of cultural influences on market behavior is at the subconscious level.

To be globally aware, an international marketer must have all of the following EXCEPT:

A knowledge of microeconomics

Which of the following BEST exemplifies the tolerance of a globally aware manager?

You must allow others to be different and equal

Which of the following will aid a manager in understanding some Latin Americans' reluctance toward foreign investment of Chinese reluctance to open completely to outsiders?

A historical perspective

Which of the following is an obvious strategy organizations should use to build global awareness into organizations?

Select individual managers specifically for their demonstrated global awareness.

Which of the following is the most effective way to achieve organizational global awareness?

Have a culturally diverse senior executive staff or board of directors.

Which of the following organizations seem better equipped for internationalization?

A firm that has a production capacity that is much greater than home market demand

Which of the following organizations has a better chance of accelerating their internationalization precess?

Firms with key managers well networked internationally

Which of the following is NOT one of the stages of international marketing involvement?

Indirect foreign marketing

Which of the following is TRUE regarding the stages of international marketing involvement?

A firm may be in more than one state simultaneously.

There are a variety of stages in the process of becoming involved in international marketing. Which of the following best describes the stage of development where the company's products reach a foreign market though no conscious effort on the part of the marketer?

No direct foreign marketing

If a marketer is motivated to enter into an international marketing effort because of temporary surpluses in the domestic market, which of the following stages BEST characterizes the stage of international marketing involvement for this marketer?

Infrequent foreign marketing

James Bright's company seeks markets all over the world and attempts to sell products that are a result of planned production for markets in various countries. Which of the following stages BEST characterizes the stage of international marketing involvement for Mr. Bright's company?

International marketing

Maria Peron's company treats the world, including the home market in Spain, as one market. Market segmentation decisions no longer focus on national borders. Instead, market segments are defined by income levels, usage patterns, and other factors that span countries and regions. Which of the following stages BEST characterizes the stage of international marketing involvement for Ms. Person's company?

Global marketing

The Ajax Corporation has decided to enter the international marketing arena by marketing its products on a country-by-country basis, with separate marketing strategies for each country. The company is using which of the following concepts to formulate its international policies and strategies?

Multidomestic market concept

Which of the following is true or the first two stages of international marketing involvement-no direct foreign marketing and infrequent foreign marketing?

They are more reactive in nature

At which state is the primary focus of operations and production to service domestic market needs while the firm has permanent productive capacity devoted to the production of goods and services to be marketed in foreign markets?

Regular foreign marketing

Which of the following is NOT a feature of firms at the internationalization stage of regular foreign marketing?

The primary focus of operations and production is to service foreign market needs

Which of the following is true of firms at the internationalization stage of international marketing?

Planning generally entails production of goods outside the home market.

What is the most profound change for firms at the global marketing stage of internationalization?

Companies treat the world, along with home market, as one market.

Which of the following firms/products reflects a global marketing orientation?

A firm producing high-end sailing yachts

For a company at the _________ stage of internationalization, market segments are defined by income levels, usage patterns, or other factors that frequently span countries and regions.

Global marketing

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