Exam Prep - International Marketing Development Chapter 9

Chapter 09 - International marketing development

Test Bank

Type: multiple choice question

Title: Chapter 09 Question 01

01) In the 70s, researchers in Sweden (Johanson and Wiedersheim-Paul, 1975) identified that most firms followed a four-stage process of internationalization, starting with serving the domestic market, then penetrating foreign markets by exporting, then developing sales offices in the foreign market, and then developing foreign production facilities. This model, often referred to as:

a. Regional approach.

b. Geocentric approach.

c. Polycentric approach.

d. Uppsala model.

Type: multiple choice question

Title: Chapter 09 Question 02

02) Some regions/countries develop core competencies and reputations for producing certain offerings, raw resources, or work skills. This presents an opportunity to develop ___________. The good example is the Champagne region of France.

a. free trade

b. collective effort

c. economies of scale

d. comparative advantage

Type: multiple choice question

Title: Chapter 09 Question 03

03) In a multi-domestic competitive strategy, an organization pursues a separate marketing strategy in each of its foreign markets, and considers competitive activity on an independent market basis. This is also referred to as an _____________, because an organization adapts its operations, buying, and market research to a particular country, and develops a specific market strategy for that particular market.

a. regional orientation

b. adaptive orientation

c. global orientation

d. polycentric oreintation

Type: multiple choice question

Title: Chapter 09 Question 04

04) ______________ occurs when an organization (the licensor) grants another (the licensee) the right to manufacture goods, use patents or particular processes, or exploit trademarks in a particular market.

a. Licensing

b. Market grouping

c. A licensee

d. Import broker

Type: multiple choice question

Title: Chapter 09 Question 05

05) Norwegian and Swedish organizations have a long tradition of trade relations with other Scandinavian countries as a first experience of cross-national trade. This is an example of:

a. European scale

b. National scale

c. regional scale

d. City scale

Type: multiple choice question

Title: Chapter 09 Question 06

06) Which of the following is not an example of common motivations for organizations investing in international market development?

a. Dumping.

excess stock (dumping); historical accident; limited growth in domestic markets; comparative advantage; economies of scale; trade liberalization; international product lifecycle; technological changes; customer relationships; transnational market segments; organizational sustainability etc.

b. Historical accident.

excess stock (dumping); historical accident; limited growth in domestic markets; comparative advantage; economies of scale; trade liberalization; international product lifecycle; Technological changes; Customer relationships; Transnational market segments; Organizational sustainability etc.

c. Sponsorship opportunities.

excess stock (dumping); historical accident; limited growth in domestic markets; comparative advantage; economies of scale; trade liberalization; international product lifecycle; technological changes; customer relationships; transnational market segments; organizational sustainability etc.

d. Economies of scale.

excess stock (dumping); historical accident; limited growth in domestic markets; comparative advantage; economies of scale; trade liberalization; international product lifecycle; technological changes; customer relationships; transnational market segments; organizational sustainability etc.

Type: multiple choice question

Title: Chapter 09 Question 07

07) The physical distance between a potential market and the domestic market can have a direct impact on resource requirements is referred to as:

a. Established competitors

b. Geographic proximity

c. Psychological proximity

d. Accessibility

Type: multiple choice question

Title: Chapter 09 Question 08

08) The ‘process by which the experience of everyday life is becoming standardized around the world’ through the free flow of four major components: goods and services, people, capital, and information is referred to as:__________

a. Globalization

b. Domestic competitiveness.

c. Regional development

d. Joint venture.

Type: multiple choice question

Title: Chapter 09 Question 09

09) Political and legal factors can restrict or enable international marketing opportunities. Some governments place obstacles in the way to deter prospective importers and protect domestic industries. Measures invoked by governments to protect their domestic industries could include quotas, duties, and non-tariff barriers. A good example of a non-tariff barrier is:______________

a. Introduce a special “Made in EU” tax

b. Limit the amount of goods allowed

c. Luxury tax for 5 star hotels only

d. Adapt the offerings to country’s standard

Type: multiple choice question

Title: Chapter 09 Question 10

10) For four years, Google censored search results, in the hope of becoming the number one search engine in China. As a foreign organization Google was expected to operate under the laws of the country, China. This is a good example of a/an: __________

a. technological factor

b. political-legal factor

c. cultural factor

d. economic factor

Type: true-false

Title: Chapter 09 Question 11

11) Typical economic measures to help assess a particular country’s market potential include: measures of per capita income; ownership rates of durables (e.g. cars);balance between urban and rural populations;prevailing rate of inflation;gross national product (GNP);market size;fluctuations in currency exchanges.

a. True

b. False

Type: true-false

Title: Chapter 09 Question 12

12) The Ansoff matrix is the price-distribution matrix that provides a useful framework for considering the relationship between strategic pricing and distribution opportunities in international markets.

a. True

b. False

Type: true-false

Title: Chapter 09 Question 13

13) A regional approach groups countries together, usually on a geographical basis, for example Europe, or Europe, Middle East, and Asia (EMEA), and provides for the specific needs of consumers within those countries. In this instance, national boundaries are respected, but do not have the same importance as cultural differences.

a. True

b. False

Type: true-false

Title: Chapter 09 Question 14

14) Hennes & Mauritz (H&M), a leading Swedish clothing retailer with established market entry in the UK and USA, is currently striving for operations and brand image appeal through its market expansions into Asia. Based on the scale of H&M’s operations, this organization is an example of a local-scale organization.

a. True

b. False

Type: true-false

Title: Chapter 09 Question 15

15) In a pure standardization orientation, a firm operates as if the world were one large market (global market), ignoring regional and national differences and selling the same products and services in the same way throughout the world.

a. True

b. False

Type: true-false

Title: Chapter 09 Question 16

16) In 1928 Coca-Cola was the first ever sponsor of the Olympic Games and in the 1940s US forces took the drink with them when they went into the Second World War. These events provided opportunities for Coca-Cola to build upon with an aggressive distribution policy resulting in the red and white livery as one of the most internationally recognizable brands.

a. True

b. False

Type: true-false

Title: Chapter 09 Question 17

17) Societies such as the UK, which scores highly on what Hofstede (1983) refers to as ‘masculinity’, place strong emphasis on achievement, success, and assertiveness as personal values. Sweden, however, is an example of a country scoring high on ‘femininity’, which indicates a higher preference for cooperation, care for the weak, and a focus on quality of life.

a. True

b. False

Type: true-false

Title: Chapter 09 Question 18

18) Differences in society, values, and demography can all affect the acceptability, and therefore uptake, of an offering in international markets.

a. False

b. True

Type: true-false

Title: Chapter 09 Question 19

19) Culture is a least important in international market development strategy because it concerns the beliefs, norms, and values that guide the behaviour of groups of potential customers and other stakeholders.

a. True

b. False

Type: true-false

Title: Chapter 09 Question 20

20) Franchising a contractual vertical marketing system in which a franchisor licenses a franchisee to produce or market goods or services to certain standard laid down by the franchisor in return for fees and/or royalties.

a. True

b. False

Type: multiple choice question

Title: Chapter 09 Question 21

21) ARM Holdings licenses its microprocessor technology to original equipment manufacturer (OEM) companies worldwide, with regional sales teams based in the US, Europe, China, Japan, Korea, Taiwan and India. This is a good example of:

a. franchising.

b. direct investment.

c. contracting.

d. licensing.

Type: multiple choice question

Title: Chapter 09 Question 22

22) ____________ organizations regard their overseas activities as a complex process of coordination and cooperation.

a. International

b. Global

c. National

d. Transnational

Type: multiple choice question

Title: Chapter 09 Question 23

23) a firm should ______ its promotional efforts only when it needs to respond to customer needs, media usage, or advertising regulation.

a. standardize

b. glocalize

c. globalize.

d. adapt.

Type: multiple choice question

Title: Chapter 09 Question 24

24) __________ requires that organizations see the world as one large (global) market and that they sell the same propositions in the same way throughout the world, ignoring local, regional, and national differences.

a. standardized approach.

b. localization approach.

c. glocalization approach.

d. global competitive strategy.

Type: multiple choice question

Title: Chapter 09 Question 25

25) One way of evaluating the extent of psychic distance between home and target markets is to formally analyze them using the CAGE acronym (Ghemawat, 2001). What CAGE acronym stands for?

a. Culture, Administration, Global capacity, and Economy

b. Culture, Accessibility, Geography, and Economy

c. Culture, Administration, Geography, and Economy.

d. Culture, Administration, Geography, and Environment