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120 Test Bank for International Marketing 3rd Edition Mutiple Choice Questions Which type of marketing best describes a company’s approach to international marketing if the company is present in different countries with sales offices, subsidiaries, or is an active partner in strategic alliances with local companies and that does not coordinate activities across the different countries or regions a.Domestic marketing b.Export marketing c.International marketing d.Global marketing Which of the following is NOT a driver of international expansion? a.Competition b.Regional economic integration c.Import quotas d.Technology Firms with a regiocentric orientation are guided by a: a.domestic market extension concept b.multidomestic market concept c.global marketing concept d.none of the above The product life cycle: a.does not affect ethnocentric firms b.is a driver of international expansion c.is used by governments to erect entry barriers d.is important in domestic marketing but is not relevant to global marketing Generation X consumers in the United States and in Southeast Asia: a.are loyal to the same soft-drink brands b.are very different even though they are in the same age demographic c.wear the same brands of clothing but have different musical preferences d.are targeted by firms with an ethnocentric orientation Eli Lilly is a(n): a.ethnocentric firm b.polycentric firm c.polychronic firm d.regiocentric firm Uniform consumer segments: a.are emerging worldwide b.do not exist c.are pursued by firms with a regiocentric orientation d.are too small to be profitable When a company believes that domestic strategies, techniques, and personnel are superior to foreign ones it is using a(n): a.ethnocentric orientation b.polycentric orientation c.regiocentric orientation d.geocentric orientation Which type of marketing involves marketing activities across different countries without focusing primarily on national or regional segmentation? a.Domestic marketing b.Export marketing c.Multinational marketing d.Global marketing When consumers traveling abroad demand brands that may not be available in the home-country market and retailers convey this information up the distribution chain to wholesalers, they demonstrate: a.push demand b.pull demand c.the benefits of diversification d.improved communication within the supply chain due to advances in technology Firms with a geocentric orientation: a.pursue a differentiation strategy b.position themselves as a low-cost manufacturer c.frequently need to engage in "guerilla" marketing d.none of the above The cigarette industry is either in the late maturity stage, or in the decline stage in industrialized countries By entering emerging markets where cigarettes are in the growth stage, the industry is a.setting up new market barriers b.prolonging its product life cycle c.targeting consumer product manufacturers d.focusing on the introduction stage of the product life cycle Which of the following is a technique used by members of the World Trade Organization to restrict trade to bypass traditional barriers to trade not permitted by the WTO? a.Tariffs b.Delays in granting licenses c.Preferential treatment for local contractors d.Cumbersome procedures for import paper-work processing The FIRST step to minimizing the impact of the self-reference criterion is: a.training the employee to be sensitive to the local culture b.selecting appropriate personnel for international assignments c.developing a repatriation plan d.limit the expatriate's exposure to own-country nationals The firm is most likely to have an ethnocentric orientation when it engages in a.Export marketing b.International marketing c.Multinational marketing d.Global marketing When a company from the United States exporting products to multiple countries in the European Union only has to go through customs once, this is an example of: a.Competition b.Regional economic & political integration c.Import quotas d.Technology Colgate's development of Axion paste for washing dishes for its Latin American market and its later deployment in some European countries is an example of: a.standardization advantages b.economies of scale c.experience transfers d.self reference criterion When doing business in Latin America, a good marketing manager knows that: a.it is crucial to show up early to a business meeting b.you don't have to "read between the lines" in the Latin American culture c.it is important to avoid alcohol and pork consumption d.it is important to interact with your client in a social setting before "getting to business." Recently, privatization in countries where government monopolies have dominated for decades has made it possible for multinationals to compete in each of the following industries EXCEPT: a.airlines b.postal services c.railway d.telecommunications High domestic product development costs: a.serve as market entry barriers in international expansion b.encourage international expansion c.rarely affect consumer product manufacturers d.rarely affect industrial producers The improved telecommunications in Burundi is an example of: a.infrastructure improvements b.economic growth c.experience transfers d.an entry barrier Firms with a polycentric orientation are guided by a: a.domestic market extension concept b.multidomestic market concept c.global marketing concept d.none of the above When Ford stopped making the Escort look different in every market and moved to an identical look for all markets, it moved from a polycentric strategy to this kind of strategy a.ethnocentric orientation b.polycentric orientation c.regiocentric orientation d.geocentric orientation Nike, on the average, spends close to a year to develop, test, and manufacture new product designs that then last on the shelves in the United States for about: a.3 months b.6 months c.1 year d.over a year Competitors erect entry barriers by: a.blocking channels of distribution b.binding retailers into exclusive agreements c.slashing prices temporarily d.all of the above "Individuals' conscious or unconscious reference to their own national culture, to home-country norms, values, as well as to their knowledge and experience, in the process of making decisions in the host country" is the definition of: a.the domestic market extension concept b.a regiocentric orientation c.a universal consumer segment d.the self reference criterion Which of the following is NOT a formal method used by national governments to restrict or impede entrance of international firms in the local market? a.Import quotas b.Import license awards c.Foreign exchange restrictions d.Consumer boycotts Which of the following are advantages of uniform consumer segments worldwide? a.lower costs b.increased profits c.lower tariffs d.a and b only An important outcome of the transition of the former Eastern Bloc countries to a market economy is: a.increasing forced domestication policies b.increased product development costs c.decreased foreign direct investment d.deregulation and privatization of former government monopolies The EPRG Framework of international orientation stands for: a.economics, psychographics, regulations, & geographics b.enter, produce, react, & group c.ethnicity, polychronic, regulations, & global expansion d.ethnocentric, polycentric, regiocentric, & geocentric Companies view world regions as distinct markets that share economic, political, and/or cultural traits such that they would be viable candidates for a regionwide marketing approach a.ethnocentric orientation b.polycentric orientation c.regiocentric orientation d.geocentric orientation Firms that view international markets solely as markets where they could unload excess production have a(n): a.ethnocentric orientation b.polycentric orientation c.regiocentric orientation d.geocentric orientation The United States provides about of the worldwide products and services a.5% b.15% c.25% d.35% Which of the following approaches to international marketing involvement best describes a company that coordinates activities across different countries or regions? a.Domestic marketing b.Export marketing c.International marketing d.Global marketing At which stage of the product life cycle is a firm most likely to move manufacturing operations and facilities abroad? a.Introduction b.Growth c.Maturity d.It is equally likely among the stages An example of psychological obstacle to internationalization is a.fear of the unknown international environment b.limited financing available c.limited technology available d.all of the above A subsidiary of a company from the United States incorporated in any country of the European Union is: a.subject to foreign exchange restrictions b.forced to pay multiple tariffs c.exempt from U.S taxation d.a corporate citizen of the European Union Example(s) of obstacles to internationalization can be: a.financial and psychological b.physical and financial c.physical and psychological d.technological Firms where top management adopts a geocentric orientation perceive the world: a.to be similar to the home country b.to have regional segmentation possibilities c.to lack national and regional distinctions d.to have heterogeneous preferences In which type of marketing does a firm have the least commitment to international marketing? a.Domestic marketing b.Export marketing c.International marketing d.Global marketing True - False Questions International companies such as General Motors, Mitsubishi, Microsoft, and Exxon earn profits greater than the Gross Domestic Product of many developing countries True False Competition, regional economic integration, and technology are examples of Business Environment Drivers True False Firms with a regiocentric orientation are guided by a multidomestic market concept True False Firms with a regiocentric or a polycentric orientation are guided by a global marketing concept True False New Product Development costs are not at all related to the product life cycle True False IBM has always had a geocentric orientation True False A subsidiary of a company from the United States incorporated in any country of the European Union is a corporate citizen of the European Union True False The U.S consumes more than 25% of worldwide products and services True False Global marketing activities are not coordinated across different countries, nor across different regions True False Emerging economies in general are less open to foreign trade and severely limit international firms operating in these markets True False Firms with an ethnocentric orientation consider that the purpose of their international operations is to identify markets that could absorb surplus domestic production True False Polycentric firms are likely to be highly centralized True False A company engaging in export marketing has the least commitment to international marketing True False Firms in the introductory stage of the product life cycle are most likely to move manufacturing operations and facilities abroad, to developing countries, in an attempt to take advantage of significantly lower labor costs True False It is important for the firm to adapt to the local business environment in order to serve the needs of local consumers True False The U.S market is very large As a result, companies are likely to quickly recover their product development costs and make a profit as well, if its sales are limited to the U.S True False A main driver of international expansion is a firm’s attempt to prolong the life cycle of its products True False Experience transfers are limited to product manufacturers True False Export marketing requires a substantial focus on consumers in the international target market True False Competitive pressure is frequently a driver of internationalization True False The first step in minimizing the impact of the self-reference criterion is selecting appropriate personnel for international assignments True False Much of the outsourcing of customer service to developing countries is largely attributed to improvements in telecommunication True False Disney has an ethnocentric philosophy that is manifest in its international operations True False Colgate-Palmolive developed its successful Axion paste for washing dishes by hand after observing the dish washing behavior of Latin American women True False Economic integration does not benefit companies from nonmember states True False Although the product life cycle is an important marketing consideration in domestic marketing, it has little affect on the international expansion of a firm True False Companies attempting to establish and maintain an international presence are likely to encounter obstacles to internationalization both from within the company and from outside True False The self-reference criterion helps the firm to adapt as it expands operations to international markets True False Economic growth is not an important driver of internationalization True False Firms with a regiocentric or a geocentric orientation are guided by a global marketing concept True False Firms with an ethnocentric orientation are guided by a domestic market extension concept True False Each subsidiary in an ethnocentric organization has its own marketing plans and objectives and operates autonomously as an independent profit center on an individual country basis True False An important outcome of the transition of the former Eastern Bloc countries to a market economy has been the deregulation and privatization of former government monopolies True False Local firms targeting their products to local consumers are dependent on equipment, parts, and/or raw materials originating abroad True False During the introduction stage of the product lifecycle, the core product is likely to achieve a standard in a particular industry True False Marlboro’s primary defensive marketing strategy in foreign countries is to decrease prices by as much as onethird True False Members of regional economic integration agreements such as NAFTA frequently use tariffs as a means of restricting international expansion of companies in the countries' territories True False Firms with a polycentric orientation are guided by a multidomestic market concept True False Competition can be both a driver of internationalization and a barrier to new entrants in a market True False Companies investing in large transition economies, such as China, reap the greatest return on their investment True False Organizing the firm on the basis of function, rather than on the basis of country of operations, demonstrates a geocentric internationalization philosophy True False Companies from small countries have difficulty in succeeding internationally, as their income cannot be supported by a large market at home True False International marketing is defined as the processes involved in the creation, production, distribution, promotion and pricing products, services, ideas and experiences for international markets True False The objective of a geocentric company is most often to achieve a position as a low-cost manufacturer and marketer of its product line True False In the future, postal services might constitute the new competitive territory of international companies True False McDonald's has been successful because of its ethnocentric philosophy True False In Japan, similarly to the U.S., looking one's counterpart in the eyes conveys directness and honesty True False Local content requirements are sometimes used by national governments to restrict or impede the entrance of international firms True False Uniform consumer segments worldwide are every marketer’s hope However, it is impossible to have uniform segments as long as consumer preferences are so diverse True False A company engaging in domestic marketing has the least commitment to international marketing True False Free Text Questions - Page Economic growth constitutes a very important driver of _ Answer Given internationalization; globalization marketing activities require a substantial focus on international consumers in a particular country or countries Answer Given International Multinational The objective of a(n) company is most often to achieve a position as a low-cost manufacturer and marketer of its product line Answer Given geocentric A firm engaged in marketing could be involved in exporting indirectly, through orders from international clients, or directly Answer Given export Disney has adopted a(n) philosophy in its international operations Answer Given ethnocentric Generation X consumers in the United States and in Southeast Asia are loyal to the same soft-drink brands, wear the same brands of clothing, listen to the same music and have the same idols This is an example of a(n) consumer Answer Given uniform; universal Firms with an orientation are guided by a domestic market extension concept Answer Given ethnocentric A subsidiary of a company from the United States incorporated in any country of the European Union is a of the European Union Answer Given corporate citizen; citizen The transition of the former _ countries to a market economy has led to rapid economic development in many countries in the region and has created important new markets for international brands Answer Given Eastern Bloc; communist Consumers who have traveled abroad bring with them product experiences and demand brands that may not be available in the home-country market This would generate demand Answer Given pull McDonald’s has a(n) philosophy when it comes to internationalization Answer Given geocentric A company engaging in has the least commitment to international marketing Answer Given domestic marketing marketing involves marketing activities across different countries without focusing primarily on national or regional segmentation Answer Given Global Firms with a orientation are guided by a multidomestic market concept Answer Given polycentric Firms with a regiocentric or geocentric orientation are guided by a concept Answer Given global; global marketing 30 Free Test Bank for International Marketing 3rd Edition by Lascu Free Text Questions - Page Signatories of the General Agreement on Tariffs and Trade are using _ barriers, such as cumbersome procedures for import paper-work to restrict international expansion of companies in their countries' territories Answer Given non-tariff; non tariff Products that are in _ stage can change their position on the global product lifecycle stage by going into markets where the product is in high demand Answer Given maturity; late maturity; decline is both a driver of internationalization, and it can erect barriers to new entrants in a market Answer Given competition The _ is defined as "individuals' conscious and unconscious reference to their own national culture, to home-country norms, values, as well as to their knowledge and experience, in the process of making decisions in the host country." Answer Given self-reference criterion; self reference criterion What is the Self-Reference Criterion and how may it be overcome? Answer Given The self-reference criterion is defined as "individuals' conscious and unconscious reference to their own national culture, to home-country norms, values, as well as to their knowledge and experience, in the process of making decisions in the host country." A first step to minimizing the impact of the self-reference criterion is selecting appropriate personnel for international assignments Second, it is also important to train expatriates to focus on and be sensitive to the local culture Firms in the _ stage of the product life cycle are likely to move manufacturing operations and facilities abroad, to developing countries, in an attempt to take advantage of significantly lower labor costs Answer Given maturity; late maturity _ played pop music on the rather loud side in its restaurants in new markets as a result of knowledge gained in Central and Eastern Europe Answer Given Pizza Hut Explain the EPRG Framework Answer Given EPRG stands for ethnocentric, polycentric, regiocentric, and geocentric It is useful for understanding the way a firm views international marketing The ethnocentric firm (e.g., Eli Lilly) is guided by a domestic market extension concept International operations and customers are considered secondary to domestic operations and customers The polycentric firm is guided by a multidomestic market concept This firm assumes that each market is unique and needs to be addressed individually The company is decentralized The regiocentric firm is guided by the global marketing concept It vies regions as distinct markets and use region-wide marketing A geocentric firm is also guided by the global marketing concept The geocentric company looks for a uniform consumer segment, which allows the company to offer a standard product and a standard marketing campaign This promotes cost savings for the firm This is found in "The EPRG Framework and International Marketing Concepts" section (1-3) How does competition affect international expansion? Answer Given Competition promotes and hinders expansion In the "Drivers in the Business Environment" section, competitive pressure drives internationalization For example, McCann Erickson follows Coca Cola into every country in an attempt to prevent competitors from stealing away the account In the "Obstacles to Internationalization" the competition is shown to erect barriers to new entrants in a market This can be done through blocking channels of distribution, binding retailers into exclusive agreements, slashing prices, etc Discuss the reasons why a U.S company would want to form a subsidiary within the European Union Answer Given A subsidiary of a company from the U.S incorporated in any country of the European Union is a corporate citizen of the EU Consequently, the subsidiary does not have to pay duties when it crosses borders of EU member states, nor foreign exchange costs, since all transactions are conducted in Euros This is found in the "Drivers in the Business Environment”section (1-4a) How does converging consumer needs affect international expansion? Answer Given Converging consumer needs gives rise to a uniform consumer segment A company with a geocentric orientation is able to sell a standard product with a standard message to a uniform consumer segment This allows for lower costs, which may create a sustainable competitive advantage This is found in the "Drivers in the Business Environment" section (1-4a) The Tesco Extra hypermarket concept was first introduced in before it was introduced in the U.K Answer Given Hungary While competition can be a driver of internationalization, competitors can also erect _ to new entrants in a market Answer Given barriers; entry barriers Cigarettes are in the late maturity stage of the product life cycle in the United States, but they are in the stage in emerging markets worldwide Answer Given growth barriers include blocking channels of distribution, binding retailers into exclusive agreements, slashing prices temporarily to prevent product adoption, or engaging in an advertising blitz that could hurt a company’s initial sales in a market and cause it to retrench Answer Given Competitive ... of marketing does a firm have the least commitment to international marketing? a.Domestic marketing b.Export marketing c .International marketing d.Global marketing True - False Questions International. .. are guided by a concept Answer Given global; global marketing 30 Free Test Bank for International Marketing 3rd Edition by Lascu Free Text Questions - Page Signatories of the General... to international marketing involvement best describes a company that coordinates activities across different countries or regions? a.Domestic marketing b.Export marketing c .International marketing