Question

QUESTION 1

Which of the following factors would most likely lead a firm to adapt its products for international markets?

		Exporting as the sole method of international marketing
		Similar levels of personal income
		Diverse consumer preference
		Economies of scale in production

2 points   

QUESTION 2

Why would a firm research the marketing infrastructure of a foreign market prior to entry?

		To determine whether its prices will be competitive.
		Primarily to understand the role of the media including TV, print, and Internet.
		To help determine its sales potential and related marketing barriers and opportunities.
		It would not be best practice to have local partners research the marketing infrastructure.

2 points   

QUESTION 3

Gray marketing occurs

		primarily when a firm encounters intense competition.
		primarily in markets with low sales potential.
		when products are sold through unauthorized channels.
		for all companies operating within a free-trade area.

2 points   

QUESTION 4

If Proctor & Gamble were to launch a new type of household cleaning product in a market that embraces a 'large extended family', one implication might be

		per capita income becomes an even more important consumption predictor because family size is larger.
		packaging sizes may need to be adapted.
		the need for product adaptation that provides for more frequent use of the product.
		the promotion campaign may need to incorporate more low-context communications.

2 points   

QUESTION 5

What are some reasons a firm may use a local advertising agency in a foreign market versus a global agency?

		If it wants better quality translations, and more control.
		If the firm does not have a strong need to coordinate its advertising in a number of markets, and if it wants the best quality possible.
		Primarily to lower costs and improve control.
		To have better communication with the agency and lower costs.

2 points   

QUESTION 6

Garuda Airways of Indonesia has introduced a low-fare promotion during its off-peak demand season. Garuda Airways is attempting to reduce the

		difficulty in measuring service quality.
		perishability of services marketing.
		heterogeneity of quality.
		homogeneity of quality.

2 points   

QUESTION 7

What is a key challenge in selecting what media to use in developing countries?

		The lack of reliable information on circulation, audience size, and other related media reach data.
		Developing countries tend to have fewer government controls on the media, which leads to corruption.
		The lack of options: print tends to be the only significant medium in developing countries.
		There are generally no local agencies in which to seek expert advice.

2 points   

QUESTION 8

As a firm develops its global marketing strategy, which strategic perspective offers the greatest opportunity to take advantage of the interdependence among each foreign market?

		Market-extension
		Global
		Multidomestic
		Value chain

2 points   

QUESTION 9

Assume ABC Steel Products is a small manufacturer of unique office products and is seeking to expand internationally. It has already made some initial export sales through its website but otherwise has limited international experience. A distributor in France, Lyon Distribution, contacts ABC Steel Products suggesting the company consider using Lyon Distribution as its distributor for France. ABC Steel Products is excited because this will be its first official international distributor. Within a matter of a few weeks, a contract is signed, and Lyon Distribution is now the exclusive importer of ABC Steel Products. The type of foreign market selection process used by ABC Steel Products is best classified as

		Proactive market selection.
		Reactive market selection.
		Direct export via distributor.
		Indirect export via distributor.

2 points   

QUESTION 10

Assume a firm has developed separate international plans for each foreign market. Which of the following is a suitable next step?

		To compare each plan with the firm's internal strengths and weaknesses
		To obtain consumer input
		To compare each plan with the industry's opportunities and threats
		To integrate those plans into a complete international plan

2 points   

QUESTION 11

For the international marketing manager, not researching the impact of tariff and non-tariff barriers in a foreign market could result in

		significant devaluation of foreign assets.
		lack of competitiveness and reduced sales.
		loss of intellectual property rights.
		lawsuits over intellectual property rights

2 points   

QUESTION 12

An executive based in Germany working for sports manufacturer Nike is considering changing jobs to Nike's competitor Reebok to be Reebok's European Manager. The executive's knowledge of Nike's product pricing policies in Germany

		will be extremely valuable to Reebok and likely a key reason the executive will be hired.
		will be of limited value to Reebok because the executive's experience was primarily Germany.
		may be considered as trademark-protected information under international law, limiting the executive's ability to share that information.
		may be considered as trade secrets under international law, limiting the executive's ability to share that information.

2 points   

QUESTION 13

In contrast to foreign marketing, global marketing is

		marketing within foreign countries.
		marketing to foreign countries.
		coordinating marketing in multiple markets.
		developing contacts in multiple markets.

Answer 1

1. The right option here is Economies of scale in production. The factor is the most obvious moto of a firm for exporting it’s product.
2. Right option is the third one. To help determine its sales potential or demand forecasting of the market and related marketing barriers and opportunities.
3. Right option is the 3^rd one. It occurs when products are sold through unauthorized channels.
4. Right option is the 1^st one. per capita income becomes an even more important consumption predictor because family size is larger. As, it if the family size is high income become low the tend to decrease purchase power.