Chapter 01 - The Scope and Challenge of International Marketing
True / False Questions
1. International marketing is the performance of business activities designed to plan, price, promote, and
2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.
direct the flow of a company's goods and services to consumers or users in more than one nation for a profit.
A good illustration of an uncontrollable variable that might impact international business is a marketing decision with respect to research.
The foreign uncontrollable environment is the same as the domestic uncontrollable environment. The level of technology is an uncontrollable element for international marketers.
The political and legal environment is a controllable element for international marketers because of the ability to lobby and influence legislation.
In a broad sense, the uncontrollable elements of the foreign business environment constitute the culture. John refuses to buy Japanese products because he sees them as a way of selling out to nation known for its aggressive behavior. John is using a self-reference criterion to make his decision. A self-reference criterion is closely related to ethnocentrism.
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.
To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that emphasizes the need for ethnocentrism.
To be globally aware, you should be tolerant of cultural differences.
To be globally aware, you should require that all of your international customers know about your cultural rules and adhere strictly to each one.
If a company is in a stage designated as being one with \not actively cultivate customers outside national boundaries.
Of all the stages in international business, a stage called \profound change in the orientation of the company toward markets and associated planning activities. If a company uses a strategic orientation called domestic market extension, it views its international operations as secondary to and an extension of its domestic operations.
The global marketing concept views the marketplace as consisting of one primary domestic market that is complimented by several smaller regional markets.
Multiple Choice Questions
1. International __________ play an important role in promoting global peace and prosperity. A. foreign aid and treaties
B. competition and consumer spending C. trade and marketing
D. consumer and industrial services
2. 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?
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Chapter 01 - The Scope and Challenge of International Marketing
A. The trend toward buying American cars in Europe.
B. The trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe.
C. The trend toward using English as the global language. D. The trend toward establishing a world currency.
3. 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 global business EXCEPT:
A. the trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe.
B. the rapid growth of the World Trade Organization and regional free trade areas such as NAFTA and the European Union.
C. the burgeoning impact of the Internet and other global media on the dissolution of national borders. D. the trend toward decreasing OPEC profits as oil reserves decline in the 21st century.
4.
Simi Khan wants to move his business into the international arena as quickly as possible; however, to be successful he must consider a variety of factors that have global dimensions. Which of the following factors would be most important to Simi Khan's computer technology business as he moves forward with his global expansion plans?
A. Electricity usage around the world.
B. The drive toward a more ergonomic workplace.
C. Communication and technology networks in third-world countries. D. Restrictions on advertising in Russia.
5. For firms venturing into international marketing for the first time, the first requirement is: A. employment of foreign nationals in target foreign markets. B. a thorough and complete commitment to foreign markets.
C. obtain market data from consulate of the country being targeted. D. an assessment of the cost of doing business in the foreign market.
6 ___________ 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. A. Global management B. Global business C. Marketing
D. International marketing
7. 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 is called: A. global management. B. global business.
C. the global marketing concept. D. international marketing.
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Chapter 01 - The Scope and Challenge of International Marketing
8 The only difference between the definitions of domestic marketing and international marketing is that
marketing activities:
A. focus on consumers in domestic markets and barterers in foreign markets. B. take place in more than one country.
C. follow traditional communication paths in domestic markets. D. focus on distribution in the domestic market.
9.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: A. controllable elements. B. uncontrollable elements. C. predictable elements. D. demographic elements.
10. All of the following would be considered to be controllable elements of marketing decisions EXCEPT: A. product. B. price.
C. promotion.
D. government regulations.
11. 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?
A. The international marketer must deal with at least two levels of uncontrollable uncertainty instead of one. B. The international marketer must rely on at least two levels of controllable certainty instead of one. C. The international marketer is never certain about supply or demand. D. The international marketer is never certain about total market size.
12.
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 be a chief concern as Mr. Jonas devises his plan? A. Competitive forces B. Cultural forces
C. Geography and infrastructure D. Economic forces
13. Compared to the foreign environment uncontrollable variables, which of the following elements is excluded from the domestic marketer's list of uncontrollable variables? A. Political forces
B. Competitive structure C. Economic climate D. Cultural forces
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Chapter 01 - The Scope and Challenge of International Marketing
14. All of the following appear as a foreign environment uncontrollable variable in the model of the international marketing task shown in the text EXCEPT: A. economic forces. B. competitive forces. C. product demand forces. D. cultural forces.
15. A political decision involving _______________ would most likely have a direct effect on a firm's international marketing success. A. domestic foreign policy B. immigration reform C. oil exploration policy D. FCC satellite regulations
16. 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 uncontrollables that might be encountered. Which of the following would be the BEST illustration of a foreign environmental uncontrollable that Mr. Waite should investigate? A. A country's level of technology.
B. Pricing policies in the foreign country.
C. The ability to do research in the foreign country. D. Manufacturing capabilities in the foreign country.
17 The _____________ is an uncontrollable element that can often be misread because of the vast differences that may exist between developed and undeveloped countries. A. Structure of distribution B. economic forces C. political/legal forces D. level of technology
18. The _____________ and issues abroad are often amplified by the \increases the difficulty of properly assessing and forecasting the dynamic international business climate. A. structure of distribution B. competitive forces C. economic forces D. political/legal forces
19.
Global businesses must be willing to adjust and adapt a marketing program to a foreign market. In a broad sense, the environmental uncontrollable elements constitute the: A. problem. B. opportunity. C. culture.
D. marketplace.
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Chapter 01 - The Scope and Challenge of International Marketing
20. The task of ____________ is the most challenging and important one confronting international marketers. A. care for the environment B. dealing with politics
C. international standardization D. cultural adjustment
21.
Which of the following would be the BEST example to illustrate the fact that international marketers need to make cultural adjustments as they seek to do business abroad?
A. In America, white is an accepted color for wedding gowns; in Asia it is the color of mourning. B. Many teens earn extra income by working. C. Women out number men in the United States.
D. Most Middle Eastern women do not work outside the home.
22.____________ 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. A. Standardization B. Adaptation C. Segregation D. Segmentation
23. The primary obstacles to success in international marketing are a person's _________ and an associated ethnocentrism. A. regionalism B. holism
C. self-reference criterion D. segregation
24. ____________ is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions. A. Regionalism B. Holism
C. Self-reference criterion D. Segregation
25. Your ____________ can prevent you from being aware that there are cultural differences or from recognizing the importance of those differences. A. self-space B. personality
C. demographic character
D. self-reference criterion (SRC)
26. The most effective way to control the influence of ethnocentrism and __________ is to recognize their effects on our behavior.
A. the self-reference criterion (SRC) B. regionalism C. tunnel vision D. standardization
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Chapter 01 - The Scope and Challenge of International Marketing
27. To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences. Which of the following would be the BEST first-step to take to avoid the aforementioned errors?
A. Redefine the problem without the SRC influence.
B. Solve the problem for the optimum business goal situation.
C. Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem. D. Define the business problem or goal in home-country cultural traits, habits, or norms.
28. Successful businesspeople in the twenty-first century have ___________ and a frame of reference that goes
beyond a region or even a country and encompasses the world. A. a sense of fashion B. global awareness
C. an intimate knowledge of ecological problems D. a consumer mind-set
29. 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 through no conscious effort on the part of the marketer? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing
30. 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? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing
31. James Bright's company seek 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? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing
32. 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. Peron's company? A. Infrequent foreign marketing B. Regular foreign marketing C. International marketing D. Global marketing
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Chapter 01 - The Scope and Challenge of International Marketing
33.
If a company basically sees the process of international marketing as one where the domestic company seeks a sales extension of its domestic products into foreign markets, the company is using which of the following concepts to formulate its international policies and strategies? A. Domestic market extension concept B. Multidomestic market concept C. Global marketing concept D. Universal marketing concept
34. 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? A. Domestic market extension concept B. Multidomestic market concept C. Global marketing concept D. Universal marketing concept
35. A company using the ________________ views an entire set of country markets as a unit, identifying groups of prospective buyers with similar needs as an opportunity market segment and develops a marketing plan that strives for standardization wherever it is cost and culturally effective. A. domestic market extension concept B. multidomestic market concept C. global marketing concept D. universal marketing concept
Fill in the Blank Questions
1.
___________ 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.
2. Domestic marketing elements as price, product, promotion, channels of distribution, and research are called ____________ elements.
3. A person's self-reference criterion is often associated with an associated term called ________.
4. A person's ________________ is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions.
5. The successful businessperson in the twenty-first century has global _____________ and a frame of reference that goes beyond a region or even a country and encompasses the world.
6. At the __________ marketing level, companies treat the world, including their home market, as one market.
7. The global _____________ views an entire set of country markets as a unit, identifying groups of prospective buyers with similar needs as a global market segment.
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Chapter 01 - The Scope and Challenge of International Marketing
Essay Questions
1. List and briefly discuss the domestic environment uncontrollable elements found in the model that describes the international marketing task.
2 Explain the differences between the domestic environment uncontrollable elements and the foreign environment uncontrollable elements.
3. Explain the concept of the self-reference criterion (SRC).
4. To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences. List the four steps that make up the framework for such an analysis.
5. In order for a company to be globally aware, the company must do what two things (according to the text)?
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