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50) Which aspect of international marketing is analyzed in the first phase of the international
planning process?
A) country's market potential
B) product adaptation
C) advertising
D) situation analysis
E) budget
51) During which activity of the international planning process would a marketing manager
conduct situation analysis and make decisions involving objectives and goals, budgets, and
action programs?
A) adapting the marketing mix to target markets
B) developing the marketing plan
C) matching company and country needs
D) implementation and control
E) defining company objectives and resources
52) The primary goal of Phase 2 of the international planning process is to
A) establish criteria for screening countries.
B) determine the marketing mix.
C) match company characteristics with country potential.
D) perform a situation analysis.
E) set budgets.
53) Phase 2 of the international planning process includes analysis of which factor?
A) company character
B) pricing
C) situation analysis
D) budgets
E) standards
54) A consumer products company has already reviewed its objectives and capabilities,
established the screening criteria for reviewing potential foreign markets, and examined a series
of environmental factors for the markets in which it plans to operate. What should the company
do next as it proceeds with the international planning process?
A) Match the company to a country's needs.
B) Evaluate the marketing mix to target markets.
C) Modify the company's position to communication objectives.
D) Develop a marketing plan.
E) Implement and control information obtained in the initial examination.
55) What question should be answered in Phase 2 of the international marketing process?
A) Are there identifiable market segments that allow for common marketing mix tactics across
countries?
B) Have objectives and goals been established?
C) Have all budgets been determined within the constraints of resources?
D) Are pre-existing channels of distribution in the new market mature enough to support the
proposed expansion?
E) Have responsibilities been established for implementation and control?
56) Phase 3 of the international planning process begins with
A) creating a management performance guide.
B) evaluating host-country constraints.
C) conducting a situation analysis.
D) evaluating home-country constraints.
E) exploring the distribution options.
57) A company has just completed a marketing plan for entering eastern Europe. Included in this
plan are budgets and sales and profit expectations. Which of the following phases of the
international planning process has the company just completed?
A) Phase 1
B) Phase 2
C) Phase 3
D) Phase 4
E) Phase 5
58) A company decided to expand its presence in northern Europe. Toward that end, it selected
the countries where it would market its products. It also selected a mode of entry. It is now in the
process of implementing specific plans. The company is currently in which phase of the
international planning?
A) Phase 1
B) Phase 2
C) Phase 3
D) Phase 4
E) Phase 5
59) A company is in the process of deciding the mode of entry it will use in Japan and China.
The company is in which phase of the international planning process?
A) preliminary analysis
B) defining market segment
C) developing the marketing plan
D) implementation and control
E) standardization of the marketing mix
60) Once a "go" decision has been made in Phase 3 of the international planning process, what is
most likely to occur next?
A) the objectives and goals phase
B) the budget phase
C) the action-program(s) phase
D) the implementation and control phase
E) the communication phase
61) Which subject is explored after developing information and selecting a country market in the
international planning process?
A) company character
B) the constraints of home country
C) geography
D) host-country constraints
E) the mode of entry
62) What is the last step in the international planning process?
A) defining target markets and adapting the marketing mix accordingly
B) matching company and country needs
C) adapting the marketing mix according to market segments
D) implementation and control
E) developing the marketing plan
63) Which mode of foreign market entry requires the most amount of equity and therefore
creates the greatest risk?
A) exporting
B) joint venture
C) contractual agreement
D) strategic alliance
E) direct foreign investment
64) Which mode of foreign market entry offers the most control and the highest potential return
for a company?
A) exporting
B) joint venture
C) contractual agreement
D) strategic alliance
E) direct foreign investment
65) Hippos is a manufacturer of consumer goods. It intends to sell its products in Taiwan as it is
looking to enter into Asian markets. It does not want to make any equity investment and prefers
to minimize any risk of loss in the foreign market. It is also willing to settle for a low rate of
return and little control. Which of the foreign market-entry strategies is Hippos most likely to
pursue?
A) direct foreign investment
B) joint venture
C) indirect exporting
D) strategic alliance
E) licensing
66) The foreign market entry mode of ________ requires no equity investment and thus has a
low risk, low rate of return, and little control.
A) licensing
B) indirect exporting
C) a strategic alliance
D) a joint venture
E) franchising
67) Mirros, a U.S. kitchenware distributor, sells its inventory twice a year to All Cooks, a
kitchenware retailer in the United States. All Cooks, in turn, sells those products through its retail
stores in Vietnam and Thailand. In which of the following entry modes is Mirros most likely
engaged?
A) franchising
B) indirect exporting
C) a consortium
D) direct foreign investment
E) a joint venture
68) What market strategy usually means that the company sells to a buyer (importer or
distributor) in the home country, which in turn exports the product?
A) franchising
B) indirect exporting
C) a consortium
D) direct foreign investment
E) a joint venture
69) Mirros, a U.S. kitchenware distributor, takes a selection of its inventory twice a year to
Vietnam and sells it to a Vietnam-based kitchen retailer. The Vietnam company, in turn, sells
those products through its retail stores in Vietnam and Thailand. In which of the alternative
market-entry strategies is Mirros engaged?
A) franchising
B) licensing
C) direct exporting
D) a joint venture
E) direct foreign investment
70) A direct sales force may be required in a foreign country, especially for
A) big ticket industrial products.
B) low-technology products.
C) personal care products.
D) nonmechanical goods.
E) traditional hand-made goods.
71) In the context of foreign market entry, ________ are long-term, nonequity associations
between a company and another in a foreign market.
A) consortia
B) exporting arrangements
C) direct foreign investments
D) contractual agreements
E) joint ventures
72) The advantages of ________ are most apparent when capital is scarce, import restrictions
forbid other means of entry, a country is sensitive to foreign ownership, or patents and
trademarks must be protected against cancellation for nonuse.
A) consortia
B) exporting arrangements
C) strategic alliances
D) licensing
E) joint ventures
73) Cho wanted to sell her custom jewelry made in China to the U.S. market, but she didn't have
a lot of capital to get started, nor did she know how to get around import restrictions. She
decided to give an American company the rights to produce and sell her products for a fee and
gave them patent rights. Cho was pursuing which entry method?
A) consortia
B) exporting arrangements
C) strategic alliances
D) licensing
E) joint ventures
74) Which form of business relationship lets a company grant patent rights, trademark rights, and
the rights to use technological processes to another company in a foreign country?
A) licensing
B) exporting arrangements
C) joint ventures
D) consortia
E) strategic alliances
75) What is true of franchising?
A) It provides an effective blending of skill decentralization and operational centralization.
B) The franchisee provides market knowledge, capital, and personal involvement in
management.
C) Foreign laws and regulations are usually hostile toward franchising.
D) It is an important form of horizontal market integration.
E) The franchiser has little control on marketing of the products at the point of final sale.
