199) One disadvantage of direct investment when entering a new global market is
A) intermediaries have the potential to harm the brand.
B) the firm entering the foreign market must pay royalties to the government.
C) the company forgoes control over its product.
D) the financial commitments involved.
E) this method is likely to provide the fewest cost savings relative to the other global market
entry options.
200) Both Nissan and Mercedes-Benz have plants in the United States that use American labor.
This illustrates Nissan’s and Mercedes-Benz’s use of
A) direct exporting.
B) direct investment.
C) joint venture.
D) licensing.
E) indirect exporting.
201) Yum! Brands, the parent company of KFC, has pursued an aggressive growth strategy in
China. There are now more than 3,700 restaurants in 650 Chinese cities, and KFC has a 40
percent market share of the entire fast-food industry there. Yum! Brands China owns and directly
manages about 90 percent of its Chinese stores, so it appears that the company prefers ________
in this market.
A) licensing
B) local assembly
C) a joint venture
D) direct investment
E) local manufacturing
202) Global companies have five strategies for matching products and their promotion efforts to
global markets. The strategy of selling virtually the same product in other countries is referred to
as
A) product adaptation.
B) product invention.
C) brand adaptation.
D) product extension.
E) product integration.
203) As a general rule, ________ seems to work best when the consumer target market for the
product is alike across countries and cultures—that is, consumers share the same desires, needs,
and use for the product.
A) product adaptation
B) product extension
C) product integration
D) product invention
E) product customization
204) Sony electronics, Gillette razors, and Nike apparel and shoes are being sold in the same
form in many countries. This is an example of which type of global marketing product and
promotion strategy?
A) product customization
B) product adaptation
C) product extension
D) product integration
E) product invention
205) GlaxoSmithKline PLC of Great Britain makes Breathe-Right nasal strips. It sells the same
product in many countries because customers all over the world will use them in the same way.
This is an example of which type of global marketing product and promotion strategy?
A) product customization
B) product extension
C) product adaptation
D) product invention
E) product integration
206) Global companies have five strategies for matching products and their promotion efforts to
global markets. Changing a product in some way to make it more appropriate for a country’s
climate or preferences is an example of which type of global marketing product and promotion
strategy?
A) product extension
B) product customization
C) product adaptation
D) product invention
E) product integration
207) Frito-Lay produces and markets potato chips in Russia that have seafood flavor. This is an
example of which type of global marketing product and promotion strategy?
A) product adaptation
B) product integration
C) product invention
D) product customization
E) product extension
208) KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes. This is an
example of which type of global marketing product and promotion strategy?
A) product extension
B) product adaptation
C) product customization
D) product invention
E) product integration
209) Global companies have five strategies for matching products and their promotion efforts to
global markets. Designing a product to satisfy common needs across countries is which type of
global marketing product and promotion strategy?
A) product extension
B) product customization
C) product adaptation
D) product invention
E) product integration
210) Black & Decker developed the Snake Light flexible flashlight. Created to address a global
need for portable lighting, the product became a best seller in North America, Europe, Latin
America, and Australia. This is an example of which type of global marketing product and
promotion strategy?
A) product extension
B) product customization
C) product adaptation
D) product invention
E) product integration
211) KFC has created many offerings for its menus in China to appeal to local tastes, including
the “Dragon Twister,” which is a chicken wrap with Peking-duck sauce. This is an example of
which type of global marketing product and promotion strategy?
A) product extension
B) product customization
C) product adaptation
D) product invention
E) product integration
212) Even though Exxon adapts its gasoline blends for different countries based on climate, the
promotion message is unchanged: “Put a Tiger in Your Tank.” This type of global promotional
strategy is known as
A) product extension
B) product customization
C) product adaptation
D) dual adaptation
E) dual integration
213) Nescafé coffee is marketed using different coffee blends and promotional campaigns to
match consumer preferences in different countries. For example, Nescafé generally emphasizes
the taste, aroma, and warmth of shared moments in its advertising around the world. However, in
Thailand, Nescafé is advertised as a way to relax from the pressures of daily life. This is an
example of which type of global marketing product and promotion strategy?
A) product extension
B) product customization
C) product adaptation
D) dual adaptation
E) dual integration
214) Global companies have five strategies for matching products and their promotion efforts to
global markets. According to Figure 7-5 above, A refers to which type of strategy?
A) product extension strategy
B) communication adaptation strategy
C) product adaptation strategy
D) dual adaptation strategy
E) product invention strategy
215) Global companies have five strategies for matching products and their promotion efforts to
global markets. According to Figure 7-5 above, B refers to which type of strategy?
A) product extension strategy
B) communication adaptation strategy
C) product adaptation strategy
D) dual adaptation strategy
E) product invention strategy
216) Global companies have five strategies for matching products and their promotion efforts to
global markets. According to Figure 7-5 above, C refers to which type of strategy?
A) product extension strategy
B) product adaptation strategy
C) dual adaptation strategy
D) product invention strategy
E) communication adaptation strategy
217) Global companies have five strategies for matching products and their promotion efforts to
global markets. According to Figure 7-5 above, D refers to which type of strategy?
A) product extension strategy
B) product adaptation strategy
C) dual adaptation strategy
D) product invention strategy
E) communication adaptation strategy
218) Global companies have five strategies for matching products and their promotion efforts to
global markets. According to Figure 7-5 above, E refers to which type of strategy?
A) product extension strategy
B) product adaptation strategy
C) dual adaptation strategy
D) product invention strategy
E) communication adaptation strategy
219) Adding to the complexity of global distribution is the need for ________, in addition to the
channels within a foreign nation.
A) parallel importing
B) channels between nations
C) communication adaptation
D) product adaptation
E) economic stability of the final consumer
220) Consider the distribution channels through which a product manufactured in one country
must travel to reach its destination in another country. The step that is the channel between two
nations, moving the product from one country to another, is the
A) seller.
B) seller’s international marketing headquarters.
C) channels within foreign nations.
D) final consumer.
E) channels between nations.
221) Consider the distribution channels through which a product manufactured in one country
must travel to reach its destination in another country. The distribution channels can be
considered to have been successful when the product reaches the
A) seller.
B) channels between nations.
C) seller’s international marketing headquarters.
D) final consumer.
E) channels within foreign nations.
222) Consider the distribution channels through which a product manufactured in one country
must travel to reach its destination in another country. Channels of distribution in global
marketing are often long and complex. The availability and quality of retailers and wholesalers
as well as transportation, communication, and warehousing facilities are often determined by
A) the seller and the exporter.
B) a country’s stage of economic development.
C) the seller’s international marketing headquarters and the channels between nations.
D) channels between nations and the channels within the foreign nation.
E) channels within the foreign nation and the foreign retailer.
223) When a firm sells a product in a foreign country below its domestic price or below its actual
cost, the practice is referred to as
A) loss-leader pricing.
B) surplus marketing.
C) dumping.
D) second-market pricing.
E) entrepreneurial pricing.
224) In international trade, dumping refers to
A) illegally disposing of unusable or damaged goods to avoid paying removal fees and/or taxes.
B) a firm selling damaged or unsalable goods below their original production cost.
C) a firm selling quality goods at significantly lower prices for the primary purpose of reducing
inventory to make room for seasonal goods.
D) a firm selling quality goods at significantly lower prices for the primary purpose of reducing
inventory to make room for newer or more expensive models.
E) a firm selling a product in a foreign country below its domestic price or below its actual cost.
225) The U.S. Commerce Department imposed additional duties of 31 percent to 250 percent on
imported photovoltaic products from Chinese solar manufacturers after ruling that they sold them
below cost. The Commerce Department took this action in response to what it saw as
A) tariff avoidance.
B) countertrade.
C) surplus marketing.
D) underbidding.
E) dumping.
226) A situation where products are bought in a lower-priced country from a manufacturer’s
authorized reseller, shipped to higher-priced countries, and then sold through unauthorized
retailers below the manufacturer’s suggested retail price is referred to as
A) the black market.
B) a gray market.
C) dumping.
D) a globalized market.
E) parallel exporting.