1
CHAPTER FOUR
GLOBAL MARKETS 3.0
Multiple Choice
1. According to the text, the Web’s content and language will become ________ while
companies cater to a variety of cultures and provide local content.
a. less diversified
b. more diversified
c. less visual
d. none of the above
2. The greatest challenges to e-marketing opportunities lie in ________.
a. countries with emerging economies
b. countries with developed economies
c. countries in Asia
d. countries in South America
3. ________ are ideally suited for the broad range of e-marketing activities.
a. Emerging economies
b. Developed countries
c. Underdeveloped countries
d. Least developed countries (LDCs)
4. Emerging economies ________.
a. have low levels of GDP
b. are experiencing rapid growth
c. are working toward improved standards of living for their citizens
d. all of the above
5. Businesses in emerging economies must deal with problems such as ________.
a. fewer computer users
b. expanded credit card use
c. several methods of online payment
d. all of the above
2
6. A company operating from a country with an emerging economy and wanting to target
markets in developed countries must understand ________ within the population.
a. market similarity
b. market differences
c. market dissimilarity
d. domestic markets
7. All of the following are examples of market similarity between developed countries, except
________.
a. high literacy rates
b. high internet usage rates
c. distrust of credit cards
d. efficient package delivery services
8. E-commerce is emerging markets is often hampered, or hindered, by ________.
a. limited use and acceptance of credit cards
b. types of products purchased online
c. clear definition of market segments willing to shop online
d. all of the above
9. E-marketers working in emerging economies should know and understand ________.
a. how many credit cards are in circulation
b. consumer attitudes toward online purchasing
c. both of the above
d. none of the above
10. Why are diaspora communities an important consideration for e-businesses?
a. Infrastructure is not yet sufficiently developed in home countries.
b. Markets in home countries must deal with slow internet connection speeds.
c. E-businesses operating in countries with emerging markets can use market similarity
to target diaspora communities living abroad.
d. Market convergence runs ahead of the curve in emerging economies, providing a
useful entry point to e-businesses.
3
11. Within emerging economies, labor costs may be quite low, but technology and other
business costs can be quite high because of ________.
a. privately-owned telephone monopolies
b. lack of competition between ISPs
c. lower internet-related business costs than those in developed countries
d. all of the above
12. According to the text, _________ is the most common language with 499 million web
users, followed by _________with 407 million web users.
a. Chinese; English
b. English; Chinese
c. English; Spanish
d. Spanish; English
13. With the explosive growth and diffusion of ________ the face of e-marketing has changed
quite dramatically throughout the world.
a. electricity sources
b. mobile/cellular phones
c. language translators
d. internet cafes
14. According to the text, experts suggest that the mobile phone industry took over 20 years
to connect the first billion subscribers and _________ to connect the second billion.
a. 10 years
b. 8 years
c. 5 years
d. 40 months
15. ________ are those countries with the world’s poorest economies.
a. Underdeveloped countries
b. Emerging economies
c. Least developed countries
d. Developed countries
4
16. Least developed countries (LDCs) often have population segments with much higher
income level, dividing them into haves and have-nots. This is known as a ________
economy.
a. side by side
b. dual
c. double
d. mixed
17. ________ means that between countries and between different groups of people within
countries, there is a wide division between those who have real access to information and
communication technology and those who do not.
a. Digital disparity
b. The digital divide
c. Technological division
d. Technological poverty
18. The developing world accounts for a considerable proportion of the world’s ________.
a. broadband connections
b. wireless connections
c. dial-up connections
d. DSL connections
19. Successful global e-marketers understand that one of the keys to success is to ________.
a. have a strategy that is adaptable to different local markets
b. have a strategy that is similar in all countries
c. have a strong wireless campaign
d. emphasize web design and graphic in their web sites
20. Internet penetration can be affected by many factors, including ________.
a. income
b. infrastructure
c. computer ownership
d. all of the above
5
True/False
21. According to the text, a truly global internet is likely to accelerate the convergence of
styles, tastes, and products to create a more homogeneous marketplace.
a. True
b. False
22. BRIC nations among the world’s Big Emerging Economies (BEMs) account for nearly 40%
of the world’s population.
a. True
b. False
23. Technology plays an important role in helping any country improve its level of economic
development through increased efficiencies in production, distribution, and sale of goods
and services.
a. True
b. False
24. Limited credit card use among non-US customers slightly restricts a target market’s
purchasing ability.
a. True
b. False
25. As evidenced by Druk.net of Bhutan, successful e-marketing can leapfrog a company from
nowhere to somewhere in a relatively short period of time.
a. True
b. False
26. Low rates of computer ownership always inhibit opportunities for e-business
entrepreneurs in emerging economies.
a. True
b. False
6
27. Countries with emerging economies often have lower internet-related business costs.
a. True
b. False
28. Companies often consider market similarities across different in order to evaluate entry
risks.
a. True
29. Understanding the national infrastructure for providing electricity throughout a country is
an unimportant element in assessing foreign markets.
a. True
30. The increased availability of mobile phones will definitely eliminate the challenges of
wireless e-marketing.
a. True
b. False
31. Media dark refers to rural Indian communities that have no access to radio or TV.
a. True
b. False
32. With regarding to purchasing patterns and practices, it is crucial for global e-marketer to
understand the world from their target market’s perspective.
a. True
b. False
7
Essay Questions
33. What effects will the increasing number of non-US users have on the internet?
34. What are some of the possible solutions to the limited use of credit cards in emerging
economies?
35. What are some significant technological challenges to e-marketing in emerging
economies?
36. The use of mobile phones to connect to the internet solves some of the problems for e-
marketers in emerging economies. What new challenges arise out of the use of mobile
phones for internet access?
8
37. Discuss global trends related to the adoption of smartphones, and what e-marketers must
understand about these trends.
(Moderate; LO1; Use of Information Technology)
38. Consider an internet or e-commerce company that sells exclusively in the US but wants to
expand globally. What kind of strategy would you recommend for their initial expansion?
What are some of the factors they should consider in pursuing this expansion?
39. How has the China-based company Haier used its web presence to improve its global