48) Which of the following would most likely indicate that a company should handle its own
distribution?
A) high-volume sales and non-complex after-sales servicing
B) local customers and low-tech products
C) low sales volume and few business-to-business sales
D) global customers and high technology
49) Which of the following statements is important to companies in order for them to gain contracts with
foreign distributors?
A) Convince the distributors that the product and company are viable.
B) Offer high margins so distributors will compete to get the account.
C) Determine the distribution gap before signing a contract.
D) Establish in-house distribution to demonstrate what is desired.
50) Although electronic commerce offers companies an opportunity to promote their products globally,
doing so brings challenges. Which of the following is NOT one of the challenges?
A) Many households, especially in developing countries, lack access to the Internet.
B) Setting up and implementing Internet sales can be expensive.
C) The appeals must be differentiated for every country of the world.
D) Switching to Internet sales can upset current distribution.
51) All of the following are true about the Internet and electronic commerce EXCEPT which one?
A) Suppliers can deal more quickly with their customers.
B) It enhances companies’ ability to differentiate their marketing methods by country.
C) Customers worldwide can quickly compare prices from different distributors.
D) To be successful, companies must be able to deliver efficiently what they sell over the Internet.
52) Gap analysis is ________.
A) a method for estimating a company’s potential sales by identifying segments it is not serving
adequately
B) an investment advisor’s report on the future of one of the leading clothing retailers
C) the leap-frogging of demand in many developing economies whereby consumers skip certain
generations of products, buying the latest model instead
D) an estimation of the disparity in incomes between the very rich and the very poor in a given market
53) A company would most likely use gap analysis to ________.
A) estimate market potential over a business cycle
B) compare sales over time
C) compare consumption potential with its own sales
D) determine the best market niches to target
54) Assume the per capita consumption of shoes is three pairs in Country A and two pairs in Country B.
The difference probably means that there is a ________ gap in Country B.
A) product line
B) usage
C) distribution
D) competitive
55) Gap analysis can be used by companies to gain synergy among countries. Which of the following is
a benefit of this synergy?
A) It allows companies to determine the allocation of marketing budgets among countries.
B) It can be used to prevent sales via the gray market.
C) By seeing the combined market potential among several countries, companies can determine whether
there is sufficient demand to justify new product development costs.
D) By analyzing the distribution gap, companies can better determine whether to handle other
companies’ imported products along with their own.
56) Arden Shoes runs a different marketing campaign every four weeks abroad. Which of the following
best describes the advantage of doing so?
A) It enables Arden to attract more sales personnel.
B) It helps Arden create an image of having quality products.
C) It allows Arden to change prices in highly inflationary economies.
D) It enables Arden to switch quickly and inexpensively to a local emphasis.
57) Compton Cereal Company sells its cereals in most global markets, and overall sales at the firm
remain strong. However, the firm is losing sales to some of its competitors because Compton lacks a
gluten-free cereal. Which of the following best describes Compton’s current problem?
A) usage gap
B) competitive gap
C) distribution gap
D) product-line gap
58) Which of the following is NOT one of the three personality traits that specifically affect
international marketing?
A) globalism
B) materialism
C) ethnocentrism
D) cosmopolitanism
59) International marketing is unlike domestic marketing because the basic principles are completely
different.
60) The marketing approach a company takes internationally should be compatible with its overall aims
and strategies.
61) In a production orientation, a company focuses on efficiency and product quality when selling
abroad.
62) Passive exports involve the filling of unsolicited orders from abroad.
63) A company that adapts its marketing to foreign differences without deviating very much from its
experience is following a customer orientation.
64) Under a strategic marketing orientation, a company considers potential environmental, health, social,
and work-related problems from the sale of its products abroad.
65) The most common way of identifying market segments is through demographics.
66) There are more cost savings for international branding standardization than for international product
standardization.
67) Different country standards, such as safety regulations, add complexity to whether companies decide
to use a globally standardized product.
68) A company sometimes handles a broader line of products in a foreign country than in its home
country because most of its new product development is abroad.
69) Although the broadening of product lines increases distribution efficiencies, too broad a line can
create problems in selling.
70) Market diversity, government intervention, and currency fluctuations complicate international
pricing decisions.
71) Antidumping regulations of the WTO allow countries to establish restrictions against any exports
that fail to meet quality standards.
72) A company that exports products at a price lower than its domestic market price is using a skimming
policy abroad.
73) A company that prices its products at a desired margin over cost is using a cost-plus strategy.
74) High inflation might cause a company to gain advantages by selling more on credit.
75) When the currency value in the location where a company produces becomes stronger, the company
most likely needs to adjust its margins downward to be competitive in export markets.
76) A push strategy is most likely preferable to a pull strategy when goods are sold using self-service
distribution.
77) A push strategy is most likely preferable to a pull strategy when the price of the product is high
relative to incomes.
78) A problem of advertising through media that reach multiple countries is that the product may not be
available everywhere it is advertised.
79) A positive brand image cannot overcome negative perceptions of the country where the product is
made.
80) If a brand name becomes generic in one country, it becomes generic in other countries as well.
81) Seasonal differences around the world enable MNEs to distribute weather-related sales, such as
winter clothing, more evenly throughout the year.
82) Higher disposable income and technological advances help overcome many geographic constraints
on product demand and distribution.
83) When a company sells technologically advanced products to global customers, it is more likely to
handle distribution itself.
84) Internet sales complement traditional distributors, thus enhancing companies’ ability to secure and
hold traditional distributors.
85) Gap analysis refers to an estimation of sales potential caused by the disparity in incomes between
developed and developing countries.
86) Gap analysis may show that the combined market potential among several countries may justify
product development costs.
87) E-commerce facilitates the ability of consumers to compare prices from different distributors, which
will most likely result in lower prices on products.
88) In a short essay, discuss the international application of five common marketing orientations.
89) In a short essay, describe the various reasons for product alteration.
90) What factors makes international pricing and distribution more complex than domestic pricing and
distribution?
91) Define price escalation in exporting and explain why it occurs.
92) What is the gray market? Why are companies concerned about it?
93) In a short essay, compare push and pull promotional strategies.
94) In a short essay, discuss the standardization of two marketing components: advertising and
distribution.
95) How do language differences affect international branding and promotion?
96) How do foreign government regulations affect pricing and promotion for international businesses?
97) What challenges are created by selling internationally through the Internet? How does e-commerce
affect pricing?
98) In a short essay, discuss gap analysis.