PTS: 1 DIF: Medium
18. Which of the following is NOT a driver of international expansion?
a.
Competition
c.
Import quotas
b.
Regional economic integration
d.
Technology
19. When a company from the United States exporting products to multiple countries in the European
Union only has to go through customs once, this is an example of:
a.
Competition
b.
Regional economic & political integration
c.
Import quotas
d.
Technology
20. A subsidiary of a company from the United States incorporated in any country of the European Union
is:
a.
subject to foreign exchange restrictions
b.
forced to pay multiple tariffs
c.
exempt from U.S. taxation
d.
a corporate citizen of the European Union
21. The improved telecommunications in Burundi is an example of:
a.
infrastructure improvements
c.
experience transfers
b.
economic growth
d.
an entry barrier
22. An important outcome of the transition of the former Eastern Bloc countries to a market economy is:
a.
increasing forced domestication policies
b.
increased product development costs
c.
decreased foreign direct investment
d.
deregulation and privatization of former government monopolies
23. Uniform consumer segments:
a.
are emerging worldwide
b.
do not exist
c.
are pursued by firms with a regiocentric orientation
d.
are too small to be profitable
24. Which of the following are advantages of uniform consumer segments worldwide?
a.
lower costs
c.
lower tariffs
b.
increased profits
d.
a and b only
25. Generation X consumers in the United States and in Southeast Asia:
a.
are loyal to the same soft-drink brands
b.
are very different even though they are in the same age demographic
c.
wear the same brands of clothing but have different musical preferences
d.
are targeted by firms with an ethnocentric orientation
26. When consumers traveling abroad demand brands that may not be available in the home-country
market and retailers convey this information up the distribution chain to wholesalers, they
demonstrate:
a.
push demand
b.
pull demand
c.
the benefits of diversification
d.
improved communication within the supply chain due to advances in technology
27. The product life cycle:
a.
does not affect ethnocentric firms
b.
is a driver of international expansion
c.
is used by governments to erect entry barriers
d.
is important in domestic marketing but is not relevant to global marketing
28. Nike, on the average, spends close to a year to develop, test, and manufacture new product designs that
then last on the shelves in the United States for about:
a.
3 months
c.
1 year
b.
6 months
d.
over a year
29. At which stage of the product life cycle is a firm most likely to move manufacturing operations and
facilities abroad?
a.
Introduction
c.
Maturity
b.
Growth
d.
It is equally likely among the stages.
30. Colgate’s development of Axion paste for washing dishes for its Latin American market and its later
deployment in some European countries is an example of:
a.
standardization advantages
c.
experience transfers
b.
economies of scale
d.
self reference criterion
31. High domestic product development costs:
a.
serve as market entry barriers in international expansion
b.
encourage international expansion
c.
rarely affect consumer product manufacturers
d.
rarely affect industrial producers
32. The cigarette industry is either in the late maturity stage, or in the decline stage in industrialized
countries. By entering emerging markets where cigarettes are in the growth stage, the industry is
a.
setting up new market barriers
b.
prolonging its product life cycle
c.
targeting consumer product manufacturers
d.
focusing on the introduction stage of the product life cycle
33. Example(s) of obstacles to internationalization can be:
a.
financial and psychological
c.
physical and psychological
b.
physical and financial
d.
technological
34. An example of psychological obstacle to internationalization is
a.
fear of the unknown international environment
b.
limited financing available
c.
limited technology available
d.
all of the above
35. “Individuals’ conscious or unconscious reference to their own national culture, to home-country norms,
values, as well as to their knowledge and experience, in the process of making decisions in the host
country” is the definition of:
a.
the domestic market extension concept
b.
a regiocentric orientation
c.
a universal consumer segment
d.
the self reference criterion
36. Which of the following is NOT a formal method used by national governments to restrict or impede
entrance of international firms in the local market?
a.
Import quotas
c.
Foreign exchange restrictions
b.
Import license awards
d.
Consumer boycotts
37. When doing business in Latin America, a good marketing manager knows that:
a.
it is crucial to show up early to a business meeting.
b.
you don’t have to “read between the lines” in the Latin American culture.
c.
it is important to avoid alcohol and pork consumption.
d.
it is important to interact with your client in a social setting before “getting to business.”
38. The FIRST step to minimizing the impact of the self-reference criterion is:
a.
training the employee to be sensitive to the local culture
b.
selecting appropriate personnel for international assignments
c.
developing a repatriation plan
d.
limit the expatriate’s exposure to own-country nationals.
39. Which of the following is a technique used by members of the World Trade Organization to restrict
trade to bypass traditional barriers to trade not permitted by the WTO?
a.
Tariffs
b.
Delays in granting licenses
c.
Preferential treatment for local contractors
d.
Cumbersome procedures for import paper-work processing
40. Competitors erect entry barriers by:
a.
blocking channels of distribution
b.
binding retailers into exclusive agreements
c.
slashing prices temporarily
d.
all of the above
COMPLETION
1. A company engaging in ______________________________ has the least commitment to
international marketing.
2. A firm engaged in ____________________ marketing could be involved in exporting indirectly,
through orders from international clients, or directly.
3. ____________________ marketing activities require a substantial focus on international consumers in
a particular country or countries.
4. ____________________ marketing involves marketing activities across different countries without
focusing primarily on national or regional segmentation.
5. Firms with an ____________________ orientation are guided by a domestic market extension
concept.
6. Disney has adopted a(n) ____________________ philosophy in its international operations.
7. Firms with a ____________________ orientation are guided by a multidomestic market concept.
8. Firms with a regiocentric or geocentric orientation are guided by a
______________________________ concept.
9. The objective of a(n) ____________________ company is most often to achieve a position as a
low-cost manufacturer and marketer of its product line.
10. McDonald’s has a(n) ____________________ philosophy when it comes to internationalization.
11. A subsidiary of a company from the United States incorporated in any country of the European Union
is a ______________________________ of the European Union.
12. Economic growth constitutes a very important driver of _________________________.
13. The transition of the former _________________________ countries to a market economy has led to
rapid economic development in many countries in the region and has created important new markets
for international brands.
14. Generation X consumers in the United States and in Southeast Asia are loyal to the same soft-drink
brands, wear the same brands of clothing, listen to the same music and have the same idols. This is an
example of a(n) ____________________ consumer.
15. Consumers who have traveled abroad bring with them product experiences and demand brands that
may not be available in the home-country market. This would generate ____________________
demand.
16. Products that are in _________________________ stage can change their position on the global
product lifecycle stage by going into markets where the product is in high demand.
17. Cigarettes are in the late maturity stage of the product life cycle in the United States, but they are in the
____________________ stage in emerging markets worldwide.
18. Firms in the _________________________ stage of the product life cycle are likely to move
manufacturing operations and facilities abroad, to developing countries, in an attempt to take
advantage of significantly lower labor costs.
19. _________________________ played pop music on the rather loud side in its restaurants in new
markets as a result of knowledge gained in Central and Eastern Europe
20. The Tesco Extra hypermarket concept was first introduced in ____________________ before it was
introduced in the U.K.
21. The ___________________________________ is defined as “individuals’ conscious and unconscious
reference to their own national culture, to home-country norms, values, as well as to their knowledge
and experience, in the process of making decisions in the host country.”
22. Signatories of the General Agreement on Tariffs and Trade are using _________________________
barriers, such as cumbersome procedures for import paper-work to restrict international expansion of
companies in their countries’ territories.
23. While competition can be a driver of internationalization, competitors can also erect
_________________________ to new entrants in a market.
24. ____________________ is both a driver of internationalization, and it can erect barriers to new
entrants in a market.
25. ____________________ barriers include blocking channels of distribution, binding retailers into
exclusive agreements, slashing prices temporarily to prevent product adoption, or engaging in an
advertising blitz that could hurt a company’s initial sales in a market and cause it to retrench.
ESSAY
1. Explain the EPRG Framework.
2. Discuss the reasons why a U.S. company would want to form a subsidiary within the European Union.
3. How does converging consumer needs affect international expansion?
4. What is the Self-Reference Criterion and how may it be overcome?
5. How does competition affect international expansion?
