117) Campbell Soup recently joined forces with Hong Kong-based Swire Pacific to form an
entity called Campbell Swire to better distribute the company’s soups in China. This is an
example of ________.
A) licensing
B) contract manufacturing
C) management contracting
D) joint ownership
E) indirect exporting
118) ________ ventures consist of one company joining forces with foreign investors to create
a local business in which they share ownership and control.
A) Joint ownership
B) Licensing
C) Contract manufacturing
D) Management contracting
E) Indirect exporting
119) ________ involves entering a foreign market by developing foreign-based assembly or
manufacturing facilities.
A) Indirect exporting
B) Direct investment
C) Joint venturing
D) Contract manufacturing
E) Direct exporting
120) Lower costs in the form of cheaper labor or raw materials, foreign government investment
incentives, freight savings, and the opportunity to improve the company image are the factors
that would most likely lead a company to enter a foreign market using the market entry strategy
of ________.
A) direct exporting
B) licensing
C) management contracting
D) indirect exporting
E) direct investment
121) The simplest way to enter a foreign market is through direct investment.
122) Sellers must understand the ways that consumers in different countries think about and use
certain products before planning a marketing program.
123) Joint venturing involves the least change in the company’s product lines, organization,
investments, or mission.
124) When Tool Trade, an American company, uses qualified Brazilian manufacturers to
produce many of the products it sells to retailers in South America, Tool Trade is using contract
manufacturing.
125) The biggest involvement in a foreign market comes through exporting—entering foreign
markets by selling goods produced in the company’s home country.
126) How is joint venturing more risky and complex than merely exporting?
127) What are two possible risks involved with licensing?
128) What are two possible reasons that management contracting is prevalent in the hotel
industry?
129) Discuss direct and indirect exporting. What are the advantages of exporting?
130) ________ involves essentially using the same marketing strategy approaches and
marketing mix worldwide
A) Adapted global marketing
B) Ambush marketing
C) Standardized global marketing
D) Export marketing
E) Niche marketing
131) ________ means adjusting the marketing strategy and mix elements to each international
target market.
A) Standardized global marketing
B) Ambush marketing
C) Adapted global marketing
D) Mass marketing
E) Whole channel viewing
132) ________ means marketing a product in a foreign market without making any changes to
the product.
A) Product adaptation
B) Product invention
C) Communication adaptation
D) Straight product extension
E) Product augmentation
133) Heineken beer is sold successfully in the same form around the world. Which of the
following product strategies is illustrated in this example?
A) product adaptation
B) straight product extension
C) product invention
D) product augmentation
E) communication adaptation
134) Kraft has adapted its popular Oreo cookie to the unique tastes of consumers all around the
world, whether it’s mango-and-orange flavored Oreos in the Asia Pacific region, green tea
Oreos in China, a chocolate and peanut variety in Indonesia, or banana and dulce de leche in
Argentina. This is an example of ________.
A) product invention
B) straight product extension
C) product adaptation
D) product augmentation
E) communication adaptation
135) ________ involves changing the product to meet local requirements, conditions, or wants.
A) Product invention
B) Straight product extension
C) Standard global marketing
D) Communication adaptation
E) Product adaptation
136) Vidal Sassoon shampoos contain different amounts of scent according to the country in
which they are sold. This is an example of ________.
A) straight product extension
B) product invention
C) product adaptation
D) communication adaptation
E) standardized global marketing
137) ________ consists of creating something new to meet the needs of consumers in a given
country.
A) Communication adaptation
B) Joint venturing
C) Product invention
D) Straight product extension
E) Product adaptation
138) GigaTalk, a U.S. based computer manufacturing company, found that Japanese
commuters had difficulty using standard laptops on crowded rush-hour trains because, while
standing, commuters cannot use their laptops. So GigaTalk created a standing computer. This
computer includes a touch screen and small keyboard that can be used while standing or on the
move. This is an example of ________.
A) straight product extension
B) standardized global marketing
C) product adaptation
D) dual adaptation
E) communication adaptation
139) Changing promotions to suit local markets is known as ________.
A) straight product extension
B) ambush marketing
C) communication adaptation
D) product adaptation
E) standardized global marketing
140) Kellogg ads in the United States promote the taste and nutrition of Kellogg’s cereals
versus competitors’ brands. In France, where consumers drink little milk and eat little for
breakfast, Kellogg’s ads must convince consumers that cereals are a tasty and healthful
breakfast. Which marketing strategy is being followed by Kellogg?
A) straight product extension
B) product adaptation
C) product invention
D) communication adaptation
E) straight communication extension
141) In Chinese, the KFC slogan “finger-lickin’ good” came out as “eat your fingers off.” And
Motorola’s Hello-moto ringtone sounded like “Hello, Fatty” in India. Which of the following
strategies can be used to avoid such mistakes?
A) communication adaptation
B) standardized global marketing
C) straight product extension
D) product adaptation
E) communication extension
142) Advertising media must be adapted internationally. Which of the following is NOT true
about the need for communication adaptation?
A) Advertising time is limited in Europe.
B) Mobile phone ads are widely accepted in Europe and Asia.
C) Advertisers must buy advertising time far in advance.
D) The same advertisement can be presented in all countries in Europe.
E) Magazines are important in Italy, but not in Austria.
143) Assume that a Gucci handbag sells for $60 in Italy and $240 in the United States because
Gucci must add the cost of transportation, tariffs, importer margin, wholesaler margin, and
retailer margin to its factory price. This information indicates that Gucci faces a ________
problem.
A) dumping
B) tariff
C) licensing
D) product adaptation
E) price escalation
144) Designing international channels that take into account the entire global supply chain and
marketing channel, thus forging an effective global value delivery network, recognizes a
company must have a ________.
A) whole-channel view
B) direct-distribution channel
C) large-scale channel
D) transportation network
E) retail channel
145) ________ are the first link between the seller and the final buyer. They move company
products from points of production to the borders of countries within which they are sold.
A) Channels between nations
B) Channels within nations
C) Retail channels
D) Large-scale channels
E) Value chain channels
Refer to the scenario below to answer the following question(s).
Selman & Saks, a maker of men’s and women’s razors and electric hair trimmers, had little
reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose
largest division engages in a licensing agreement with a German firm to produce women’s
hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be
more profitable after all.
Managers at Selman & Saks studied Wellman’s licensing agreement in great detail. Even after
seeing the benefits Wellman achieved with the licensing agreement, managers decided that
Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers
entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions
varied among numerous managers as to the cause of the failure. “Who knows the local market
better than people who live there?” was a comment heard throughout Selman & Saks. “Maybe
we needed an alliance with a French firm, or a licensing agreement, before racing to get there.”
146) If Selman & Saks allowed a French company to produce and market razors and trimmers
carrying the company’s brand in exchange for a royalty, Selman & Saks would be using the
market entry strategy of ________.
A) exporting
B) franchising
C) licensing
D) contract manufacturing
E) joint ownership
147) Selman & Saks offered the same razors and trimmers in France as in the United States.
Selman & Saks is an example of a ________.
A) product adaptation
B) communication adaptation
C) product invention
D) straight product extension
E) standardized global marketing plan
148) Dove body soaps are sold successfully in essentially the same form around the globe. This
is an example of straight product extension.
149) Oreos are less sweet or less bitter in certain countries. This is an example of straight
product extension.
150) A cell phone maker customized its cell phones for the Asian market by raising the ring
volume so that phones could be heard on crowded streets. This is an example of product
invention.
151) If Audi develops a new low-priced model for entry-level consumers in Europe, it would
be an example of straight product extension.
152) The whole-channel view recognizes that to compete internationally a company must
effectively design and manage a standardized global marketing plan.
153) To overcome price escalation when selling to less-affluent consumers in developing
countries, companies offer their same products at lower prices.
154) The Internet is making global price differences more obvious, forcing companies toward
more standardized international pricing.
155) What types of products would be successful with standardized global marketing?
156) Explain why a global company would need to make adjustments to a highly standardized
promotion campaign for different markets.
157) Why is a company unlikely to set a uniform price all around the world?
158) Identify and describe the three product strategies a company entering a foreign market can
use.
159) Compare and contrast the advantages and disadvantages of standardized global marketing
and adapted global marketing.
160) A company can manage its international marketing in all of the following ways EXCEPT
________.
A) becoming a global organization
B) organizing an export department
C) creating an international division
D) advertising internationally
E) shipping its goods internationally
161) A firm often enters international marketing by simply shipping its goods out of the
country. If its international sales expand, the company often organizes a(n) ________.
A) indirect exporting venture
B) joint ownership
C) export department
D) international division
E) standardized global marketing strategy
162) World product groups, geographical organizations, and international subsidiaries are all
options for organizing a(n)________.
A) export department
B) indirect exporting venture
C) joint ownership
D) international division
E) standardized global marketing strategy
163) When a company exports to one country, licenses to another, has a joint ownership
venture in a third, and owns a subsidiary in a fourth, it likely will create a(n) ________ to
handle its international activity.
A) global organization
B) international division
C) world product group
D) export department
E) indirect exporting venture
164) International divisions are organized in several ways. Their operating units can include all
of the following EXCEPT ________.
A) international subsidiaries
B) world product groups
C) corporate staff providing services to operating units
D) geographical organizations
E) departmental units
165) In a(n) ________, executives are trained in worldwide operations, not just domestic or
international operations.
A) direct exporting company
B) joint venture
C) international division
D) international subsidiary
E) global organization
166) At Comfort Homes, a manufacturer of furniture and home accessories, the global
operating units report directly to the chief executive instead of a head of an international
division. The company recruits management from many countries and buys components and
supplies where they cost the least. Comfort Homes is most accurately classified as a(n)
________.
A) direct exporter
B) geographical organization
C) international subsidiary
D) global organization
E) world product group
167) If a firm moves into joint ventures and direct investments, it will eventually need to create
an export department.
168) International divisions can be organized as geographical organizations, world product
groups, or international subsidiaries.
169) Global organizations don’t think of themselves as national marketers that sell
internationally, but as global marketers.
170) Identify the three major ways a company can manage its international marketing.
171) What might drive a company to create international divisions or subsidiaries? Discuss the
three ways these divisions can be organized.