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E. consumers in developing countries have very specific preferences.
78. Graham had developed an extremely successful advertising and promotion campaign for a client in the United States. The client wanted to roll out
the same campaign to markets worldwide, but Graham cautioned against doing this, most likely because
79. Celia's firm has developed a breakfast cereal targeted toward children. Rather than compete in the mature U.S. market, she has decided instead to
introduce the product in Europe, where she feels it will be innovative. Her advertising agency urged caution because
80. Brands can be extremely valuable domestically, but challenging internationally. Companies can help overcome language difficulties in using brands
by
81. Which of the following is one of the global entry strategies?
82. When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as
83. Which of the following best describes the direct investment global entry strategy?
84. The term trade deficit refers to
85. When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive.
86. When entering into a franchise agreement, what term is used to refer to the firm that is granted the right to operate a business using the franchise
name and business concept?
87. Which of the following statements best describes global expansion through a strategic alliance?
88. The XYZ Company is collaborating with a competitor on a globally based opportunity for mutual benefit, but the two competitors are not investing
in one another. This is an example of
89. The United States imports more goods from China than it exports to China. This is known as
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90. When Ford Motor Company decided to sell the Fiesta—in the same form and design—around the globe, instead of selling different versions in
different countries, this was part of Ford's global ________ strategy.
91. When Cisco Systems Inc. of San Jose, California, and Tata Consultancy Services of Mumbai, India, entered into a relationship, they both continued
to develop market-ready infrastructure and network solutions for customers, but they relied on each other to provide the training and skills that one or
the other might have lacked. This relationship is best described as
92. Ford Motor Company decided to sell the Fiesta around the globe. Which of the following would be an example of glocalization of the Fiesta?
93. One Laptop Per Child is a nonprofit initiative with the goal of making extremely low-cost laptops available to children in the developing world, with
the goal of helping them learn skills needed in today's workforce. If some of the low-cost technology developed for this laptop found its way into laptops
created for U.S. consumers, this would be an example of
94. Despite multiple upturns and downturns in its economy, Russia's overall growth prospects appear promising, especially as a consumer market.
However, there are still multiple dilemmas for firms trying to market their goods and services. These dilemmas include all of the following Russia's
95. What do the BRIC countries have in common?
96. Which of the following is currently a negative factor for foreign investment in Russia?
97. Which of the following is currently a negative factor for foreign investment in India?
98. Which of the following is a potential negative factor for foreign investment in China?
99. A company is assessing opportunities in the BRIC companies and determines that _________ is one of the youngest populations in the world and is
increasingly adopting global attitudes.
100. Why should marketers be aware of the BRIC countries?
101. Which statement about India's population is true?
102. A publishing company plans to outsource its production-related tasks to a BRIC country. They are assessing opportunities and are attracted to this
country due to its population of young, well-educated, technically-skilled workers who are fluent in English.
103. Which of the following statements is true with regard to growth in global markets?
104. A U.S. company is analyzing its business prospects in Brazil. Marketing executives understand which of the following statements to be true
regarding this market?
105. Which country is Europe's largest Internet market, with Internet users growing at a rate of 10 percent annually?
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106. A U.S. firm is analyzing its business prospects in China. Marketing executives understand which of the following to be true of this potential
market?
107. Which country has embraced market-oriented economic development in spite of maintaining communist political ideals?
108. Which country has a rapidly aging population due to its one-child policy?
109. Once a firm has done an analysis of the most viable markets for its products, then it must next
110. Mary wants to sell her products in Europe, since they are doing well in the United States. She does not have a lot of capital and is risk-averse, so she
most likely would choose to begin with
111. Franco, a former retailer, has been living in the United States for five years and wants to start a business. He does not have an existing firm or a
product, and he doesn't have a lot of capital, but since he loves McDonald's food, he decides to
112. Sydney's Emporium has 59 stores in the United States and wants to expand globally. Sydney's wants to achieve the highest possible returns, and is
not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Sydney's is
most likely
113. When Porsche filmed an advertisement in which its vehicles ran over the Great Wall of China, Chinese consumers were left more confused than
intrigued. To address or avoid such issues, one important cultural classification scheme that firms can use is Geert Hofstede’s cultural dimensions
concept. Hofstede proposes that cultures differ on all of the following dimensions except
114. If you visit a Kentucky Fried Chicken restaurant in China, along with KFC's regular menu items, you will find congee, a rice porridge that can
feature pork, pickles, mushrooms, and preserved egg, on the menu. This is an example of which global product strategy?
115. According to Hofstede's cultural dimensions concept, which BRIC country posts notably high scores in the dimensions of uncertainty avoidance
and power distance?
117. Unilever discovered that people in emerging economies could not afford to buy standard sizes of toothpaste or shampoo, so Unilever started selling
single-serve packets at very low prices. Later, Unilever discovered that the same approach worked in the United States and started also selling them
there. This is an example of
118. Core Publishing Company learned that when selling overseas, local fulfillment can be more cost-effective, and it also can decrease delivery time
and improve customer service. This is an example of a global _________ strategy.
119. In China, state control of media is high, so companies are challenged to find ways to get their message to customers. This demonstrates one of the
difficulties in crafting a global ________ strategy.
120. China has three main languages, and many more dialects. This presents a particular challenge to developing a global ________ strategy.
Essay Questions
121. It seems that you cannot pick up a newspaper without reading about globalization. What fundamental changes are contributing to the growth of
global markets?
122. You have been asked to evaluate the economic potential of a new global market. What economic measures would you use? Explain each measure.
123. Assume you are advising the Nepalese government about trade policies. What options does the government have? Which would you recommend to
stimulate the domestic economy?
124. What are Geert Hofstede's six cultural dimensions concepts? What is the value of his cultural dimensions concept to global marketers?
125. What kinds of sociocultural concerns are raised in international marketing that go beyond promotion and advertising?
126. You have been hired to pursue international marketing for a small manufacturing firm. The owner, who is reaching retirement age, does not like to
take on risky business ventures. Her son, though, likes to take risks; he feels it's a good way to earn a greater return. What entry strategy would the owner
want to pursue, and what entry strategy would the son want to pursue? How might you resolve the differences?
127. Gerald is assessing global entry strategies for his gourmet sandwich business. He does not have significant capital for expansion and does not want
to take a lot of risk. He is also willing to limit his control of international stores. What are his global entry options? Given his situation and priorities,
which option is most logical? Why?
128. How could a marketer adapt a product to appeal to international markets? Give a specific example.
129. There are many arguments and reasons for adapting communications strategies in international markets. What are some reasons for adopting a
single, global communications strategy?
130. You have been asked to evaluate the economic potential of Gabon as a market for your company's products. What three categories of economic
factors will you assess?
131. What does purchasing power parity mean?
132. Why is a country's infrastructure an important consideration to global marketers?
133. How do tariffs affect markets?
134. When and why do many American firms begin their global expansion efforts by exporting?
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135. What is the difference between a strategic alliance and a joint venture?
136. What are the pros and cons of a franchising agreement for global expansion?
137. Once a company has decided to sell in a foreign country, it must determine the best mode of entry. List each mode of market entry and give an
example for each.
138. Once a company has decided to pursue a global market, it will explore the four Ps. List the potential global product strategies a firm can employ.
139. What would it mean if Oreo adopted a glocalization strategy for global sales of its cookies?
140. The text states that even among English speakers, there can be significant differences in the effectiveness of advertising campaigns. Why is this
true?
141. Explain the concept of reverse innovation by giving an example of this practice.
142. In what three ways are global segmentation, targeting, and positioning more complicated than domestic STP?
143. What are the risks associated with global franchising?
144. How is the retail landscape in India changing?
145. Russia has notably high uncertainty avoidance and power distance scores on Hofstede's cultural dimensions graph. What does this mean to
someone looking to market a product in that country?
146. Netflix has initiated a staged approach to going global, entering one or two international markets at a time, in an attempt to ensure that its
positioning and offers align with each market’s demands and regulations. Discuss some of the challenges the company faced with this strategy.
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147. What are the five major trade agreements that cover two-thirds of the world's international trade?
148. Describe the process of exchange control, and explain how it affects a country's ability to conduct global business.
149. What is the difference between a trade deficit and a trade surplus? If a firm wants to manufacture in another country, which of these trade situations
would it prefer?
150. Briefly describe the four key elements of a country's infrastructure that would concern marketers.
Category # of Questions
AACSB: Analytical Thinking 122
AACSB: Communication 4
AACSB: Knowledge Application 23
AACSB: Technology 2
Accessibility: Keyboard Navigation 120
Blooms: Analyze 10
Blooms: Apply 28
Blooms: Remember 41
Blooms: Understand 71
Difficulty: 1 Easy 41
Difficulty: 2 Medium 76
Difficulty: 3 Hard 33
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Learning Objective: 08-01 Describe the components of a country market assessment. 59
Learning Objective: 08-02 Understand the marketing opportunities in BRIC countries. 20
Learning Objective: 08-03 Identify the various market entry strategies. 33
Learning Objective: 08-04 Highlight the similarities and differences between a domestic marketing strategy and a global marketing strategy.
38
Topic: Alternative Marketing Mix Strategies for Global Marketing 3
Topic: Domestic Marketing Strategy vs. Global Marketing Strategy 14
Topic: Global Environmental Forces 63
Topic: Market Entry Strategies 34
Topic: Marketing Globalization 28
Topic: Trade Agreements, Monetary Unions and International Organizations 8
