111. When the makers of Red Bull, an energy drink, decided to go international with their marketing effort, a global
approach was adopted. With which of the following factors did Red Bull most likely experience difficulty as the firm
applied a global strategy for marketing?
a.
Branding
b.
Product characteristics
c.
Packaging
d.
Labeling
e.
Advertising
e
Moderate
MARK.PRID.16.09.06 – LO: 09–06
United States – BUSPROG: Analytic
United States – AK – DISC: International Perspective
A-Head: Customization Versus Globalization Of International Marketing Mixes
112.
Scenario 9.1
Use the following to answer the questions.
Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its
bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons,
one being that its management wants to keep close watch on the quality of its products. However, for all the accessories,
apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley
name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley
Owners’ Group (HOG) have been complaining to the company about this practice, citing that “everything Harley should
be made in America”.
Refer to Scenario 9.1. Harley-Davidson’s practice of having manufacturers in China produce apparel items with the
Harley logo is an example of
a.
contract manufacturing
b.
globalization
c.
direct ownership
d.
joint venture
e.
exporting
a
a
Moderate
MARK.PRID.16.09.06 – LO: 09–06
United States – BUSPROG: Analytic
United States – AK – DISC: International Perspective
A-Head: Customization Versus Globalization Of International Marketing Mixes
Bloom’s: Application
113.
Scenario 9.1
Use the following to answer the questions.
Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its
bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons,
one being that its management wants to keep close watch on the quality of its products. However, for all the accessories,
apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley
name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley
Owners’ Group (HOG) have been complaining to the company about this practice, citing that “everything Harley should
be made in America”.
Refer to Scenario 9.1. One of Harley-Davidson’s largest international markets is in Japan, where American brands are
highly sought after. This is an example of ____ impacting the market.
a.
international forces
b.
economic forces
c.
domestic forces
d.
cultural forces
e.
environmental forces
114.
Scenario 9.1
Use the following to answer the questions.
Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its
bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons,
one being that its management wants to keep close watch on the quality of its products. However, for all the accessories,
apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley
name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley
Owners’ Group (HOG) have been complaining to the company about this practice, citing that “everything Harley should
be made in America”.
Refer to Scenario 9.1. If Harley-Davidson were to suddenly find its inventory building up in Japan, it might reduce
inventory by selling the bikes at below cost prices. This practice is known as
MARK.PRID.16.09.04 – LO: 09–04
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: International Perspective
A-Head: Modes Of Entry Into International Markets
Bloom’s: Application
a.
price skimming.
b.
market penetration.
c.
dumping.
d.
differential pricing.
e.
inventory compensation.
115.
Scenario 9.1
Use the following to answer the questions.
Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its
bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons,
one being that its management wants to keep close watch on the quality of its products. However, for all the accessories,
apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley
name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley
Owners’ Group (HOG) have been complaining to the company about this practice, citing that “everything Harley should
be made in America”.
Refer to Scenario 9.1. At what level of involvement in international marketing is Harley-Davidson with regard to its
bikes?
a.
Full-scale
b.
Globalization
c.
Joint venture
d.
Direct ownership
e.
Exporting
116.
Scenario 9.2
Use the following to answer the questions.
KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken
c
Moderate
MARK.PRID.16.09.03 – LO: 09–03
United States – BUSPROG: Analytic
United States – AK – DISC: International Perspective
A-Head: Regional Trade Alliances, Markets, And Agreements
Bloom’s: Application
dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own
processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at
KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However,
when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu items such as fried
octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in “plates” near windows at
the front of the store. This is a tradition for many restaurants in these countries to offer the customer passing by a
preliminary view of their product.
Refer to Scenario 9.2. KFC’s establishment of international production/processing facilities is an example of
a.
direct ownership.
b.
franchising.
c.
strategic alliance.
d.
outsourcing.
e.
a trading company.
117.
Scenario 9.2
Use the following to answer the questions.
KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken
dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own
processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at
KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However,
when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu items such as fried
octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in “plates” near windows at
the front of the store. This is a tradition for many restaurants in these countries to offer the customer passing by a
preliminary view of their product.
Refer to Scenario 9.2. The practice of offering fried octopus and squid at Asian KFC’s is best described as
a.
a strategy of standardization.
b.
a strategy of globalization.
c.
a strategy of some customization.
d.
competitive advantage.
e.
internationalizing the franchise.
c
Moderate
MARK.PRID.16.09.06 – LO: 09–06
United States – BUSPROG: Analytic
United States – AK – DISC: International Perspective
A-Head: Customization Versus Globalization Of International Marketing Mixes
a
Challenging
MARK.PRID.16.09.04 – LO: 09–04
United States – BUSPROG: Analytic
United States – AK – DISC: International Perspective
A-Head: Modes Of Entry Into International Markets
Bloom’s: Application
118.
Scenario 9.2
Use the following to answer the questions.
KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken
dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own
processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at
KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However,
when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu items such as fried
octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in “plates” near windows at
the front of the store. This is a tradition for many restaurants in these countries to offer the customer passing by a
preliminary view of their product.
Refer to Scenario 9.2. Suppose that KFC’s parent company experienced difficulty in opening its restaurants in China
unless KFC was willing to pay the government a “bribe”. If KFC were to resort to paying this bribe in China saying that
“it’s different doing business there” this would be an example of
a.
a licensing arrangement.
b.
the self-reference criterion.
c.
cultural relativism.
d.
balance of trade issues.
e.
exchange controls.
119.
Scenario 9.2
Use the following to answer the questions.
KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken
dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own
processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at
KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However,
when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu items such as fried
octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in “plates” near windows at
the front of the store. This is a tradition for many restaurants in these countries to offer the customer passing by a
preliminary view of their product.
Refer to Scenario 9.2. Which of the following alliances will KFC most likely utilize to guide its business transactions in
Japan and China?
a.
WTO
b.
MERCOSUR
Bloom’s: Application
c.
FTAA
d.
NAFTA
e.
APECAPEC
120. International marketing is defined as marketing activities performed across national boundaries.
a.
True
b.
False
121. Two-thirds of the world’s total purchasing power is outside the United States.
a.
True
b.
False
122. Customers that travel the globe expect to be able to buy the same product in most of the world’s more than 200
countries.
a.
True
b.
False
e
Moderate
123. An embargo occurs when a government suspends trade with a particular country.
a.
True
b.
False
124. A quota is the suspension, by a government, of trade in a particular product.
a.
True
b.
False
125. Government restrictions on the amount of a particular currency that can be bought or sold are known as import
controls.
a.
True
b.
False
126. A positive balance of trade is considered good because it means that U.S. dollars are supporting foreign economies at
the expense of U.S. companies and workers.
a.
True
b.
False
127. In determining the size of the market for consumer products, the international marketer will probably be very
interested in per capita GDP figures.
a.
True
b.
False
128. Opportunities for international marketers are limited to industrial nations with the highest incomes.
a.
True
b.
False
129. U.S. marketers may engage in bribery to compete with foreign firms.
a.
True
b.
False
130. The study of the cultural environment is unnecessary in the foreign market because foreign consumers will accept
anything that American marketers have to sell.
Moderate
MARK.PRID.16.09.02 – LO: 09–02
United States – BUSPROG: Analytic
United States – AK – DISC: International Perspective
A-Head: Environmental Forces In Global Markets
Bloom’s: Knowledge
a.
True
b.
False
131. Customs and taboos are culture-bound and should be taken into consideration when products are marketed in a
foreign environment.
a.
True
b.
False
132. Cultural differences do not affect marketing negotiations and decision-making behavior.
a.
True
b.
False
133. When products are introduced from one nation into another, acceptance is more likely if the two cultures are
different.
a.
True
b.
False
False
Easy
134. Cultural relativism is the unconscious reference to one’s own cultural values, experiences, and knowledge when
traveling in other countries.
a.
True
b.
False
135. NAFTA eventually eliminates all tariffs on goods produced and traded between the United States, Mexico, and
Brazil.
a.
True
b.
False
False
Easy
136. NAFTA simplifies country-of-origin rules, hindering Japan’s use of Mexico as a staging ground for further
penetration into U.S. markets.
a.
True
b.
False
True
Easy
137. While NAFTA eliminates many tariffs immediately, the tariffs on more sensitive goods, such as glassware, footwear,
and some fruits and vegetables, will be phased out over a 15-year period.
a.
True
b.
False
True
138. The unification of Europe permits virtually free trade among the member nations of the European Union.
a.
True
b.
False
True
Easy
139. Because of continuing disputes and inconsistencies among the administrations of member states, it will be many
years before the European Union truly becomes one deregulated market.
a.
True
b.
False
Moderate
140. The U.S. and Japanese economies are more integrated than are the U.S. and Canadian economies.
a.
True
b.
False
False
Moderate
141. GATT was based on negotiations between member countries to reduce worldwide tariffs and increase international
Easy