Chapter 1—The Global Marketing Imperative

TRUE/FALSE

1.International marketing is much more than the science and art of business; it includes economics, anthropology, cultural studies, geography, history, languages, jurisprudence, statistics, demographics, and many other fields.

ANS:TPTS:1DIF:ModerateREF:p. 4

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

2.The major foundation of the international marketing process is the planning and conducting of transactions across national borders to create exchanges that satisfy the objectives of stakeholders and society.

ANS:TPTS:1DIF:EasyREF:p. 4

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

3.International marketing is a tool used to focus on improvement of one's present position and retain the basic marketing tenets of "value" and "exchange".

ANS:TPTS:1DIF:EasyREF:p. 5

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

4.To achieve success in the art of international marketing, it is necessary to be firmly grounded in its technological aspects.

ANS:FPTS:1DIF:ModerateREF:p. 6

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

5.World trade has assumed an importance heretofore unknown to the global community, and, as a result, many countries and firms have found it highly desirable to become major participants in international marketing.

ANS:TPTS:1DIF:ModerateREF:p. 7

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

6.World trade has forged a network of global linkages that bind countries together and were first recognized during the rebuilding of Europe after WWII.

ANS:FPTS:1DIF:ModerateREF:p. 8

NAT:AACSB Analytic | CB&E Model Strategy | R&D Knowledge of general business functions

7.Due to ongoing global technological innovation in marketing, products are distributed at a higher cost.

ANS:FPTS:1DIF:ModerateREF:p. 9

NAT:AACSB Technology | CB&E Model Creativity | R&D Knowledge of general business functions

8.Today, the United States' two-way trade with Europe reflects over 200 years of history as trading partners and still represents the number one trading alliance the U.S. has with any region.

ANS:FPTS:1DIF:ModerateREF:p. 10

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

9.The effect of closer global linkages on the economics of countries has been dramatic.

ANS:TPTS:1DIF:ModerateREF:p. 10

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

10.Currency flows and exchange rates have a greater effect on trade than do government monetary policies.

ANS:TPTS:1DIF:ModerateREF:p. 10-11

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

11.Policymakers restrict the impact of global trade and financial flows by eliminating tariffs and quotas.

ANS:FPTS:1DIF:ModerateREF:p. 11

NAT:AACSB Analytic | CB&E Model International perspective | R&D Managing administration & control

12.Firms that operate in the United States (domestic only) pay significantly higher wages than international firms.

ANS:FPTS:1DIF:ModerateREF:p. 12

NAT:AACSB Reflective Thinking | CB&E Model International perspective | R&D Knowledge of general business functions

13.Many firms do not participate in the global market because they feel international marketing should only be carried out by large, multinational corporations.

ANS:TPTS:1DIF:ModerateREF:p. 12

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

14.Companies are fairly consistent in their international activities because of the similarities in their levels of experience, resources and capabilities.

ANS:FPTS:1DIF:ModerateREF:p. 13

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

15.The marketing manager's role has two integral parts: determining outsourcing output and the level of government regulation as it applies to productivity.

ANS:FPTS:1DIF:ModerateREF:p. 19 - Appendix A

NAT:AACSB Analytic | CB&E Model Marketing Plan | R&D Knowledge of general business functions

16.The four variables of the marketing mix are product, price, place, and promotion.

ANS:TPTS:1DIF:EasyREF:p. 20 - Appendix A

NAT:AACSB Analytic | CB&E Model Marketing Plan | R&D Knowledge of general business functions

17.Product policy is concerned with all the elements that make up the good, service, or idea that is offered by the marketer.

ANS:TPTS:1DIF:ModerateREF:p. 20 - Appendix A

NAT:AACSB Analytic | CB&E Model Marketing Plan | R&D Knowledge of general business functions

18.Short-term control tools in an annual plan include comprehensive and functional audits.

ANS:FPTS:1DIF:ModerateREF:p. 21 - Appendix A

NAT:AACSB Analytic | CB&E Model Marketing Plan | R&D Knowledge of general business functions

19.Lakes, rivers, and other bodies of water influence the kinds of economic activities that occur in a given place.

ANS:TPTS:1DIF:ModerateREF:p. 23 - Appendix B

NAT:AACSB Analytic | CB&E Model Marketing Plan | R&D Knowledge of general business functions

20.A store-location strategy that is successful in North America will succeed in Australia if transferred directly even without knowledge of the geographic patterns of Australia.

ANS:FPTS:1DIF:ModerateREF:p. 24 - Appendix B

NAT:AACSB Analytic | CB&E Model Marketing Plan | R&D Knowledge of general business functions

MULTIPLE CHOICE

1.Which of the following is NOT one of the forms of international marketing defined in the text?

a. / Government-owned operations
b. / Export-import trade
c. / Joint ventures
d. / Wholly owned subsidiaries

ANS:APTS:1DIF:ModerateREF:p. 4-5

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

2.Export-import trade, licensing, joint ventures, wholly owned subsidiaries, turnkey operations, and management contracts are examples of:

a. / Global positioning systems
b. / Transparent industries
c. / Televisual optimization
d. / International marketing

ANS:DPTS:1DIF:ModerateREF:p. 4-5

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

3.All the following are true about international marketing except that

a. / it combines the science and the art of business with many other disciplines.
b. / management contracts is a form of International marketing.
c. / international marketing lets go the basic marketing tenets of value and exchange.
d. / the international marketer is subject to a new set of macroenvironmental factors.

ANS:CPTS:1DIF:ModerateREF:p. 4-5

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

4.Which of the following is the best definition of international marketing?

a. / Planning and conducting economic forecasting in developing countries
b. / Creating a subsidiary in a neighboring country
c. / The process of planning and conducting transactions across national borders to create exchanges
d. / Hiring employees from other countries to assist with advertising messages

ANS:CPTS:1DIF:ModerateREF:p. 5

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

5.According to the text, international marketing differs from domestic marketing in three substantial ways. What are the three differences that marketers must take into account when conducting business internationally?

a. / Distance, products, and ideas
b. / Threats, exceptions, and tolerance
c. / Postage rates, telephone signals, and personal contact
d. / Different laws, cultures, and societies

ANS:DPTS:1DIF:DifficultREF:p. 5

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

6.Which of the following statements is NOT true when describing the role of and the effect of international marketing on companies?

a. / International markets can become a source of growth.
b. / International markets can become a source of profit.
c. / International markets can improve quality of life that would not have existed.
d. / International markets can simplify the process and eliminate complex business decisions.

ANS:DPTS:1DIF:DifficultREF:p. 7

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

7.While considering international issues and repercussions and making decisions all the following are considered except:

a. / What marketing adjustments are or will be necessary?
b. / What opportunities from global competition should I expect?
c. / Does my market have borders?
d. / What are my strategic global alternatives?

ANS:BPTS:1DIF:ModerateREF:p. 7

NAT:AACSB Analytic | CB&E Model Strategy | R&D Knowledge of general business functions

8.Which of the new technologies has allowed consumers to supply and receive products from across the world for personal use?

a. / Travelogues on cable television
b. / The Internet
c. / Pensions and individual retirement accounts
d. / Newly created niche markets

ANS:BPTS:1DIF:ModerateREF:p. 7-8

NAT:AACSB Analytic | CB&E Model Creativity | R&D Knowledge of general business functions

9.The trading bloc Mercosur is located in:

a. / Europe
b. / Latin America
c. / North America
d. / Asia

ANS:BPTS:1DIF:EasyREF:p. 8

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

10.Which of the following is NOT a bonafide trading bloc?

a. / NAFTA in North America
b. / SurAsia in South America and Hong Kong
c. / ASEAN in Asia
d. / European Union in Europe

ANS:BPTS:1DIF:ModerateREF:p. 8

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

11.Which of the following events helped identify global linkages causing the world to realize that the systems of product development, distribution, and consumption are intertwined and related?

a. / The worldwide oil crisis of 1970
b. / Gulf War I and Gulf War II
c. / International all-stars playing in the World Series
d. / The trans-continental joining of the United States by railroad

ANS:APTS:1DIF:ModerateREF:p. 8

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

12.Technological innovation in marketing has direct effects on the efficiency of business. Which of the following statements is true?

a. / Technological innovation has complicated the production process, so products take longer to produce.
b. / Technological innovation has increased demand, therefore products cost more to distribute.
c. / Technological innovation allows for customization in order to meet diverse customer needs.
d. / Technological innovation causes higher prices because of the distance that raw materials have to travel.

ANS:CPTS:1DIF:DifficultREF:p. 9

NAT:AACSB Technology | CB&E Model Strategy | R&D Knowledge of general business functions

13.The emergence of technology has created new markets for companies. Which of the following represents an example of this new market tendency?

a. / The construction of corner drugstores that replace gas stations
b. / Listing of ingredients on the side panel labels of products distributed worldwide
c. / Newspapers being distributed online as opposed to physically on newsprint
d. / Storage facilities rented by the month

ANS:CPTS:1DIF:ModerateREF:p. 9

NAT:AACSB Technology | CB&E Model Creativity | R&D Knowledge of technology, design, & production

14.The International Monetary Fund (IMF) was founded in 1944 to:

a. / manage the monetary policy of the world.
b. / help restructure impoverished economies.
c. / maintain confidence in the financial system and promote public understanding of the financial system.
d. / provide financial assistance to developing countries for development programs with the goal of reducing poverty.

ANS:BPTS:1DIF:ModerateREF:p. 10

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

15.Which of the following has traditionally been a domestic issue and is now an international issue?

a. / Geographic boundaries of cities
b. / The flow of water through dam diversion tunnels
c. / Applications for government subsidies
d. / Agriculture and farm policies affecting imports and exports

ANS:DPTS:1DIF:DifficultREF:p. 10

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

16.Currency flows, independent of trade, set _____, which are the values of currencies relative to each other.

a. / commercial rates
b. / interest rates
c. / official rates
d. / exchange rates

ANS:DPTS:1DIF:ModerateREF:p. 10

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

17.By erecting barriers, charging tariffs, designing quotas, and implementing other import regulations, governments have attempted to:

a. / popularize bureaucratic movement and entice more individuals into government service.
b. / restrict the impact of global trade and financial flows.
c. / increase income into the government.
d. / capitalize on technology and enforce worldwide standards.

ANS:BPTS:1DIF:DifficultREF:p. 11

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

18.To regain some power to influence events, policymakers have sought to restrict the impact of global trade and financial flows by including all the following except:

a. / erecting barriers.
b. / charging tariffs.
c. / canceling import regulations.
d. / designing quotas.

ANS:CPTS:1DIF:ModerateREF:p. 11

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

19.For a country to remain a player in the world economy, which of the following groups need to respond aggressively with innovation, process improvements, and creativity?

a. / Governments, companies, and individuals
b. / Importers, exporters, and consumers
c. / Courts, government, and consumers
d. / Wholesalers who take possession of the product prior to sale

ANS:APTS:1DIF:DifficultREF:p. 12

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

20.One way to guard against market saturation of a product is:

a. / to lower interest rates.
b. / to delay introduction of a new product.
c. / to personalize the message to the customer.
d. / to lengthen or rejuvenate product life cycles in other countries.

ANS:DPTS:1DIF:DifficultREF:p. 12

NAT:AACSB Analytic | CB&E Model Marketing Plan | R&D Knowledge of general business functions

21.Many firms commit grave mistakes which lead to inefficiency, lack of consumer acceptance, and sometimes even corporate failure because executives believe that:

a. / there are no substantial differences between consumer groups.
b. / the influence of music on the masses dictates morals for a new generation.
c. / incomplete research affects the learning curve.
d. / international customers are just like the ones the firm deals with at home.

ANS:DPTS:1DIF:ModerateREF:p. 12

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

22.For a firm that is just beginning to enter the global market, which of the following is NOT true?

a. / The demand on time is low
b. / Expectations about success are uncertain
c. / Level of knowledge about international complexities is low
d. / International environment is often inflexible

ANS:APTS:1DIF:DifficultREF:p. 13

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

23.What are the characteristics of intended target markets?

a. / Millennials, matures, minors, and mothers
b. / Occupants, objects, occasions, objectives, outlets, organizations, operations, and opposition
c. / Location, lifestage, limited access, life cycle, and longitude
d. / People, promise, profile, and power

ANS:BPTS:1DIF:ModerateREF:p. 19 - Appendix A

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

24.Characteristics of intended target markets are summarized by eight Os. Which of the following in not one of them?

a. / occupants
b. / objects
c. / outlets
d. / ownership

ANS:DPTS:1DIF:EasyREF:p. 19 - Appendix A

NAT:AACSB Analytic | CB&E Model Strategy | R&D Knowledge of general business functions

25.Which of the following ‘Os’ of intended target markets describes how the buying or acceptance of a (new) idea takes place?

a. / Organization
b. / Operations
c. / Objectives
d. / Occasions

ANS:APTS:1DIF:EasyREF:p. 19 - Appendix A

NAT:AACSB Analytic | CB&E Model Strategy | R&D Knowledge of general business functions

26.Which of the following consists of developing and operationalizing marketing mix elements to best satisfy the needs of individual target markets?

a. / Relationship marketing
b. / Value marketing
c. / Marketing management
d. / Business marketing

ANS:CPTS:1DIF:EasyREF:p. 19 - Appendix A

NAT:AACSB Analytic | CB&E Model Strategy | R&D Knowledge of general business functions

27.What are the elements of the marketing mix?

a. / Money, methodology, mechanics, and message
b. / Fortune, forecast, future, and fashion
c. / Product, price, place, and promotion
d. / Money, fortune, price, and cost

ANS:CPTS:1DIF:ModerateREF:p. 20 - Appendix A

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

28.The analysis, planning, implementation, and control stages make up the:

a. / researching product categories.
b. / telecasting consumer characteristics.
c. / marketing process.
d. / eventual distribution.

ANS:CPTS:1DIF:ModerateREF:p. 20 - Appendix A

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

29.The blueprint generated to react to and exploit opportunities in the marketplace comes from what stage of the marketing process?

a. / Control mechanism
b. / Implementation
c. / Planning
d. / Target marketing

ANS:CPTS:1DIF:ModerateREF:p. 20 - Appendix A

NAT:AACSB Analytic | CB&E Model Marketing Plan | R&D Knowledge of general business functions

30.Maps are used to gather, store, analyze, and present information that answers “where” questions. This is associated with:

a. / topology.
b. / geology.
c. / mapology.
d. / geography.

ANS:DPTS:1DIF:ModerateREF:p. 22 - Appendix B

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

31.All the following are true about the geographical perspective of marketing except:

a. / Geography answers questions related to the location of different kinds of economic activity.
b. / It emphasizes on the five exhaustive fundamental themes to structure geographic questions.
c. / It provides insights into the natural and human factors that influence patterns of production and consumption in different parts of the world.
d. / Geography answers questions related to the transactions that flow across national boundaries.

ANS:BPTS:1DIF:ModerateREF:p. 22 - Appendix B

NAT:AACSB Analytic | CB&E Model Strategy | R&D Knowledge of general business functions

32.Which of the following natural characteristics of a place influence the ways that business executives in different places participate in international economic transactions?

a. / Geological characteristics, terrain, hydrology, and climate
b. / Time, place, environment, and money
c. / Posture, texture, rotogravure, and agriculture
d. / Prehistoric, historic, post-genealogical, and genealogical

ANS:APTS:1DIF:ModerateREF:p. 23 - Appendix B

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

33.As people live in a place, they modify it, creating a ____ that can be as important as or more important than the natural environment in economic terms.

a. / post-human retraction
b. / population implementation
c. / bureaucratic regulation
d. / built environment

ANS:DPTS:1DIF:ModerateREF:p. 24 - Appendix B

NAT:AACSB Analytic | CB&E Model International perspective | R&D Knowledge of general business functions

34.Halting destruction of forests in the AmazonBasin, selective harvesting of hardwoods and other products from natural forest, and a restaurant refusing to purchase beef raised on pastures that are established by clearing forests are all examples of what?