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| 1 | |
Differing government-mandated standards can rule out mass production and marketing of a globally standardized product. |
| | A) | True |
| | B) | False |
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| 2 | |
Three critical variables affect a firm’s communications strategy: cultural barriers, source effects, and foreign exchange rates. |
| | A) | True |
| | B) | False |
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| 3 | |
Source effects relate to procuring materials for distribution when all other factors like price, availability, and demand are taken into consideration by an international firm. |
| | A) | True |
| | B) | False |
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| 4 | |
Demand is said to be elastic when a large change in price produces only a small change in demand. |
| | A) | True |
| | B) | False |
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| 5 | |
Multipoint pricing occurs when a pricing strategy in one market may have an impact on a rival’s pricing strategy in another market, which means pricing decisions need to be centrally monitored. |
| | A) | True |
| | B) | False |
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| 6 | |
When using segmentation in foreign markets, an international marketer must be aware of two main issues: differences among countries in the structure of market segments and _____________________. |
| | A) | the availability of print and broadcast media |
| | B) | the existence of segments that transcend national borders |
| | C) | the most recent census data |
| | D) | the segmentation structures competitors use |
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| 7 | |
In a(n) __________________, a few retailers supply most of the market, and in a(n) ____________________________, there are many retailers, none of which has a major share of the market. |
| | A) | command economy; free-market economy |
| | B) | developed country; developing country |
| | C) | concentrated retail system; fragmented retail system |
| | D) | intensive retail system; inclusive retail system |
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| 8 | |
When considering channel length in foreign markets, the more fragmented the retail system, _______________________________. |
| | A) | the lower the cost to the ultimate customer |
| | B) | the more power the individual retailers have |
| | C) | the more expensive it is for the firm to make and maintain contact with each individual retailer |
| | D) | the less intense the competition will be |
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| 9 | |
Because ____________________, there is generally a critical link among channel length, the final selling price, and the firm’s profit margin. |
| | A) | each intermediary in a channel adds its own mark-up to products |
| | B) | channel quality is expensive |
| | C) | retailers in a fragmented retail system have oligopoly-like power and control |
| | D) | an exclusive distribution channel focuses on luxury goods in high-end retail stores |
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| 10 | |
Factors that determine the relative attractiveness of push and pull strategies include product type relative to consumer sophistication, channel length, and ___________. |
| | A) | the price to the ultimate customer |
| | B) | regulations concerning product safety and truth in advertising |
| | C) | product packaging |
| | D) | media availability |
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| 11 | |
Three major factors support global advertising: significant economic advantages, the fact that many brand names are global, and _________________. |
| | A) | the Internet |
| | B) | there are fewer and fewer specialized media outlets |
| | C) | a concern that creative talent is scarce |
| | D) | concerns about advertising as intellectual property |
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| 12 | |
Which of the following is not one of the three main aspects of international pricing strategy? |
| | A) | Transaction exposure |
| | B) | Price discrimination |
| | C) | Strategic pricing |
| | D) | Regulatory factors |
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| 13 | |
Price discrimination exists wherever: |
| | A) | a global pricing strategy is in place. |
| | B) | demand across various countries is inelastic. |
| | C) | consumers are charged differently for the same product in different countries. |
| | D) | a multinational company does business. |
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| 14 | |
“Creative destruction” refers to: |
| | A) | peacetime use of technologies originally used in military applications. |
| | B) | the replacement of older products with innovations with more application or value. |
| | C) | an unethical approach to competition. |
| | D) | eliminating aesthetic difference among products to achieve standardization. |
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| 15 | |
The need to integrate R&D and marketing to commercialize new technologies successfully poses special problems in the international business because _______________. |
| | A) | fluctuations in foreign exchange rates can cause pricing problems |
| | B) | global channels are longer in length |
| | C) | commercialization may require different versions of a new product for different countries |
| | D) | corporate cultures make it difficult for marketing and R&D to work together |
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