Final Exam - Global Marketing

Non-equity strategic alliances

Alliances that are carried out through contract rather than ownership sharing are called

The partner’s local contacts and markets will be utilized

Which of the following is the most beneficial aspect of an international joint venture?

Co-branding

A brand alliance between two partners, such as the one between Ferrari and Shell, is also known as:

Brand equity

…. is defined by 5 categories: loyalty, awareness, perceived quality, association & other proprietary

Long term decisions of the marketing mix

Channel design decisions are the most:

A sender, a message, a communication channel, and a receiver

What are the four elements of all effective marketing communication systems?

Utilizing inexpensive overseas manufacturing cost

The primary motive is the contract manufacturing strategy is

Independent export organizations located in host country

Direct entry modes refer to a manufacturer’s use of:

Independent firm that stocks a product and sets its own prices and clients

Distributor is:

Company exports at a lower price than it charges in its own market

Dumping is an important global pricing issue that translates into:

Greater home control

Advantages of using expatriates:

Exporting

Which is the most traditional and well-established form of operating in foreign markets

Expropriation threats

Which environmental factor most increases risk for a firm with a fully owned subsidiary in a country?

Full control over decision making

Which of the following is an advantage of establishing a new, fully owned foreign manufacturing?

Grey marketing

The unauthorized distribution of trademarked goods to exploit price differentials in world trade markets is known as

Establish local manufacturing or production bases

Some governments view sales subsidiaries negatively. As a result, they will often require foreign organizations to:

Responsibility for quality control in manufacturing

Which of the following functions is not performed by an intermediate?

To bypass the European import restrictions

Why have Japanese car manufacturers used sales and production subsidiaries in Europe to support internationalization?

Joint venture

_____ is a new independent entity that is collectively created and owned by two or more parent companies

Always are strategic alliances

Joint ventures….

Amount of decision-making power that the joint venture holds

Organizational design as a mechanism for factoring international joint venture control refers to the…

Provided a form of security for the parties involved

Letters of credit:

Licensing

____ is an ideal strategy for small businesses with few financial and managerial resources for direct investment abroad

All of them are correct - difficult to ensure loyalty, may be held in low esteem, needs product training

Disadvantages of staffing the sales force from the host country

The more issues settled pre-merge, the less likely it is to break up

International joint ventures are like a marriage because…..

Core product benefits, product attributes, and support services

Svend Hollensen proposes three levels of an international product, namely:

All of them are correct: power distance index, individualism vs collectivism, uncertainty avoidance index

Which of the following are some of the Hoftstede’s fundamental dimensions of national culture?

The degree to which society reinforces traditional gender roles

The masculinity vs femininity index refers to

Government action blocking the free flow of trade of political reasons

What are embargoes & sanctions in an international context?

Fees or taxes that countries impose on imported goods

What are tariffs?

They may cause trouble for foreign suppliers sending our components

Import controls into our home country are relevant to International Marketing (IM)

Standardize as much as possible, adapt as little as necessary

A good rule in International Marketing is:

A company favors locations similar to markets where it already operates

If a company applies the so-called expansive approach

Using the Likert Scale

In preliminary country screening, how do we compare criteria in different units like currency, population, or indexes?

Low initial investment and it can avoid trade barriers

What are the pros for the licensee in a licensing deal as an international entry mode?

Shared risl, pooled resources, synergies, and avoidance of trade barriers

which are the pros in considering the Joint Venture as a potential entry mode?

Standardize core product benefits across markets, not support services

In International marketing, it is much easier to:

Can relate to geographical areas or numbers of retail outlets

Market coverage…

A major advantage is that it’s the least risky international expansion

Which of the following statements is true of licensing?

Mature phase of product life cycle with standardized production

Licensing is especially suitable for…

Strategic alliance

Which type of alliance best describes the creation of TCL-Thomson Electronics, with Thomson owning 33% and TCL 67%

Joint Venture with TATA group

Which entry mode did Starbucks decide when entering India?