INTB Exam 4

global standardization

One of the strategies pursued by international businesses is _____, where value is created by realizing experience curve and location economies.

distribution strategy

which of the following is one of the four elements that constitute a firm’s marketing mix?

marketing mix

The set of choices the firm offers to its target market is known as the ___

marketing and R&D

Research has long maintained that a major factor of success for new products is the closeness of the relationship between:

technology drives the world toward a converging commonality

According to Levitt, which of the following statements is true?

cultural and economic

The continuing persistence of ___ differences between nations acts as a major brake on any trend toward global consumer tastes and preferences

market segmentation

The identification of distinct groups of consumers whose purchasing behavior differs from others in important ways is known as ___

the company can view the global market as a single entity and pursue a global strategy

If market segments transcend national borders:

traditions

The most important aspect of a country’s cultural differences, particularly important in foodstuffs and beverages, is the impact of ___

product attributes

Consumers in highly developed countries value ___ as compared to their counterparts in less developed nations

not willing to sacrifice their preferred attributes for lower prices

Contrary to Levitt’s suggestions, consumers in the most developed countries are often:

distribution strategy

The means a firm chooses for delivering the product to the consumer is its ___

firm’s entry strategy

The way a product is delivered is determined by the ___ firm’s

a few retailers supply most of the market

In a concentrated retail system:

retail concentration

A country with high car ownership, a large number of households with refrigerators, and a large number of two-income families tend to have ___

fragmented

A ___ retail system is one in which there are many retailers, no one of which has a major share of the market

one factor contributing to greater retail concentration is an increase in car ownership

Which of the following statements about retail systems is true?

United States

Which of the following countries has a concentrated retail system?

channel length

___ refers to the number of intermediaries between the producer (or manufacturer) and the consumers

a long channel exists

If a producer sells through an import agent, a wholesaler, and a retailer, then:

fragmented

The most important determinant of channel length is the degree to which a retail system is ___

Fragmented retail systems tend to promote the growth of wholesalers to serve retailers

Which of the following statements about fragmented retail systems is true?

fragmented

What kind of retail systems do rural India and China have?

The orders generated from each sales call can be large

**With a concentrated retail sector:**

exclusive

An ___ distribution channel is one that is difficult for outsiders to access

It is often difficult for a new firm to get access to shelf space in supermarkets

When a channel is exclusive:

channel quality

___ refers to the expertise, competencies, and skills of established retailers in a nation, and their ability to sell and support the products of international business

The longer a channel, the greater the aggregate markup, and the higher the price that consumers are charged for the final product

Which of the following statements about the choice of distribution strategy is true?

cultural differences

In the 1960s, the Swedish vacuum manufacturer Electrolux successfully marketed vacuums in the United Kingdom with the slogan "Nothing sucks like an Electrolux". The informal United States meaning of the word 'sucks' was already well known in the United Kingdom at the time, and the company hoped the slogan, with its possible double entendre, would gain attention. When this slogan was used in the American market, it was a catastrophe. This is an example of _____.

develop cross-cultural literacy

To overcome cultural barriers, companies should:

source effects

When the receiver of a message evaluates a message based on the status or image of the sender, ___ are said to have occurred

country of origin effects

The extent to which the place of manufacturing influences product evaluations is known as ___

country of origin

The "Swiss Made" label has leveraged several watch-making companies (for example, TAG Heuer) for decades now. This is an example of a ____ effect.

an Audi R8

Which of the following is an example of a positive source effect?

noise

The probability of effective communications is reduced by:

Noise is extremely high in highly developed countries such as the United States

Which of the following statements about barriers to international communication is true?

push strategy

When a firm emphasizes personal selling rather than mass media advertising in the promotional mix, the firm is using a ___

Direct selling may be the only way to reach consumers in poor nations with low literacy levels.

Which of the following statements is true?

Pull strategy

A firm that depends more on mass media advertising to communicate the marketing message to potential consumers is using a _____.

the firm is selling complex new products

A push strategy is appropriate when:

the distribution channels are long

A pull strategy should be used when:

Standardized advertising lowers the costs of value creation by spreading the fixed costs of developing the advertisements over many countries.

Which of the following is an argument that supports global advertising?

price discrimination

When a company charges whatever the market will bear, the company is using _____.

national markets must be kept separate

In order for price discrimination to be successful:

arbitrage

_____ occurs when an individual or business capitalizes on a price differential for a firm's product between two countries by buying the product in the country where the price is low and reselling it in the country where prices are higher.

price elasticity of demand

A measure of the responsiveness of demand for a product to change in price is referred to as:

small; large

If a _____ change in a price produces a _____ change in demand, then demand is said to be elastic.

a necessary condition for profitable price discrimination is different price elasticities of demand in different countries

Which of the following statements about price discrimination is true?

income level

Which of the following is one of the important factors in determining the elasticity of demand for a product in a given country?

prices will be high

In a country where competition is limited:

predatory

_____ pricing is the use of price as a competitive weapon to drive weaker competitors out of a national market.

multipoint

_____ refers to the fact that a firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market.

experience curve

Many firms pursuing a(n) _____ pricing strategy on an international scale will price low worldwide in attempting to build global sales volume as rapidly as possible, even if this means taking large losses initially.

dumping

_____ occurs whenever a firm sells a product for a price that is less than the cost of producing it.

financial services

The _____ industry is often thought of as one in which global standardization of the marketing mix is the norm.

consumers are affluent

Other things being equal, the rate of new-product development seems to be greater in countries where:

new products are designed for ease of manufacture

Tight cross-functional integration between R&D, production, and marketing can help a company to ensure that which of the following take place?

it helps teams reduce the conflicts within product development teams

Which of the following is an advantage of establishing cross-functional product development teams?

predatory

Drober Consulting is a large software service provider. The company has the largest market share in the industry. In order to restrain the smaller competitors in the market, the company sells some of its products at very low prices. This is an example of _____ pricing.

for a price that is less than the cost of producing it

Dumping occurs whenever a firm sells a product:

pricing strategy

If a marketer asks "Is the demand for the product among customers in the international market segments targeted similar to domestic demands?," what element of the marketing mix is being addressed?

international market research

_____ involves issues such as (1) translation of questionnaires and reports into appropriate foreign languages and (2) accounting for cultural and environmental differences in data collection.

Kantar

_____ is an international market research company based in London that works with more than half of the Fortune 500 companies.

assessing the costs and benefits of the research

This step in international market research often relates to the cost of collecting primary data that can address the research problem and objectives directly versus using available secondary data.

market segmentation

The process of identifying distinct groups of consumers whose purchasing behavior differs from others in important ways is known as _____.

often not willing to sacrifice their preferred attributes for lower prices

Consumers in the most developed countries are:

technical standards

Differences in _____ constrain the globalization of markets.

developed countries

There is a tendency for greater retail concentration in _____.

channel length

The number of intermediaries between the producer and the consumer is known as the _____.

directly to the consumer

A channel is considered to be short if the producer sells:

fragmented

Countries with _____ retail systems tend to have long channels of distribution.

source effects

French wine, Italian clothes, and German luxury cars all benefit from _____.

push strategy

When a company emphasizes personal selling, the company is probably using a _____.

pull strategy

A _____ is generally favored by consumer goods firms that are trying to sell to a large segment of the market.

standardized advertising

A firm may be prevented from using _____ because of advertising regulations.

predatory pricing

The use of price as a competitive weapon to drive weaker competitors out of a national market is known as _____.

technological change

The increasing pace of _____ has resulted in a dramatic shortening of product life cycles.

has a high failure rate

New-product development:

can increase product quality

Designing for manufacturing:

can increase product quality

designing for manufacturing:

Commercialization may require different versions of a new product to be produced for various countries

The need to integrate R&D and marketing to adequately commercialize new technologies poses special problems in the international business because:

corporate culture

An organization's norms and value systems are known as its ___

ethnocentric

A firm with a(n) _____ staffing policy will fill all key management positions with parent-country nationals.

polycentric

A firm following a(n) _____ approach to staffing believes that the host-country nationals should be recruited to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters.

geocentric

A(n) _____ staffing policy seeks the best people for key jobs throughout the organization, regardless of nationality.

both global standardization and transnational strategies

Broadly speaking, a geocentric approach is compatible with:

perceptual ability

The ability to understand why people of other countries behave the way they do is _____.

perceptual ability

Expatriate managers who have _____ tend to treat foreign nationals as if they were home-country nationals.

more concerned with training than with management devleopment

Historically, most international businesses have been:

english

___ is considered the language of world business

transnational

Firms pursuing a(n) _____ strategy increasingly are using management development as a strategic tool

informal management network

Bringing managers together in one location for extended periods and rotating them through different jobs in several countries helps the firm build a(n) _____.

unintentional bias

_____ makes it difficult to evaluate the performance of expatriate managers objectively.

international cadre

If a firm is serious about building a(n) _____, it may have to pay its international executives the same basic salary irrespective of their country of origin or assignment.

is in the same range as the base salary for a similar position in the home country

An expatriate’s base salary normally:

pays the expatriate’s income tax in the host country

When a reciprocal tax treaty is not in force, the firm typically:

largely derived from their ability to threaten to disrupt production

Unions' bargaining power is:

are widely varied in their structure

Trade unions around the world:

staffing policy

Which of the following is mainly concerned with the selection of employees for particular jobs?

follows an ethnocentric staffing policy to maintain a unified corporate culture

A Japanese firm prefers expatriate Japanese managers to head its foreign operations because these managers have been socialized into the firm while employed in Japan. This indicates that the firm: