question_key3_6Dec_4th

91. Sometimes business partnerships are formed between traditional rivals competing for
market share in the same product class. These partnerships are known as
a) trading companies.
b) contract manufacturers.
c) joint ventures.
d) strategic alliances.
e) licenses.
92. Nuhitzu believes it has the technological expertise to produce communication systems that
will be leaders around the globe. Boston Electronics is widely regarded as having excellent
management systems and superior marketing programs. To utilize these strengths, the two firms
might form a(n) ___________ to work together on a worldwide basis.
a) licensing agreement
b) export trading company
c) joint agreement
d) strategic alliance
e) multinational enterprise
93. Toshiba Electronics is very interested in taking advantage of business opportunities in India
but does not have access to India's market. Toshiba has the patent on a low-cost, quality computer
system that could assist small businesses in India. Sony Computer, Toshiba's competitor, is
experienced in India's small business market but does not have a computer comparable to Toshiba's.
If Toshiba and Sony work together to utilize these strengths to seize this opportunity in India, what
type of business structure would they likely use?
a) Trading company
b) Strategic alliance
c) Licensing
d) Direct ownership
e) Exporting
94. What is the primary distinction between a joint venture and a strategic alliance in
international marketing?
a) Strategic alliances are only formed between companies from well-developed countries
whereas joint ventures are between companies from economically-diverse countries.
b) A joint venture involves only two companies whereas a strategic alliance is formed between
three or more companies.
c) A strategic alliance is formed by companies who have traditionally been rivals, which is not
the case with a joint venture.
d) A joint venture is formed between companies with dissimilar product offerings while a
strategic alliance is formed between companies with similar product offerings.
e) A joint venture is simply a financial investment in a foreign firm while a strategic alliance
involves more than just financial support.
95. An alliance between Honda and Ford would most likely be classified as
a) a strategic alliance.
b) a joint venture.
c) direct ownership.
d) a multinational enterprise.
e) contract manufacturing.
96. Once a company makes a long-term commitment to a foreign market that has a promising
political and economic environment, which of the following options then emerges as a possibility?
a) Exporting
b) Joint venture
c) Limited exporting
d) Direct ownership
e) Licensing
97. In relation to international marketing, which of the following best describes direct
ownership?
a) A company owns its own manufacturing facilities.
b) A company forms an alliance with a similar company in a foreign country.
c) Foreign companies contract with manufacturers in other countries.
d) A company owns subsidiaries or facilities in foreign countries.
e) Two companies from different nations have interests in each other's facilities.
98. IKEA, a Swedish retailer of contemporary furniture, operates several stores in various
Scandinavian countries, as well as in the United States and Canada. Which of the following describes
IKEA's level of commitment to international marketing?
a) Licensing
b) Direct ownership
c) Exporting
d) A trading company
e) A joint venture
99. Firms that have operations or subsidiaries located in many countries are referred to as
a) multinational enterprises.
b) strategic alliances.
c) joint ventures.
d) international marketers.
e) export alliances.
100. Southern Tier Industries has operations in more than 30 foreign countries. The headquarters
in Atlanta controls the entire organization while offering subsidiaries the freedom necessary to
achieve success in local markets. Southern Tier Industries is an example of a(n)
a) strategic alliance.
b) joint venture.
c) export-driven corporation.
d) multinational enterprise.
e) trading company.
101. Nestlé Food Company is a Swiss-based company that operates several divisions in the United
States and other countries. This classifies Nestlé as a(n)
a) strategic alliance.
b) national marketer.
c) international proprietorship.
d) multinational enterprise.
e) limited exporter.
102. Japan's Sony Corporation is a prime example of a multinational enterprise. With this in mind,
which of the following would most accurately characterize Sony's operations?
a) It follows a strategy of market globalization.
b) It has operations or subsidiaries in many different countries.
c) It places most of its emphasis on profits generated in foreign countries.
d) It would not expect its foreign operations to share the same goals as the parent firm.
e) It does not concern itself with differences in markets around the world.
103. What is the greatest advantage to an organization of having a subsidiary in a foreign nation?
a) Avoidance of all U.S. laws
b) Increase in cross-cultural approaches to management that allows subsidiaries to develop
their own identity
c) Increased trend toward nationalistic marketing approaches
d) Greater amount of standardization of the marketing mix
e) Greater amount of security from government nationalization and other anticompetitive
measures
104. A subsidiary in a foreign country generally operates under
a) the laws of the parent company's home country.
b) foreign management in order to develop a local identity.
c) strict management control from the home country's executives.
d) the regulations set forth by the International Trade Agreement.
e) a team of managers from the distant parent company.
105. Exporting, licensing, and using trading companies are preferred modes of international
market entry for firms with a(n) ________ structure.
a) international division
b) internationally integrated
c) export department
d) geographic area
e) matrix
106. Which of the following centralizes all of the responsibility for international operations?
a) Product division structures
b) Export department structures
c) Internationally integrated structures
d) International division structures
e) Global matrix structures
107. Which of the following is most likely to engage in direct ownership activities internationally?
a) Internationally integrated structures
b) International division structures
c) Export department structures
d) Import department structures
e) Outsourcing structures
108. MTV can now be seen by most of the world’s population. This is an example of
a) globalization.
b) customization.
c) licensing.
d) nationalization.
e) regionalization.
109. When asked where Laser Tools, Inc., markets its products, company president and founder
Roger Helms says that “the world is just one big market.” He feels anyone not taking this stance is
systematically passing up profitable business. Helms's international marketing strategy is best
described as
a) customization of marketing.
b) globalization of marketing.
c) limited exporting.
d) full-scale international marketing.
e) export agenting.
110. Organizations that employ standardized products, promotion campaigns, and prices for all
markets are practicing what is known as
a) customization.
b) internationalization.
c) globalization.
d) regionalization.
e) nationalization.
111. Selling products that are not in demand in all world markets, such as hand-powered washing
machines for use in countries where electricity is not universally available, represents an
international marketing strategy focusing on
a) internationalization.
b) culturalization.
c) nationalization.
d) globalization.
e) customization.
112. Standardizing many Nike and Adidas shoe models worldwide is an example of
a) globalization.
b) customization.
c) nationalization.
d) culturalization.
e) internationalization.
113. Levi Strauss markets its denim jeans in many countries and develops its marketing strategy
as if the world were a single market. This approach to selling a standardized product in all countries
represents which type of international marketing?
a) Exporting
b) Accidental exporting
c) Limited exporting
d) Licensing
e) Globalization of markets
114. Globalization of markets requires developing marketing strategies as if the world were one
market. Which of the following marketing mix variables is most difficult to standardize for
globalization?
a) Brand name
b) Package
c) Media allocation
d) Labels
e) Product characteristics
115. Swiss-based Nestlé has taken a global approach to marketing its chocolate products. Which
of the following is most easily standardized?
a) Product
b) Promotion
c) Distribution
d) Advertising
e) Price
116. When Smithson Graphics decided to go international with its marketing effort, it adopted a
global approach. Which factors did SG most likely experience difficulty as the firm applied a global
strategy for marketing?
a) Branding
b) Product characteristics
c) Packaging
d) Labeling
e) Advertising
Use the following to answer questions 117-120:
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".
117. 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
118. 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
119. 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
a) price skimming.
b) market penetration.
c) dumping.
d) differential pricing.
e) inventory compensation.
120. 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
Use the following to answer questions 121-124:
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.