question_key3_6Dec_6th

151. T F The job of the export agent is to bring together buyers and sellers from different
countries.
152. T F A trading company provides a link between buyers and sellers in different countries.
153. T F Under a licensing arrangement, the licensee pays commissions or royalties on sales or
supplies used in manufacturing.
154. T F Franchising is an arrangement whereby a franchisee grants a franchiser the right to
market its product, using its name, logo, methods of operation, advertising, products, and other
elements of the franchising company's business, in return for a financial commitment and an
agreement to conduct business in accordance with the franchisee's standard of operations.
155. T F Contract manufacturing occurs when a firm pays a commission or royalties on sales or
supplies used in manufacturing.
156. T F The joint venture approach has little appeal to industries involved in extraction of
natural resources.
157. T F As project sizes increase in the face of global competition and firms attempt to spread
the huge costs of technological innovation, there is a stronger impetus to form joint ventures.
158. T F A multinational enterprise is a firm that has operations or subsidiaries located in
many countries.
159. T F It is impossible for a subsidiary to develop a local identity because it seldom employs
personnel from the country within which it operates.
160. T F The greatest danger in becoming involved in direct ownership in international
marketing is political uncertainty.
161. T F A subsidiary operating in a foreign country may have important tax, tariff, and other
operating advantages over a licensing agreement or a joint venture.
162. T F Exporting, licensing and franchising, trading companies, contract manufacturing, and
joint ventures are preferred modes of international market entry for firms with an export
department structure.
163. T F Firms that use an international division structure are often organized domestically on
the basis of functions or product divisions, while the international division operates based on
geography.
164. T F Firms with internationally integrated structures are the least likely to engage in direct
ownership activities internationally.

165. T F The degree of commitment to international marketing can range on a continuum
from national or domestic orientation to a global orientation.
166. T F Globalization of marketing involves developing marketing strategies as though the
entire world (or major regions of it) were a single entity.
167. T F Media allocation, retail outlets, and price are among the easiest marketing mix
variables to standardize.
168. T F Brand name, product characteristics, packaging, and media allocation are among the
easiest marketing mix variables to standardize around the world.
169. T F Regardless of the extent to which a firm chooses to globalize its marketing strategy,
extensive environmental analysis and marketing research are necessary to understand the needs
and desires of the target market(s) and successfully implement the chosen marketing strategy.