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Chapter 9 Through 19
Chapter 9
Multiple Choice
1. In global market entry, all of the following
are entry decisions that must be made by
management before entering an international
market EXCEPT:
a.
decide on the time of entry.
b.
decide on the target
product/market.
c. decide on the goals of the target
markets.
d. decide on the mode of entry.
e. decide on the target budget.
2. When marketers are making the decision to
enter an international market or not, the
first step is generally to:
a.
decide on the target budget.
b.
decide on the target
product/market.
c.
decide on the goals of the target markets.
d.
decide on the mode of entry.
e.
decide on the time of entry.
3. When marketers are making the decision to
enter an international market or not, the
final step in the decision process is
generally to:
a.
decide on a control system to monitor the performance of the entered
market.
b.
decide on the target
product/market.
c.
decide on the goals of the target markets.
d.
decide on the mode of entry.
e.
decide on the time of entry.
4. Which of the following most accurately
describes the first step in the market entry
decision process?
a.
Decide on the goals of the target markets.
b.
Decide on the mode of entry.
c.
Decide on the time of entry.
d.
Decide on the target product/market.
e.
Decide on the marketing mix plan.
5. Which of the following is a step in the
market entry decision process?
a.
Forecast a corporate budget.
b.
Conduct a marketing audit.
c.
Decide on a mode of entry.
d.
Review transportation strengths.
e.
Analyze domestic demand.
6. To identify market opportunities for a given
product or service, the international
marketer usually starts off with a large
pool of candidate countries. To narrow
down
this pool, the company will typically do
a(n) _______________________.
a.
internal audit.
b.
external audit.
c.
cross-border budget.
d.
preliminary screen.
e.
econometric analysis.
7. The goals of a preliminary screen to
determine market opportunities are to minimize
mistakes of ignoring countries that offer
viable opportunities for the product and:
a.
offending local governments.
b.
offending local cultures.
c.
offending local merchants.
d.
violating local advertising laws.
e. not
wasting time on countries that offer little or no potential.
8. The four-step procedure that can
be employed for the initial screening process
includes all of the following EXCEPT:
a.
select indicators and data selection.
b.
analyze parallel strengths and weaknesses of the market.
c.
determine the importances of country indicators.
d.
rate the countries in the pool on each indicator.
e.
compute the overall scores for each country.
9. When Colgate-Palmolive sees prospects in
countries with purchasing power as a
major driver behind market opportunities
and Coca-Cola looks at per capita income
and the number of minutes that it would
take someone to work to be able to afford a
Coca-Cola product, they are following
which of the following steps of the initial
screening process for market entry?
a.
indicator and data selection.
b.
analyze parallel strengths and weaknesses of the market.
c.
determine the importances of country indicators.
d.
rate the countries in the pool on each indicator.
e.
compute overall scores for each country.
the following EXCEPT:
a.
select indicators and collect data.
b.
determine importance of country indicators.
c.
hire outside consultants to do a marketing audit.
d.
rate the countries in the pool on each indicator.
e.
compute overall score for each country.
11. When
Coca-Cola looks at per capita income and the number of minutes that it would
take for somebody to work to be able to
afford a Coca-Cola product, the company is
following which of the following steps of
the initial screening process for
market entry?
a.
indicator and data selection.
b.
analyze parallel strengths and weaknesses of the market.
c.
determine the importances of country indicators.
d.
rate the countries in the pool on each indicator.
e.
compute overall scores for each country.
12.
Wrigley, the U.S. chewing gum manufacturer, has not been interested in most
Latin
American markets because many of the local
governments imposed ownership
restrictions. This would be an example of ________________
in markets.
a.
finding opportunities
b.
“weeding out”
c.
cross-fertilization
d.
demand conflict
e.
unfairness
13. One
method of assessing whether a company should enter a foreign market or not is
to use an opportunity matrix. To use such a matrix, the marketer should
assess high,
moderate, and low opportunities as
measured on business and political risk and
___________________ scales or cells.
a.
demand
b.
financial constraints
c.
market opportunities
d.
market sensitivity
e.
distance from home market
14. All
of the following are major external criteria for making a decision as to a mode
of
entry into a foreign market EXCEPT:
a.
company leadership.
b.
market size and growth.
c.
need for control.
d.
government regulations.
e.
local infrastructure.
15. The
key determinant in the market entry choice decisions is the:
a.
risk.
b.
local infrastructure.
c.
flexibility.
d.
internal resources and assets.
e.
market size and growth potential.
16. In the mode of entry, many companies see
liaison office as a low-cost
___________________.
a.
joint venture
b.
export management company
c.
listening post
d.
contract exporter
e.
alliance post
17. The
____________________ of a market refers to the country’s distribution system,
transportation network, and communication
system.
a.
demographic environment
b.
infrastructure
c.
logistical
d.
physical distribution
e.
physical infrastructure
18.
Markets can be classified in four types of countries based on their respective
market
attractiveness. All of the following are part of the
classification scheme EXCEPT:
a.
platform countries.
b.
emerging countries.
c.
low-tech countries.
d.
growth countries.
e.
maturing and established countries.
19.
Markets can be classified in four types of countries based on their respective
market
attractiveness. Which of the following of those types can be
used to gather
intelligence and establish a network?
a.
platform countries.
b.
emerging countries.
c.
maturing and established countries.
d.
growth countries.
e.
none of the above.
20.
Markets can be classified in four types of countries based on their respective
market
attractiveness. Hong Kong and Singapore would fall into which
of the types listed
below (where the purpose would be to
gather intelligence and establish a network)?
a.
platform countries.
b.
emerging countries.
c.
maturing and established countries.
d.
growth countries.
e.
none of the above.
21.
Markets can be classified in four types of countries based on their respective
market
attractiveness. Which of the following of those types can be
used to build up an
initial presence (such as through a
liaison office)?
a.
platform countries.
b.
emerging countries.
c.
maturing and established countries.
d.
growth countries.
e.
none of the above
22.
Markets can be classified in four types of countries based on their respective
market
attractiveness. Vietnam and the Philippines would fall into
which of the types listed
below (where the purpose would be to build
up an initial presence such as through a
liaison office)?
a.
platform countries.
b.
emerging countries.
c.
maturing and established countries.
d.
growth countries.
e.
none of the above.
23.
Markets can be classified in four types of countries based on their respective
market
attractiveness. Which of the following countries would most
likely be listed as a
maturing/established market?
a.
China.
b.
Burma.
c.
India.
d.
Taiwan.
e.
China.
24.
Markets can be classified in four types of countries based on their respective
market
attractiveness. Which of the following countries would most
likely be listed as an
established/maturing market?
a.
China.
b. the Philippines.
c.
India.
d.
Vietnam.
e.
Japan.
25.
Markets can be classified in four types of countries based on their respective
market
attractiveness. Which of the following countries would most
likely be listed as
a growth country?
a.
Hong Kong.
b.
Vietnam.
c.
China.
d.
Taiwan.
e.
Japan.
26. A
_________________________ perspective argues that the desirable governance
structure (high- versus low-control mode)
will depend on the comparative transaction
costs (the costs of running an
operation).
a.
demand-delivery
b.
just-in-time management
c.
management-by-objectives
d.
quantity-cost allocation
e.
transaction-cost analysis
27. From
a transaction-cost analysis perspective, market failure typically happens when
transaction-specific assets become
_________________ and therefore more high-
control situations are needed.
a.
optional
b.
valuable
c.
expendable
d.
less-valuable
e.
weaker
28. Most
companies start their international expansion with _________________.
a.
exporting
b.
joint ventures
c.
licensing
d.
franchising.
e.
contract manufacturing.
29. In
the area of exporting, a middleman could be an __________________________.
a.
export outsourcing company
b.
export management company
c.
export production company
d.
export specialist company
e.
export manufacturing company
30. Companies
that plan to engage in exporting have a choice between indirect,
_________________, and direct exporting.
a.
licensing
b.
parallel
c.
cooperative
d.
venture
e.
summation
31.
_______________________ means that the firm uses a middleman based in its home
market to do the exporting.
a.
Licensing
b.
Contract manufacturing
c.
Cooperative exporting
d.
Venture exporting
e.
Indirect exporting
32.
___________________ offers several advantages.
Chief among these
are the firm gets instant foreign market
expertise, very little risk is involved, and
no major resource commitments are
required.
a.
Licensing
b.
Parallel exporting
c.
Cooperative exporting
d.
Direct exporting
e.
Indirect exporting
33.
___________________ has disadvantages.
Chief among these are that the company
has little or no control over the way
their product is marketed in a foreign country,
lack of adequate sales support (among
other support variables) can lead to poor sales,
and bad decisions made by an intermediary
can damage the corporate image.
a.
Licensing
b.
Parallel exporting
c.
Cooperative exporting
d.
Direct exporting
e.
Indirect exporting
34.
______________________ means that the firm enters into an agreement
with another firm (local or foreign) where
the partner will use its distribution network
to sell the exporter’s goods.
a.
Licensing
b. Parallel
exporting
c.
Cooperative exporting
d.
Venture exporting
e.
Indirect exporting
35.
______________________ means that the company sets up its own
export organization within the company and
relies on a middleman based in a
foreign market (foreign distributor).
a.
Licensing
b.
Parallel exporting
c.
Cooperative exporting
d.
Direct exporting
e.
Indirect exporting
36.
Cooperative exporting is also called:
a.
specialist exporting.
b. lean
exporting.
c.
long-range exporting.
d.
backward exporting.
e.
piggyback exporting.
37. One
of the most popular forms of cooperative exporting is _________________.
With this method, the company uses the
overseas distribution network of another
company (local or foreign) for selling its
goods in the foreign market.
a.
parallel exporting.
b.
venture exporting.
c.
piggyback exporting.
d.
make-or-buy exporting.
e.
foreign export management exporting.
38. One
of the main advantages of direct exporting over indirect exporting is that the
exporter has more:
a.
leverage.
b.
risk.
c.
control over its operations.
d.
budget.
e.
leadership.
39.
___________________ is a contractual strategy where the firm offers some
proprietary assets to a foreign company in
exchange for royalty fees.
a.
Licensing
b.
Parallel exporting
c.
Cooperative exporting
d. Direct
exporting
e.
Indirect exporting
40. The Oriental Land Company in Japan owns Tokyo
Disneyland. This would be
an example of an international
_________________ agreement between the
Oriental Land Company (owner) and
Disneyland (receives royalties).
a.
licensing
b.
parallel exporting
c.
cooperative exporting
d.
direct exporting
e.
indirect exporting
41.
Benefits of licensing include:
a.
not very demanding on company resources.
b.
always protected against copying or technical theft.
c.
always a strong partner relationship.
d.
low profits, therefore, low taxes.
e.
licensee is always enthusiastic.
42.
Nurturing a future competitor is the biggest danger in ___________________.
a.
licensing
b.
parallel exporting
c.
cooperative exporting
d.
direct exporting
e.
indirect exporting
43. One
of the most popular entry modes in the international marketplace for service
firms is:
a.
licensing.
b.
franchising.
c.
cooperative exporting.
d.
direct exporting.
e.
indirect exporting.
44.
According to the textbook, in franchising, companies can capitalize on a
_______________________________.
a.
cheap business formula.
b.
expensive business formula.
c.
winning business formula.
d.
parallel business formula.
e.
hybrid business formula.
45. One
of the most popular franchise plans used in international marketing is
____________________ where the franchiser
gives the franchise to a local
entrepreneur who in turn sells local
franchises within a territory.
a.
sales franchise
b.
master franchise
c.
strategic franchise
d.
cross-country franchise
e.
border-territory franchise
46. In
____________________, the company arranges with a local manufacturer to
manufacture parts of the product or even
the entire product. The marketing of the
product, however, is still the responsibility
of the international firm.
a.
licensing
b.
franchising
c.
cooperative exporting
d.
contract manufacturing
e.
indirect exporting
47.
___________________ are(is) the prime motivation behind contract manufacturing.
a.
Advertising cooperation
b.
Leadership
c.
Cost savings
d.
Profit expansion
e.
Desire to be part of a cartel
48. Like
licensing and franchising, nurturing a future competitor is one of the biggest
dangers in ___________________.
a.
contract manufacturing.
b.
parallel exporting.
c.
cooperative exporting.
d.
using an export management company.
e.
indirect exporting.
49. In
contract manufacturing, because of “nurture-a-future competitor” threat, many
companies prefer to make
___________________ or products that involve
proprietary design features in-house.
a.
just-in-time items
b.
under-value items
c.
low-value items
d.
high-value items
e.
none of the bove
50. With
a __________________, the foreign company agrees to share equity and other
resources with other partners to establish
a new entity in the target country.
a.
contract manufacturing agreement
b.
parallel exporting agreement
c.
cooperative exporting agreement
d.
export management company
e.
joint venture
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