Chapter 5 Flashcards
Individuals and organizations utilizing a global vision to effectively market goods and services across
the world are engaged in:
a. international selling schemes
b. borderless commerce
c. global marketing standardization
d. global logistics
e. global marketing
E
Gillette gets about two-thirds of its revenue from its international divisions. This shows that:
a. U.S. citizens are shaving less
b. their market share should increase
c. more men and women need to shave
d. sales need to be increased domestically
e. adopting a global vision can pay off
E
All of the following statements about global marketing are true EXCEPT:
a. Marketing to target markets throughout the world has become an imperative for business.
b. Often a U.S. firm’s toughest domestic competition comes from foreign companies.
c. Marketing managers must develop a global vision not only to recognize and react to
international marketing opportunities but also to remain competitive at home.
d. Adopting a global vision can be lucrative for a company, and global marketing can offset
weak domestic performance.
e. Foreign competitors have not gained significant market share in the U.S.
E
Sawyer Components manufactures high-cost, customized roller parts for paper mills and is expanding
into China because of the opportunity for significant growth in this developing country. The owner
uses effective global strategies and is aware of threats from foreign competitors. This illustrates that
the owner has a global:
a. advantage
b. imperative
c. vision
d. outsource
e. introspection
C
A(n) _____ is a company that is heavily engaged in global trade and moves its resources, goods,
services, and skills across national boundaries.
a. international facilitator
b. global trader
c. multinational corporation
d. exporting company
e. international merchant
C
When European demand for a certain solvent declined, Dow Chemical instructed its German plant to
switch to manufacturing a chemical that had been imported from Louisiana and Texas. Dow Chemical
would be best described as a(n):
a. global enterprise
b. global trader
c. cultural marketer
d. exporting company
e. multinational corporation
E
Apple Inc. has partnerships with wireless carriers in Japan, Spain and a handful of other European
countries. Apple Inc works with suppliers and retailers worldwide. This means that Apple is a _____.
a. multinational corporation
b. worldwide competitor
c. marketplace competitor
d. domestic corporation
e. foreign investor
A
Otis Elevators has entered into a strategic alliance with a company in France from which it gets its
elevator door systems. It has a similar agreement with a manufacturer in Japan that provides it with
special motor drives. A manufacturer in Spain has worked closely with Otis to create small geared
parts necessary for the manufacture of elevators. The component parts are assembled at its plant in the
United States. Otis elevators can be found in buildings all over the world. Otis Elevators is an example
of a(n):
a. cultural marketer
b. global trader
c. multinational corporation
d. exporting company
e. global enterprise
C
How does having a global vision benefit companies?
a) It provides access to larger markets at the front end.
b) It allows for more efficient production at the back end.
c) It enables companies to maintain local focus.
d) It increases competition with local businesses.
a,b
What are some of the anticipated outcomes of increased competition due to globalization according to traditional economic theories?
a) Decreased value for consumers
b) Higher prices
c) Lower quality
d) More choices, better quality, and lower prices
D
What are some of the consequences of the globalization of competition for industries, companies, and workers?
a) Reduced pressure on domestic industries and small companies
b) Decreased competition in the global market
c) Increased pressure on industries, companies, and workers
d) Expansion of protectionist policies
C
What is a significant disadvantage of globalization as it pertains to smaller companies?
a) Enhanced access to global markets
b) Increased competition from multinational corporations
c) Limited opportunities for growth and participation
d) Improved access to resources and technology
C
Which statement accurately describes the dominance of multinational corporations in global marketing?
a) Multinationals focus solely on local markets to maximize profits.
b) Multinationals operate only in their home countries to avoid risk.
c) Multinationals leverage globalization to decrease costs and expand markets.
d) Multinationals prioritize customization over standardization in their products.
C
What strategy do multinational corporations like McDonald’s and Pepsi often adopt in their global marketing efforts?
a) Customization to adapt to local preferences
b) Diversification to appeal to different markets
c) Standardization to offer consistent products worldwide
d) Localization to cater to specific cultural norms
C
With a _____, a firm produces standardized products to be sold the same way all over the world.
a. traditional marketing strategy
b. global marketing standardization approach
c. product extension approach
d. culturally based marketing strategy
e. synergistic approach to marketing
B
Global marketing standardization:
a. is becoming less popular with the large multinationals
b. encourages product, packaging, and advertising variations for each nation or local market
c. actually raises production costs
d. presumes markets throughout the world are becoming more alike
e. is more popular with consumer products than with industrial goods
D
What are some disadvantages of globalization for smaller companies?
a) Increased access to global markets and resources
b) Enhanced opportunities for growth and participation
c) Marginalization and limited participation due to resource constraints
d) Ability to standardize products globally
C. Limited Participation: Many smaller companies struggle to participate in and benefit from globalization.
Marginalization: Smaller businesses may be left out of global opportunities due to resource constraints.
Inability to Standardize: Lack of resources or infrastructure may prevent smaller companies from offering standardized products globally.
What are some of the environmental factors that significantly impact global markets?
a) Cultural, technological, and social factors
b) Cultural, Economic, political, and legal factors
c) Social, environmental, and ethical factors
d) Technological, economic, and political factors
B
Muslim countries are receptive to most Disney products, but they have asked Disney not to include
Piglet when it sells its Winnie the Pooh characters because Muslims (as a part of their religious beliefs)
contend that pork in any form is unclean. This is an example of a _____ factor that directly affects
Disney’s global operation.
a. political structure
b. cultural
c. technological
d. competitive
e. natural resource
B
A soft drink manufacturer who was thinking of investing in a bottling plant in the Czech Republic
should know the nation is proud of the fact it is among the world’s biggest beer drinkers. Czechs
consume an average of one-half liter of beer a day for every man, woman, and child in the country.
The _____ environment of this country could very easily prevent the soft drink bottling company from
succeeding.
a. demographic
b. economic
c. cultural
d. political
e. technological
C
In China, August 15 is “the Chinese Saint Valentine’s Day” in memory of two ancient lovers who were
separated by a goddess and only allowed to meet once a year on that date. Flower and candy sales
typically increase that day as they do on February 14 in the United States. This would be an important
part of the international _____ environment for a flower wholesaler or a confectionery company.
a. cultural
b. legal
c. economic
d. technological
e. natural
A
When IKEA, the Swedish home furnishings retailer, first entered the Japanese market, it failed. It was
more successful in its second try because it was aware of the need to adapt its furnishings to fit the
smaller Japanese homes. The _____ environment had the greatest influence on IKEA’s first failure in
Japan.
a. demographic
b. economic
c. cultural
C
A U.S. executive had no idea the Japanese go through a very elaborate ritual when exchanging
business cards. When he arrived at a meeting in Tokyo, he sat down and tossed some of his business
cards across the table at a group of stunned Japanese businesspeople. Due to the U.S. executive’s
rudeness, the multimillion dollar deal failed. The U.S. executive overlooked the importance of which
environmental factor?
a. culture
b. demographics
c. natural resources
d. economic development
e. political structure
A
What role do economic factors, including current exchange rates, play in global markets?
a) Economic factors have minimal impact on purchasing power and demand.
b) Economic factors only affect per capita income within a country.
c) Economic factors, including exchange rates, can significantly impact purchasing power and demand.
d) Exchange rates have no influence on global markets or purchasing decisions.
C
How do fluctuations in exchange rates impact companies in global markets?
a) Fluctuations in exchange rates have no impact on companies operating in global markets.
b) Exchange rate fluctuations can increase companies’ exposure to currency risk or foreign exchange risk.
c) Companies benefit from exchange rate fluctuations as they can capitalize on currency differences.
d) Exchange rate fluctuations only affect companies’ domestic operations, not their global activities.
B
