Test 2 Flashcards
(129 cards)
1
Q
A modified version of environmental scanning in which the firm identifies desirable markets by eliminating the less desirable ones
A
Market screening
2
Q
A procedure in which the firm scans the world for changes in the environmental forces that might affect it
A
Environmental scanning
3
Q
A screening that uses countries as the basis for market selection
A
Country screening
4
Q
A screening that uses market segments, a within-country analysis of groups of consumers, as the basis for market selection
A
Segment screening
5
Q
Economic data used to measure relative market strength of countries or geographic areas
A
Market indicators
6
Q
Economic data that correlate highly with market demand for a product
A
Market factors
7
Q
Statistical technique used to estimate future values by successive observations of a variable at regular time intervals that suggest patterns
A
Trend analysis
8
Q
Statistical technique that divides objects into groups based on similarity
A
Cluster analysis
9
Q
Barriers to entry- import/export barriers
Limits on foreign ownership
Limits on repatriation of earnings
Stable government policies (different from government stability)
A
Political and Legal Forces
10
Q
Difficult because culture is subjective and interpretive
Data are difficult to assemble, particularly from a distance
A
Cultural Forces
11
Q
Segments must be:
A
definable—so they can be measured
large—worth the effort
accessible
actionable—able to implement the 4 Ps
capturable—we need to be able to compete
12
Q
A market visit by business people and/or government officials (state or federal) in search of business opportunities
A
Trade mission
13
Q
Trade fair
A
A large exhibition at which companies promote the sale of their products
14
Q
The respondent’s desire to please that leads to answers designed to please the interviewer rather than reflect the respondent’s true beliefs or feelings
A
Social desirability bias
15
Q
An export of technology, management expertise, and possibly capital equipment where a contractor agrees to design and erect a plant, supply the process technology, provide the production inputs, train the operating personnel, and, after a trial run, turn the facility over to the purchaser
A
Turnkey project
(Non Equity)
16
Q
A contractual arrangement in which one firm grants access to its patents, trade secrets, or technology to another for a fee
A
Licensing
17
Q
A form of licensing in which one firm contracts with another to operate a business under an established name according to specific rules
A
Franchising
18
Q
An arrangement by which one firm provides management to another firm
A
Management contract
19
Q
Contracted manufacturing
A
An arrangement in which one firm contracts with another to produce products to its specifications
20
Q
Joint venture
A
A cooperative effort among two or more organizations that share a common interest in a business undertaking
21
Q
Strategic alliance
A
Collaboration with competitors, customers, and/or suppliers that may take nonequity or equity form
22
Q
are the same, but country-level environmental forces (uncontrollable) vary widely (sociocultural, resource and environmental, economic, socioeconomic)
A
Marketing functions
23
Q
also vary across markets—distribution channels, taste and aesthetic preferences, pricing structure of markets
A
Controllable forces
24
Q
A set of strategy decisions made about the product and its promotion, pricing, and distribution in order to satisfy the needs and desires of customers in a target market
A
Marketing mix
25
is less costly, and allows for longer production runs (economies of scale and learning).
Standardization
26
often required.
Marketing principle centers on needs of buyer, not seller. Localization often practiced.
Adaptation
27
New mix
might be required for significant local penetration
28
A firm's name, logo, slogan, graphics, color, and typeface that help identify the firm to consumers and other interested constituents
Corporate visual identity (CVI)
29
What the customer buys, including the physical product, brand name, accessories, after-sales service, warranty, instructions for use, company image, and package
Total product
30
Sociocultural forces
reflect consumer preferences
31
affect pricing, packaging, production
Economic forces
32
such as climate and terrain often require adjustment in product and production
Physical forces
33
Any form of communication between a firm and its publics , including advertising, public relations, sales promotions such as rebates and "buy one get one," and events and experiences, such as sponsoring events to both yield purchases in the short term and confidence in the firm in the long run
Promotion
34
Programmed-management approach
A middle-ground advertising strategy between globally standardized and entirely local programs
35
Any of the various activities, such as preparation of point-of-purchase displays, contests, premiums, trade show exhibits, celebrity-embraced promotion, money-off offers, and coupons
Faces cultural constraints
Sales promotion
36
Various methods of communicating with the firm's publics to secure a favorable impression, rather than immediate sales
Overlooked tool in many international markets
May help during periods of public criticism in international markets
Public relations
37
Foreign national pricing
Policy that sets local pricing based on market forces in another country
38
International pricing
Policy that sets prices of goods produced in one country and sold in another
39
The unraveling of traditional distribution structures, popularly called "cutting out the middlemen"
Disintermediation
40
Labor mobility
The movement of people from country to country or area to area seeking jobs
41
Brain drain
loss by a country of its most intelligent and best-educated people
Serious problem for developing countries
42
Reverse brain drain
the return home of highly skilled immigrants who have made a contribution in their adopted country
43
Ethnocentric policy
A policy of hiring and promoting based on the parent company's home-country frame of reference
44
Polycentric policy
A policy of hiring and promoting based on the specific local context in which the subsidiary operates
45
Regiocentric policy
A policy of hiring and promoting based on the specific regional context in which the subsidiary operates
46
Geocentric policy
A policy of hiring and promoting based on ability and experience without considering race or citizenship
47
Parent-country national (PCN)
Employee who is a citizen of the nation in which the parent company is headquartered; also called home-country national
48
Host-country national (HCN)
Employee who is a citizen of the nation in which the subsidiary is operating, which is different from the parent company's home nation
49
Third-country national (TCN)
Employee who is a citizen of neither the parent company nation nor the host country
50
Culture shock
The anxiety people often experience when they move from a culture that they are familiar with to one that is entirely different
51
Allowances
Employee compensation payments added to base salaries of expatriates because of higher expenses encountered when living abroad
52
Bonuses
Expatriate employee compensation payments in addition to base salaries and allowances because of hardship, inconvenience, or danger
53
Compensation packages
For expatriate employees, packages that can incorporate many types of payments or reimbursements and must take into consideration exchange rates and inflation
54
International status
Entitles the expatriate employee to all the allowances and bonuses applicable to the place of residence and employment
55
1. An actionable segment is one that
A. allows the marketing mix to operate.
B. has resources to purchase the product.
C. perceives that the product line is useful.
D. can be moved through advertising.
A. allows the marketing mix to operate.
56
2. Immigrants from developing countries:
A. lead to unemployment in skilled sectors of the U.S. economy.
B. have become essential contributors to the U.S. economy's health.
C. dilute the skill levels of the U.S. workforce.
D. are primarily college educated.
E. usually take highly paid 3-D jobs.
B. have become essential contributors to the U.S. economy's health.
57
3. IMF quotas are determined by the relative size of a nation in the global economy and...
A. are the nation's "dues" to the IMF.
B. limit trade among IMF members.
C. are payable in SDRs.
D. may run in arrears for five years.
A. are the nation's "dues" to the IMF.
58
4. The international Fisher effect says that interest rate differentials
A. predict exchange rate movement.
B. can be used to determine purchasing power parity.
C. are an example of the law of one price.
D. illustrate Pareto optimality.
A. predict exchange rate movement
59
1. Channels of distribution are included in
A. the fifth screening.
B. both controllable and uncontrollable variables.
C. the controllable variables category.
D. joint ventures.
A. The fifth screening
60
6. _____________ uses market data to estimate future values.
A. Trend analysis
B. A least developed organization
C. A license
D. Market segmentation
A. Trend analysis
61
7. To avoid translation errors, the experienced advertising manager will use
A. a common language such as English, Mandarin, or French.
B. local translators.
C. back translation.
D. both local and home-country translators in teams.
C. Back translation
62
8. The basic assumption of standardization
A. can be seen to contradict the basic marketing principle.
B. is that markets like consumer goods.
C. addresses the tension between need and desire.
D. operationalizes the primacy of the consumer.
A. can be seen to contradict the basic marketing principle
63
9. A policy of hiring and promoting based on ability and experience without considering race or citizenship is
A. an ethnocentric policy.
B. a polycentric policy.
C. a regiocentric policy.
D. a geocentric policy.
D. a geocentric policy
64
10. In a free trade area, members drop their tariffs with one another
A. but each retains external tariffs.
B. and they also combine their tariffs with other nations.
C. but their duties with one another remain in force.
D. and labor can move freely among the members.
A. but each retains external tariffs
65
11. Disintermediation is
A. the unraveling of traditional distribution structures.
B. a way to avoid higher taxes through transfer pricing.
C. separating markets, sometimes based on segmentation.
D. allowing orders to be placed via the Internet but delivered traditionally.
A. the unraveling of traditional distribution structures
66
12. When FTA members add shared external tariffs to their agreement, they have formed a
A. customs union.
B. free trade association, such as NAFTA.
C. duties agreement.
D. trade conglomerate
A. customs union
67
The arithmetic average of the current exchange rate and the exchange rates in the two preceding years, adjusted by the ratio of domestic inflation to the combined inflation rates of the euro zone, Japan, the United Kingdom, and the United States
Atlas conversion factor
68
The part of a nation’s income that, because of un-reporting or underreporting, is not measured by official statistics
includes undeclared production of legal and illegal goods and services, their corresponding activities (e.g., money laundering), and concealed income in kind (barter)
Underground economy
69
Higher income tax levels and increased government red tape tend to create a bigger ___ ___.
underground economy
70
Bretton Woods system
The international monetary system in place from 1945 to 1971, with par value based on gold and the U.S. dollar
71
Fixed exchange rate
Exchange rate regime in which the currency’s value is tied to the value of another currency or gold
72
A problem in which a national currency that is also a reserve currency will eventually run a deficit, leading to lack of confidence in the reserve currency and a financial crisis
Triffin paradox
73
An international reserve asset established by the IMF; the unit of account for the IMF and other international organizations
Special drawing rights (SDR)
74
Floating exchange rates
Exchange rates determined by supply and demand that allow currency values to float against one another
75
Jamaica Agreement
The 1976 IMF agreement establishing flexible exchange rates among IMF members
76
Exchange arrangement with no separate legal tender
Currency board arrangement
Conventional fixed-peg arrangement
Stabilized arrangement: Pegged exchange rate within a horizontal band
Current Currency Arrangements
77
In FX, using the dollar as the base currency, a currency that is quoted as dollars per unit of currency instead of in units of currency per dollar
Reciprocal currency
78
The exchange rate between two currencies for delivery within two business days
Spot rate
79
planning process that begins at the lowest level in the organization and continues upward
bottom-up planning
80
an itemized projection of revenues and expenses for a future time period
budget
81
the ability of a company to achieve and maintain a unique and valuable competitive position both within a nation and globally, generating higher rates of profit than its competitors
competitive advantage
82
action plans to enable organizations to reach their objectives
competitive strategies
83
plans for the best or worst case scenarios or for critical events that could have a severe impact on the firm
contingency plans
84
knowledge that is easy to communicate to others via words, pictures, formulas, or other means
explicit knowledge
85
a plan that guides the way firms make choices about developing and deploying scarce resources to achieve their international objectives
international strategy
86
repetition of the bottom-up or top-down planning process until all differences have been reconciled
iterative planning
87
the practices that organizations and their managers use for identifying, creating, acquiring, developing, dispersing, and exploiting competitively valuable knowledge
knowledge management
88
broad guidelines issued by upper management to assist lower-level managers in handling recurring issues or problems
policies
89
guides that specify ways of carrying out a particular task or activity
procedures
90
a prediction of future sales performance
sales forecast
91
an assessment conducted on the chain of interlinked activities of an organization or set of interconnected organizations, intended to determine where and to what extent value is added to the final product or service
value chain analysis
92
a clear, concise description of the fundamental values, beliefs, and priorities expected of the organization's members, reflecting how they are to behave with each other and with the company's customers, suppliers, and other members of the global community
values statements
93
Influenced by climate, geography, natural resources
Some needs easy to assess (industrial goods); others more difficult, especially when they are desires (chocolate)
Data include imports, local production
Basic Needs Potential (First)
94
Trends in inflation
currency exchange
interest rates
credit availability
paying habits
rates of return on similar investments
Second Screening: Financial and Economic Forces
95
Barriers to entry- import/export barriers
Limits on foreign ownership
Limits on repatriation of earnings
Stable government policies (different from government stability)
Third Screening: Political and Legal Forces
96
Difficult because culture is subjective and interpretive
Data are difficult to assemble, particularly from a distance
Fourth Screening: Cultural Forces
97
The number, size, and financial strength of the competitors.
Their market shares.
Their marketing strategies.
The apparent effectiveness of their promotional programs.
The quality levels of their product lines.
The source of their products—imported or locally produced.
Their pricing policies.
Fifth Screening: Competitive Forces
98
Universal trade terminologies developed by the International Chamber of Commerce
Describe which party does which tasks, which party covers the costs, and which party bears the risk
Incoterms
99
Conditions of a sale that stipulate the point at which costs and risks are borne by the buyer
Terms of sale
100
Cost, insurance and freight, included in the price, buyers will be obligated to pay (terms of such sale are more convenient for foreign buyers)
CIF
101
Cost and Freight included in the price and a buyer buys insurance. The exclusion of insurance will depend on
Country risk
Product related risks
Transportation infrastructure quality
CFR
102
Price includes inland transportation. That is up to the port of delivery – buyer is responsible for insurance and cost of freight
FOB
103
For exporters, the most preferred pricing method is ___ ___; all responsibility is passed to the buyer.
factory door
104
In the Terms of sale beyond pricing, Two areas require special attention:
responsibilities for patent and trademark registration
designation of country and state or province whose laws will govern any contractual dispute.
105
Export payment may based be:
cash in advance
open account
consignment
Opening letters of credit
documentary drafts
106
Seller assumes all risk so these terms must be offered only to reliable customers in economically stable countries.
Subsidiaries settling their import and export transactions can be based on open accounts
Open Account
107
Document issued by buyer’s bank which promises to pay the seller a specified amount when the bank has received certain documents specified in the letter by a specified time.
Letter of credit
108
Document issued by the buyer’s bank in which the bank promises to pay the seller a specified amount under specified conditions
The most popular in im-ex transactions.
However the following conditions should be fulfilled:
Letter of credit (L/C)
109
Letter of credit should:
Be confirmed
State Irrevocable
110
A bill of lading issued by an air carrier
Air waybill
111
Exporter’s formal quotation, containing a description of the merchandise, price, delivery time, method of shipping, terms of sale, and points of exit and entry
Pro forma invoice
112
An unconditional order drawn by the seller that instructs the buyer to pay the draft on presentation (sight draft) or at an agreed future date (time draft) and that must be paid before the buyer receives shipping documents
Export draft
113
A time draft with a maturity of less than 270 days that has been accepted by the bank on which the draft was drawn, thus becoming the accepting bank’s obligation
Banker’s acceptance
114
The sale of an exporter’s accounts receivable on ordinary goods, with the balance of the payment due upon delivery or soon after
Factoring
115
The sale of an exporter’s accounts receivable on capital goods, commodities, and other high-value goods, with the payment due at least 180 days out
Forfaiting
116
Government agency that provides loans, guarantees, and insurance programs to support American exporters
U.S. Export-Import Bank (Ex-Im Bank)
117
A government corporation that offers U.S. investors in developing countries insurance against expropriation, currency inconvertibility, and damages from wars and revolutions
Overseas Private Investment Corporation (OPIC)
118
the American version of a free trade zone.
Goods may be brought into an FTZ and stored, inspected, repackaged or combined with American components.
No import duties need be paid while goods are in the FTZ
Foreign Trade Zones (FTZ)
119
rebates on customs duties that exported good may qualify for
Customs drawbacks
120
Act as agents for exporters.
Prepare documents, book space with carriers and will supply marine insurance if asked.
Foreign Freight Forwarders
121
U.S. Department of Commerce form used to control export shipments and record export statistics
Shipper’s export declaration (SED)
122
Document issued by the carrier that is a contract for the shipment, a receipt for the goods shipped, and a certificate of ownership
Export bill of lading (B/L)
123
Export bill of lading serves three purposes:
contract for carriage between shipper and carrier
receipt from the carrier for the goods shipped
certificate of ownership.
124
Three kinds of marine insurance:
basis perils,
broad named perils, and
all risks.
125
evidence that insurance coverage has been obtained to protect shipment from loss or damage while in transit.
Insurance certificate
126
EU mark that indicates that merchandise conforms to European health, safety, and environmental requirements
Conformité Européene (CE) mark
127
Independent businesses that handle import shipments for compensation
provide such services as arranging transportation for the goods after they leave Customs and advising clients as to import quotas.
can arrange to place goods in a bonded warehouse when necessary
Customhouse brokers
128
important classification system used by all developed nations.
A firm that feels it is paying excessive import duties can take the matter to court if it cannot reach an agreement with customs officials.
Could be a source of corruption related to bribery and delay of release of products in developing countries
The Harmonized System
129
An area authorized by customs authorities for storage of goods on which payment of import duties is deferred until their removal
Bonded warehouse
