Lascu_IM3e_TB_Ch01

1. The U.S. consumes more than 25% of worldwide products and services. ANS: F The United States constitutes one of the most important world markets, providing and consuming a high percentage of worldwide products and services. Over time, it has become evident, however, that this percentage is getting smaller: less than 25 percent. This is found in “The Importance of International Marketing” section (1-1). PTS: 1 DIF: Hard 2. International companies such as General Motors, Mitsubishi, Microsoft, and Exxon earn profits greater than the Gross Domestic Product of many developing countries. ANS: T International companies such as GM do earn profits greater than the GDP of some developing countries. This is found in the "The Importance of International Marketing" section (1-1). PTS: 1 DIF: Medium 3. Companies from small countries have difficulty in succeeding internationally, as their income cannot be supported by a large market at home. ANS: F Companies have, in fact, achieved worldwide dominance in spite of the smaller size and limited market of their home country. It should be noted, however, that an international presence was essential for their success. Example of such successful companies are Philips Electronics, Royal Ahold (a large retailer, and ING, a global player in financial services. They come from the Netherlands, a smaller country in Western Europe. This is found in the "The Importance of International Marketing" section (1-1). PTS: 1 DIF: Medium