MBA 776 Darrat-International Marketing (Exam 1
Chapters 1-4): Questions With Solutions (A+)
CH 1 Correct Answer - self-reference criterion and ethnocentrism,
marketing vs. international marketing, adaptation, stages of international
marketing involvement
self-reference criterion Correct Answer - unconscious reference to own
cultural values, experiences, and knowledge. Problematic when used as the
basis for decisions
Ethnocentrism Correct Answer - one's own country or culture is best.
Most problematic when affluent countries work with less affluent
to avoid errors with SRC & ethnocentrism Correct Answer - 1-define
business prob/goal in home-country cultural traits, habits, norms
2-define business prob/goal in foreign-country cultural traits, habits, norms
through consultation with natives of target country. don't judge
3-isolate the SRC influence in the problem & examine it to see how it
complicates the prob
4-redefine prob without SRC influence & solve for the optimum business goal
situation
international marketing Correct Answer - the performance of business
activities: Plan, Price, Promote, & direct flow of goods/ services for profit.
-for consumers in more than 1 nation
-business operating in multiple foreign countries may find polar extremes in
political stability, class structure, and economic climate
-two levels of uncontrollable uncertainty (domestic only has 1)
domestic marketing Correct Answer - many unfamiliar probs require
unique strategies to cope with probs. level of uncertainty and controllable in
foreign markets
uncontrollable uncertainty Correct Answer - created by uncontrollable
elements in business environments- each international market has its own set
of factors
,controllable elements Correct Answer - -product
-price
-place(distribution)
-promotion
-research
domestic uncontrollable elements Correct Answer - -include home-
country elements that can have a direct effect on the success of a foreign
venture
-competitive structure
-economic climate
-political/legal forces
foreign uncontrollable elements for each foreign market which the marketer
operates Correct Answer - -economic forces
-political/legal forces
-competitive forces
-level of tech
-structure of distribution
-geography/infrastructure
-cultural forces
environmental adaptation Correct Answer - -cultural adjustment(most
challenging and important task)
duties of international marketers Correct Answer - -interpret influence
of each uncontrollable element
-adjust marketing efforts to cultures in which they aren't attuned
-be aware of own frame of reference when evaluating markets (based on
acculturation in home country)
stages of international marketing involvement Correct Answer - 1. No
Direct Foreign Marketing-more reactive, less strategic
2. Infrequent Foreign Marketing-more reactive, less strategic
3. Regular Foreign Marketing-more involved in strategic planning
4. International Marketing-more involved in strategic planning
5. Global Marketing-more involved in strategic planning
, 1. no direct foreign marketing Correct Answer - -company doesn't send
its products overseas directly, but its products may become available in other
countries through intermediaries or middlemen, like trading co's.
-occasional internet sales bc of a request from an overseas customer may also
fall into this category
2. infrequent foreign marketing Correct Answer - -temporary surpluses
in inventory may cause co's to sell excess product in overseas markets
**-in the 1st two stages of international marketing involvement, the strategies
are reactive rather than proactive
3. regular foreign marketing Correct Answer - -firm has committed
permanent resources toward international marketing and engages in it
regularly on a PROACTIVE basis
-firm may use intermediaries to engage in international marketing
4. multi-domestic or international marketing Correct Answer - -firm has
planned production and marketing to many countries around world with
specific target for each overseas country market
-involves not only marketing but also the production of goods in overseas
markets
5. global marketing Correct Answer - -firms starts viewing the world,
including its home marker, as ONE market
-major change is the orientation toward world markets and the activities
directed at supporting this view
-operating as if all country markets in a company's scope of operations
(including domestic market) are approached as a single global market that
have multiple market segments-doesn't necessarily mean STANDARDIZATION
characteristics of companies that internationalize quickly Correct Answer -
-high-tech and/or marketing-based resources
-smaller home markets and larger production capacity
-mgrs who are well-networked internationally
CH 2 Correct Answer - balance of payments, protectionism vs. free trade,
the various types of trade barriers, the General Agreement on Tariffs and
Trade (GATT) & the World Trade Organization (WTO)
Chapters 1-4): Questions With Solutions (A+)
CH 1 Correct Answer - self-reference criterion and ethnocentrism,
marketing vs. international marketing, adaptation, stages of international
marketing involvement
self-reference criterion Correct Answer - unconscious reference to own
cultural values, experiences, and knowledge. Problematic when used as the
basis for decisions
Ethnocentrism Correct Answer - one's own country or culture is best.
Most problematic when affluent countries work with less affluent
to avoid errors with SRC & ethnocentrism Correct Answer - 1-define
business prob/goal in home-country cultural traits, habits, norms
2-define business prob/goal in foreign-country cultural traits, habits, norms
through consultation with natives of target country. don't judge
3-isolate the SRC influence in the problem & examine it to see how it
complicates the prob
4-redefine prob without SRC influence & solve for the optimum business goal
situation
international marketing Correct Answer - the performance of business
activities: Plan, Price, Promote, & direct flow of goods/ services for profit.
-for consumers in more than 1 nation
-business operating in multiple foreign countries may find polar extremes in
political stability, class structure, and economic climate
-two levels of uncontrollable uncertainty (domestic only has 1)
domestic marketing Correct Answer - many unfamiliar probs require
unique strategies to cope with probs. level of uncertainty and controllable in
foreign markets
uncontrollable uncertainty Correct Answer - created by uncontrollable
elements in business environments- each international market has its own set
of factors
,controllable elements Correct Answer - -product
-price
-place(distribution)
-promotion
-research
domestic uncontrollable elements Correct Answer - -include home-
country elements that can have a direct effect on the success of a foreign
venture
-competitive structure
-economic climate
-political/legal forces
foreign uncontrollable elements for each foreign market which the marketer
operates Correct Answer - -economic forces
-political/legal forces
-competitive forces
-level of tech
-structure of distribution
-geography/infrastructure
-cultural forces
environmental adaptation Correct Answer - -cultural adjustment(most
challenging and important task)
duties of international marketers Correct Answer - -interpret influence
of each uncontrollable element
-adjust marketing efforts to cultures in which they aren't attuned
-be aware of own frame of reference when evaluating markets (based on
acculturation in home country)
stages of international marketing involvement Correct Answer - 1. No
Direct Foreign Marketing-more reactive, less strategic
2. Infrequent Foreign Marketing-more reactive, less strategic
3. Regular Foreign Marketing-more involved in strategic planning
4. International Marketing-more involved in strategic planning
5. Global Marketing-more involved in strategic planning
, 1. no direct foreign marketing Correct Answer - -company doesn't send
its products overseas directly, but its products may become available in other
countries through intermediaries or middlemen, like trading co's.
-occasional internet sales bc of a request from an overseas customer may also
fall into this category
2. infrequent foreign marketing Correct Answer - -temporary surpluses
in inventory may cause co's to sell excess product in overseas markets
**-in the 1st two stages of international marketing involvement, the strategies
are reactive rather than proactive
3. regular foreign marketing Correct Answer - -firm has committed
permanent resources toward international marketing and engages in it
regularly on a PROACTIVE basis
-firm may use intermediaries to engage in international marketing
4. multi-domestic or international marketing Correct Answer - -firm has
planned production and marketing to many countries around world with
specific target for each overseas country market
-involves not only marketing but also the production of goods in overseas
markets
5. global marketing Correct Answer - -firms starts viewing the world,
including its home marker, as ONE market
-major change is the orientation toward world markets and the activities
directed at supporting this view
-operating as if all country markets in a company's scope of operations
(including domestic market) are approached as a single global market that
have multiple market segments-doesn't necessarily mean STANDARDIZATION
characteristics of companies that internationalize quickly Correct Answer -
-high-tech and/or marketing-based resources
-smaller home markets and larger production capacity
-mgrs who are well-networked internationally
CH 2 Correct Answer - balance of payments, protectionism vs. free trade,
the various types of trade barriers, the General Agreement on Tariffs and
Trade (GATT) & the World Trade Organization (WTO)
