MBA 776 Exam 1: Questions With Logical Solutions
How is international marketing different from domestic marketing? Correct
Answer - The only difference is that international marketing has
marketing activities that take place in more than one country
Why is international marketing more complicated than domestic? Correct
Answer - It has at least two levels of uncontrollable uncertainty, one level
has the uncontrollable elements of all business environments and the second
is the unique set of uncontrollable factors specific to each foreign country.
What can a marketer do about uncontrollable elements? Correct Answer -
- Actively evaluate elements to make adjustments (adapt)
- Determine the outcome of the marketing enterprise
What is adaptation? Correct Answer - A conscious effort on the part of
the international marketer to anticipate the influences of both the foreign and
domestic uncontrollable factors on a marketing mix and then to adjust the
marketing mix to minimize the effects
How can international marketers make cultural adjustments? Correct
Answer - - Interpret the influence of each uncontrollable element on the
market
- Adjust marketing efforts to cultures in which they are not attuned
- Be aware of own frame of reference when evaluating markets
What does SRC stand for? Correct Answer - Self-Reference Criterion
What is the definition of SRC? Correct Answer - Unconscious reference
to own cultural values, experiences, knowledge
When is SRC problematic? Correct Answer - When it is used as the basis
for decisions
What is the definition of ethnocentrism? Correct Answer - One's own
company, culture, or country is best
When is ethnocentrism most problematic? Correct Answer - When
affluent countries work with less affluent
,What are the 5 stages of international marketing involvement? Correct
Answer - - No direct foreign marketing
- Infrequent foreign marketing
- Regular foreign marketing
- Multidomestic or international marketing
- Global marketing
Which two phases of international marketing involvement are more reactive
and less strategic? Correct Answer - The first two, no direct foreign
marketing and infrequent foreign marketing
Define this marketing stage: No Direct Foreign Marketing Correct Answer -
a company does not send its products overseas directly, but its products may
become available in other countries through intermediaries or middlemen.
Occasional Internet sales because of a request from an overseas customer
Define this marketing stage: Infrequent Foreign Marketing Correct Answer
- Temporary surpluses in inventory may cause companies to sell their
excess product in overseas markets.
Define this marketing stage: Regular Foreign Marketing Correct Answer -
a firm has committed permanent resources toward international marketing
and engages in it regularly on a proactive basis.
Define this marketing stage: International Marketing Correct Answer - a
firm has planned production and marketing to many countries around the
world with specific targets for each overseas country market. It involves not
only marketing but also production of goods in overseas markets.
Define this marketing stage: Global Marketing Correct Answer - a firm
starts viewing the world, including their home market, as one market.
What is a nation's balance-of-payments statement? Correct Answer - A
record of all financial transactions with other countries
What does a balance-of-payments statement provide? Correct Answer -
An overall view of a nation's international economic position
, Why is a nation's balance-of-payments statement important? Correct
Answer - Because it's used by treasuries, central banks, and other
government agencies whose responsibility is to maintain external and
internal economic stability
What must offset each other in a balance-of-payment? Correct Answer -
Credits and debits
The balance-of-payments record is maintained on what kind of system?
Correct Answer - A double-entry bookkeeping system
What are the 3 main accounts included in a balance-of-payments statement?
Correct Answer - Current, capital, reserves
Which account is of primary interest to international business? Correct
Answer - Current account
What is protectionism? Correct Answer - The use of barriers to restrain
the entry of foreign goods and protect a country's markets
What are the top 3 valid reasons to maintain government restrictions (use
protectionism)? Correct Answer - - Protect infant industry
- National defense
- Industrialization of underdeveloped countries
Why is protectionism harmful? Correct Answer - - Contributes to
country's industrial inefficiency
- Detracts from nation's adjustment to world situations
- Higher prices for consumers
Why is free trade beneficial? Correct Answer - - More people willing to
purchase
- Higher purchasing power for the average consumer
- Higher income levels
- More job opportunities
- Economic effects of COVID reduced consumers' spending power
What is the definition of a tariff? Correct Answer - A tax imposed by a
government on goods entering at its borders
How is international marketing different from domestic marketing? Correct
Answer - The only difference is that international marketing has
marketing activities that take place in more than one country
Why is international marketing more complicated than domestic? Correct
Answer - It has at least two levels of uncontrollable uncertainty, one level
has the uncontrollable elements of all business environments and the second
is the unique set of uncontrollable factors specific to each foreign country.
What can a marketer do about uncontrollable elements? Correct Answer -
- Actively evaluate elements to make adjustments (adapt)
- Determine the outcome of the marketing enterprise
What is adaptation? Correct Answer - A conscious effort on the part of
the international marketer to anticipate the influences of both the foreign and
domestic uncontrollable factors on a marketing mix and then to adjust the
marketing mix to minimize the effects
How can international marketers make cultural adjustments? Correct
Answer - - Interpret the influence of each uncontrollable element on the
market
- Adjust marketing efforts to cultures in which they are not attuned
- Be aware of own frame of reference when evaluating markets
What does SRC stand for? Correct Answer - Self-Reference Criterion
What is the definition of SRC? Correct Answer - Unconscious reference
to own cultural values, experiences, knowledge
When is SRC problematic? Correct Answer - When it is used as the basis
for decisions
What is the definition of ethnocentrism? Correct Answer - One's own
company, culture, or country is best
When is ethnocentrism most problematic? Correct Answer - When
affluent countries work with less affluent
,What are the 5 stages of international marketing involvement? Correct
Answer - - No direct foreign marketing
- Infrequent foreign marketing
- Regular foreign marketing
- Multidomestic or international marketing
- Global marketing
Which two phases of international marketing involvement are more reactive
and less strategic? Correct Answer - The first two, no direct foreign
marketing and infrequent foreign marketing
Define this marketing stage: No Direct Foreign Marketing Correct Answer -
a company does not send its products overseas directly, but its products may
become available in other countries through intermediaries or middlemen.
Occasional Internet sales because of a request from an overseas customer
Define this marketing stage: Infrequent Foreign Marketing Correct Answer
- Temporary surpluses in inventory may cause companies to sell their
excess product in overseas markets.
Define this marketing stage: Regular Foreign Marketing Correct Answer -
a firm has committed permanent resources toward international marketing
and engages in it regularly on a proactive basis.
Define this marketing stage: International Marketing Correct Answer - a
firm has planned production and marketing to many countries around the
world with specific targets for each overseas country market. It involves not
only marketing but also production of goods in overseas markets.
Define this marketing stage: Global Marketing Correct Answer - a firm
starts viewing the world, including their home market, as one market.
What is a nation's balance-of-payments statement? Correct Answer - A
record of all financial transactions with other countries
What does a balance-of-payments statement provide? Correct Answer -
An overall view of a nation's international economic position
, Why is a nation's balance-of-payments statement important? Correct
Answer - Because it's used by treasuries, central banks, and other
government agencies whose responsibility is to maintain external and
internal economic stability
What must offset each other in a balance-of-payment? Correct Answer -
Credits and debits
The balance-of-payments record is maintained on what kind of system?
Correct Answer - A double-entry bookkeeping system
What are the 3 main accounts included in a balance-of-payments statement?
Correct Answer - Current, capital, reserves
Which account is of primary interest to international business? Correct
Answer - Current account
What is protectionism? Correct Answer - The use of barriers to restrain
the entry of foreign goods and protect a country's markets
What are the top 3 valid reasons to maintain government restrictions (use
protectionism)? Correct Answer - - Protect infant industry
- National defense
- Industrialization of underdeveloped countries
Why is protectionism harmful? Correct Answer - - Contributes to
country's industrial inefficiency
- Detracts from nation's adjustment to world situations
- Higher prices for consumers
Why is free trade beneficial? Correct Answer - - More people willing to
purchase
- Higher purchasing power for the average consumer
- Higher income levels
- More job opportunities
- Economic effects of COVID reduced consumers' spending power
What is the definition of a tariff? Correct Answer - A tax imposed by a
government on goods entering at its borders
