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Chapter 1—Introduction to Global Marketing
TRUE/FALSE
1. When practicing international marketing, a company becomes more involved in
local marketing
environments than it does in export marketing.
ANS: T
NAT: Analytic
PTS: 1
DIF: Easy
REF: p. 7
2. Regional and political integration favor a pan-regional marketing strategy.
ANS: T
PTS: 1
NAT: Analytic | Diversity
DIF: Easy
REF: p. 7-8
3. The formation of NAFTA encourages more multinational companies to adopt
multidomestic
strategies.
ANS: F
PTS: 1
NAT: Analytic | Diversity
DIF: Difficult
REF: p. 8
4. The volume of international trade is decreasing due to globalization.
ANS: F
PTS: 1
NAT: Analytic | Diversity
DIF: Easy
REF: p. 9-10
5. Companies pursue foreign markets to increase sales and profits.
ANS: T
NAT: Analytic
PTS: 1
DIF: Easy
REF: p. 5
6. Competition is becoming increasingly domestic.
ANS: F
NAT: Analytic
PTS: 1
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DIF: Easy
REF: p. 2
7. Ebay discovered that entering Asian markets was relatively difficult.
ANS: T
NAT: Analytic
PTS: 1
DIF: Moderate
REF: p. 2
8. Coca-Cola offering life insurance to small retailers in Mexico is an example of
adapting to local
markets.
ANS: T
NAT: Analytic
PTS: 1
DIF: Difficult
REF: p. 10
9. Coca-Cola offering life insurance to small retailers in Mexico is an example of
standardizing services
across markets.
ANS: F
PTS: 1
DIF: Difficult
REF: p. 10
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NAT: Analytic
10. Coca-Cola offering life insurance to small retailers in Mexico is an example of
product globalization.
ANS: F
NAT: Analytic
PTS: 1
DIF: Difficult
REF: p. 10
MULTIPLE CHOICE
1. Marketing aimed at a firm's home market is known as ____ marketing.
a. international
b. global
c. domestic
d. introductory
ANS: C
NAT: Analytic
PTS: 1
DIF: Easy
REF: p. 7
2. When multinational firms use different strategies, each one tailored to a
particular local market, they
are said to adopt a
a. foreign policy.
b. local strategy.
c. domestic strategy.
d. multidomestic strategy.
ANS: D
NAT: Analytic
PTS: 1
DIF: Easy
REF: p. 7
3. A pan-regional marketing strategy can be used for which of the following pairs
of countries?
a. Britain and China
b. Japan and India
c. United States and Canada
d. South Africa and Germany
ANS: C
NAT: Analytic
PTS: 1
DIF: Moderate
REF: p. 8-9
4. A global marketing strategy involves a
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a. single strategy for the global market with minor adaptations.
b. different strategy for each market.
c. significant product adaptation across markets.
d. None of the above.
ANS: A
NAT: Analytic
PTS: 1
DIF: Easy
REF: p. 9-10
5. Vakko, a Turkish apparel producer, makes silk scarves in Istanbul. The scarves
are sold to clothing
distributors in Germany and the United Arab Emirates who, in turn, sell the scarves
to clothing
retailers in their respective countries. This is an example of
a. domestic marketing.
b. export marketing.
c. joint venture marketing.
d. international marketing.
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