International Market Entry Strategies
Exam Review
Course Introduction
This course explores the various strategies used by firms to enter and compete in international markets. Students analyze key concepts such as exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries, considering the advantages, risks, and challenges associated with each approach. The course delves into environmental factors including legal, political, cultural, and economic aspects that influence strategic decision-making. Through case studies and real-world examples, students develop an understanding of market selection, entry mode choice, adaptation to local markets, and the implementation of entry strategies to achieve global business objectives.
Recommended Textbook
International Marketing 17th Edition by Philip Cateora
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19 Chapters
1940 Verified Questions
1940 Flashcards
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Page 2
Chapter 1: The Scope and Challenge of International Marketing
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Sample Questions
Q1) The controllable elements can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives.
A)True
B)False
Answer: True
Q2) Research has revealed that smaller home markets and larger production capacities appear to favor internationalization.
A)True
B)False
Answer: True
Q3) The business activities of international marketers are not affected by competition in their domestic market.
A)True
B)False
Answer: False
Q4) The self-reference criterion is closely related to ethnocentrism.
A)True
B)False
Answer: True
Page 3
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Chapter 2: The Dynamic Environment of International Trade
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Sample Questions
Q1) An exchange permit can stipulate the:
A) quantity of goods that can be exchanged for a particular sum of foreign currency.
B) number of parties that can be involved in an exchange transaction.
C) amount to be exchanged that must be deposited in a local bank for a set period.
D) quality standards of the goods involved in an exchange.
E) number of times one party can avail exchange permits.
Answer: C
Q2) In the context of nontariff barriers, antidumping practices fall under the category of:
A) specific limitations on trade.
B) customs and administrative entry procedures.
C) standards.
D) governmental participation in trade.
E) charges on imports.
Answer: B
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4
Chapter 3: History and Geography: The Foundations of Culture
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Sample Questions
Q1) Continuous improvements in electronic communications have facilitated the expansion of trade.
A)True
B)False
Answer: True
Q2) Which of the following may best explain why the Japanese have such strong loyalty toward their companies?
A) Zen philosophy
B) Taoism
C) Confucian philosophy
D) Buddhism
E) Bushido philosophy
Answer: C
Q3) In the context of social responsibility and environmental management, the Basel Convention identified safe dumping zones for hazardous wastes exported by developed nations.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Cultural Dynamics in Assessing Global Markets
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Sample Questions
Q1) The Uncertainty Avoidance Index measures the tolerance of uncertainty and _____ among members of a society.
A) inequality
B) subjugation
C) ambiguity
D) oppression
E) hierarchy
Q2) In the context of social institutions such as families, the ratio of male to female children is affected by latitude but not culture.
A)True
B)False
Q3) In the context of cultural values, the _____ Index refers to the preference for behavior that promotes one's self-interest.
A) Individualism/Collectivism
B) Power Distance
C) Uncertainty Avoidance
D) Masculinity/Femininity
E) Linguistic
Q4) What is the effect of education on the culture of a country?
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Chapter 5: Culture, Management Style, and Business Systems
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Q1) A culture that is low context, individualistic, has a low power distance, and uses monochronic time is _____.
A) information-oriented
B) relationship-oriented
C) hierarchy-oriented
D) an authoritarian culture
E) a dictatorial culture
Q2) In _____ decision making, title or position generally takes precedence over the individual holding the job.
A) committee
B) decentralized
C) top-level management
D) integrated
E) dictatorial
Q3) In the context of authority and decision making, briefly describe the shift from centralized to decentralized decision making.
Q4) Discuss the American manager's attitude toward objectivity in decision making.
Q5) Compare an information-oriented culture like America with a relationship-oriented culture like Japan.
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Chapter 6: The Political Environment: a Critical Concern
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Q1) The government in Chile recently informed Clint Travis' company that his retail grocery chain in Chile would have to be gradually turned over to the people of Chile by the year 2050 as it is a foreign company in Chile. Additionally, starting next year 50 percent of the board of directors of the Chilean operation of the company must be Chileans. Which of the following political risk actions is Mr. Travis' company facing in Chile?
A) Confiscation
B) Expropriation
C) Domestication
D) Patronization
E) Socialization
Q2) Which of the following is the principle U.S. agency that supports U.S. business abroad?
A) State Department of Entrepreneurship
B) Better Business Bureau
C) Department of Commerce
D) Department of Foreign Relations
E) Department of Defense
Q3) Discuss stability of governments and list the main political causes of instability in international markets.
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Chapter 7: The International Legal Environment: Playing by the Rules
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Sample Questions
Q1) The responsibility of determining if a license is required rests with the _____.
A) Department of Commerce of the exporting nation
B) regulatory body of the industry
C) exporter
D) U.S. Customs department
E) importing country's authorities
Q2) Ralph Richards has been attempting to solve a problem that his company has with a contract default by the Dutch government. He has tried conciliation but the two parties did not find any common ground on which they could begin a fruitful negotiation for settlement. Which of the following is likely to be the course of action that both the parties will try next?
A) Mediation
B) Informal settlement
C) Arbitration
D) Litigation
E) Coercion
Q3) The World Court can settle disputes between a company and a government.
A)True
B)False
Q4) Compare conciliation with arbitration.
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Chapter 8: Developing a Global Vision Through Marketing Research
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Sample Questions
Q1) The ideal approach to multicountry marketing research is to have local researchers in each country, with close coordination and networking between the client company and the local research companies.
A)True
B)False
Q2) Which of the following countries has hierarchical, relationship-based corporate culture?
A) Germany
B) France
C) South Korea
D) Switzerland
E) Australia
Q3) In the context of the research process, which of the following should an organization immediately do once it has determined the sources of information to fulfill the research objectives?
A) Gather the relevant data from secondary or primary sources, or both.
B) Analyze, interpret, and summarize the information gathered.
C) Consider the costs and benefits of the research effort.
D) Effectively communicate the results to decision makers.
Page 10
E) Conduct surveys and in-depth interviews with the respondents.
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Chapter 9: Economic Development and the Americas
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Sample Questions
Q1) Which of the following countries is a part of the free trade area known as CFTA?
A) France
B) Uruguay
C) The United States
D) Argentina
E) Brazil
Q2) The Mercosur envisioned central institutions similar to those of the European Union institutions.
A)True
B)False
Q3) Economic planners are most likely to be least concerned with the problems related to _____.
A) production
B) finance
C) expenditure
D) distribution
E) investment
Q4) Explain the importance of time zones for trade relationships and marketing operations. Which are the three multinational market regions that comprise major trading blocs?
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Chapter 10: Europe, Africa, and the Middle East
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Sample Questions
Q1) At the most general level, the _____ represents the most important and comprehensive trade agreement in history.
A) NAFTA
B) Amsterdam Treaty
C) MERCOSUR
D) WTO
E) ASEAN
Q2) Which of the following is a provision of the commonwealth agreement signed by the Commonwealth of Independent States?
A) To reject the powers of the old regimes
B) To keep the ruble but allow new currencies
C) To create disjointed control of nuclear weapons
D) To invalidate all Soviet foreign treaties and debt obligations
E) To avoid creating a European Union-style free trade association
Q3) Discuss the functions of the institutions under the European Union.
Q4) The initial aim of a multinational market is to protect businesses that operate within its borders.
A)True
B)False
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Chapter 11: The Asia Pacific Region
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Sample Questions
Q1) The true consumer market in China is probably limited to no more than _____ percent of those who live in the more affluent cities.
A) 9
B) 15
C) 25
D) 33
E) 48
Q2) Which of the following is at present the center of trade links with north China and the Asian republics of the former Soviet Union?
A) Japan
B) South Korea
C) Malaysia
D) Singapore
E) India
Q3) China is now the biggest market for personal computers.
A)True
B)False
Q4) Give an account of rural China. How have the multinational companies contributed toward its development?
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Chapter 12: Global Marketing Management: Planning and Organization
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Sample Questions
Q1) In the context of foreign market entry, licensing is least suitable when capital is scarce.
A)True
B)False
Q2) In the context of foreign market entry, a _____ is a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective without forming a separate legal entity.
A) direct sales group
B) consortium arrangement
C) franchising arrangement
D) strategic international alliance
E) joint venture
Q3) Building a strategic international alliance (SIA) takes several steps to be successful. The first step in building strategic alliances is called dating.
A)True
B)False
Q4) Briefly explain a strategic international alliance (SIA).
Q5) List the four phases of the international planning process.
Q6) Discuss the differences between corporate, strategic, and tactical planning.
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Chapter 13: Products and Services for Consumers
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Sample Questions
Q1) As part of the "green movement," the European Commission has passed a legislation to control all kinds of packaging waste throughout the European Union. Two critical issues that affect product development are the control of the packaging component of solid waste and _____.
A) prevalence of similar environmental standards across different member countries
B) consumer demand for environmentally friendly products
C) higher government subsidies for greener technologies
D) continuous availability of alternative energy resources for production
E) proven efficient management of inventory of conventional energy products
Q2) A product's _____ refers to the ease with which its benefits can be communicated to the customers.
A) vincibility
B) partibility
C) complexity
D) trialability
E) observability
Q3) What are the various factors that influence product adaptation in new markets?
Q4) In the context of product adaptation, what is product homologation?
Q5) Define country-of-origin effect. How can a company overcome this effect?
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Chapter 14: Products and Services for Businesses
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Q1) In knowledge-based services such as consulting, engineering, education, and information technology, _____ are a key driver of success and failure.
A) income taxes
B) intellectual property issues
C) free trade zones (FTZs)
D) exchange rate regulations
E) tariffs on the import of goods
Q2) The Global Harmonization Task Force is an international effort that is attempting to:
A) harmonize standards for several international industrial sectors.
B) promote free trade among developing and developed nations.
C) equalize wages among countries.
D) increase double testing of goods and services.
E) equalize the perception of quality across countries.
Q3) Industrial goods are most likely to be standardized if:
A) they are produced by the same firm.
B) the cost of producing each unit is the same.
C) their uses are the same across markets.
D) they are sold to different income groups.
E) they are sold in different countries.
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Page 16
Chapter 15: International Marketing Channels
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Sample Questions
Q1) In the context of channel-of-distribution structures, discuss the distinguishing features of the Japanese distribution structure.
Q2) A _____ provides a selling service for a manufacturer, has a short-term relationship, and operates on a straight commission basis.
A) manufacturers' retail store
B) trading company
C) global retailer
D) manufacturer's export agent
E) complementary marketer
Q3) Write a short note on the import-oriented distribution structure.
Q4) Channels of distribution often pose longevity problems.
A)True
B)False
Q5) As traditional channel structures are changing, importers and retailers are also becoming involved in new product development.
A)True
B)False
Q6) Discuss the Export Trading Company (ETC) Act.
Q7) What are the various techniques that can be used to motivate middlemen?
Page 17
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Chapter 16: Integrated Marketing Communications and International Advertising
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Sample Questions
Q1) List the seven steps in creating an international advertising campaign.
Q2) In the context of international advertising, advertisers prefer global television (satellite broadcasts) due to the availability of accurate market data in most countries.
A)True
B)False
Q3) Integrated marketing communications are composed of all of the following EXCEPT:
A) advertising.
B) sales promotions.
C) trade shows.
D) public relations.
E) political rallying.
Q4) The emergence of pan-European communications media will most likely cause companies to:
A) opt for localized promotional campaigns.
B) opt for greater customization of promotional efforts.
C) promote their products only in English.
D) use only the Internet as their message channel.
E) choose more standardized promotional efforts.
Q5) Explain the significance of radio and television in international advertising.
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Chapter 17: Personal Selling and Sales Management
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Sample Questions
Q1) In the context of designing compensation systems, the program element most often determined at the global level is:
A) Program Design Principles.
B) Pay Mix.
C) Job Grades.
D) Formula Mechanics.
E) Performance Measures.
Q2) Marketing is a business function requiring high motivation regardless of the location of the practitioner.
A)True
B)False
Q3) How important is the family in the success of an expatriate manager?
Q4) Considering the specific characteristics of Japan's culture, which of the following strategies would be most successful in motivating employees in Japanese organizations?
A) Individual commission systems
B) Group bonus schemes
C) Company cars
D) Birthday gift vouchers
E) Best employee awards
Page 19
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Chapter 18: Pricing for International Markets
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Q1) A _____ policy is used to stimulate market and sales growth by deliberately offering products at low prices.
A) penetration pricing
B) variable-cost pricing
C) premium pricing
D) price skimming
E) full-cost pricing
Q2) Which of the following is an example of a price-fixing arrangement?
A) Price escalation
B) Barter houses
C) Letters of credit
D) Cartels
E) Countertrade
Q3) When the value of the dollar is weak relative to the buyer's currency, sellers generally employ _____.
A) competition-based pricing
B) demand-based pricing
C) premium pricing
D) psychological pricing
E) cost-plus pricing
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Chapter 19: Inventive Negotiations With International
Customers, Partners, and Regulators
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Q1) Which of the following countries is considered to be the least aggressive with respect to negotiation behavior?
A) France
B) Germany
C) China
D) Taiwan
E) Japan
Q2) Which of the following factors often gets in the way of American team negotiations?
A) Cultural heritage of interdependence and collectivism
B) Emphasis on careful note taking and training via observation
C) Compensation schemes overly emphasizing individual performance
D) Preference for split commissions for negotiation teams
E) Hierarchical structures of American organizations
Q3) In the context of international business negotiations, generalizations about the negotiation style of a region such as Asia are very often correct.
A)True
B)False
Q4) What are the criteria for selecting international business negotiators?
Page 21
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