International Market Entry Strategies
Exam Solutions
Course Introduction
International Market Entry Strategies explores the various methods and considerations organizations use to expand their operations and products beyond domestic borders. This course examines the strategic, legal, and cultural factors influencing the selection of entry modes such as exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries. Students will analyze the risks, benefits, and challenges associated with internationalization, including market analysis, partner selection, competitive dynamics, and adaptation to local environments. Case studies and real-world applications will highlight key decision-making processes, enabling students to develop effective market entry strategies for global businesses.
Recommended Textbook
International Marketing An Asia Pacific Perspective 7th Edition by Richard Fletcher
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17 Chapters
1024 Verified Questions
1024 Flashcards
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Chapter 1: Rationale for International Marketing
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Sample Questions
Q1) Discuss the various factors that might encourage a successful domestic firm to accept the risk inherent in going international and choose to sell its product in an overseas market.
Answer: International marketers balance the driving forces against the restraining forces when assessing each particular market. If the driving forces outweigh the restraining forces, a decision might be made to enter the market; if the restraining forces outweigh the driving forces, a decision might be made to forego the market or postpone entry. Driving forces include market needs (that transcend national boundaries), technology (which has no national boundaries), costs (economies of scale), governments (supportive policies) and information technology that have revolutionized communication (media overlaps national boundaries). Restraining forces include differences between markets flowing from economic development, the political system, legal requirements, societal expectations and cultural norms; government controls over entry and market access; and actual or perceived commercial, cross-cultural, country and currency/financial risk.
Q2) Asia has the largest percentage of the world's multinational enterprises (MNEs).
A)True
B)False
Answer: False
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Page 3
Chapter 2: Avoiding the Pitfalls of the International Political and Legal Environment
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Sample Questions
Q1) The official seizure of a foreign firm's property by the host government on the basis that the property seized is to be used in the public interest is an act of:
A) external conflict.
B) repatriation.
C) expropriation.
D) political sovereignty.
E) none of the above.
Answer: C
Q2) Arbitration is:
A) usually used when conciliation fails.
B) where disputing parties present their case to a panel of respected persons who make a judgement that both sides agree to honour.
C) where a third party acts as a referee for parties who are in dispute.
D) options A, B and C.
E) options A and B only.
Answer: D
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Chapter 4: Catering for the Social and Cultural Environment of International Marketing
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Sample Questions
Q1) During the opening stage of international negotiations, it is desirable to check that both sides have a common understanding of the topic of the negotiations.
A)True
B)False
Q2) In a predominantly secular world, the symbolic and sacred elements that form a link between the material and the metaphysical play a(an) ________ role is international marketing.
A) negligible
B) essential
C) moderately important
D) minor part
E) very small
Q3) For the most part, advocates of the etic approach identify cultural boundaries with political ones.
A)True
B)False
Q4) Outline ways in which an Australian trade negotiation team might be required to alter its traditional negotiation style when trying to secure business in Japan.
Page 5
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Chapter 5: Technology Change and International Marketing
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Sample Questions
Q1) The business models of pure play and bricks-and-mortar elements can never be combined in a single organisation.
A)True
B)False
Q2) The six techno-economic paradigms that have occurred since the Industrial Revolution in the late 18th century are:
A) monarchy, republic, socialist, communist, market and neo-market.
B) agrarian, mercantile, mass production, mass customisation and digital, information and communication.
C) agrarian, mercantile, heavy engineering, mass production, digital and customization.
D) agricultural, manufacturing, services, telecommunications, biotechnology and nanotechnology.
E) early mechanisation, steam power and railway, electrical and heavy engineering, mass production, information and communication and information omnipresence .
Q3) Companies only use the internet to interact with customers.
A)True
B)False
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Page 6
Chapter 6: Contemporary Environmental Variables in International Marketing
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Sample Questions
Q1) What threats and opportunities does terrorism pose to the development of the global economy?
Q2) An organisation that follows an environmental strategy of pollution prevention and compliance has:
A) a proactive approach with a focus on cost reduction.
B) an accommodative approach with a focus on benefit enhancement for customers.
C) a proactive approach with a focus on benefit enhancement for customers.
D) an accommodative approach with a focus on cost reduction.
E) none of the above.
Q3) Views of ethical behaviour differ and in some countries bribery is seen as an accepted business practice. From a utilitarian perspective, bribery would be regarded as:
A) acceptable because it leads to contracts that create employment.
B) acceptable if it is commonly practiced in the host country.
C) unacceptable under any circumstances.
D) acceptable if it is going to benefit the organisation.
E) acceptable if it was beneficial to both parties.
Q4) There have always been risks when expanding an organisation's international marketing activities. Discuss these risks and how an international marketer can manage and prepare for them.
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Chapter 7: Research in International Markets
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62 Flashcards
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Sample Questions
Q1) Outline the key new international marketing research methods. What are the advantages and disadvantages of employing these methods ahead of more traditional research approaches?
Q2) When preparing a research plan for an overseas market, a firm will need to go through a number of essential stages, including:
A) problem definition, research design, secondary research, primary research and reporting of results.
B) problem definition, secondary research, primary research, data analysis and reporting of results.
C) problem definition, primary/secondary research, data collection, hypothesis development and reporting of results.
D) problem definition, research design, data collection, data analysis and reporting of results.
E) problem definition, hypothesis development, research design, data analysis and reporting of results.
Q3) There are three options when selecting a market research agency for international marketing. Outline the options and when each is most appropriate.
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8
Chapter 8: International Market Selection and Entry
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Sample Questions
Q1) List and describe the major exporting and manufacturing modes of entering foreign markets
Q2) Overseas markets can be entered using either a concentrated or diversified approach.
A)True
B)False
Q3) Countertrade involves the linking of an import and an export transaction in a conditional manner. Discuss the drivers of countertrade and outline the various forms it can follow.
Q4) By stage 3 of the screening process only about ________% of world markets remain.
A) 30
B) 50
C) 25
D) 40
E) 45
Q5) Cavusgil et al. developed an index of market potential and overall market attractiveness model based on eight dimensions. List and explain them. Be sure to provide the weight of each dimension according to the GlobalEdge model.
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Chapter 9: International Competitive Strategy
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Sample Questions
Q1) What are some major advantages and disadvantages of niching in international marketing?
Q2) Within the value chain analysis, the work done by the firm's manufacturing arm would be regarded as being a ________ activity.
A) secondary
B) competitive
C) augmented
D) primary
E) none of the above
Q3) Value innovation involves creating significant leaps in value for both the company and customers.
A)True
B)False
Q4) In order to defend itself against attacks from challenger firms, a follower firm must:
A) keep its manufacturing costs low and its product and services quality high.
B) closely watch its weaker flanks.
C) attack other firms its own size or smaller local firms.
D) be bold in everything it does.
E) undertake a strategic withdrawal.
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Chapter 10: Internationalization, Relationships and Networks
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Sample Questions
Q1) Exchanges in a relationship approach are based on ________ rather than ________.
A)Co-existence; co-operation
B)Co-operation; competition
C)Collaboration; conformity
D)Co-operation; collaboration
E)Collaboration; competition
Q2) Which of the following is an inward form of entry into international markets?
A)Buying agent
B)Co-operative manufacturing
C)Strategic alliance
D)Export agent
E)Franchisor overseas
Q3) Fletcher's model of international behaviour consists of which three modes of entry into international markets?
A)Outward forms, combined forms, inward forms
B)Outward forms, relationship forms, inward forms
C)Outward forms, linked forms, inward forms
D)Outward forms, central forms, inward forms
Page 11
E)Outward forms, consolidated forms, inward forms
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Chapter 11: Globalization
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Sample Questions
Q1) Which of the following is NOT a benefit of global strategy?
A)Cost reduction
B)Improved product quality
C)Management and co-ordination costs
D)Increased competitive leverage
E)Enhanced customer preference
Q2) Global advertising involves designing world campaigns but adapting to local markets.
A)True
B)False
Q3) Outline the steps that need to be taken in developing a global strategy. Take a product or company of your choice and show how these steps are implemented in practice.
Q4) Emerging multinationals are more risk-adverse and avoid being first mover.
A)True
B)False
Q5) Sport is now the most globalised legal business in the world.
A)True
B)False
Q6) Discuss the relationship between globalism and glocalisation.
Page 12
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Chapter 12: Planning for Effective International Marketing
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Sample Questions
Q1) Strategic dilution and lack of stakeholder commitment are two external factors that can lead to the failure of a firm's marketing plan.
A)True
B)False
Q2) For a classic strategic plan, the formulation and evaluation of marketing strategies, including objectives and milestones, must be completed before the SWOT analysis is conducted.
A)True
B)False
Q3) The components that will assist an international company to be on the leading edge of its industry include:
A) ensuring change is driven by customer considerations.
B) progressive scenario developments.
C) ensuring cultural and organisational changes are planned.
D) integrated business strategies.
E) all of the above.
Q4) Discuss the difference between market-based and product-based approaches to marketing planning.
Q5) Discuss the emerging bases for global segmentation.
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Chapter 13: Modifying Products for International Markets
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Sample Questions
Q1) Multinational products are products that have potential to be extended from the domestic market to a number of international markets.
A)True
B)False
Q2) Diffusion refers to the movement of new products to and within overseas markets so that they are available to customers in those markets.
A)True
B)False
Q3) Performance standards, climate and warranty issues all need to be considered when developing a product for the international market.
A)True
B)False
Q4) How might a firm redefine its business when entering international markets?
Q5) As an alternative to designing a new product for an overseas market from scratch, it may be possible to take existing technology and apply it to the needs of the overseas market.
A)True B)False
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Page 14
Chapter 14: International Pricing for Profit
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Sample Questions
Q1) An international price skimming strategy attempts to achieve:
A) the largest market share in the quickest possible time.
B) the highest possible return in the quickest possible time.
C) the highest level of brand awareness in the short term.
D) the highest possible return in the long term.
E) none of the above.
Q2) Which of the following statements related to the role of pricing and distribution in an overseas country is NOT true?
A) The selected channels of distribution often dictate export pricing.
B) Reducing the number of intermediaries reduces the international escalation of price.
C) The length of the distribution channel varies from country to country, which can add to the cost of the price charged for a product.
D) The costs and margins of a given channel vary from country to country.
E) When a firm has a subsidiary in an overseas market it is able to exert less control on the price charged for the product in that market.
Q3) Discuss the various methods of terms of payment, and highlight the benefits and disadvantages of each from a seller's perspective.
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Page 15
Chapter 15: Promotion in International Marketing
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Sample Questions
Q1) Which of the following is NOT one of the four conversational principles that should be taken into consideration when developing international marketing communications?
A)Identify with the message recipient
B)Avoid assuming that elements of the message taken for granted in the home country such as jargon or slang will also be taken for granted in the new market
C)Body language needs to be culturally consistent with the message being sent
D)In high context cultures people want to know consideration detail about the executive and company represented
E)Ensure that the colours used to represent the company are culturally consistent and appropriate
Q2) In country-of-origin promotional activity, the 'halo construct' occurs when consumers are familiar with a particular product.
A)True
B)False
Q3) Country of origin can provide consumers with a tangible cue for evaluating a product. Discuss the country of origin stereotypes and their effects on potential customers, providing examples to support your views.
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16
Chapter 16: Effective International Distribution
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Sample Questions
Q1) In general, the more economically developed a country is the longer the distribution channel is.
A)True
B)False
Q2) In product distribution, 'program' standardisation refers to the development of a uniform marketing mix for all international markets.
A)True
B)False
Q3) When selecting an agent or distributor overseas, it is important to select a firm whose size is larger than that of the exporting firm.
A)True
B)False
Q4) Discuss the management implications of selecting and managing a channel intermediary in another country.
Q5) The nature of the shipment is influenced by the shape/size of items, overall volume and the perishable nature of the product and its packaging.
A)True
B)False
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Chapter 17: Marketing Services and Projects Overseas
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Sample Questions
Q1) Patterson and Cici (1995) developed an alternative classification framework for firms involved in the classification of service. How would this framework apply to a newly opened organic spa resort which also provided an online range of products?
Q2) Which industry currently represents Australia's largest services export?
A)Health services
B)Retailing
C)Professional services
D)Education
E)Tourism
Q3) A location-free professional service is where a permanent presence in the overseas market is not necessary in order for the marketing firm to deliver the services products.
A)True
B)False
Q4) As a general rule, there is a greater level of cultural sensitivity with services products than with tangible goods.
A)True
B)False
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18
Chapter 18: International Marketing in the Decade Ahead
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Sample Questions
Q1) Sources of market growth in the coming decade is expected to come from the BRICS group. Which countries are the members of this group?
A) Britain, Russia, Ireland, Canada and Spain
B) Brazil, Romania, Indonesia, Chile and South Korea
C) Bolivia, Rwanda, Iran, Czech Republic and Slovakia
D) Brazil, Russia, India, China and South Africa
E) Belarus, Russia, Iran, China and South Korea
Q2) What are the key differences between consumers in the MOP compared with consumers in the BOP?
Q3) Traditionally, the basis for international market segmentation has been cultural groupings.
A)True
B)False
Q4) Consumers in BOP markets prefer to shop in smaller stores with more limited selections.
A)True
B)False
Q5) What the characteristics of the BOP market?
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