120 test bank for international marketing 3rd edition đề trắc nghiệm marketing

120 Test Bank for International Marketing 3rd Edition

Mutiple Choice Questions
Which type of marketing best describes a company’s
approach to international marketing if the company is
present in different countries with sales offices,
subsidiaries, or is an active partner in strategic
alliances with local companies and that does not
coordinate activities across the different countries or
regions.
1.
2.
3.
4.

a.Domestic marketing
b.Export marketing
c.International marketing
d.Global marketing

Which of the following is NOT a driver of international
expansion?
1.
2.
3.
4.

a.Competition
b.Regional economic integration
c.Import quotas
d.Technology

Firms with a regiocentric orientation are guided by a:
1.
2.
3.
4.

a.domestic market extension concept
b.multidomestic market concept
c.global marketing concept
d.none of the above

The product life cycle:
1.
2.
3.
4.

a.does not affect ethnocentric firms
b.is a driver of international expansion
c.is used by governments to erect entry barriers
d.is important in domestic marketing but is not relevant to global marketing

Generation X consumers in the United States and in
Southeast Asia:
1.
2.

a.are loyal to the same soft-drink brands
b.are very different even though they are in the same age demographic

3.
4.

c.wear the same brands of clothing but have different musical preferences
d.are targeted by firms with an ethnocentric orientation

Eli Lilly is a(n):
1.
2.
3.
4.

a.ethnocentric firm
b.polycentric firm
c.polychronic firm
d.regiocentric firm

Uniform consumer segments:
1.
2.
3.
4.

a.are emerging worldwide
b.do not exist
c.are pursued by firms with a regiocentric orientation
d.are too small to be profitable

When a company believes that domestic strategies,
techniques, and personnel are superior to foreign ones
it is using a(n):
1.
2.
3.
4.

a.ethnocentric orientation
b.polycentric orientation
c.regiocentric orientation
d.geocentric orientation

Which type of marketing involves marketing activities across
different countries without focusing primarily on
national or regional segmentation?
1.
2.
3.
4.

a.Domestic marketing
b.Export marketing
c.Multinational marketing
d.Global marketing

When consumers traveling abroad demand brands that may
not be available in the home-country market and
retailers convey this information up the distribution
chain to wholesalers, they demonstrate:

1.
2.
3.
4.

a.push demand
b.pull demand
c.the benefits of diversification
d.improved communication within the supply chain due to advances in technology

Firms with a geocentric orientation:
1.
2.
3.
4.

a.pursue a differentiation strategy
b.position themselves as a low-cost manufacturer
c.frequently need to engage in "guerilla" marketing
d.none of the above


The cigarette industry is either in the late maturity stage, or
in the decline stage in industrialized countries. By
entering emerging markets where cigarettes are in the
growth stage, the industry is
1.
2.
3.
4.

a.setting up new market barriers
b.prolonging its product life cycle
c.targeting consumer product manufacturers
d.focusing on the introduction stage of the product life cycle

Which of the following is a technique used by members of
the World Trade Organization to restrict trade to
bypass traditional barriers to trade not permitted by
the WTO?
1.
2.
3.
4.

a.Tariffs
b.Delays in granting licenses
c.Preferential treatment for local contractors
d.Cumbersome procedures for import paper-work processing

The FIRST step to minimizing the impact of the self-reference
criterion is:
1.
2.
3.
4.

a.training the employee to be sensitive to the local culture
b.selecting appropriate personnel for international assignments
c.developing a repatriation plan

d.limit the expatriate's exposure to own-country nationals.

The firm is most likely to have an ethnocentric orientation
when it engages in ____.
1.
2.
3.
4.

a.Export marketing
b.International marketing
c.Multinational marketing
d.Global marketing

When a company from the United States exporting products
to multiple countries in the European Union only has
to go through customs once, this is an example of:
1.
2.
3.
4.

a.Competition
b.Regional economic & political integration
c.Import quotas
d.Technology


Colgate's development of Axion paste for washing dishes for
its Latin American market and its later deployment in

some European countries is an example of:
1.
2.
3.
4.

a.standardization advantages
b.economies of scale
c.experience transfers
d.self reference criterion

When doing business in Latin America, a good marketing
manager knows that:
1.
2.
3.
4.

a.it is crucial to show up early to a business meeting.
b.you don't have to "read between the lines" in the Latin American culture.
c.it is important to avoid alcohol and pork consumption.
d.it is important to interact with your client in a social setting before "getting to
business."

Recently, privatization in countries where government
monopolies have dominated for decades has made it
possible for multinationals to compete in each of the
following industries EXCEPT:
1.
2.

3.
4.

a.airlines
b.postal services
c.railway
d.telecommunications

High domestic product development costs:
1.
2.
3.
4.

a.serve as market entry barriers in international expansion
b.encourage international expansion
c.rarely affect consumer product manufacturers
d.rarely affect industrial producers

The improved telecommunications in Burundi is an example
of:
1.
2.
3.
4.

a.infrastructure improvements
b.economic growth
c.experience transfers
d.an entry barrier

Firms with a polycentric orientation are guided by a:
1.
2.
3.
4.

a.domestic market extension concept
b.multidomestic market concept
c.global marketing concept
d.none of the above


When Ford stopped making the Escort look different in every
market and moved to an identical look for all markets,
it moved from a polycentric strategy to this kind of
strategy.
1.
2.
3.
4.

a.ethnocentric orientation
b.polycentric orientation
c.regiocentric orientation
d.geocentric orientation

Nike, on the average, spends close to a year to develop, test,
and manufacture new product designs that then last
on the shelves in the United States for about:

1.
2.
3.
4.

a.3 months
b.6 months
c.1 year
d.over a year

Competitors erect entry barriers by:
1.
2.
3.
4.

a.blocking channels of distribution
b.binding retailers into exclusive agreements
c.slashing prices temporarily
d.all of the above

"Individuals' conscious or unconscious reference to their
own national culture, to home-country norms, values,
as well as to their knowledge and experience, in the
process of making decisions in the host country" is
the definition of:
1.
2.
3.
4.

a.the domestic market extension concept
b.a regiocentric orientation
c.a universal consumer segment
d.the self reference criterion

Which of the following is NOT a formal method used by
national governments to restrict or impede entrance of
international firms in the local market?
1.
2.
3.
4.

a.Import quotas
b.Import license awards
c.Foreign exchange restrictions
d.Consumer boycotts


Which of the following are advantages of uniform consumer
segments worldwide?
1.
2.
3.
4.

a.lower costs
b.increased profits
c.lower tariffs

d.a and b only

An important outcome of the transition of the former Eastern
Bloc countries to a market economy is:
1.
2.
3.
4.

a.increasing forced domestication policies
b.increased product development costs
c.decreased foreign direct investment
d.deregulation and privatization of former government monopolies

The EPRG Framework of international orientation stands for:
1.
2.
3.
4.

a.economics, psychographics, regulations, & geographics
b.enter, produce, react, & group
c.ethnicity, polychronic, regulations, & global expansion
d.ethnocentric, polycentric, regiocentric, & geocentric

Companies view world regions as distinct markets that share
economic, political, and/or cultural traits such that
they would be viable candidates for a regionwide
marketing approach.
1.

2.
3.
4.

a.ethnocentric orientation
b.polycentric orientation
c.regiocentric orientation
d.geocentric orientation

Firms that view international markets solely as markets
where they could unload excess production have a(n):
1.
2.
3.
4.

a.ethnocentric orientation
b.polycentric orientation
c.regiocentric orientation
d.geocentric orientation

The United States provides about ____ of the worldwide
products and services
1.
2.
3.
4.

a.5%
b.15%

c.25%
d.35%


Which of the following approaches to international marketing
involvement best describes a company that
coordinates activities across different countries or
regions?
1.
2.
3.
4.

a.Domestic marketing
b.Export marketing
c.International marketing
d.Global marketing

At which stage of the product life cycle is a firm most likely
to move manufacturing operations and facilities
abroad?
1.
2.
3.
4.

a.Introduction
b.Growth
c.Maturity
d.It is equally likely among the stages.

An example of psychological obstacle to internationalization
is
1.
2.
3.
4.

a.fear of the unknown international environment
b.limited financing available
c.limited technology available
d.all of the above

A subsidiary of a company from the United States
incorporated in any country of the European Union is:
1.
2.
3.
4.

a.subject to foreign exchange restrictions
b.forced to pay multiple tariffs
c.exempt from U.S. taxation
d.a corporate citizen of the European Union

Example(s) of obstacles to internationalization can be:
1.
2.
3.
4.

a.financial and psychological
b.physical and financial
c.physical and psychological
d.technological

Firms where top management adopts a geocentric
orientation perceive the world:
1.
2.
3.
4.

a.to be similar to the home country
b.to have regional segmentation possibilities
c.to lack national and regional distinctions
d.to have heterogeneous preferences


In which type of marketing does a firm have the least
commitment to international marketing?
1.
2.
3.
4.

a.Domestic marketing
b.Export marketing
c.International marketing
d.Global marketing

True - False Questions
International companies such as General Motors, Mitsubishi,
Microsoft, and Exxon earn profits greater than the
Gross Domestic Product of many developing
countries.
1.
2.

True
False

Competition, regional economic integration, and technology
are examples of Business Environment Drivers.
1.
2.

True
False

Firms with a regiocentric orientation are guided by a
multidomestic market concept.
1.
2.

True
False

Firms with a regiocentric or a polycentric orientation are
guided by a global marketing concept.

1.
2.

True
False

New Product Development costs are not at all related to the
product life cycle.
1.
2.

True
False

IBM has always had a geocentric orientation.
1.
2.

True
False


A subsidiary of a company from the United States
incorporated in any country of the European Union is a
corporate citizen of the European Union.
1.
2.

True
False

The U.S. consumes more than 25% of worldwide products
and services.
1.
2.

True
False

Global marketing activities are not coordinated across
different countries, nor across different regions.
1.
2.

True
False

Emerging economies in general are less open to foreign
trade and severely limit international firms operating in
these markets.
1.
2.

True
False

Firms with an ethnocentric orientation consider that the
purpose of their international operations is to identify
markets that could absorb surplus domestic
production.

1.
2.

True
False

Polycentric firms are likely to be highly centralized.
1.
2.

True
False

A company engaging in export marketing has the least
commitment to international marketing.
1.
2.

True
False


Firms in the introductory stage of the product life cycle are
most likely to move manufacturing operations and
facilities abroad, to developing countries, in an attempt
to take advantage of significantly lower labor costs.
1.
2.

True

False

It is important for the firm to adapt to the local business
environment in order to serve the needs of local
consumers.
1.
2.

True
False

The U.S. market is very large. As a result, companies are
likely to quickly recover their product development
costs and make a profit as well, if its sales are limited
to the U.S.
1.
2.

True
False

A main driver of international expansion is a firm’s attempt to
prolong the life cycle of its products.
1.
2.

True
False

Experience transfers are limited to product manufacturers.

1.
2.

True
False

Export marketing requires a substantial focus on consumers
in the international target market.
1.
2.

True
False

Competitive pressure is frequently a driver of
internationalization.
1.
2.

True
False


The first step in minimizing the impact of the self-reference
criterion is selecting appropriate personnel for
international assignments.
1.
2.

True

False

Much of the outsourcing of customer service to developing
countries is largely attributed to improvements in
telecommunication.
1.
2.

True
False

Disney has an ethnocentric philosophy that is manifest in its
international operations.
1.
2.

True
False

Colgate-Palmolive developed its successful Axion paste for
washing dishes by hand after observing the dish
washing behavior of Latin American women.
1.
2.

True
False

Economic integration does not benefit companies from nonmember states.
1.

2.

True
False

Although the product life cycle is an important marketing
consideration in domestic marketing, it has little affect
on the international expansion of a firm.
1.
2.

True
False

Companies attempting to establish and maintain an
international presence are likely to encounter
obstacles to internationalization both from within the
company and from outside.
1.
2.

True
False


The self-reference criterion helps the firm to adapt as it
expands operations to international markets.
1.
2.

True
False

Economic growth is not an important driver of
internationalization.
1.
2.

True
False

Firms with a regiocentric or a geocentric orientation are
guided by a global marketing concept.
1.
2.

True
False

Firms with an ethnocentric orientation are guided by a
domestic market extension concept.
1.
2.

True
False

Each subsidiary in an ethnocentric organization has its own
marketing plans and objectives and operates
autonomously as an independent profit center on an

individual country basis.
1.
2.

True
False

An important outcome of the transition of the former Eastern
Bloc countries to a market economy has been the
deregulation and privatization of former government
monopolies.
1.
2.

True
False

Local firms targeting their products to local consumers are
dependent on equipment, parts, and/or raw materials
originating abroad.
1.
2.

True
False


During the introduction stage of the product lifecycle, the
core product is likely to achieve a standard in a
particular industry.

1.
2.

True
False

Marlboro’s primary defensive marketing strategy in foreign
countries is to decrease prices by as much as onethird.
1.
2.

True
False

Members of regional economic integration agreements such
as NAFTA frequently use tariffs as a means of
restricting international expansion of companies in the
countries' territories.
1.
2.

True
False

Firms with a polycentric orientation are guided by a
multidomestic market concept.
1.
2.

True

False

Competition can be both a driver of internationalization and
a barrier to new entrants in a market.
1.
2.

True
False

Companies investing in large transition economies, such as
China, reap the greatest return on their investment.
1.
2.

True
False

Organizing the firm on the basis of function, rather than on
the basis of country of operations, demonstrates a
geocentric internationalization philosophy.
1.
2.

True
False


Companies from small countries have difficulty in
succeeding internationally, as their income cannot be

supported by a large market at home.
1.
2.

True
False

International marketing is defined as the processes involved
in the creation, production, distribution, promotion and
pricing products, services, ideas and experiences for
international markets.
1.
2.

True
False

The objective of a geocentric company is most often to
achieve a position as a low-cost manufacturer and
marketer of its product line.
1.
2.

True
False

In the future, postal services might constitute the new
competitive territory of international companies.
1.
2.

True
False

McDonald's has been successful because of its ethnocentric
philosophy.
1.
2.

True
False

In Japan, similarly to the U.S., looking one's counterpart in
the eyes conveys directness and honesty.
1.
2.

True
False

Local content requirements are sometimes used by national
governments to restrict or impede the entrance of
international firms.
1.
2.

True
False

Uniform consumer segments worldwide are every marketer’s
hope. However, it is impossible to have uniform
segments as long as consumer preferences are so
diverse.
1.
2.

True
False

A company engaging in domestic marketing has the least
commitment to international marketing.
1.
2.

True
False


Free Text Questions - Page 1
Economic growth constitutes a very important driver of
_________________________.
Answer Given

internationalization; globalization

____________________ marketing activities require a
substantial focus on international consumers in a
particular country or countries.
Answer Given

International Multinational

The objective of a(n) ____________________ company is
most often to achieve a position as a low-cost
manufacturer and marketer of its product line.
Answer Given

geocentric

A firm engaged in ____________________ marketing could
be involved in exporting indirectly, through orders
from international clients, or directly.
Answer Given

export

Disney has adopted a(n) ____________________ philosophy
in its international operations.
Answer Given

ethnocentric

Generation X consumers in the United States and in
Southeast Asia are loyal to the same soft-drink brands,
wear the same brands of clothing, listen to the same
music and have the same idols. This is an example of
a(n) ____________________ consumer.
Answer Given

uniform; universal


Firms with an ____________________ orientation are guided
by a domestic market extension concept.
Answer Given

ethnocentric

A subsidiary of a company from the United States
incorporated in any country of the European Union is a
______________________________ of the European
Union.
Answer Given

corporate citizen; citizen

The transition of the former _________________________
countries to a market economy has led to rapid
economic development in many countries in the region
and has created important new markets for
international brands.
Answer Given

Eastern Bloc; communist

Consumers who have traveled abroad bring with them
product experiences and demand brands that may not
be available in the home-country market. This would
generate ____________________ demand.

Answer Given

pull

McDonald’s has a(n) ____________________ philosophy
when it comes to internationalization.
Answer Given

geocentric

A company engaging in ______________________________
has the least commitment to international marketing.
Answer Given

domestic marketing


____________________ marketing involves marketing
activities across different countries without focusing
primarily on national or regional segmentation.
Answer Given

Global

Firms with a ____________________ orientation are guided
by a multidomestic market concept.
Answer Given

polycentric

Firms with a regiocentric or geocentric orientation are
guided by a ______________________________
concept.
Answer Given

global; global marketing

30 Free Test Bank for International Marketing 3rd
Edition by Lascu Free Text Questions - Page 2
Signatories of the General Agreement on Tariffs and Trade
are using _________________________ barriers, such
as cumbersome procedures for import paper-work to
restrict international expansion of companies in their
countries' territories.
Answer Given

non-tariff; non tariff

Products that are in _________________________ stage can
change their position on the global product lifecycle
stage by going into markets where the product is in
high demand.
Answer Given

maturity; late maturity; decline

____________________ is both a driver of
internationalization, and it can erect barriers to new
entrants in a market.
Answer Given

competition

The ___________________________________ is defined as
"individuals' conscious and unconscious reference to
their own national culture, to home-country norms,
values, as well as to their knowledge and experience,
in the process of making decisions in the host
country."
Answer Given

self-reference criterion; self reference criterion

What is the Self-Reference Criterion and how may it be
overcome?
Answer Given

The self-reference criterion is defined as "individuals' conscious and unconscious
reference to their own national culture, to home-country norms, values, as well as
to their knowledge and experience, in the process of making decisions in the host
country." A first step to minimizing the impact of the self-reference criterion is
selecting appropriate personnel for international assignments. Second, it is also
important to train expatriates to focus on and be sensitive to the local culture.

Firms in the _________________________ stage of the
product life cycle are likely to move manufacturing
operations and facilities abroad, to developing
countries, in an attempt to take advantage of
significantly lower labor costs.

Answer Given

maturity; late maturity

_________________________ played pop music on the rather
loud side in its restaurants in new markets as a result
of knowledge gained in Central and Eastern Europe
Answer Given

Pizza Hut

Explain the EPRG Framework.
Answer Given

EPRG stands for ethnocentric, polycentric, regiocentric, and geocentric. It is useful
for understanding the way a firm views international marketing. The ethnocentric
firm (e.g., Eli Lilly) is guided by a domestic market extension concept. International
operations and customers are considered secondary to domestic operations and
customers. The polycentric firm is guided by a multidomestic market concept. This


firm assumes that each market is unique and needs to be addressed individually.
The company is decentralized. The regiocentric firm is guided by the global
marketing concept. It vies regions as distinct markets and use region-wide
marketing. A geocentric firm is also guided by the global marketing concept. The
geocentric company looks for a uniform consumer segment, which allows the
company to offer a standard product and a standard marketing campaign. This
promotes cost savings for the firm. This is found in "The EPRG Framework and
International Marketing Concepts" section (1-3).

How does competition affect international expansion?
Answer Given

Competition promotes and hinders expansion. In the "Drivers in the Business
Environment" section, competitive pressure drives internationalization. For
example, McCann Erickson follows Coca Cola into every country in an attempt to
prevent competitors from stealing away the account. In the "Obstacles to
Internationalization" the competition is shown to erect barriers to new entrants in a
market. This can be done through blocking channels of distribution, binding
retailers into exclusive agreements, slashing prices, etc.

Discuss the reasons why a U.S. company would want to form
a subsidiary within the European Union.
Answer Given

A subsidiary of a company from the U.S. incorporated in any country of the
European Union is a corporate citizen of the EU. Consequently, the subsidiary
does not have to pay duties when it crosses borders of EU member states, nor
foreign exchange costs, since all transactions are conducted in Euros. This is
found in the "Drivers in the Business Environment”section (1-4a).

How does converging consumer needs affect international
expansion?
Answer Given

Converging consumer needs gives rise to a uniform consumer segment. A
company with a geocentric orientation is able to sell a standard product with a
standard message to a uniform consumer segment. This allows for lower costs,
which may create a sustainable competitive advantage. This is found in the
"Drivers in the Business Environment" section (1-4a).

The Tesco Extra hypermarket concept was first introduced in
____________________ before it was introduced in the
U.K.
Answer Given

Hungary


While competition can be a driver of internationalization,
competitors can also erect
_________________________ to new entrants in a
market.
Answer Given

barriers; entry barriers

Cigarettes are in the late maturity stage of the product life
cycle in the United States, but they are in the
____________________ stage in emerging markets
worldwide.
Answer Given

growth

____________________ barriers include blocking channels
of distribution, binding retailers into exclusive
agreements, slashing prices temporarily to prevent
product adoption, or engaging in an advertising blitz
that could hurt a company’s initial sales in a market

and cause it to retrench.
Answer Given

Competitive