The Scope and Challenge of International Marketing

Chapter 01 The Scope and Ch all(prenominal)enge of Inter case Marketing True / False Questions 1. (p. 3) globular commerce thrives du resound peacetime. unc fossil oiled encumbrance free display case friendship 2. (p. 4) To d consume, the lesson for trans estatealistist commerce in the 21st century is expect the unexpected. legitimate obstacle light-headed subject companionship 3. (p. 5) Today, every Ameri tush affair is external. veritable hindrance chairman fiber cultivation 4. (p. 5) One event that pull up stakes mildew the shape of externalistic craft organisation as the future unfolds is the fast ingathering of the World Trade boldness, NAFTA, and the European Union.TRUE worry head fictitious character erudition 5. (p. 5) One event that will influence the shape of ball-shaped concern as the future unfolds is the unprecedented acceptance of communism and socialist economy in Latin America. senseless bar go over graphic symbol learning 6 . (p. 5) A twist that will affect outside(a) business sector in the future is a depute to decently manage the resources and worldwide milieu. TRUE encumbrance yield role cognition 7. (p. 5) Today, around business activities ar local or regional in cathode-ray oscilloscope. dishonorable obstruction mark event intimacy . (p. 6, Crossing Borders 1. 1) What do French farmers, Chinese fisher workforce, and Russian hackers find in commonthey thunder mug all receive allowance payments from the U. S. government. FALSE encumbrance retard image Knowledge 9. (p. 6) Foreign-made products remain a small portion of all consumer products sold in the coupled States. FALSE fuss blowzy fibre Knowledge 10. (p. 8) U. S. companies compete with worldwide competitors in remote commercialises and have little competition in interior(prenominal) help food securities industrys from orbicular competitors. FALSE worry Easy sheath Knowledge 11. (p. , salute 1. 2) The atomic number 82 U. S. multinational with overseas revenues of $345 billion plus annually is Wal-Mart. TRUE clog firmly role Knowledge 12. (p. 9) International grocery is the performance of business activities admiting to course of study, price, promote, and groom the menstruate of a lodges goods and service to consumers or users in more(prenominal) than angiotensin-converting enzyme nation for a profit. TRUE clog hash out symbol Knowledge 13. (p. 9-10) A good illustration of an difficult multivariate that might clash international business is a merchandise determination with respect to research.FALSE obstacle severely instance masking 14. (p. 11, lay out 1. 3) The irrelevant ungovernable environs is the same as the internal uncontrollable environment. FALSE difficulty Hard Type cognition 15. (p. 12) The level of engine room is an uncontrollable member for international venders. TRUE barrier Moderate Type Knowledge 16. (p. 14) The semipolitical and reasoned environment is a controllable element for international marketers because of the ability to lobby and influence legislation. FALSE bar Moderate Type Knowledge 7. (p. 14) In a broad sense, the uncontrollable elements of the unkn confess business environment constitute the culture. TRUE obstruction Hard Type light 18. (p. 15) John refuses to buy Japanese products because he sees them as a expression of selling out to nation kn have got for its aggressive behavior. John is victimization a self- savoir-faire standard to make his decision. TRUE difficulty Moderate Type Application 19. (p. 15) A self-reference measuring rod is closely related to ethnocentrism. TRUE difficultness Moderate Type comprehension 20. (p. 5) Sam Watkins just recently ate and, therefore, feels justified in ref employ food from his Middle Eastern host. In this instance, Sams self-reference criterion has just saved him from making a hea and soish blunder. FALSE caper Hard Type Application 21. (p. 16) To annul errors in business decisions, it is obligatory to conduct a cross- pagan analysis that emphasizes the lead for ethnocentrism. FALSE problem Moderate Type apprehension 22. (p. 17) To be ball-shapedly certain, you should be all-inclusive of ethnical contrasts. TRUE Difficulty Easy Type Comprehension 23. (p. 7) To be globally a ware, you should require that all of your international springerers know well-nigh your cultural rules and adhere strictly to each one. FALSE Difficulty Moderate Type Comprehension 24. (p. 18) If a go with is in a be designated as being one with no transfer unusual market, the political party does non actively cultivate customers outside national boundaries. TRUE Difficulty Easy Type Knowledge 25. (p. 20) Of all the portrays in international business, a stage called regular unknown merchandising produces the roughly profound change in the orientation of the caller toward markets and associated planning activities.FALSE D ifficulty Moderate Type Knowledge 26. (p. 22) If a friendship uses a strategic orientation called stand(prenominal) market annex, it views its international operations as secondary to and an fender of its house servant operations. TRUE Difficulty Moderate Type Knowledge 27. (p. 22-23) The global merchandising opinion views the market lay out as consisting of one direct domestic market that is complimented by several smaller regional markets. FALSE Difficulty Hard Type Knowledge Multiple Choice Questions 28. (p. 3) International __________ play an important agency in promoting global peace and prosperity.A. overseas aid and treaties B. competition and consumer outlay C. disdain and selling D. consumer and industrial services Difficulty Easy Type Knowledge 29. (p. 4) fit to the text, all of the adjacent events have impacted international business EXCEPT A. the Indian Ocean tsunami in 2004 B. the high-tech snag of 2001. C. the steroids in major league sports scandal D. 2003 SARS outbreak in Asia. E. September 11, 2001 disasters. Difficulty Easy Type Comprehension 30. (p. 5) Of all the events and trends touching global business today, four-spot stand out as the almost dynamic.Which of the succeeding(a) would be one of those events? A. The trend toward buying American cars in Europe. B. The trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe. C. The trend toward using English as the global language. D. The trend toward establishing a world currency. E. The trend toward worldwide instant communication. Difficulty Moderate Type Comprehension 31. (p. 5) All of the future(a) events and trends are among the four major trends described in the chapter as having a major impact or effect on global business EXCEPT A. he trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe. B. the fast growth of the World Trade Or ganization and regional free trade areas such as NAFTA and the European Union. C. the burgeoning impact of the Internet and opposite global media on the dissolution of national borders. D. the trend toward decreasing OPEC profits as oil reserves decline in the 21st century. E. the mandate to properly manage the resources and global environment for the generations to come.Difficulty Hard Type Comprehension 32. (p. 5-6) Strategic plans that are competitive in global markets are _____. A. the challenge of international selling B. expanded domestic trade plans C. non necessity for small firms D. multilingual and multicultural in scope Difficulty Easy Type Knowledge 33. (p. 5) Every American company is international, at least(prenominal) to the extent that A. Federal law requires all corporations to source whe neer it is cost-effective. B. the Internet generates orders for all American businesses from overseas. C. ts business performance is affected by events that occur abroad. D . natural disasters create a great global community. E. all of the above. Difficulty Hard Type Knowledge 34. (p. 5) Simi Khan wants to move his business into the international arena as quickly as possible however, to be successful he must(prenominal)inessiness go out a innovation of factors that have global dimensions. Which of the succeeding(a) factors would be most important to Simi Khans computer technology business as he moves forward with his global expansion plans? A. electrical energy usage around the world. B.The drive toward a more ergonomic workplace. C. chat and technology networks in third-world countries. D. Restrictions on advertising in Russia. E. Increasing licensing fees in Spain and Portugal. Difficulty Moderate Type Application 35. (p. 7) Foreign investment in the United States is growing yearly. At present, foreign investment in the United States is in excess of $16. 3 ______________. A. trillion B. million C. billion D. megabyte E. cannot be determined. The government does not track foreign investment. Difficulty Moderate Type Knowledge 36. (p. ) Companies from ____________________ lead in foreign investment in the United States A. body politic of Saudi Arabia B. Russia C. China D. United Kingdom E. Canada Difficulty Hard Type Knowledge 37. (p. 7) Foreign investment is a two-party street. An organization ( by investment and acquisition) from which of the pursuit countries now controls all United Kingdom rail freight business and runs the queens private train via its English, Welsh, & Scottish railroad line unit? A. Germany B. Switzerland C. United States D. Canada E. Netherlands Difficulty Hard Type Knowledge 38. (p. 9, lay out 1. ) Many U. S. firms do exceedingly well in the global arena. Which of the pursuit organizations is considered to be the U. S. leader with global revenues approximated at $345 billion annually? A. IBM B. ExxonMobil C. pass over Motor D. Wal-Mart E. Hewlett-Packard Difficulty Moderate Type Knowledge 39. (p. 9) For firms venturing into international merchandising for the first time, the first requirement is A. employment of foreign nationals in tail foreign markets. B. a thorough and complete commitment to foreign markets. C. bump market data from consulate of the boorish being targeted.D. an assessment of the cost of doing business in the foreign market. E. performance reviews of all potential salespeople being considered for foreign assignment. Difficulty Moderate Type Knowledge 40. (p. 9) ___________ is the performance of business activities designed to plan, price, promote, and direct the flow of a companys goods and services to consumers or users in more than one nation for a profit. A. world-wide management B. spheric business C. Marketing D. International trade E. Global merchandise innovation Difficulty Moderate Type Knowledge 41. (p. ) The performance of business activities designed to plan, price, promote, and direct the flow of a companys goods and services to consumers or users in more than one nation for a profit is called A. global management. B. global business. C. selling. D. the global market sentiment. E. international merchandising. Difficulty Moderate Type Knowledge 42. (p. 9) The only difference mingled with the definitions of domestic marketing and international marketing is that marketing activities A. sharpen on consumers in domestic markets and barterers in foreign markets. B. take place in more than one country.C. follow traditional communication paths in domestic markets. D. focus on distri aloneion in the domestic market. E. are usually non-regulated in foreign markets. Difficulty Moderate Type Comprehension 43. (p. 9) According to the text, the primary difference in the practice of marketing at the domestic versus the international level is A. the environment within which the marketing plans must be implemented. B. the revenues necessary to be successful. C. the demand charts available to the marketer. D. the c ontrol over the budget. E. the explanationability of board of directors. Difficulty HardType Comprehension 44. (p. 9) With respect to the environment in which a business operates, such factors as competition, ratified restrains, government controls, and the put up would all be examples of what are called A. controllable elements. B. uncontrollable elements. C. predictable elements. D. demographic elements. E. cultural elements. Difficulty Easy Type Knowledge 45. (p. 9-10) All of the following would be considered to be controllable elements of marketing decisions EXCEPT A. product. B. price. C. promotion. D. research. E. government regulations. Difficulty Easy Type Knowledge 46. (p. 1, certify 1. 3) Considering the simulation of the international marketing parturiency displayed in the text, which of the following reasons demonstrates the most important difference between the international marketers task and that of the domestic marketer? A. The international marketer must deal with at least two levels of uncontrollable un trustedty alternatively of one. B. The international marketer must rely on at least two levels of controllable certainty instead of one. C. The international marketer is never certain about supply or demand. D. The international marketer is never certain about total market size.E. The international marketer must be aware of international monetary exchange rates. Difficulty Moderate Type Comprehension 47. (p. 11, Exhibit 1. 3) Robert Jonas is in charge of a hot marketing travail directed toward Peru. In order for his company to in effect market and distribute to all of Perus major cities, Mr. Jonas must devise a logistics plan for crossing the Andes Mountains on a daily basis. Which of the following foreign environment uncontrollable variables would be a chief concern as Mr. Jonas devises his plan? A. combative forces B. Cultural forces C.Geography and infrastructure D. Economic forces E. Political/legal forces Difficulty Moderate Typ e Application 48. (p. 11, Exhibit 1. 3) Compared to the foreign environment uncontrollable variables, which of the following elements is excluded from the domestic marketers list of uncontrollable variables? A. Political forces B. Competitive structure C. Economic climate D. Cultural forces E. Legal forces. Difficulty Hard Type Comprehension 49. (p. 11, Exhibit 1. 3) All of the following would be among the domestic marketers controllable environmental variables EXCEPT A. esearch. B. price. C. product. D. channels of distribution. E. stinting climate. Difficulty Moderate Type Comprehension 50. (p. 11, Exhibit 1. 3) All of the following appear as a foreign environment uncontrollable variable in the model of the international marketing task shown in the text EXCEPT A. economical forces. B. competitive forces. C. product demand forces. D. cultural forces. E. political/legal forces. Difficulty Easy Type Knowledge 51. (p. 10) Amy Sims has been assigned the task of preparing a marketing p lan for company for the next years business activities.She knows that she should begin her plan by examining the variables that she has some control over. These controllable variables would include price, product, channels-of-distribution, and A. demand. B. supply. C. competition. D. economic climate. E. promotion. Difficulty Easy Type Knowledge 52. (p. 10) A political decision involving _______________ would most promising have a direct effect on a firms international marketing success. A. domestic foreign polity B. immigration reform C. oil exploration policy D. FCC satellite regulations E. FAA airline regulations Difficulty ModerateType Knowledge 53. (p. 11) Which of the following would be a chief way that U. S. companies set about to influence domestic foreign policy? A. A company could lobby with respect to its own interests. B. A company could attempt to bribe elected officials to influence policy decisions. C. A company could ask a foreign government to total pressure on U. S. legislative bodies. D. A company could threaten to visit operations from foreign markets. E. A company could threaten to move its integrated headquarters to a foreign market. Difficulty Hard Type Comprehension 54. (p. 2) Competition within the home country can have a profound effect on the international marketers task. Which of the following BEST illustrates this report? A. Boeing recently open(a) talks with its primary trade union to avoid a forecasted strike. B. Microsoft and Dell have collaboratetly invested $700 million in a new venture to check over high technology of the future. C. Fuji opened a $300 million plant in the U. S. and now commands a 12 percent share of the lucrative U. S. film market. D. Several denote companies are still under investigation because of the Enron scandal.E. Declaration of independence by Baltic States after the collapse of the Soviet Union. Difficulty Moderate Type Application 55. (p. 12) With respect to challenges faced by the interna tional marketer, a square source of uncertainty is the number of factors in the A. foreign environment controllables. B. foreign environment uncontrollables. C. domestic environment controllables. D. parallel environment uncontrollables. E. parallel environment controllables. Difficulty Easy Type Comprehension 56. (p. 12) Ralph Waite has just been assigned the task of reviewing his ompanys international investment opportunities. He knows that his view of the list of opportunities should be temper by foreign environment uncontrollables that might be encountered. Which of the following would be the BEST illustration of a foreign environmental uncontrollable that Mr. Waite should investigate? A. A countrys level of technology. B. Pricing policies in the foreign country. C. The ability to do research in the foreign country. D. Manufacturing capabilities in the foreign country. E. The ability to do advertising in the foreign country. Difficulty Hard Type Application 57. (p. 2) The ____ _________ is an uncontrollable element that can ofttimes be misread because of the coarse differences that may exist between developed and undeveloped countries. A. Structure of distribution B. competitive forces C. economic forces D. political/legal forces E. level of technology Difficulty Hard Type Knowledge 58. (p. 13) The _____________ and issues abroad are often amplified by the alien status of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate. A. structure of distribution B. competitive forces C. economic forces D. olitical/legal forces E. level of technology Difficulty Moderate Type Knowledge 59. (p. 13) Which of the following would be the BEST illustration of the alien status found in the political and legal arena that sometimes cause troubles for international marketers as they attempt to do business in foreign countries? A. A company in the U. K. recently purchased Ben & Jerrys ice cream operation s. B. The Indian government told Coca-Cola that it must dampen its secret formula if it wished to continue do business in India. C. Richard Bransons double-dyed(a) Cola was not widely accepted in the United States. D.French Canadians pick out French to English when conducting business in Canada. E. British Airlines and Japan Airlines join American Airlines to form OneWorld Alliance. Difficulty Moderate Type Application 60. (p. 14) Global businesses must be willing to adjust and adapt a marketing program to a foreign market. In a broad sense, the environmental uncontrollable elements constitute the A. problem. B. opportunity. C. culture. D. marketplace. E. commerce landscape. Difficulty Hard Type Comprehension 61. (p. 14) The task of ____________ is the most challenging and important one confronting international marketers.A. complaint for the environment B. transaction with politics C. international standardization D. cultural modification E. international branding Difficulty M oderate Type Comprehension 62. (p. 14) Which of the following would be the BEST example to illustrate the fact that international marketers need to make cultural changes as they look to to do business abroad? A. In America, white is an accepted colourise for wedding gowns in Asia it is the color of mourning. B. Many teens earn extra income by working. C. Women out number men in the United States. D. Most Middle Eastern women do not work outside the home. E.Many European nations require a period of national service for youth. Difficulty Hard Type Application 63. (p. 15) ____________ is the 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 adjust the marketing mix to minimize the effects. A. Standardization B. Adaptation C. segregation D. Segmentation E. Projection Difficulty Moderate Type Knowledge 64. (p. 15) The primary obstacles to success in international marketing are a persons _________ and an associated ethnocentrism. A. egionalism B. holistic theory C. self-reference criterion D. segregation E. integration Difficulty Easy Type Comprehension 65. (p. 15) _____________ is an unconscious reference to ones own cultural values, learns, and knowledge as a basis for decisions. A. Regionalism B. Holism C. Self-reference criterion D. Segregation E. Xenophobia Difficulty Moderate Type Knowledge 66. (p. 15) In the United States, unrelated individuals keep a certain physical distance between themselves and others when talking or in groups. We do not consciously bring forward about that distance we just know what feels right without thinking.Someone from some other culture would not necessarily understand this and would habituate their own rules for contact when speaking. The preceding is an illustration of what is called applying a ___________ when reviewing the mentioned social custom of contact. A. self-space B. segregation C. integrati on D. space command theory E. self-reference criterion (SRC) Difficulty Moderate Type Application 67. (p. 15) Your ____________ can prevent you from being aware that there are cultural differences or from recognizing the importance of those differences. A. self-space B. personality C. demographic character D. elf-reference criterion (SRC) E. concept of integration Difficulty Easy Type Comprehension 68. (p. 16) The most effective way to control the influence of ethnocentrism and __________ is to complete their effects on our behavior. A. the self-reference criterion (SRC) B. regionalism C. tunnel vision D. standardization E. xenophobia Difficulty Moderate Type Knowledge 69. (p. 17) To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences. Which of the following would be the BEST first-step to take to avoid the aforementioned errors?A. Redefine the problem without the SRC influence. B. crystalli ze the problem for the optimum business last situation. C. withdraw the SRC influence in the problem and examine it carefully to see how it complicates the problem. D. set apart the business problem or goal in home-country cultural traits, habits, or norms. E. Define the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country. Difficulty Hard Type Application 70. (p. 17) Which of the following steps in a cross-cultural analysis to solate self-reference criterion influences would descend the process and lead to a solution of the problem? A. Redefine the problem without the SRC influence and solve the problem for the optimal business goal situation. B. Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem. C. Define the business problem or goal in home-country cultural traits, habits, or norms. D. Define the business problem or goal in foreign-country cu ltural traits, habits, or norms through consultation with natives of the target country. E.The last step is not indicated in the list of alternatives. Difficulty Easy Type Application 71. (p. 17) To be globally aware, an international marketer must have all the following EXCEPT A. a tolerance of cultural differences. B. a knowledge of cultures. C. a knowledge of hi spirit level. D. a knowledge of microeconomics. E. a knowledge of world market potential. Difficulty Easy Type Knowledge 72. (p. 17) Successful businesspeople in the 21st century have ___________ and a frame of reference that goes beyond a region or even a country and encompasses the world. A. a sense of fashion B. lobal awareness C. an intimate knowledge of ecological problems D. a consumer mind-set E. a pronounced skill in promotion Difficulty Moderate Type Knowledge 73. (p. 18) There are a variety of stages in the process of becoming involved in international marketing. Which of the following best describes the stage of development where the companys products reach a foreign market through no conscious effort on the part of the marketer? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing Difficulty Easy Type Comprehension 4. (p. 18) If a marketer is make to enter into an international marketing effort because of temporary surpluses in the domestic market, which of the following stages BEST characterizes the stage of international marketing interestingness for this marketer? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing Difficulty Moderate Type Comprehension 75. (p. 19) James Brights company seek markets all over the world and attempts to sell products that are a way out of planned production for markets in various countries.Which of the following stages BEST characterizes the stage of international marketing involv ement for Mr. Brights company? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing Difficulty Hard Type Application 76. (p. 20) Maria Perons company treats the world, including the home market in Spain, as one market. Market segmentation decisions no longer focus on national borders. Instead, market segments are defined by income levels, usage patterns, and other factors that span countries and regions.Which of the following stages BEST characterizes the stage of international marketing involvement for Ms. Perons company? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing Difficulty Moderate Type Application 77. (p. 22) If a company basically sees the process of international marketing as one where the domestic company seeks a sales extension of its domestic products into foreign markets, the company is using w hich of the following concepts to formulate its international policies and strategies?A. domesticated market extension concept B. Multidomestic market concept C. Global marketing concept D. habitual marketing concept E. Standardized marketing concept Difficulty Easy Type Comprehension 78. (p. 22) The Ajax Corporation has decided to enter the international marketing arena by marketing its products on a country-by-country basis, with separate marketing strategies for each country. The company is using which of the following concepts to formulate its international policies and strategies? A. Domestic market extension concept B. Multidomestic market conceptC. Global marketing concept D. Universal marketing concept E. Standardized marketing concept Difficulty Moderate Type Comprehension 79. (p. 22-23) A company using the ________________ views an holy set of country markets as a unit, identifying groups of prospective buyers with similar take as an opportunity market segment and deve lops a marketing plan that strives for standardization wherever it is cost and culturally effective. A. domestic market extension concept B. multidomestic market concept C. global marketing concept D. customary marketing concept E. tandardized marketing concept Difficulty Hard Type Comprehension Fill in the Blank Questions 80. (p. 3) _____________ commerce thrives during peacetime. Global (or international) Difficulty Easy Type Knowledge 81. (p. 7) ___________ (country) leads in foreign investment in the United States. The United Kingdom Difficulty Hard Type Knowledge 82. (p. 9, Exhibit 1. 2) Among the top ten players in the global game of commerce, __________ (company) leads the occupy with $345 billion in revenues coming from global markets. Wal-Mart Difficulty Hard Type Knowledge 83. (p. ) ___________ marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a companys goods and services to consumers or users in more than one n ation for a profit. International Difficulty Easy Type Knowledge 84. (p. 11, Exhibit 1. 3) Domestic marketing elements as price, product, promotion, channels of distribution, and research are called ____________ elements. controllable Difficulty Moderate Type Comprehension 85. (p. 15) A persons self-reference criterion is often associated with an associated term called ________. ethnocentrism Difficulty ModerateType Knowledge 86. (p. 15) A persons ________________ is an unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decisions. self-reference criterion (SRC) Difficulty Moderate Type Knowledge 87. (p. 17) The successful businessperson in the twenty-first century has global _____________ and a frame of reference that goes beyond a region or even a country and encompasses the world. awareness Difficulty Moderate Type Comprehension 88. (p. 20) At the __________ marketing level, companies treat the world, including their home market, as one ma rket. globalDifficulty Hard Type Knowledge 89. (p. 23) The global _____________ views an blameless set of country markets as a unit, identifying groups of prospective buyers with similar inevitably as a global market segment. marketing concept Difficulty Moderate Type Knowledge Essay Questions 90. (p. 3) Global commerce thrives in peacetime. Explain why this statement is true. Economic booms often occur as the world finds itself at peace. Resources go toward research and technology rather than war machines. Peace brings renewed efforts to negotiate and trade. Barriers generally come down between nations.Nations enter into partnerships and alliances that foster trade. Individual companies are willing to take greater investment risks when peacetime is blooming. Difficulty Easy Type Comprehension 91. (p. 4) Provide examples of events and issues that convey to uncertainty in the international marketing environment. Answers will vary but may include any of the issues questioned on page 4 including, terrorism, growth of the U. S. balance of payments deficit, conflicts between the U. S. and China, predictions of collapse in U. S. consumer spending and housing markets. Difficulty Moderate Type Comprehension 92. (p. ) identify and briefly describe the four events or trends described in the text that have shaped international business beyond todays bumpy roads and into the future. The events or trends are (1) the rapid growth of the World Trade Organization and regional free trade areas such as NAFTA and the EU (2) the trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe (3) the burgeoning impact of the Internet and other global media on the dissolution of national borders and, (4) the mandate to properly manage the resources and global environment for the generations to come.Difficulty Hard Type Comprehension 93. (p. 6) Joan Wilson owns a small software program company, SecureSoft, that spec ializes in home network security. The company has been in business for 5 years and its sales have bragging(a) rapidly. Last year the company began offering international versions (multilanguage) of its software. SecureSoft sells its products through a network of software distributors. However, recently Ms. Wilson has become concerned that Russian software hackers have produced pirated copies of the companys leading software. Explain how the Russian hackers disrupt SecureSofts international marketing efforts.SecureSoft international marketing efforts will now have to take into account the lost of sales/profits due to the pirated software. Virtually all components of marketing will likely be impacted. Marketing will have to consider product modifications to preclude prirating efforts, a change in distribution to direct sales, and other software protection schemes. In addition, special advertisement and promotion may be required to promote the security-enhanced products. These efforts to protect is software against plagiarization come at a cost which means that software sell prices will increase. Difficulty ModerateType Application 94. (p. 9) Define international marketing. International marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a companys goods and services to consumers or users in more than one nation for a profit. Difficulty Moderate Type Knowledge 95. (p. 10-12, Exhibit 1. 3) List and briefly discuss the domestic environment uncontrollable elements found in the model that describes the international marketing task. The domestic environmental uncontrollable elements include political/legal forces, competitive structure, and the economic climate.For a brief discussion of each element see pages10-12. Difficulty Moderate Type Comprehension 96. (p. 11, Exhibit 1. 3) List and briefly comment on the elements found in a companys domestic controllable environment. The elements include price, product, promotion, channels of distribution, and research. For more information see page 10. Difficulty Easy Type Comprehension 97. (p. 10-14, Exhibit 1. 3) Explain the differences between the domestic environment uncontrollable elements and the foreign environment uncontrollable elements. According to information presented in the text and in Exhibit 1. , the domestic environmental uncontrollable elements include the political/legal forces, competitive structure, and the economic climate. The foreign environment is more inclusive with the following elements political/legal forces, economic forces, competitive forces, level of technology, structure of distribution, geography and infrastructure, and cultural forces. For additional information on differences see pages 10-14. Difficulty Hard Type Comprehension 98. (p. 14-15) To be an effective international marketer, why is it necessary to master cultural adjustment? Explain.The marketers must adjust their marketing efforts to cultures to whic h they are not attuned. In dealing with unfamiliar markets, marketers must be aware of frames of reference they are using in making their decisions or evaluating the potential of a market. As an illustration, the story goes that two shoe salesmen report back to their companies after making a survey trip to an impoverished portion of Africa. One salesman says, There is no market for shoesno one has any money penury is everywhere. The other shoe salesman (representing world famous Bata Shoe Company) says, Great intelligence operation everybody needs shoes. Bata leads the world in selling shoes to third-world countries. Difficulty Moderate Type Comprehension 99. (p. 15) Explain the concept of the self-reference criterion (SRC). SRC is an unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decisions. The concept is closely associated with ethnocentrism. Difficulty Moderate Type Knowledge hundred. (p. 16) To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences.List the four steps that make up the framework for such an analysis. The steps are (1) define the business problem or goal in home-country cultural traits, habits, or norms (2) define business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target countrymake no value judgments (3) isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem and, (4) redefine the problem without the SRC influence and solve for the optimum business goal situation.Difficulty Hard Type Comprehension 101. (p. 17) In order for a company to be globally aware, the company must do what two things (according to the text)? The company must (1) have a tolerance for cultural differences and (2) have knowledge of cultures, history, world market potential, and global economic, social, and political trends . Difficulty Moderate Type Comprehension 102. (p. 23) With respect to a strategic orientation to conducting international marketing, describe the global marketing concept.The global marketing concept views an entire set of country markets (whether the home market and only 1 other country, or the home market and 100 other countries) as a unit, identifying groups of prospective buyers with similar needs as a global market segment and developing a marketing plan that strives for standardization wherever it is cost and culturally effective. Difficulty Moderate Type Comprehension 103. (p. 5) Rick Russell owns a small company that specializes in waste cleanup on the high seas. He believes that his company can grow dramatically if he can find foreign partners and investors.According to the events and trends cited in the text as affecting global business today, which of these trends would have the most impact on Mr. Russells business? Explain your rationale. After reviewing the trends, the trend that is most likely to affect Russells operation is the fourth trendthe mandate to properly manage the resources and global environment for the generation to come. Students should supply their own rationale. If another trend is chosen, it should be explained, characterized, and justified. Difficulty Moderate Type Application 04. (p. 11, Exhibit 1. 3) Scott Web Services has decided to go international with their new anti-spam software. employ the International Marketing Task model shown in the text, discuss which factors will impact Scott Web Services the most as it gears up to trail international expansion. To effectively answer this question, students must be familiar with Exhibit 1. 3. Students can comment on the inner ring (domestic controllables), middle ring (domestic environment uncontrollables), and the outer ring (foreign environment uncontrollables).Students should focus on the scientific aspects of the company, political/legal forces, competitive forces, and cultu ral forces that might impact the company. Students can be creative with this answer therefore, you might wish to establish country rules or guidelines. Difficulty Hard Type Application 105. (p. 15-17) You are about to eat at a friends house for dinner. However, your friend is from a foreign country and you are sure that his family will have prepared an cultural meal for you.Explain how your self-reference criterion (SRC) might cause you problems with your upcoming new experience. What should do about this? This example is created to stimulate students into thinking about how that their own cultural baggage can sometimes make a new experience frightening. Eating strange food among foreigners is a common occurrence. Stimulate students think about what SRC is and how it can either hinder or help a relationship. For additional information on SRC, see pages 15-18. Difficulty Easy Type Application