Multiplechoicequestions
Chapter1
Chapter1
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Thisactivitycontains14questions.
Internationalizationisakeyfactortosuccessinthelongterm
survivalofSMEs.
True
False
ContrarytoLSEs,acharacteristicofSMEmanagersis:
theirextensiveknowledgeofinternationalmarkets
theirlimitedformalbusinesseducation
theiroverrelianceoncommissionedmarketreports
theirstrongfinancialresources
Whichofthefollowingrepresentsacompanysefforttoidentify
andcategorizegroupsofcustomersandcountriesaccordingto
commoncharacteristics?
Globalpositioning
Globalmarketingresearch
Globalmarketsegmentation
Globaltargeting
Thenotionthatacompanycanbebothglobalandlocalrepresents:
aparadox
anambiguity
acomparison
ametaphor
Researchhasshownthatthe________typicallymakesthefirst
decisiontointernationalizeinSMEs.
headoftheorganization
headofsales
employees
outsourcedconsultants
WritinginhisinternationalbestsellingbookTheWorldisFlat,
ThomasL.Friedmansuggestedthat:
theworldisbecomingalevelplayingfieldintermsofcommerce,
whereallplayersandcompetitorshaveanequalopportunity
companiesinemerginganddevelopingcountriesarebecoming
integralpartsofcomplexglobalsupplychainsforlargemultinationals
weareenteringanewphaseofglobalization,inwhichtherewillbeno
singlegeographiccentreandnoultimatemodelforsuccess
alloftheabovearecorrect
GlobalcarmanufacturerssuchasFordandVolkswagenachieve
greateconomiesofscaleandscopeby:
usingsimilarenginesandgearboxesacrosstheirentireproductrange
andusingthemindifferentmodelsofcars
concentratingalltheproductionintheirownhomemarket
manufacturingautomaticmodelsforalltheirmarkets
undertakingalloftheabove
Estimationoftotalmarketiscalculatedas:
numberofbuyersaverageconsumptionperyear
sizeofthemarketsegmentsalreadycoveredbytheindustry
sizeofthemarketexports+imports
(Strengths+Opportunities)(Weaknesses+Threats)
AninternationalorganizationmaydesignaproductincountryA,
producepartsforitincountriesB,C,DandE,assembletheproduct
incountryF,andthenexportitworldwide.Thisisanexampleof:
anexportstrategy
alocaladaptation
aglocalizedorganization
theglobalizationofproduction
WhydidLegosstrategicdriftoccur?
BecauseLegosmanagementblindlybelievedintheiruniqueand
pedagogicaltoyswithoutadjustingtheirproductinlinewiththe
environmentalmarketchanges
BecauseLegosmanagementtooktheinitiativetoexpandintotoo
manyforeignmarketsinafartooshortperiodoftime,henceplacing
thecompanyinasituationwherebyitwasunabletorespondtolocal
environmentalchanges
BecauseLegosmarketingteamfailedtoidentifyappropriate
internationalsegmentstotarget
Alloftheabovestatementsaretrue
InSvendHollensensview,________areperhapsthemostcritical
factorintheinitiationoftheinternationalizationprocessinthe
SME.
marketingexpenses
productionandtransportcosts
informationandknowledge
costswithhumanresources
DespiterecentfindingsconcludingthatLSEsandSMEsmanifest
somedegreeofconvergenceintheirglobalmarketingorientations,
therearenumerousqualitativedifferencesbetweenmanagement
andmarketingstylesinLSEsandSMEs,suchas:
theorganizationofSMEsispredominantlyinformalwhilethe
organizationofLSEsispredominantlyhierarchical/formal
SMEsrelyuponoutsourcingtheirresourceswhileLSEsarepreoccupied
withtheinternationalizationoftheirresources
SMEsfocusonshorttermopportunitieswhileLSEsfocusonlongterm
opportunities
alloftheabove
Aglobalmarketleaderisanorganizationwhich:
isaheadofthecompetitionintermsofglobalinnovation
isrecognizedasbeingaheadoftherestintermsofmarketshare
hasmorethan50%globalmarketshare
hasthemonopolyoverseveralforeignmarkets
TheeconomiesofscalewithNintendoGameBoyrelateto:
themanufacturingofthehardware
thesoftwareofNintendo
thescreen
alloftheabove
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Multiplechoicequestions
Chapter2
Chapter2
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Thisactivitycontains13questions.
Japanesefirmsareknowntoexploitforeignmarketopportunities
primarilybyusing:
emergentpricingstrategies
penetrationpricingstrategies
premiumpricingstrategies
skimmingpricingstrategies
Internationalizationmotivesare:
proactivemotivesrepresentstimulitoattemptstrategychange,based
onthefirmsinterestinexploitinguniquecompetences
thefundamentalreasonsforinternationalization
reactivemotivesindicatethatthefirmreactstopressuresorthreats
initshomemarketorinforeignmarkets
alloftheabove
Whichofthefollowingrepresentmajorproactivereasonsfor
initiatingexport?
Managerialurgeandtaxbenefits
Technologycompetenceandeconomiesofscale
Profitandgrowthgoals
Alloftheabove
Internaltriggersofinternationalizationinclude:
marketdemand,networkpartners,competingfirms,financingand
tradeassociationsandotheroutsideexperts
changesintheindustry
perceptivemanagement,specificinternaleventsandimportingas
inwardinternationalization
alloftheabove
AmongthemainreactivereasonsforHaierGroups
internationalizationwas(were):
theneedtodisposeofitsexcesscapacity
thecompetitivepressuresandthesaturationofitsdomesticmarket
thegeographiclocationinrespectofitsinternationalcustomers
alloftheabove
AccordingtoSvendHollensen,themainexternaltriggersofexport
initiationare:
marketdemandandcompetingfirms
networkpartners,tradeassociationsandotheroutsideexperts
financing
alloftheabove
Inastudyofcraftmicroenterprises(fewerthantenemployees)in
theUKandIreland,Fillis(2002)foundthat_____________
business(es)inthedomesticmarketwasthemajorfactorinthe
decisionnottoexport.
manycompeting
havingsufficient
havingno
alloftheabove
Theexpressionglobalizationofproductionsuggeststhat:
manyproductsareassembledinonecountryfrompartsthatmay
havebeenproducedinthesamecountry
manyorganizationsbaseindividualproductiveactivitiesattheoptimal
worldlocationsfortheparticularactivities
manyproductsareassembledinonecountryfrompartsthatmay
havebeenproducedinanumberofcountries
bothBandCarevalid
Whichoneofthefollowingdoesnotrepresentacommercialriskin
theinternationalizationprocess?
Delaysand/ordamageintheexportshipmentanddistribution
process
Exchangeratefluctuationswhencontractsaremadeinaforeign
currency
Nationalexportpolicy
Difficultiesinobtainingexportfinancing
Politicalrisksinclude:
exchangeratefluctuations
delaysand/ordamageintheexportshipmentanddistribution
process
difficultiesinobtainingexportfinancing
foreigngovernmentrestrictions
ComparedtoLSEs,SMEsoftenexperiencealowdegreeof
interdependencebetweenmarkets.
True
False
WhatwasBlakeMycoskiesbiggestchallengewhenhestartedup
TOMSShoesinSantaMonicain2006?
Hestruggledtodifferentiatehisconceptinaverycompetitiveglobal
fashionshoessector
NotmanychildreninCaliforniawereinneedofshoes
Hehadnoexperienceofmakingshoes
Hedidnotownthecompanysproductionfacilities
Followingitsdecliningprofitsthroughoutthe1990s,BTsnew
defensivestrategyhasmeantthatthecompanyhadto:
withdrawfrommultipleinterdependentinternationalmarkets
borrowmoremoneyfromtheBritishtaxpayer
formmorepartnershipsandjointventuresinnewEuropeanmarkets
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Multiplechoicequestions
Chapter3
Chapter3
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Thisactivitycontains14questions.
Sequentialmodesofinternationalizationwereintroducedby:
JohnH.Dunnings1988eclecticparadigm
RaymondVernons1966productlifecyclehypothesis
theUppsalainternationalizationmodel
noneoftheabove
Duringthepast1015yearstherehasbeenmuchfocuson
_________________,whereafirmhasdifferentrelationshipsnot
onlywithcustomersbutalsowithotheractorsintheenvironment.
increasedcompetition
export
internationalizationinnetworks
foreigndirectinvestment
Bornglobalssharewhichofthefollowingsimilarities?
Theypossessuniqueassets
Theyfocusonanarrowglobalmarketsegment
Theyhaveastrongcustomerorientation
Alloftheabove
Whichoneofthefollowingstatementsistrue?
ThemainconsequenceaccordingtotheUppsalaSchoolmodelisthat
organizationstendtogiveuptheirdomesticnetworksoncetheir
experienceininternationalmarketinggrows
ThemainconsequenceaccordingtotheUppsalaSchoolmodelisthat
organizationstendtointensifytheircommitmenttowardsforeign
marketsastheirexperiencegrows
ThemainconsequenceaccordingtotheUppsalaSchoolmodelisthat
organizationstendtodistancethemselvesfromtheirhomemarket
oncetheirexperienceininternationalmarketinggrows
Noneoftheabovestatementsistrue
WhichofthefollowingisnotastageintheUppsala
internationalizationmodel?
Establishmentofaforeignsalessubsidiary
Noregularexportactivities
Foreignproduction/manufacturingunits
Jointventure
TheoriginalstagemodelhasbeenextendedbyWelchand
Loustarinen(1988),whooperatewithsixdimensionsof
internationalizationwhere_____isoneofthem.
organizationalstructure
coststructure
strategy
valuecocreation
Adefiningcharacteristicofbornglobalsis:
theyareallLSEs
theytendtobemanagedbywomen
relativelyuniqueproductsorprocessinnovations
theyalwaysstartupintheUSA
Thenetworkmodelofinternationalizationarguesthat
internationalizingfirmstypicallyengageinnetworkswhichare
primarily:
domestic
global
multinational
glocal
OneofthemaincriticismsoftheUppsalamodelisthatthe
internationalizationmodelisnotvalidfor:
Russianorganizations
manufacturingorganizations
serviceorganizations
Frenchorganizations
Accordingtotheincrementalapproach,firmstypicallybegintheir
internationalizationbygoingtothosemarketsthattheycan:
easilyinfluence
easilyaccessgeographically
mosteasilyunderstand
dominate
Theglobalfinancialmarketisanexampleof:
successfulalliances
successfulbuyouts
thephenomenonofbornglobals
thesuccessfulinternationalizationofAmericanfirms
Bornregionalmeans:
afirmthatpreviouslyfocusedonitsdomesticmarketsbutthat
suddenlyembracesrapidanddedicatedinternationalization
firmsthatarebornglobalinseveraldifferentregions
afirmthatstartsinternationalactivitiesearlyandwithsignificant
internationalshares,butitsinternationalactivitiesareonlyinitshome
region
bornglocal
Averyimportanttrendinfavourofbornglobalsistherecent
advancein:
China
globaltrading
shipping
communicationstechnology
Accordingtothecasestudy,LGapplied_______inordertosupport
theirproductlaunchofthenewLseriesofsmartphones.
aglobalcommercialcampaign
aFacebookevent
promotion
adiscountforearlyadopters
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Multiplechoicequestions
Chapter4
Chapter4
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havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.
Thisactivitycontains15questions.
Aglobalmarketchallengerisanorganizationthat:
aimstobuildormaintainaglobalpositionandoftenadoptsametoo
approachtoglobalmarketing
aimstoattackthemarketleaderaswellasthestronglocaland
weakerfirms
aimstomaintainitsstatusquoandtodefenditsglobalposition
specializesanddominatesaglobalnichesegment
InrelationtoFigure4.1describingthefirmsinternational
competitiveness,thePorterdiamondmodelisapartof______
levelanalysis.
SWOT
meso
micro
macro
Factorconditionsinvolve:
onlyadvancedfactorssuchashumanresources(skills)andresearch
capabilities
onlybasicfactorssuchasclimate,mineralsandoilwherethemobility
ofthefactorsislow
onlyfinancialandeconomicfactors
bothbasicandadvancedfactors
Thedoublediamonddescribesthat:
theinternationalcompetitivenessofanindustryinacountryisnot
onlydependentonitshomecountrydiamondconditionsbutalsoon
internationalinstitutionalconditions
theinternationalcompetitivenessofanindustryinacountryis
dependentonlyonitshomecountrydiamondconditions
theinternationalcompetitivenessofanindustryinacountryisnot
onlydependentonitshomecountrydiamondconditionsbutalsoon
thoseoftradingpartners
thefirmisdependentonfactorconditionsinallcompetingmarkets
Thekeyconditionsforsuccessinglobalmarketsare:
focus
valuecreation
competitiveadvantage
alloftheabove
IfyouwereaninternationalmarketerforNintendo,anorganization
dependentonsoftwaresuppliers,thentheglobalcompetitive
environmentyouwouldhavetomasterhas:
severalregionalandlocaldevelopers
ahighdegreeofintegration
fewregionalandlocaldevelopers
lowdemandforitsexpensiveconsoles
Whatareredoceans?
Themarketsforelectronichardwareandsoftware
Toughheadtoheadcompetitioninmatureindustries
Theunservedmarket,wherecompetitorsarenotyetstructuredand
themarketisrelativelyunknown
TheSouthEastAsianmarkets
Thekeyinternationalmarketingprinciplesare:
customerservice,profitandfeedback
value,competitiveadvantageandprofit
value,focusandcompetitiveadvantage
value,focusandprofit
Whenanorganizationismoresuccessfulatcreatingvaluefor
customersthanitscompetitors,itcanbesaidthattheorganization
hasa(n)________advantageintheindustry.
absolute
comparative
minimal
competitive
BRICmarketsare:
Belgium,Russia,ItalyandChina
Brazil,Russia,IndiaandChina
decliningmarkets
marketswithfewfactorconditionssupportingindustries
Whichofthefollowingstatementsistrue?
Aglobalindustryisanindustryinwhichthereissomefocusona
worldwidebasis
Aglobalindustryisanindustryinwhichthereissomecompetitive
advantagetointegratedactivitiesonaworldwidebasis
Aglobalindustryisdefinedasanindustryinwhichbrandawarenessis
thekeytocompetitiveadvantage
Aglobalindustryisanindustryinwhichthereisfaircompetition
betweenallparticipantorganizations
Anindicationoffierceinternationalcompetitionisgivenbywhich
factors?
Competitorsarenumerousandofequalsizeandpower
Highexitbarriers
Slowmarketgrowthandconstantbattleformarketshare
Alloftheabovefactors
Pricefixingisaformofcollusionwhichtypicallyoccursina
situationof:
anarchy
oligopoly
puremonopoly
oligarchy
IfPortugalcanproducewheatandwinemuchcheaperthanEngland
can,thenitcanbeconcludedthatPortugalhasa(n)________
advantageinbothcommodities.
absolute
comparative
double
identical
Beingfocusedinglobalmarketingequatesto:
improvingthefeaturesbenefitsofthecoreproductsofferedinone
leadmarket
concentratingoncorebusinessandcompetence
loweringpricesinglobalmarkets
offeringbettervaluethancompetition
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Multiplechoicequestions
Chapter5
Chapter5
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Thisactivitycontains14questions.
Thefirststepinglobalmarketingresearchis:
marketsegmentation
planningthe7Ps
datacollection
dataanalysis
Primarydatais:
informationfrompublicinstitutionsconcerningGNPetc.
informationthathasalreadybeencollectedforotherpurposesandis
thusreadilyavailable
informationthathasbeencleanedforoutliers(datahasbeenprimed)
informationthatiscollectedfirsthand,generatedbyoriginalresearch
tailormadetoanswerspecificresearchquestions
Oneoftheproblemswithsecondaryresearchinforeigncountries
is:
differenceintime
language
itismoreexpensivethanprimarydata
nonavailabilityofdata
Inthebroadestsense,globalmarketingresearchisresponsiblefor:
datacollectionandanalysis
validationofsetresearchhypotheses
producingstrategicsolutionsfororganizations
marketstudies,comparativestudiesandenvironmentalstudies
Themainchallengeinglobalmarketingresearchis:
thelackofsecondarydata
obtainingconsentfromintervieweesinforeignmarkets
thedifficultyintranslatingquestionnaires
thelackoffinancialresourcesinorganizations
Whichofthefollowingisnotclassifiedasinternaldata?
Salesbyproduct
GNP
Totalsales
Pricinginformation
Aproxyindicatoris:
anindirectvariable
aneconomicindicator
amarketindicator
acustomerindicator
Whichofthefollowingisnotamajoreconomicindicatorthatcan
beresearchedinglobalmarketingresearch?
Unemploymentacrossvariouscountries
Interestratelevelsacrossvariouscountries
Populationgrowthratesacrossvariouscountries
Industrialoutputinvariouscountries
Globalmarketingresearchshouldberesearchcarriedout________
inmorethanonecountry.
neithersequentiallynorsimultaneously
onlysimultaneously
onlyconsecutively
eithersequentiallyorsimultaneously
Asamplingplanis:
aproductionplan
amarketplan
aplanforqualitytestingfinalproducts
aplanforoutliningthegroup(orgroups)tobesurveyedina
marketingresearchstudy
_________________________representsacriticalsuccessfactor
oftheIndiansoftwareindustry.
Theavailabilityofsophisticatedresearchcapabilities
Theavailabilityofadvancedandhighlyeducatedpeoplewithgeneral
skills
Thehighavailabilityofnaturalresources
Noneoftheabove
Measurementscanbedeemedtobereliableifthey:
measurewhattheyaresupposedtomeasure
comefromapersonweknow
aremeasuredrepeatedlywiththesamemeasurementdeviceandthe
resultsaresimilar
arecollectedinternallybyafirm
Scenariosare:
knownuncertainties
pastexperience
externalinformation
storiesaboutplausiblealternativefutures
Ininternationalsportsmarketingsurveys,individualFormulaOne
teamsmaybeexaminedbypresentingparticipantswithtestwords
suchas:competitive,dangerous,inspirational,elitist,sexy.Thisis
anexampleof:
aprojectivetechnique
acompletiontechnique
anexpressivetechnique
aconstructiontechnique
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Multiplechoicequestions
Chapter6
Chapter6
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havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.
Thisactivitycontains15questions.
GNPpercapitaisprimarilyusedasapredictorofpeoples:
workhours
buyingmotives
abilitytobuy
buyinghabits
Arecessionarygapcausesnationaldebttoincreasebecause:
incometaxreceiptsdropoffmarkedly
interestonpreviouslyincurreddebtmustbepaid
recessionaryperiodsrequirehugebuildupsofdefencematerials
thegrowthinGDPslows
________istheeconomicsystemwherebythestateholdsbroad
powerstoservethepublicinterest,itdecideswhatgoodsand
servicesareproducedandinwhatquantities,anddemandtypically
exceedssupply.
Centrallyplannedcapitalism
Marketcapitalism
Marketsocialism
Centrallyplannedsocialism
Threemajortypesofpoliticalriskare:
managerialrisk,ownershipriskandemployeerisk
strategicrisk,organizationalriskandeconomicrisk
ownershiprisk,operatingriskandtransferrisk
politicalrisk,culturalriskandeconomicrisk
AnEUcountrysgovernmentdelayingtheprivatizationofits
nationaltelecommunicationgiantisanexampleofwhichofthe
forcesdrivingandrestrainingglobalmarketingandintegration?
Leveragethrougheconomiesofscale
Technologicaldevelopment
Nationalcontrols
Tradeliberalization
SvendHollensenarguesthatwhenbarrierstoleavingamarketare
highduetosuchfactorsaslackofopportunitieselsewhere,high
verticalintegration,emotionalbarriersorthehighcostofclosing
downplant,rivalrywillbe_______________whenexitbarriersare
low.
lessintensethan
alotlessintensethan
moreintensethan
justaboutthesameas
Whichofthefollowingisthecorrectarrangementoftheterms
fromlowesttohighestlevelofeconomicintegration?
Fromfreetradeareatocustomsuniontocommonmarketto
economicunion
Fromeconomicareatocustomsuniontocommonmarkettofree
tradearea
Fromcustomsuniontoeconomicuniontofreetradeareatocommon
market
Fromcommonmarkettofreetradeareatoeconomicunionto
customsunion
Theeconomicsystemthatreliesuponconsumerstodeterminethe
allocationofresourcesisknownasa________system.
socialist
marketallocation
capitalist
commandallocation
TheEconomistsexchangeratescorecard,knownastheBigMac
Index,showsthatin2010currenciescontinuedtobecheapinthe
developingworldbutovervaluedinEurope.
True
False
Economicdevelopmentresultsfromoneofthreetypesofeconomic
activity,whichare:
finance,investmentandsales
purchase,conversionandsales
primary,secondaryandtertiary
manufacturing,salesandservice
Globalmarketersshouldbeawarethatthemajorityoftheworlds
populationlivesin:
highestincomecountries
lowincomecountries
lowermiddleincomecountries
highincomecountries
Majortradeblocsintheworldinclude:
PacificOcean,AtlanticOceanandSouthPacificOcean
TheEU,ASEAN,APECandNAFTA
TheUSA,Africa,Europe,AsiaandSouthAmerica
TheUSA,theEUandtheBRICcountries
Whichofthefollowingstatementsaboutelectionsaretruetoa
marketercarryingoutaglobalpoliticalenvironmentanalysis?
Electionsareasolidindicatorofacountryswealth
Electionsareoftenapoorguidetoacountrysoverallstateof
democracyandcivilliberties
Electionsarethenumberoneindicatorofacountryslevelofregional
integration
Electionsareafairindicatorofacountrysbuyingpower
Aglobalmarketermustknowhowtointerpretpoliticalfactors
becausetheyprovideagoodindicationof:
governmentpoliciesontradeandproductstandardsandemployment
nationalcontrolsand/orothertradebarriers
thepotentialpoliticalriskandstabilityineachcountry
alloftheabove
Somekeyeconomicfactorsthatmarketersneedtoconsiderinview
ofplanningforinternationalmarketingare:
interestrates,inflationandemploymentlevels
economicgrowth,GDPpercapitaandGNP,balanceoftrade
levelsofliteracyanddemographics
thefirstandsecondanswersaboveonly
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Multiplechoicequestions
Chapter7
Chapter7
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havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.
Thisactivitycontains15questions.
Inthebook,cultureisdefinedas:
whatgluespeopletogether
thesharedvaluesandaestheticsofagroupofpeople
thesharedknowledgeandvaluesofagroupofpeople
thelearnedwaysinwhichasocietyunderstands,decidesand
communicates
Whichofthefollowingstatementsistrue?
Nationalculturehasasignificantimpactonglobalmarketing
Nationalcultureisnotimportantinthecontextofglobalmarketing
Nationalculturedoesnotaffectmostproductsmarketingmix
Nationalcultureisrapidlylosingitsimportanceaspeoplebecome
morehomogeneousinneeds,wantsanddesires
Therootsofindividualismarein:
England
France
SaudiArabia
theUSA
WhichofthefollowingaregenerallytrueabouttheJapanese?
Theyaregenerallyfamiliarwiththecultureofthepeoplewithwhom
theyaredealing
Theyareverycollectivistic,butonlyintheworkplace
Theyperceiveuncertaintywithsuspicion
Thefirstandthirdanswersabove
ThemanydifferentbowsusedinJapan,suchasthebowfor
meetingcolleaguesinthehall,thebowforgreetingcustomersand
thebowforspecialoccasions,areexamplesof:
nonverbalcommunication
lowcontextculture
environmentalsensitivity
culturaluniversals
ThekeyvalueforScotch,awhiskyconsumedglobally,isgenerally:
thrift
status
compassion
honesty
JudgingbyHofstedesculturaltypology,whichofthefollowing
statementsisnottrue?
AustriaandDenmarkscorehighinpowerdistance
TheUSA,GermanyandIsraelscorelowinpowerdistance
Portugal,SpainandFrancescorehighinpowerdistance
France,HongKongandthePhilippinesscorehighinpowerdistance
IslamandChristianitysharewhichofthefollowingsimilarities
whenitcomestointernationalbusiness?
Theysharetheprinciplesofhonestyandrespectfortherightof
others
Theyarebothhostiletosocialistideas
Theybothsupportfreeenterprise
Alloftheabovearevalidsimilarities
Theconceptoffriendshipisambiguousanddoesnotexistin
________society.
British
American
Russian
Japanese
WhichoneofthefollowingistrueoftheChinese?
Theyareveryrelaxedabouttime
Theyprefertoworkonaonetoonebasis
Theypaycloseattentiontolongstandingrelationships
BandConly
WhichofthefollowingAmericanvaluesdoesnotmeananything
whentranslatedintoJapanese?
Peace
Salvation
Mastery
Freedom
Parodyfits________cultures.
smallpowerdistance
individualist
MiddleEastern
largepowerdistance
Whichofthefollowingstatementsbestillustratesindividualist
versuscollectivistcultures?
TheUSAandJapanarebothcollectivistcultures
TheUSAandJapanarebothindividualisticcultures
TheUSAisacollectivistculture,whileJapanisanindividualistic
culture
TheUSAisanindividualisticculture,whileJapanisacollectivist
culture
Whichofthefollowingsentencesisnottrue?
Inlargepowerdistanceandcollectivisticcultures,childrenremain
dependentontheirparentsmuchmorethanthoseinsmallpower
distanceandindividualisticcultures
Insmallpowerdistancecultures,freedommeansindependence
Thenorm,thedesirable,inmasculinesocietiesisthatonewantsto
showonessuccess
Characteristicofweakuncertaintyavoidanceisresistancetochange,a
desireforstability
Mediocrityisproofoffailurein________cultures.
feminine
masculine
collectivist
weakavoidance
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Multiplechoicequestions
Chapter8
Chapter8
Trythemultiplechoicequestionsbelowtotestyourknowledgeofthischapter.Onceyou
havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.
Thisactivitycontains15questions.
SMEschoiceforinternationalmarketselectionisoftenlimitedto:
NorthAmerica
economiccriteria
immediateneighbours
identicalmarketsegments
Highdegreeofmeasurability,accessibilityandactionabilityin
internationalmarketsegmentationequalsanalysisofgeneral
characteristicssuchasgeographic,language,politicalfactors,etc.
True
False
Whichofthefollowingarepositivereasonsfor
internationalization?
Internationalcompetitiveness
Economiesofscale
Marketdiversification
Alloftheabove
ItisgenerallybelievedthatSMEsandfirmsthatareintheirearly
stagesofinternationalizationaremorelikelytouse________
procedures.
rulesofthumb
psychicdistance
culturaldistance
thefirstorsecondanswerabove
Ifyouwereamarketerforanorganizationsellingsoftware
productsandyouwereassignedthetaskofevaluatingafew
internationalmarketswithaviewtoenteringthem,acrucialfactor
thatyouwouldtakeintoaccountwouldbe:
thepoliticalfactor
theculturalfactor
theclimate
thetechnologicalfactor
Whichofthefollowingrepresentthemaindeterminantsofafirms
choiceforinternationalmarkets?
Theenvironment
Thefirmscharacteristics
BothAandB
NeitherAnorB
Accordingtothecasestudy,TataNanosentrymodestrategyis:
exportmode
hierarchicalmode
intermediatemode
bothintermediateandhierarchicalmode
Whichofthefollowingarenotamongthemainfactorsinfluencing
internationalmarketselection?
Pricingfactors
Resourcingfactors
Marketfactors
Competitivefactors
Amarketingdirectorforacarmanufacturerisgivenparticular
responsibilityfortheFarEastmarkets.Whichinformationwillthe
marketingdirectorrequireasapriorityinordertoanalyseand
screenthesemarkets?
Competitionlevelsineachcountry
Thenumberofcarssoldandincomedistributionpercountry
Pricelevelsineachcountry
Alloftheabove
Howcanamarketeruseacountrysbalanceoftradetowards
internationalmarketingdecisions?
Inthelongrun,acountrystradedeficitmakesamarketless
attractivebecauseofdecreasingeconomicwealth
Intheshortrun,acountrystradedeficitindicatesthatthemarketis
opentoimports
Acountrysbalanceoftradegivessolidinformationaboutthepresent
andfutureeconomicstateofatargetedmarket
AandBarevalidanswers
Whenanorganizationsellingelectricandelectronichousehold
goodsevaluatesinternationalmarketswithaviewtoentering
them,acrucialfactortakenintoaccountisrepresentedby:
thedemographiccharacteristics
theculturalfactors
thetechnologicalfactors
theeconomicfactors
Ifyouwereamarketerforamanufacturerofbottledwaterand
youweregiventhetaskofidentifyingsuitableforeignmarketsfor
thecompanysproducts,youwouldneedtoknowwhichvital
aspectsaboutconsumptionofbottledwater?
IntheUnitedStatesbottledwaterispartofeverydaylife
Frenchconsumersarehighlysophisticatedintheirconsumptionof
bottledwater
IrelandandBritainhaveonlyrecentlyacceptedbottledwaterasan
alternativetoalcoholwhensocializing
Alloftheabove
Whichofthefollowingstatementsistrue?SMEsdonot
systematicallyscreenmarketsbecauseof:
thefactthatmanyaresubsupplierstomuchlargerfirmsandthey
oftengetpulledouttocertainmarketsbytheirlargecustomersand
internationalnetworks
lackofknowledge,inthatmanymanagersofSMEsdonotknowwhat
marketscreeningentails
lackofcontacts,inthatthemanagersofSMEsgetlostindaytoday
activitiesanddonothavethetimeforpublicrelationsactivities
lackoftime,inthattheirmuchlargercompetitorsmanagetoscreen
thesamemarketsalotfaster
Amarketingdirectorforafuneralservicefirmisgivenparticular
responsibilityfortheWesternmarkets.Whichinformationwillthe
marketingdirectorrequireasapriorityinordertoanalyseand
screenthesemarkets?
GNPpercapitaineachcountry
Thesplitoftotalnumberofdeathspercountryinto:earthburialsand
cremation
Thenumberofdeathsperyearpercountry
Alloftheabove
Howcantheinformationoninterestratesbetweencountrieshelp
aninternationalmarketer?
Interestratesgivestrongpredictionsinrelationtocustomerslifestyle
profiles
Interestratescannothelpaninternationalmarketerinanyway
Interestratesgivestrongindicationsofpeoplesspendingpatterns
Interestraterisescaninfluencetheamountofcashaconsumerhas
availabletopurchaseluxuryitems,forexample
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Multiplechoicequestions
Chapter9
Chapter9
Trythemultiplechoicequestionsbelowtotestyourknowledgeofthischapter.Onceyou
havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.
Thisactivitycontains15questions.
AccordingtoF.R.Root(1994),therearethreedifferentrulesfor
selectingtheinternationalmarketentrymode.Whichofthe
followingisnotamongthem?
Strategyrule
Pragmaticrule
Naverule
Confidentrule
Therulewherebythedecisionmakerusesthesameentrymodein
allforeignmarketsandignorestheheterogeneityofindividual
foreignmarketsisalsoknownas:
thepragmaticrule
thenaverule
thestrategyrule
noneoftheabove
Whichofthefollowingisnotamainexternalfactoraffectingthe
choiceformarketentrymode?
Internationalexperience
Demanduncertainty
Marketsize
Intensityofcompetition
Therulewherebythedecisionmakerusesaworkableentrymode
foreachforeignmarket,althoughthismaynotbethebestentry
mode,isalsoknownas:
thestrategyrule
thenaverule
thepragmaticrule
noneoftheabove
Oneofthedisadvantagesoftheglobaltyreandrubbermarketsis
thattheydonotbenefitfromeconomiesofscale.
True
False
SMEsmostprobablyuse:
thepragmaticrule
thenaverule
thestrategyrule
thefirstorsecondanswerabove
Aorganizationschoiceofitsentrymodeforagivenproductisthe
netresultofseveral,oftenconflictingforces.Whichoptionreflects
SvendHollensenscategorization?
Externalfactors,marketfactors,marketledoptionsandprofit
specificbehaviour
PESTfactors
Internalandexternalfactors,strategicoptionsandcostspecific
behaviour
Internalandexternalfactors,desiredmodecharacteristicsand
transactionspecificbehaviour
Thefourgroupsoffactorsinfluencingthechoiceofentrymodeare:
internationalfactors,domesticfactors,industryfactorsandfirmsize
desiredmodecharacteristics,internationalfactors,management
factorsandfirmexperience
internalfactors,externalfactors,desiredmodecharacteristicsand
transactionspecificbehaviour
internalfactors,externalfactors,strategicfactorsandindustryfactors
Whichofthefollowingisnotamongthemaininternalfactors
affectingthechoiceformarketentrymode?
Product
Internationalexperience
Demanduncertainty
Firmsize
Afirmglobalizingwithintheinternationaltourismindustrymustbe
awareofthefactthatcomparableinternationaldatais:
somewhatlimited
censored
nonexistent
widelyavailable
Whichofthefollowingstatementsaboutgloballuxurywatchfirms
istrue?
MostgloballuxurywatchfirmsprefertoavoidInternetsellingbecause
thesefirmshavelongstandingagreementswithindependentretailers,
andsellingonlinewoulddisruptthesystem
MostgloballuxurywatchfirmsprefertoavoidInternetsellingbecause
thesefirmsbelievethattheInternetisallaboutthepriceandthisis
notwhattheluxurywatchindustrywantspeopletothinkwhenthey
purchaseluxurywatches
MostgloballuxurywatchfirmsprefertoavoidInternetsellingbecause
thesefirmsarguethattheInternetistooimpersonalfortheir
products,whichneedthehumantouch
Alloftheabovestatementsaretrue
Accordingtothecasestudy,Zarasentrymodestrategieshave
consistedmainlyof:
exportmodes
hierarchicalmodes
intermediatemodes
thesecondandthirdanswersaboveonly
WhichofthefollowingbarriershavepreventedManchesterUnited
FootballClubfromrippingoffallthebenefitsfromitsglobal
branding?
Culturalbarriersbetweeninternationalfans
Financialbarriers,suchastheclubdebtofover700millionfollowing
ahostiletakeoverbyUSsportstycoonMalcolmGlazer
Internalresourcebarriers,suchastheongoingconcernstemming
fromthefactthatstrongplayerslikeDavidBeckhamdeveloprapidly
intoglobalbrandsandthenbecomeunaffordablefortheclub
Alloftheabove
Anappropriateentrystrategyforacompanyseekingalimitedform
ofparticipationinglobalmarketsis:
piggybacking
jointventuring
licensing
Internetselling
Whichofthefollowingstatementsistrue?
Theexportmodeisabetteralternativethanthehierarchicalmode
becauseitishighlyflexible
Thehierarchicalmodeisabetteralternativethantheexportmode
becauseitpresumesthatriskisshared
Theexportmodeisabetteralternativethantheintermediatemode
becauseofitslowrisk
Noneoftheabovestatementsistrue
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Multiplechoicequestions
Chapter10
Chapter10
Trythemultiplechoicequestionsbelowtotestyourknowledgeofthischapter.Onceyou
havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.
Thisactivitycontains12questions.
Whichisthemosttraditionalandwellestablishedformof
operatinginforeignmarkets?
Franchising
Importing
Exporting
Jointventure
AccordingtoGibbs(2005),mindsharecanbebrokendownintothe
followingthreedrivers:
commitmentandtrust,collaborationandmutualityofinterestand
commonpurpose
knowhow,knowwhyandknowwho
indirectexport,directexportandcooperativeexport
inboundlogistics,outboundlogisticsandcollaboration
Indirectexportoccurswhen:
anindependentcompanysellsontothecustomersonbehalfofthe
manufacturer
themanufacturersellsdirectlytoanimporter,agentordistributor
locatedintheforeigntargetmarket
amanufacturerusesindependentexportorganizationslocatedinits
owncountry
arepresentativeofforeignbuyersislocatedintheexportershome
country
Whichofthefollowingapproachesismostappropriateforan
organizationwithlittleexperienceininternationalmarkets?
Acquisition
Strategicalliance
Exporting
Jointventure
Themaindifferencebetweendirectandindirectexportisthat:
indirectexportingtakeslonger
directexportingimpliesthatthemanufacturerperformstheexport
task
companiesengagedinindirectexportinggetmoresupportfromthe
foreigngovernments
indirectexportingresultsinmoresales
WhydogiantBritishfoodretailerssuchasTescopreferacquisition
asamethodofentryintoEasternEurope?
Itischeaper
Itisquicker
Itissafer
Itispreferredbythegovernmentsofthosecountries
LofthouseofFleetwood(FishermansFriend)haveagreedonthe
followingcriteriaforselectingadistributor:
majorcompanies,strongbrandsandfinancialstatus
handlingexistingcompetingproducts,sizeandfinancialstatus
size,products,organizationalstructureforsalesandfinancialstatus
Smallorganizationsfindthat________istheeasiestmethodof
obtainingforeignsales.
barter
sellingtoexportcommissionhouses
usingtradingcompanies
piggybacking
Comparedtodirectexporting,indirectexportingbears:
noriskatall
ahigherrisk
alowerrisk
anequallevelofrisk
OneofthemajorstrengthsofParleProductsPVTLtd,when
consideringfurtherdevelopingitsinternationalmarkets,is:
itsconsiderablylargemarketshareinEurope
itsstrongpresenceinthepremiumsegment
itsextensivedistributionnetwork
alloftheabove
ThemarketingphilosophyadoptedbyParleProductsPVTLtd
emphasizes:
itslongtermcommitmenttoproductdevelopmentandinnovationin
termsofmethodsofmanufacturing
cateringfornichemarketsbyofferingspecializednutritiontoa
particulartargetsegment
asellingorientedcompanywhichconcentratesoninnovativemethods
toattractitstargetmarkettoitsstores
cateringforthemasses,bydesigningproductsthatprovidenutrition
foreveryagegroup
Forwhichproductisexportthemostfeasibleinternationalization
option?
Diamonds
Furniture
Coke
Lemons
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Multiplechoicequestions
Chapter11
Chapter11
Trythemultiplechoicequestionsbelowtotestyourknowledgeofthischapter.Onceyou
havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.
Thisactivitycontains14questions.
Asageneralrule,theChinesegovernmentallowsforeign
companiestoparticipateinitsmarketonlyifthosecompanies
agreetoestablishoperationswithlocalChineseenterprises.Which
marketentrymodewouldbeanappropriatechoiceunderthese
circumstances?
Acquisition
Jointventure
Licensing
Exporting
InJapan,keiretsuisaformofindustrialallianceinvolving:
twocompanies
tencompanies
sixcompanies
hundredsofcompanies
Inwhichglobalindustryislicensingacommonformof
internationalization?
Computerparts
Oil
Fastfood
Cars
Whichofthefollowingfactorsmayencourageanorganizationto
produceinforeignmarkets?
Lowproductioncosts
Unfavourableforeigntariffsorquotas
Closenesstoitscustomers
Alloftheabove
Whichtypeofinternationalagreementimpliesthattheexpanding
organizationdevelopsandcontrolsR&D,marketing,distribution,
salesandtheservicingofitsproductsininternationalmarkets
whilehandlingoverresponsibilityforproductiontoalocalfirm?
Piggybacking
Jointventure
Directexporting
Contractmanufacturing
Whichofthefollowingfactorshavecontributedtotherapidgrowth
rateoffranchising?
Thegrowthinpopularityofselfemployment
Theworldwidegeneraldeclineofthemanufacturingindustry
Therelaxationofmanygovernmentspoliciestowardssmall
businesses
Alltheabovefactorshavecontributedtotherapidgrowthrateof
franchising
TheinternationalizationoftheLEGObrandisbasedon:
jointventures
directexporting
acquisitions
licensing
alloftheabove
________isthecornerstoneofinternationalfranchising.
Adaptation
Standardization
Concentration
Focus
HowardJohnson,7ElevenInc.,DominosPizzaLLC,Subway,
DunkinDonuts,DaysInnWorldWide,GoldsGymFranchisingLLC
areexamplesof:
franchises
piggybacking
directexporting
noneoftheabove
Xcoalitionentails:
asmallcompanypiggybacking
eachpartnerinthealliance/jointventurecontributingwith
complementaryproductlinesorservices
thefranchisorhandlingrelationshipswiththefranchisee
thepartnersinthevaluechaindividingthevaluechainactivities
betweenthem
Comparedtolicensing,franchisingisamoreadvantageousentry
modebecause:
itoffersgreatercontrol
itislowriskandlowcost
itgenerateseconomiesofscaleinmarketingtointernational
customers
alloftheabove
Thetwomajortypesoffranchisingare:
resourcefranchiseandmanagerialfranchise
productandtradenamefranchiseandbusinessformatpackage
franchising
brandfranchiseandeconomicfranchise
productfranchiseandservicefranchise
IndianlawscurrentlyallowmultibrandretailerssuchasWalMart
tooperateonlywholesaleoutletsandprovidebackendsupportto
localoperators.
True
False
HelloKitty,theiconicJapanesebrand,becameanexampleofa
globalsuccessbymeansof:
jointventuring
piggybacking
licensing
directmarketing
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Multiplechoicequestions
Chapter12
Chapter12
Trythemultiplechoicequestionsbelowtotestyourknowledgeofthischapter.Onceyou
havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.
Thisactivitycontains15questions.
Hierarchicalentrymodesaresynonymouswith:
completeownershipoftheforeignentrymode
100%controloftheforeignentrymode
bothoftheabove
noneoftheabove
AccordingtoSvendHollensen,thegeocentricorientationis
typicallyrepresentedbythe:
countrysubsidiaries
transnationalorganization
domesticbasedsalesrepresentatives
noneoftheabove
Domesticbasedsalesrepresentativesareapopularforeignentry
modeforafirmin:
industrialmarkets
situationswherethefirmsellstogovernmentbuyersandretailchains
situationswherethereareonlyafewlargecustomersthatrequire
closecontactwithsuppliers
Alloftheabovementionedsituations
Ininternationalmarketing,themaindifferencebetweenaforeign
branchandaforeignsubsidiaryis:
aforeignbranchisalocalcompanyownedandoperatedbyaforeign
companyunderthelawsofthehostcountry
aforeignbranchpurchasestheproductstobesoldfromtheparent
companyataprice
aforeignsubsidiaryisalocalcompanyownedandoperatedbya
foreigncompanyunderthelawsofthehostcountry
aforeignsubsidiaryisanextensionandalegalpartofthefirm
Insomedevelopingcountries,governmentsregardsales
subsidiariesinarathernegativelight,asameanstotakemoney
outofthosecountriesandnotcontributinganyvaluetothehost
countryinwhichtheyarebased.Asaresult,thesegovernments
willoftenrequireforeignorganizationsto:
payadditionaltaxesandfees
stayoutofthesecountries
leavethesecountriesearlyintheirinternationalexpansion
establishlocalmanufacturingorproductionbases
ThemainreasonwhyJapanesecarmanufacturershaveusedsales
andproductionsubsidiariesinEuropeaspartoftheir
internationalizationstrategyis:
toincreasetheirEuropeanmarketshare
fortaxreductionpurposesasEuropehaslowercorporatetaxes
tobypasstheEuropeanimportrestrictions
tobeabletocompetewiththeGermanluxurycarmanufacturers
Accordingtothecasestudy,threemajorreasonsforTescosfailure
inJapanwere:
supplychainproblems,locationproblemsandmanagerialproblems
lackofmarketknowledge,toofewstoresinJapanandcultural
difference
wronglocalpartner,toughcompetitionandtoofeweconomiesof
scale
productsdidnotfitthemarket,translationproblemsandtoolittle
initialinvestment
CocaColaisbestdescribedasa________organization.
global
strategicalliance
domestic
jointventure
Unrelatedexpansion(i.e.diversification)________thegovernance
costofthebusiness.
decreases
hasnoeffecton
increases
supports
Thedisadvantagesofdomesticbasedsalesrepresentativesare:
increasedbureaucracyandlimitednationallevelresponsivenessand
flexibility
highinitialcapitalinvestment,lossofflexibilityandhighrisk
expensive,highlyriskyandpotentiallackofintegrationwithexisting
operation
hightravelexpensesandtooexpensiveinforeignmarkets,faraway
fromhomecountry
Themostobviousincentivetoexitfromforeignmarketsis:
lackofhostgovernmentincentives
increasinglocalcompetition
desiretoretirefrombusiness
verylowprofits
WalMartbuiltitsinitialpresenceinGermanyin1997through:
jointventures
piggybacking
acquisitions
directexporting
Comparedwithmostotherindustries,retailerswere______in
jumpingontheinternationalizationbandwagon.Giventherelatively
smallsizeoftheirrespectivehomemarkets,itisnotsurprising
thatthefrontrunnerswereEuropeancompanies.
veryearly
late
early
verylate
Whichofthefollowingstatementsisnottrueofglobalstrategic
alliances?
Thepartiesinvolvedinthealliancesharethebenefitsaswellasthe
control
Asuccessfulallianceoffersaccesstomarkets,technology,products
andotherresources
Airlinesenteralliancesinordertoimprovetheircompetitivenessin
themarketandtoachievegreatereconomicperformances
Eachofthepartiesinvolvedinanalliancefocusesonanindividual
foreignmarket
Gainingquickaccesstowhichofthefollowingisanadvantageof
acquisition?
Internationalcapital
Distributionchannels
Bothoftheabove
Neitheroftheabove
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Multiplechoicequestions
Chapter13
Chapter13
Trythemultiplechoicequestionsbelowtotestyourknowledgeofthischapter.Onceyou
havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.
Thisactivitycontains15questions.
Outsourcingtechnicallymeans:
movingfunctionsoractivitiesoutofanorganization
thedelegationofnoncoreoperationsfrominternalproductiontoan
externalentityspecializinginthemanagementofthatoperation
buyingresourcesfromoutsideacompanysmaindomesticmarket
thefirstorsecondanswerabove
Outsourcingisusedbyanorganizationintheinterestof:
makingmoreefficientuseofworldwidelabour,capital,technologyand
resources
redirectingorconservingenergydirectedatthecompetenciesofa
particularbusiness
loweringfirmcostsortomakemoreefficientuseofworldwidelabour,
capital,technologyandresources
anyoftheabove
Underconditionsofglobalization,outsourcingandoffshoringare
notmutuallyexclusivehowever,outsourcingdiffersfrom
offshoringinthat:
outsourcingisrelativetothenationwhileoffshoringisrelativetothe
restructuringofthefirm
offshoringrepresentsarelocationofanorganizationalfunctiontoa
foreigncountry,notnecessarilyatransformationofinternal
organizationalcontrol,whileoutsourcingmeanssharingorganizational
controlwithanotherorganization,oraprocessofestablishingnetwork
relationswithinanorganizationalfield
outsourcingisrelativetotherestructuringofthefirmwhileoffshoring
isrelativetothenation
thesecondandthirdanswersabove
DevelopingcountriessuchasChinaorIndiabenefitfromthe
patronageofcompaniesthatoutsourcetothemintermsof:
jobprestigeandeducation
increasedwages
increasedqualityoflife
Alloftheabove
OEMmeans:
originalequipmentmanufacturer
organizationalelaboratedmarkets
organizationalequitymeasures
organicequipmentmanufacturer
Onecriticismofoutsourcingisthat:
thepricepaidbythecustomerisveryhigh
productqualitysuffers
theinteractionbearsnoflexibility
therearedelaysinmeetingthedemand
Thetwounderlyingreasonsforoutsourcingare:
hedgingandculturaldiversity
economiesofscopeandqualityconcerns
economiesofscaleandlowerwagecosts
personalbenefitsandnetworkaccess
Strategicalliancesare:
moresuccessfulthanothermarketentrymodes
themostcommonmarketentrymodeusedbyknownmultinationals
notatallfavouredbySMEsastheyareperceivedtobetoorisky
oneofthemanywaysinwhichfirmsmayenterforeignmarkets
Whichofthefollowingisnotanexampleofsubcontracting?
Expandedsubcontracting
Strategicdevelopmentsubcontracting
Simplesubcontracting
Verticalsubcontracting
Thefiverelationshipphasesare:
exploration,expansion,commitment,exploitationanddissolution
awareness,exploration,expansion,commitmentanddissolution
awareness,exploration,exploitation,commitmentandrenegotiation
awareness,contact,planning,commitmentanddissolution
Themarriagemetaphoris:
psychologicalsunkcost
theprocessofreducingthepsychicdistance+increasingdependence
betweenbuyerandseller
themutualdependencybetweenfirmsforcingthemtocontinuea
relationship
whatpreventscompaniesfromhavingmorethanonesupplier
Reversemarketingis:
wherethebuyerisdoingmarketingcampaignsfortheseller
wherebuyersinvestinthesellersfirme.g.throughcrowdfunding
wherethebuyertakestheinitiativeinsearchingforasupplierthatis
abletofulfiltheirneeds
Internetmarketing
IntheexampleofseatsourcingatMazda,thecompetitionforthe
remainingthirdoftheMazdaseatbusinessisbasedon:
primarilyperformancesincethelastcontractwasawarded
meetingspecificationsatthelowesttotalprice
networkrelationship
pricebetting
Insoftwarethethreetypesofknowhoware:
hardwareknowhow,softwareknowhow,projectknowhow
technologyknowhow,projectknowhowandmanagementknowhow
softwareknowhow,organizationalknowhow,financialknowhow
customerknowhow,enduserknowhow,programmingknowhow
OutsourcingontheAmericancontinentsissupportedby________,
inthatthereisprovisionwithreferencetoworkersfromlow
labourcostcountries,suchasMexico,workingintheUSAor
Canada.
NAFTA
G8
MERCOSUR
OECD
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Multiplechoicequestions
Chapter14
Chapter14
Trythemultiplechoicequestionsbelowtotestyourknowledgeofthischapter.Onceyou
havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.
Thisactivitycontains15questions.
Whenamanufacturerofsoftdrinkshastoadapttheformulationof
itsproducttofittheforeignmarketrequirements,itisanexample
ofadapting:
servicestandardslevel
designfeatures
packagedimensions
productquality
Whendesigningelectronicproductwarrantiesfortheglobal
market,acompanyneedstoconsiderallthefollowingitems
except:
thelengthofthewarrantyperiod
theincomelevelofpotentialbuyers
thestandardstobecovered
thetypeofproductinuse
SvendHollensenproposesthreelevelsofaninternationalproduct,
namely:
coreproduct,supportingproductandaugmentedproduct
coreproduct,productattributesandproductbenefits
coreproductbenefits,productattributesandsupportservices
coreproduct,functionalproductandaugmentedproduct
Ininternationalmarketingitismucheasierto:
standardizetheaftersalesserviceofaproductacrossmarketsthanit
istostandardizestaffbehaviour
standardizethecoreproductbenefitsacrossmarketsratherthanto
standardizethesupportservices
standardizethebrandacrossmarketsratherthantostandardizethe
coreproductbenefits
standardizethequalityofaproductacrossmarketsthanitisto
standardizeitsimage
Internationalproductattributesdonotincludethefollowing:
quality
design,sizeandcolourvariants
perceivedvalue
staffbehaviour
Abrandalliancebetweentwopartners,suchastheonebetween
GirardPerregauxandFerrari,orFerrariandShell,isalsoknown
as:
privatebranding
globalbranding
corporatebranding
cobranding
Globaltravelorganizationssometimesuseemailtopitchunsold,
discountedpackagestothecustomersintheirdatabasesin
responsetowhichcharacteristicofservices?
Intangibility
Inseparability
Variability
Perishability
Themainadvantagesofusingaprivatelabelasabranding
alternativeare:
thepossibilityofalargermarketshare
nopricecompetition
nopromotionproblems
thefirstandthirdanswersabove
Thedefinitionof__________isasetofbrandassetsandliabilities
thatcanbeclusteredintofivecategories:brandloyalty,brand
awareness,perceivedquality,brandassociationandother
proprietarybrandassets.
brandrecognition
brandliability
brandtrust
brandequity
Privatelabelsare:
retailersownbrand
labelsownedbyconsumers
labelsrestrictedandprotectedinspecificregions
secretlabels
Oneofthechallengesfacingprivatelabelretailersisreassuring
thoseconsumerswhoinferthatbecauseprivatelabelisnotabrand
thattheyrecognize,thequalityis:
worse
justthesame
notthesame
better
Cobrandingis:
brandingcompanynameratherthanproductname
coordinatedbranding
aformofcooperationbetweentwoormorebrands
brandingincooperationwithacommercialagency
Longtailis:
atheoryofsellingsuggestingthatintheInternetera,sellingmore
copiestofewerpeopleisanewstrategythatcanbesuccessfully
pursued
thebrandvaluethatiscreatedovertime
perceivedvalueofcustomers
atheoryofsellingsuggestingthatintheInternetera,sellingfewer
copiestomorepeopleisanewstrategythatcanbesuccessfully
pursued
ThekeyfactorinRichardBransonsVirginglobalsuccessliesin:
adoptingaprivatelabelbrandingoption
constantlyextendingthebrand
developinglocalbrands
takingadvantageofglobalresourcing
QDFis:
qualitydistancefriction
quantitydeploymentfunction
qualitydeploymentfunction
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Multiplechoicequestions
Chapter15
Chapter15
Trythemultiplechoicequestionsbelowtotestyourknowledgeofthischapter.Onceyou
havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.
Thisactivitycontains14questions.
Whichofthefollowingfactorsdoesnotcontributetoprice
escalationinglobalmarketing?
Shippingandinsurancecharges
VAT
Fluctuatingexchangerates
Productdifferentiation
Thedirectexchangebetweenpartiesinsteadofmonetarypayment
isknownas:
offset
barter
switchtrading
compensationtrading
Whichcurrencyisalsoreferredtoasavehiclecurrency?
TheUnitedStatesdollar
TheJapaneseyen
TheBritishpound
Theeuro
IntheformersocialiststatesofEasternEurope,priceinflationwas
veryhighrelativetomostotherWesternizedcountriesduringthe
1990sasaresultofthis:
theEasternEuropeangovernmentsappliedstrictmonetarycontrolsto
theirowncurrencies
thecurrenciesoftheEasternEuropeanstateshadanappreciation
relativetomostothercurrencies
theEasternEuropeangovernmentsinterruptedtradewiththeWestin
ordertoprotecttheireconomies
thecurrenciesoftheEasternEuropeanstatesdepreciatedrelativeto
mostotherWesterncurrencies
Ingeneral,countrieswithrelativelyhighinflationhave:
frequentpoliticalinstability
highincomepercapita
strongeconomies
depreciatingcurrencies
Dumpingisanimportantglobalpricingissuethattranslatesinto:
acompanythatpractisesdynamicincrementalpricing
acompanyexportingaproductatahigherpricethanthepriceit
normallychargesinitsownmarket
acompanyexportingaproductatalowerpricethanitnormally
chargesinitsownmarket
acompanytryingtofixpricesininternationalmarkets
Theunauthorizeddistributionoftrademarkedgoodstoexploitprice
differentialsinworldtrademarketsisknownas:
countertrade
dumping
greymarketing
blackmarketing
Transferpricingininternationaltradeisusuallyusedto:
avoiddomesticandforeigntax
minimizeexchangeratefluctuations
ensurequalityperceptioninforeignmarkets
alloftheabove
Ifyouwereamarketingmanagerforasmallmotorcycle
manufacturerandyouweregiventhetaskofexpandingthe
organizationsproductsabroad,youwouldneedtoknowwhich
factsaboutthismarket?
Entrybarriersinthissectorarehigh,andanewentrantneedsalotof
capitalinvestmentinordertocompete
Worldwideretailsalesofmotorcycleshavedroppedcontinuouslysince
2008
Themarketisoligopolisticandmature,withlongestablishedAmerican
brandssuchastheiconicHarleyDavidsonandJapanesebrandssuch
asHonda,SuzukiandYamahadominatingthemarket
Alloftheabove
Themostrestrictivetypeofcountertradeis:
switchtrading
counterpurchase
offset
barter
Whichstrategiesareavailableinordertocounterpriceescalation?
Rationalizingthedistributionprocess
Loweringtheexportpricefromthefactory
Pressurizingchannelmemberstoacceptlowerprofitmargins
Alloftheabove
Whichfirmsareknownforhavingusedpenetrationpricingin
foreignmarketsinordertogainmarketsharefortheircars,home
entertainmentproductsandelectronicproducts?
Canadianfirms
Britishfirms
Japanesefirms
Russianfirms
Intheglobalmarketformotorcyclemanufacturingtheeconomies
ofscaleare:
high
onlyachievableinLatinAmerica
onlyachievableinAsia
low
InregionssuchastheMiddleEast,________isacommonexport
financingmethodbecausethecontractsarecashorshortterm.
forfeiting
leasing
countertrade
bonding
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Multiplechoicequestions
Chapter16
Chapter16
Trythemultiplechoicequestionsbelowtotestyourknowledgeofthischapter.Onceyou
havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.
Thisactivitycontains15questions.
Ininternationalmarketing,themostcriticaldistributionquestions
are:
choiceofinternationalshippingmethod
choiceofmarketentrymethods
choiceoflocallogisticsinforeignmarkets
thefirstandthirdanswersabove
Lockedupchannelsoccurforallofthefollowingreasonsexcept:
channelmembersabilitytochangeallegiancewithoutmajornegative
consequences
significantvolumerequirementsfrommanufacturers
agreementprohibitingdistributorsfromsellingcompetitiveproducts
channelmembersunwillingnesstoriskpioneeringnewproducts
Marketcoverage:
coversthecontrolofchannelmembers
canrelatetogeographicalareasornumberofretailoutlets.Three
approachesareavailable:intensive,selectiveorexclusivecoverage
describesanumberoflevelsinthedistributionchannel
consistsofanetworkofbusinessesthatownstakesinoneanotheras
ameanofcoveringsecurity
Whichofthefollowingfunctionsisnotperformedbyan
intermediate?
Demandgeneration,orselling
Psychicaldistribution
Carryingofinventory
Responsibilityforqualitycontrolinmanufacturing
Thetwotypesofchannelintegrationare:
spatialintegrationandproductintegration
individualintegrationandproductintegration
verticalintegrationandhorizontalintegration
spatialintegrationandgeographicintegration
Whichofthefollowingarethemastersofcountertrade?
TheItalians
TheSwiss
TheAmericans
TheJapanese
Germanysexportsuccessissaidtohavebeendeterminedbyits:
bankingsystemstability
taxsystem
location
favourableinternationaltradelegislation
Accordingtothecasestudy,Burberrysstrategyistotarget:
shoppingmalls
denselypopulatedareas
25oftheworldswealthiercities
countrieswithhighaverageincome
Logisticsis:
thedepartmentinsidethefirmthattakescareofalltransactions
agovernmentcontrolinstitution
correspondencebetweencooperatingfirms
atermusedtodescribethemovementofgoodsandservicesbetween
suppliersandusers
Thefourmainmodesoftransportationare:
shipping,trucks,trainsandsmallurbanvehicles
fast,intermediate,slowandpersonal
road,water,airandrail
Internet,telephone,faxandmail
Freightforwarders:
provideservicetoendcustomers
provideservicetoexporters
provideservicetoretailers
provideservicetoimporters
Intheexhibitofthebananasplitmodel,plantationownersget
about___oftheretailvalueintheUK.
15%
30%
10%
20%
Internationalretailingis:
tendencytowardsconcentrationinretailing,creatinghugebuying
powerinthebiginternationalretailchains
globalizedfirmsutilizingtheworldmarketandfollowingtheGLOCAL
strategy
tendencyofsmallerfirmsutilizingthepiggybackstrategyinorderto
becomeinternational
internationalfirmswithstrongmarketknowledge
Inthemodelofchannelrelationshipsandtheconceptoftrade
marketing,theconsumersobjectivesare:
cost,quality,perceivedvalueandstatus
service,cost,qualityandstatus
choice,availability,valueformoneyandconvenience
speed,cost,qualityandservice
Distributionchannelsininternationalmarketingaccountfor
________oftheretailpriceofgoodsandservicesinanindustry.
50%
60%
1540%
10%
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Multiplechoicequestions
Chapter17
Chapter17
Trythemultiplechoicequestionsbelowtotestyourknowledgeofthischapter.Onceyou
havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.
Thisactivitycontains13questions.
Factorsinfluencingthecommunicationsituationdonotinclude:
socioculturaldifferences
legal/regulatorydifferences
infrastructuredifferences
languagedifferences
IncontrasttoNorthAmericansorEuropeans,Japaneseconsumers
tendtobemore________intheirattitudetowardsadvertising.
rational
emotional
productbenefitconscious
logical
Japaneseadvertisingisknownfor:
avoidingAmericanhumour
avoidingtheuseofcontemporarylanguage
itsstrongnonverbalcomponent
stressingshorttermrelationships
Whatarethefourelementsofalleffectivemarketing
communicationsystems?
Asender,amessage,acommunicationchannelandareceiver
Anencoder,adecoder,amessageandamassmedium
Asender,amessage,acatcherandthedefender
Asender,amessage,aninformationsystemandacustomer
Radioisa________costbroadcastingactivitythantelevision.
muchmoreofaneffective
lower
muchhigher
higher
Onlineadvertisingistodayworth__________________________
televisionorprintadvertising.
muchlessthan
twiceasmuchas
muchmorethan
aboutthesameas
___________________involvesestimatingandduplicatingthe
amountsspentonadvertisingbymajorrivals.
Competitiveparityapproach
Purchasepowerparity
Percentageofsalesmethod
Noneoftheabove
Whichformofadvertisementiscommonlyusedinthe
entertainmentindustrywherebyproductsandbrandsareplacedin
acontextusuallywithoutads?
Comparativeadvertising
Productplacement
Informationaladvertising
Cooperativeadvertising
CinemaadvertisingplaysalowerkeyroleinIndiacomparedtothe
UnitedStatesofAmerica.
True
False
Inthecaseofglobalproductssuchasmixedmartialarts,oneof
theadvantagesofthegamesworldisthatitallowsexposuretoa
captiveaudienceformuchlongerthanaffordedbytraditional
advertisingmethodsandrealfightbouts.Gamersviewssuggest
thatinvirtualenvironmentstheydonotperceiveadvertstobeas
_____________________astheyareintheirrealworlds.
effective
intrusive
great
likeable
Happyendingsarerarein________culture,whileNorth
Americanscravesolutions.
Spanish
French
British
Japanese
InternationalmobilephonefirmssuchasVodafonetypicallyuse:
individualistappealsinindividualistcountries
collectivistappeals,anexampleofgroupidentity,incollectivist
countries
noneoftheabove
thefirstandsecondanswersabove
Althoughpatientsdesiremoreinformationonmedication,the
advertisingofprescriptionmedicationisbannedacrossthe
EuropeanUnionthroughadirectivedatingfrom1992thatrestricts
suchpluralisminthesupplyofinformation.Whichofthefollowing
statementsistrue?
InFrance,anyinformationsupplieddirectlytothepublicbythe
manufacturersisviewedasadvertising
AlltheEuropeanUnionstatesareregulatedinthesamewayswhenit
comestoprescribedmedication
InItaly,advertisingofprescribedmedicationisnotbanned
Noneoftheabovestatementsistrue
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Multiplechoicequestions
Chapter18
Chapter18
Trythemultiplechoicequestionsbelowtotestyourknowledgeofthischapter.Onceyou
havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.
Thisactivitycontains15questions.
Masculineculturesstrategyfornegotiationisusually:
competitiveandresultsinwin/losesituations
aboutfindingsolutionstowinwinsituations
basedoncooperation,modesty,empathyandsocialrelations
noneoftheabove
Whichofthefollowingisnottrueofnegotiationsininternational
markets?
Feminineculturesvaluenegotiationsbasedoncooperation,nurturing,
modesty,empathyandsocialrelations
Highuncertaintyavoidancecultureshaveformal,bureaucratic
negotiationrules,theyrelyonritualsandstandardsandbelieving
familymembersonly.Theytypicallyneedstructureandguidelines
Lowuncertaintyavoidanceculturesprefertoworkinformally,with
flexibility.Theydisfavourhierarchyandarelikelytoresolvesituations
andcometoacompromise
Alltheabovestatementsaboutnegotiationsinforeigncountriesare
untrue.
ComparedtoNorthAmericansandNorthEuropeanswhoprefer
shortnegotiationsandtogetdowntobusinessassoonas
possible,Japanesebusinessmenprefer:
tomeetupseveraltimesbeforenegotiating
tofeelthatthereismutualtrustandrespect
totaketheirtime
alloftheabove
A(n)________canappeartobeabribe.
contract
handshake
gesture
agentsfee
WhichofthefollowingstatementsaboutEgyptiansandIsraelisare
nottrue?
IsraelisviewEgyptiansindirectnesswithimpatienceandconsiderit
insincere,whileEgyptiansinterpretIsraelisdirectnessasaggressive
andinsulting
Egyptianspreferindirectformsofnegotiation
Israelispreferdirectformsofnegotiation
Noneoftheabovestatementsistrue
Inbusiness,compromiseisconsidered:
todetractfromyourdignityandintegrityinMexicoandtherestof
LatinAmerica
weakinRussiaandtheMiddleEast
partofmorality,fairplayandgoodfaithforNorthAmericansand
WesternEuropeans
superficialandinsincereinAustralia,NewZealandandSouthAfrica
WhenmeetingadevoutMuslimbusinessman,onemustnot:
pointtotheclock,asclocksareassociatedwithdeathinhighcontext
cultures
shakewiththelefthandasitisconsideredtoberude
showseniority,asthemeetingwillcometoasharpend
showcreativebehaviourorbehaveinanywayovercooperativelyasit
isconsideredtobeasignofhumiliation
Inwhichinternationalmarketingnegotiationwillconflictmost
likelyarise?
Whenabusinesspersonfromacollectivistculturemeetsabusiness
personfromafeministculture
Whenabusinesspersonfromalowmasculineculturemeetsa
businesspersonfromafeministculture
Whenabusinesspersonfromahighmasculineculturemeetsa
businesspersonfromalowpowerdistanceculture
Whenabusinesspersonfromahighmasculineculturemeetsa
businesspersonfromahighpowerdistanceculture
AccordingtoNonakaandTakeuchi(1995),thetwosetsofdynamics
thatdrivetheprocessofinternationalknowledgeamplificationare:
convertingtacitknowledgeintospecificknowledgeandmoving
knowledgefromindividualleveltothegroup,organizationalandinter
organizationallevels
proceduralknowledgeanddeclarativeknowledge
tacitknowledgeandexplicitknowledge
knowwhyandknowwho
Themaindifferencesbetweenbriberyandlubricationare:
lubricationpaymentsaccompanyrequestsforapersontodothejob
morerapidlyandefficiently
lubricationpaymentsinvolvesmallcashsums,giftsorservicesmade
toalowrankingofficialinacountrywheresuchofferingsare
prohibitedbylaw
briberyinvolveslargesumsofmoney,whicharefrequentlynot
accountedfor,andisdesignedtoenticeanofficialtocommitanillegal
actonbehalfoftheonepayingthebribe
alloftheabove
HarmonyinnegotiationisimportanttotheJapanese,andthey
ensurethatsocialrelationsaresmoothandthatconsensusis
overarching.
True
False
Bribery:
isanillicitpaymentthatmayrangefromgiftstolargeamountsof
money
isacceptedbytheEUasawayofdoingbusinesswithThirdWorld
countries
onlyconcernslargeamountsofmoney
isdecreasingwiththeemergenceoftheInternet
Ahandshakeisatraditionalformofgreetingabusinesspartnerin
theUSA.Whichofthefollowingisanequivalentincountriessuch
asJapanandThailand?
Touchingfists
Abow
Aheadshake
Bendingtheknees
InhisbookInternationalNegotiation:ACrossCulturalPerspective,
GlenFisher(1980)arguesthatnegotiatingstylesareoften
dependentonthenegotiatingpartiesinvolved.Forexample,when
dealingwiththeUSA,Mexicannegotiatorsareengulfedbythe
shadowcastbytheirnorthernneighbourandareforcedinto
negotiationonUSnorms.However,whennegotiatingwithother
nations,thesenseof_______________________isstrongerand
thusreflectsMexicosstrongSpanishheritage.
formalsocialoccasionandprotocol
acceptanceandcompliance
nationalpride
ignoranceandrefusaltocometoanagreement
In2010,Burundiwasrankedas__________________________in
EastAfrica,accordingtoglobalwatchdogTransparency
International.
twiceascorruptasanyothercountry
themostcorruptcountry
theleastcorruptcountry
neitherthemostnortheleastcorrupt
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Multiplechoicequestions
Chapter19
Chapter19
Trythemultiplechoicequestionsbelowtotestyourknowledgeofthischapter.Onceyou
havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.
Thisactivitycontains14questions.
ThepredominantreasonwhyexpatriatesfromUSandEuropean
firmsreturntotheirhomecountriesprematurelyis:
theirlackofcompetenceworkinginforeignmarkets
theirexpectationsofthenewpostbeingthattheydonothaveto
workthathard
theirpartnersbeingunabletoadapttothehostcountries
environment
theirorganizationalcultureshock
Japanesefirmsexpandingoverseastypicallytendtoemploy
________onmiddleandbottomendpositions:
moreAmericancitizens
peoplefromhighpowerdistanceculturesaswellasthosefrom
masculinecultures
moreChinesecitizens
peoplefromlowdistanceaswellasthosefromfeministcultures
Implementingaglobalstandardizedadvertisingprogrammehasthe
followingadvantage(s)toafirminternationalizing:
creativetalentcanbemorereadilyandefficientlytapped
lowercosts
economicadvantages
Alloftheabove
Astrategyof________pricinginvolvesusingpriceasa
competitiveweaponinordertopushcompetitorsoutofanational
market.
predatory
incremental
psychological
premium
Whatarethemainadvantagesofemployingexpatriates?
Greaterhomecontrol
Highservicelevels
Productknowledge
Alloftheabove
Whichofthefollowingcountriesistheleastculturallychallenging
foranAmericanorganizationwishingtoexpandinternationally?
Brazil
SouthAfrica
China
TheUK
Inwhichofthefollowingsituationsdointernationaldivisionsbest
servethosefirmsinternationalizing?
Whenfirmspromotenewproductswhichdonotvarysignificantlyin
termsoftheirenvironmentalsensitivity
Whenfirmsinternationalsalesandprofitsarequiteinsignificant
comparedwiththoseoftheirdomesticdivisions
Bothoftheabove
Noneoftheabove
Thegeographicalstructureisfrequentlyusedby:
carandpharmaceuticalcompanies
foodandbeveragecompanies
bothoftheabove
noneoftheabove
FastexpandinginternationalfirmssuchasWalMart,ZaraandH&M
integrate:
vertically
horizontally
diagonally
alloftheabove
AkeyfactortoestablishingaforeignbrandinFranceistohave:
aglobalbrandalreadyinplacebeforeenteringthiscountry
aFrenchcobrandingagreement
lesslocalcompetition
anadequateadvertisingbudget
Thedesignofthecontrolsystemcanbedividedintothefollowing
twogroups,dependentontheobjectiveofcontrol:
inputcontrolandoutputcontrol
qualitycontrolandquantitycontrol
managerialcontrolandproductcontrol
outputcontrolandbehaviouralcontrols
Thecontributionmarginin%iscalculatedas:
(totalmarketingcontribution/totalrevenue)100
(totalcontribution/totalrevenue)100
(netprofitbeforetaxes/totalrevenue)100
(netprofitbeforetaxes/assets)100
Accordingtothecasestudy,thecompanywith26%ofthemarket
share,thelargestglobalmarketshare,forrecordedmusicin2009
was:
SonyMusicEntertainment
EMIGroup
WarnerMusic
UniversalMusicGroup
Inthefunctionalstructure:
theorganizationalstructureisbasedonproductdivisions
theorganizationalstructureisbasedongeographicdivisions
theorganizationalstructureisbasedonamixofgeographicand
functionalelements
theorganizationalstructureisbasedonfunctionaldepartments
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