International Marketing Chapters 1 & 2 Flashcards

Questions and Answers

________ is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit.

International marketing (correct)

Global strategy

Marketing

Regional marketing concept

Marketing concept

Which of the following is the most critical difference between domestic marketing and international marketing?

The different concepts of marketing

The change in marketing goals

The change in corporate objectives

The difference in technological standards

The environment in which marketing plans must be implemented (correct)

Which of the following is the reason why Dylan's task could be more complicated than that of the domestic marketer?

The international marketer must deal with at least two levels of uncontrollable uncertainty instead of one. (correct)

Lack of competent skills makes effective service a major challenge.

International trade regulations still do not allow free trade in most markets across the globe.

Technological standardization could challenge effective customization in different markets.

The international marketer must change his marketing goals in the various countries of operation.

Which of the following would be considered to be an uncontrollable element in the foreign environment?

Economic forces Signup and view all the answers

Such elements as geography and infrastructure, structure of distribution, and cultural forces are part of which of the following international marketing task environments?

Foreign environment (uncontrollable) Signup and view all the answers

Which of the following is NOT true of the impact of culture?

In dealing with unfamiliar markets, frames of reference are unimportant in evaluating the potential of a market. Signup and view all the answers

Which of the following factors includes the decision-making factor in Rita's international marketing task?

Foreign environment (uncontrollable) Signup and view all the answers

The _____ and issues abroad are often amplified by the 'alien status' of the company.

Political/legal forces Signup and view all the answers

The task of _____ is the most challenging and important one confronting international marketers.

Cultural adjustment Signup and view all the answers

Which of the following best explains the difficulty Philippe is experiencing in marketing his line of Philippine cabinetry in Los Angeles?

Self-reference criterion Signup and view all the answers

_____ is generally a problem when managers from affluent countries work with managers and markets in less-affluent countries.

Ethnocentrism Signup and view all the answers

The primary obstacles to success in international marketing are a person's _____ and an associated ethnocentrism.

Self-reference criterion Signup and view all the answers

The most effective way to control the influence of ethnocentrism and the SRC is to:

Recognize their effects on our behavior. Signup and view all the answers

Ajax is probably in the _____ stage of international marketing involvement.

No direct foreign marketing Signup and view all the answers

Randy's firm is at which of the following stages of international marketing involvement?

Infrequent global marketing Signup and view all the answers

Which of the following is true of marketing mix standardization?

It usually reduces costs related to marketing Signup and view all the answers

Local government restraints can be disregarded when creating marketing strategies.

False Signup and view all the answers

What is product positioning?

The way in which the marketing function tries to create an image or identity in the minds of the target market. Signup and view all the answers

There are more costs incurred by exporting than selling domestically.

True Signup and view all the answers

A company can usually get away with charging the same price both domestically and internationally.

False Signup and view all the answers

Consumers generally begin shopping across borders when price differences reach ____%.

20 Signup and view all the answers

Which of the following was the main objective of the American efforts to improve world trade by fostering economic growth in Europe and the underdeveloped world after World War II?

Dampening the spread of communism Signup and view all the answers

In addition to U.S. economic assistance, _____ was a significant move toward international cooperation among trading nations.

Negotiation of the General Agreement on Tariffs and Trade Signup and view all the answers

The _____, part of the American effort to infuse the ideal of capitalism throughout as much of the world as possible, was aimed at assisting in rebuilding Europe.

Marshall Plan Signup and view all the answers

_____ refers to the system of accounts that records a nation's international financial transactions.

Balance of payments Signup and view all the answers

Which of the following is true regarding balance-of-payments records?

The fact that assets and liabilities balance does not mean a nation is in particularly poor financial condition. Signup and view all the answers

Which of the following would be the balance-of-payments account that is a record of all merchandise exports, imports, and services plus unilateral transfers of funds?

Current account Signup and view all the answers

A(n) _____ is simply a tax imposed by a government on goods entering at its borders.

Tariff Signup and view all the answers

In general, tariffs restrict:

Manufacturers' supply sources Signup and view all the answers

Which of the following types of nontariff barriers would be considered to be 'specific limitations on trade' by international marketers?

Embargoes Signup and view all the answers

Exporting countries sometimes agree to voluntary export restraints (VER) as an alternative to the threat of:

Stiffer quotas and tariffs Signup and view all the answers

Which of the following trade policy tools require the importers who want to buy a foreign good to apply for an exchange permit?

Government approval Signup and view all the answers

_____ is the practice whereby a foreign producer intentionally sells their products in the United States for less than the cost of production to undermine the competition and take control of the market.

Predatory pricing Signup and view all the answers

Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign penetration of U.S. markets can cause serious competitive pressure?

The import relief section Signup and view all the answers

Which was the most notable achievement of the Uruguay Round of GATT negotiations?

The creation of the World Trade Organization Signup and view all the answers

The five institutions of the World Bank Group perform all the following services EXCEPT:

Providing investors with investment guarantees against 'commercial risk'. Signup and view all the answers

Study Notes

International Marketing Fundamentals

International marketing involves planning, pricing, promoting, and distributing goods and services across national borders for profit.
The critical distinction between domestic and international marketing is the environmental complexity of implementing marketing plans in multiple countries.

Uncontrollable Elements in Marketing

Economic forces represent uncontrollable elements influencing international marketing.
Foreign environments include geography, infrastructure, distribution structures, and cultural factors as uncontrollable elements impacting marketing strategy.

Cultural Impact on Marketing

Cultural influences often affect marketers' behaviors, leading to automatic reactions without conscious awareness.
Self-reference criterion (SRC) can hinder effective marketing in foreign markets, as marketers may rely on familiar home country models that do not translate well.

International Marketing Involvement Stages

Companies may proceed through several stages of international marketing involvement, from no direct foreign marketing to regular foreign marketing.
"Infrequent global marketing" arises when firms sell to foreign markets as opportunities arise, lacking continuous international representation.

Standardization vs. Adaptation

Standardizing the marketing mix can reduce costs associated with marketing but complicates the marketer's role in adapting to local conditions.
Local government regulations must be considered when formulating marketing strategies.

Pricing and Economic Considerations

Companies typically incur higher costs when exporting goods compared to domestic sales.
Consumers start shopping internationally when price differences reach a threshold of approximately 20%.

Historical Context of International Trade

The U.S. aimed to dampen communism's spread post-World War II by fostering economic growth in Europe through programs like the Marshall Plan.
The General Agreement on Tariffs and Trade (GATT) facilitated international cooperation and trade between nations.

Balance of Payments and Tariffs

The balance of payments records a nation's international financial transactions and helps assess economic health.
Tariffs are government-imposed taxes that restrict access to foreign markets and can affect manufacturers' supply sources.

Non-Tariff Barriers to Trade

Non-tariff barriers include embargoes and voluntary export restraints, which pose specific limitations on international trade.
Governments may require exchange permits for importing certain goods, affecting trade flows.

Competitive Practices

Predatory pricing involves foreign producers selling products below production costs to undermine local competition.
Awareness of market dynamics and policies like the import relief section of the Omnibus Trade and Competitiveness Act is crucial for avoiding adverse competitive pressures.

World Trade Organization (WTO)

The WTO emerged from the Uruguay Round of GATT negotiations, marking a significant achievement in global trade governance.
The World Bank Group supports developing countries through loans for projects in education, health, and infrastructure, among other financial services.

Conclusion

Understanding these key concepts in international marketing is crucial for successfully navigating the complexities of global business environments and effectively reaching diverse markets.

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Description

Test your knowledge with these flashcards for International Marketing, focusing on key concepts from Chapters 1 and 2. Each card presents important terms and definitions that are essential for understanding the principles of marketing in a global context.