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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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havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.

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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havecompletedthetest,clickonSubmitAnswersforGradingtogetyourresults.

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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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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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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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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