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What's the difference between domestic marketing and international marketing?
Which of the following reflects the relation between international business and domestic business?
The ability to invest abroad is to a large extent a function of domestic economic vitality
Why is the international marketer's task more complicated that the domestic marketer?
Because the international marketer must deal with at least two levels of uncontrollable uncertainty instead of one
For an international marketer, the _____ can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives.
What is the self-reference criterion
(SRC)-the primary obstacles to success in international marketing are a persons self-reference criterion and an associated ethnocentrism
-the SRC is an unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decisions
-closely connected is ethnocentrism, that is, the notion that people in ones own company, culture, or country know best how to do things
the most effective way to control the influence of ethnocentrism and the SRC is to:
The primary obstacles to success in international marketing are a person’s ___ are an associated ethnocentrism
Which of the following is one of the primary objectives of the International Monetary Fund (IMF)?
What are the primary objectives of the International Monetary Fund (IMF)?
the stabilization of foreign exchange rates and the establishment of freely convertible currencies (to facilitate the expansion and balanced growth of international trade)
What's the ideal political climate for a multinational firm?
What are the five main causes of instability in international markets?
1-some forms of government seem to be inherently unstable
2-changes in political parties during elections can have major effects on trade conditions
4-animosity targeted toward specific countries
5-trade disputes themselves
In a low-context explicit communication culture one would expect to find that verbal exactness in communication dominates other communication variables. Which of the following countries has been described as being low context explicit with respect to communication practices?
in a high context implicit communication environment who says something, how it is said, and when it is said is very important. Which of the following countries would we find to the “high context implicit” with respect to communication practices?
What explains the fact that group decision making predominates in Asian cultures?
Most Asian cultures and religions emphasize harmony and collectivism
which of the following forms of business decision-making characterizes most Asian countries?
These Western cultures tend to concentrate on one thing at a time. They divide time into small units and are concerned with promptness. M-time is used in a linear way, and it is experienced as almost tangible, in that one saves time, wastes time, bides time, spends time, and loses time
What are some of the counterfeiting problems for international marketers?
One counterfeiting problem for international marketers is:
Collusion between contract manufacturers and illegitimate sellers
is used to overcome this problem of back translation. In this process, more than two translators are used for the back translation; the results are compared, differences discussed, and the most appropriate translation is selected
In the U.S. culture, the playing of “Pomp and Circumstance,” the wearing of funny hats, and long speeches at college graduation ceremonies are examples of____
What does “language” refer to by the anthropologist, Edward T. Hall, in his seminal article about cultural differences in business settings?
in his seminal article, Hall talks about cultural differences in business settings, he talks about the “languages” of time, space, things, friendships, and agreements. He interprets correctly the importance of symbols that surround us.
--in an attempt to give diversity to a meal, in this case a breakfast, cultural borrowings go a long way
The strategy of introducing milk and break to the Japanese diet by American forces after WWII is an example of _____
Cultural congruence and potentially planned change
--Most Japanese prior to WWII were predominantly fish eaters. Since then, they have increased their intake of animal fat and protein to the point that fat and protein now exceed vegetable intake
a forum for member countries to negotiate a reduction of tariffs and other barriers to trade
-the forum provided successful in reaching those objectives. With the ratification of the Uruguay Round agreements, the GATT became part of the World Trade Organization (WTO) in 1995, and its 117 original members moved into a new era of free trade
General Agreement on Tariffs and Trade; a trade agreement signed by the United States and 22 other countries shortly after World War II. The original agreement provided a process to reduce tariffs and created an agency to patrol world trade; the treaty and subsequent meetings have provided agreements significantly reducing tariffs
the system of accounts that records a nation’s international financial transactions
: the portion of a balance of payments statement that shows a record of all merchandise exports, imports, and services, plus unilateral transfers of funds
the use by nations of legal barriers, exchange barriers, and psychological barriers to restrain entry of goods from other countries
a fee or tax that countries impose on imported goods, often to protect a country’s markets from intrusion from foreign countries
agreements, similar to quotas, between importing country and an exporting country for a restriction on the volume of exports. Also known as orderly market agreements (OMAs)
which encompasses the current GATT structure and extends it to new areas not adequately covered in the past
The International Monetary Fund. A global institution that, along with the World Bank Group, was created to assist nations in becoming and remaining economically viable
the seizure of an investment by a government in which some reimbursement is made to the investment owner; often the seized investment becomes nationalized
: these are gases resulting primarily from the use of fossil fuels that tend to trap heat in the earth’s atmosphere and are causal factors in global climate change. The main problem compounds are carbon dioxide, methane, nitrous oxide, and fluorinated gases
an approach toward economic growth that has been described (by Joke Waller-Hunter) as a cooperative effort among businesses, environmentalists, and others to seek growth with “wise resource management, equitable distribution of benefits, and reduction of negative efforts on people and the environment from the process of economic growth”
the human-made part of human environment—the sum total of knowledge, beliefs, arts, morals, laws, customs, and any other capabilities and habits acquired by humans as members of society
the methods and systems, including family, religion, school, the media, government, and corporations, that affect the ways in which people relate to one another, teach acceptable behavior to succeeding generations, and govern themselves
the system of beliefs and customs held by a population in a given culture. A book by Geert Hofstede describes a study of 66 nations and divides the cultural values of those nations into four primary dimensions: the Individualized/Collectivism Index, the Power Distance Index, the Uncertainty Avoidance Index, and the Masculinity/Femininity Index (which is not considered as useful as the other three)
philosophically, the creation and appreciation of beauty; collectively, the arts, including folklore, music, drama, and dance
an awareness of the nuances of culture so that a culture can be viewed objectively, evaluated, and appreciated; an important part of foreign marketing
the phenomenon by which societies learn from other cultures’ ways and borrow ideas to solve problems or improve conditions
1. What does “No Direct Foreign Marketing” mean?
No active cultivation of customers outside national boundaries. Products may reach foreign markets, however
1. What does “Infrequent Foreign Marketing” mean?
Temporary surpluses caused by variations in production levels or demand may reach foreign markets
1. What does “Regular Foreign Marketing” mean?
Goods and services are specifically produced and marketed in foreign markets
1. What does “International Marketing” mean?
Full commitment to and involvement in international marketing activities
1. What does “Global Marketing” mean?
Firms treat the world, including their home market, as one market. Decisions are no longer nationally focused.
strategically valid, are based on preparations to make investments to acquire a market position and often evincing bursts of international activities
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
the aspects of trade over which a company has control and influence; they include marketing decisions covering product, price, promotion, distribution, research, and advertising
factors in the business environment over which the international marketer has no control or influence; may include competition, legal restraints, government controls, weather, consumer preferences and behavior, and political events
factors in a company’s home country over which the company has little or no control or influence. They include political and legal forces, the economic climate level, level of technology, competitive forces, and economic forces
: factors in the foreign market over which a business operating in its home country has market over which a business operating in its home country has little or no control or influence. They include political and legal forces, economic climate, geography and infrastructure, level of technology, structure of distribution, and level of technology
an unconscious reference to one’s own cultural values, experience, and knowledge as a basis for a decision
: a frame of reference, important to the success of a businessperson, that embodies tolerance of cultural differences and knowledge of cultures, history, world market potential, and global economic, social, and political trends
1. According to the video and the textbook, “International marketing” and “global marketing” requires designing products, promotions, and packaging to more than one nation for a profit. What is the only distinction between global and domestic marketing?
The only difference is that in the former case, marketing activities take place in more than one country
1. A globally aware marketer is knowledgeable about cultures and history. Why?
Knowledge of culture is important in understanding behavior in the marketplace or in the boardroom
1. Kraft Foods, the producer of Oreos cookies, is a good example of _____
1. The manner in which Kraft positioned Oreo cookies within the various countries is an example of ____
1. “Foreign environment uncontrollables” refers to _____
the political, legal, cultural, geographic, distribution, technology, competitive, and economic forces at play
1. “Domestic environment uncontrollables” refers to ______
political, legal, economic, and competition forces in the home country
1. as an example of the expansion of global marketing, Oreos can be found in how many countries?
--Oreos represent a global product that is globally marketed in more than 100 countries
1. Although Oreo Cookies are popular around the world, adjustments to _____, ______, and ______ are sometimes necessary to match consumer tastes and expectations in each country
--The video focuses on the adjustments made to the product, packaging, and promotions of Oreos. This in an example of adaptation, one of the key concepts of global marketing
1. As an example of controllable elements, Kraft has changed Oreos to suit particular countries. How are the consumer tastes and expectations as to the Oreos addressed in China and Venezuela? In China, Oreos are ____; in Venezuela _____ is used.
--Oreo cookies are 27% less sweet in China. In Venezuela, Oreos are made with milk chocolate
1. The packaging of Oreos changes from country to country because of ____
Buying habits and pantry size
1. Branding is a controllable element as well. Branding of the Oreos and company affiliation may change from country to country. This is done because the association with a trusted brand can ____
1. Oreo promotions are customized to meet each country’s needs. For example, in China, brands ____ are deemed more creditable and of higher quality. And in Venezuela, _____ advertising is more effective
4. Gerald is heading his sales team for negotiations with their Arab partners. He was educated about the communication preferences well in advance by his PR person. Which of the following could be the most common mistake that he might have committed otherwise?
Haste and impatience
--haste and impatience are probably the most common mistakes of North Americans attempting to trade in the Middle East
Research has shown that commitment of workers to their companies tended to be higher in countries ____ and _____
Higher in individualism; lower in power distance
4. For international marketers operating in authoritative and delegated societies, the chief problem is:
a. Indentifying the individual with authority
--in the case of the authoritative and delegated societies, the chieft problem is to identify the individual with authority
--European companies, particularly in the more hierarchical (PDI) countries, such as France and Italy, have a strong paternalistic orientation, and it is assumed that individuals will work for one company for the majority of their lives
4. what explains the fact that group decision making predominates in Asian cultures?
a. Most Asian cultures and religions emphasize harmony and collectivism
--because Asian cultures and religions tent to emphasize harmony and collectivism, group decision making predominates there
4. which of the following forms of business decision-making characterizes most Asian countries?
--because Asian cultures and religions tend to emphasize harmony and collectivism, group decision making predominates there.
4. which of the following firms is most likely to practice top-level management decision making?
a. A winery owned and run by the owner-manager family
--top-level management decision making is generally found in situations in which family of close ownership gives absolute control to owners and businesses are small enough to allow such centralized decision making
4. In _____ countries, subordinates are not likely to contradict bosses, but in _____ countries, they often do.
a. High-PDI; low-PDI
--in high-PDI countries, subordinates are not likely to contradict bosses, but in low-PDI countries, they often do
4. according to the text, which of the following is most fundamental notion in Western management?
a. Competition is crucial for efficiency
--perhaps most fundamental to Western management practices is the notion that competition is crucial for efficiency, improvement, and regeneration
4. which of the following would be the best description of the “mast of destiny” philosophy that is fundamental to U.S. management thought?
a. People can substantially influence the future—they are in control of their own future
--the “master of destiny” philosophy is fundamental to U.S. management thought. Simply stated, people can substantionally influence the future; they are in control of their own destinies
--the most important ideas on which normative U.S. cultural concepts are based are the following:
1-“master of destiny” viewpoint
2- independent enterprise as the instrument of social action
3-personnel selection and reward based on merit
4-decisions based on objective analysis
5-wide sharing in decision making
6-never-ending quest for improvement
7- competition producing efficiency
1. With respect to business customs, customs to which adaptation is helpful, but not necessary are called:
1. ____ are the business customs and expectations that must be met and conformed to or avoided if relationships are to be successful.
--cultural imperatives are the business customs and exectations that must be met and conformed to or avoided if relationships are the be successful
1. The Westernized diet has caused many Japanese to become overweight. This is an example of ____
a. Unplanned change
--a company may employ a strategy of planned change—that is, deliberately set out to change those aspects of the culture offering resistance to predetermined marketing goals. As an example of unplanned cultural change, consider how the Japanese diet has changed since the introduction of milk and bread soon after World War II
1. Marketing strategy is judged culturally in terms of ____
a. Acceptance, resistance, or rejection
--marketing strategy is judged culturally in terms of acceptance, resistance, or rejection. How marketing efforts interact with a culture determines the degree of success or failure
1. Based on the Individualism/Collectivism Index, in which of the following countries will the “virtual social” activity of sitting alone at one’s computer be most acceptable?
a. The United States
--In America, where individualism reigns supreme, we might predict that the “virtually social” activity of sitting alone at one’s computer might be most acceptable
1. Which of the following indexes have proven to be the most useful dimension in understanding cultural values?
a. Power Distance Index
--The Individualism/Collectivism dimension has proven the most useful of the four dimensions, justifying entire books on the subject
1. Which of the following terms pertains to societies in which people from birth onward are integrated into strong, cohesive groups, which throughout people’s lifetimes continue to protect them in exchange for unquestioning loyalty?
--collectivism pertains to societies in which people from birth onward are integrated into strong, cohesive groups, which throughout people’s lifetimes continue to protect them in exchange for unquestioning loyalty
1. Which of the following cultures are associated with low level anxiety and stress, a tolerance of deviance, and dissent, and a willingness to take risks?
a. Cultures scoring low in uncertainty avoidance
--cultures scoring low in uncertainty avoidance are associated with a low level of anxiety and stress, a tolerance of deviance and dissent, and a willingness to take risks
1. The Uncertainty Avoidance Index measures the tolerance of ____ and ____ among members of a society
a. Uncertainty; ambiguity
--The Uncertainty Avoidance Index measures the tolerance of uncertainty and ambiguity among members of a society. Cultures with high UAI scores are highly intolerant of ambiguity as a result tend to be distrustful of new ideas or behaviors
1. Which of the following countries scores highest on the Individualism/Collectivism Index meaning that this country values and rewards individuals initiative more than the others cited?
1. The ____ Index refers to the preference for behavior that promotes one’s self-interest
--The Individualism/Collective Index refers to the preference for behavior that promotes one’s self-interest
1. The most useful information on how cultural values influence various types of business and market behavior comes from work done by:
a. Geert Hofstede
1. A traditional definition of ____ centers around the notion that is the sum of the values, rituals, symbols, beliefs, and thought processes that are learned, shared by a group of people, and transmitted from generation to generation
--most traditional definitions of culture center around the notion that culture is the sum of the values, rituals, symbols, beliefs, and thought processes that are learned and shared by a group of people, then transmitted from generation to generation
1. People from cultures with high PDI scores are more likely to have a general distrust of others
--people from the cultures with high PDI (Power distance index) scores are more likely to have a general distrust of others (not those in their groups) because power is seen to rest with individuals and is coercive rather than legitimate
1. The Individualism/Collective Index refers to the preference for behavior that promotes one’s self-interest
--the Individualism/Collective Index refers to the preference for behavior that promotes one’s self-interest
1. The four social institutions that most strongly influence values and culture are schools, churches, families, and the media
--the four social institutions that most strongly influence values and culture are schools, churches, families, and the media
1. According to the World Bank, no country with less than 50% literacy has succeeded economically
--According to the World Bank, no country has been successful economically with less than 50% literacy, but when countries have invested in education, the economic rewards have been substantial. Literacy has a profound effect on marketing
1. In most cultures, the first social institution infants are exposed to outside the home takes the form of a church, mosque, shrine, or synagogue
--in most cultures, the first social institution infants are exposed to outside the home takes for the form of a church, mosque, shrine, or synagogue
1. _____ and the World Bank Group are two global institutions created to assist nations in becoming and remaining economically viable
a. the International Monetary Fund
--the International Monetary Fund (IMF) and the World Bank Group are two global institutions created to assist nations in becoming and remaining economically viable
1. One of the basic elements of the General Agreement on Tariffs and Trade (GATT) is that:
a. Trade shall be conducted on a nondiscriminatory basis
--in general, the agreement covers these basic elements:
1-trade shall be conducted on a nondiscriminatory basis
2-protection shall be afforded domestic industries through customs tariffs, not through such commercial measures as import quotas
3-consultation shall be the primary method used to solve global trade problems
1. The United States and other countries require some products (automobiles in particular) to contain a percentage of “local content” to gain admission to their markets. This is an example of the usage of ____to restrict trade
--nontariff barriers of this category include standards to protect health, safety, and product quality. The standards are sometimes used in an unduly strigent or discrimination way to restrict trade
1. The World Court can adjudicate disputes between which of the following?
a. Disputes between governments
--the World Court can adjudicate disputes between governments, whereas the other two situations must be handled in the courts of the country of one of the parties involved or through arbitration
1. because of political changes in the late twentieth centry, which of the following countries has had to build from scratch an entire commercial legal system?
--Central European countries such as the Czech Republic and Poland had comprehensive codified legal systems before communism took over, and their pre- World War II commercial legal codes have been revised and reinstituted. Russia and most of the republics of the former Soviet Union and China have had to build from scratch an entire commercial legal system.
1. While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with treats of government takeovers or harassment?
a. Lender banks to host government
--the approach of including several investors has the advantage of engaging the power of the banks whenever any kind of government takeover or harassment is threatened. This strategy becomes especially powerful if the banks have made loans to the host country
(all of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation’s holdings by a foreign government:
-expanding then investment base
1. When a government seizes an investment of a foreign investor but some reinbursement for the assets is made, the government is following a process called:
--expropriation is when the government seizes an investment but makes some reinbursement for the assets
1. with respect to political risk that can be faced by a company seeking to invest abroad, which of the following presents the most severe political risk?
--the most severe political risk is confiscation, that is, the seizing of a company’s assets without payment. Confiscation was most prevalent in the 1950s and 1960s when many underdeveloped countries saw confiscation, albeit ineffective, as a means of economic growth
-call to buy our country’s products
-restrictions on import
-focus on national security
1. Which of the following is the top political issue concerning foreign business?
a. Stability of prevailing government policies
--at the top of the list of political issues concerning foreign business is the stability or instability of prevailing government policies
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