The Scope and Challenge of International Marketing

Chapter 01 The Scope and Challenge of International Marketing True / False Questions 1. (p. 3) Global commerce thrives during peacetime. TRUE Difficulty: Easy Type: Knowledge 2. (p. 4) To date, the lesson for international commerce in the 21st century is â€Å"expect the unexpected. † TRUE Difficulty: Easy Type: Knowledge 3. (p. 5) Today, every American business is international. TRUE Difficulty: Moderate Type: Comprehension 4. (p. 5) One event that will influence the shape of international business as the future unfolds is the rapid growth of the World Trade Organization, NAFTA, and the European Union.TRUE Difficulty: Moderate Type: Comprehension 5. (p. 5) One event that will influence the shape of international business as the future unfolds is the unprecedented acceptance of communism and socialism in Latin America. FALSE Difficulty: Moderate Type: Comprehension 6. (p. 5) A trend that will impact international business in the future is a mandate to properly manage the resou rces and global environment. TRUE Difficulty: Moderate Type: Comprehension 7. (p. 5) Today, most business activities are local or regional in scope. FALSE Difficulty: Moderate Type: Knowledge . (p. 6, Crossing Borders 1. 1) What do French farmers, Chinese fishermen, and Russian hackers have in common–they can all receive subsidy payments from the U. S. government. FALSE Difficulty: Moderate Type: Knowledge 9. (p. 6) Foreign-made products remain a small portion of all consumer products sold in the United States. FALSE Difficulty: Easy Type: Knowledge 10. (p. 8) U. S. companies compete with global competitors in foreign markets and have little competition in domestic markets from global competitors. FALSE Difficulty: Easy Type: Knowledge 11. (p. , Exhibit 1. 2) The leading U. S. multinational with foreign revenues of $345 billion plus annually is Wal-Mart. TRUE Difficulty: Hard Type: Knowledge 12. (p. 9) International marketing 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. TRUE Difficulty: Moderate Type: Knowledge 13. (p. 9-10) A good illustration of an uncontrollable variable that might impact international business is a marketing decision with respect to research.FALSE Difficulty: Hard Type: Application 14. (p. 11, Exhibit 1. 3) The foreign uncontrollable environment is the same as the domestic uncontrollable environment. FALSE Difficulty: Hard Type: Comprehension 15. (p. 12) The level of technology is an uncontrollable element for international marketers. TRUE Difficulty: Moderate Type: Knowledge 16. (p. 14) The political and legal environment is a controllable element for international marketers because of the ability to lobby and influence legislation. FALSE Difficulty: Moderate Type: Knowledge 7. (p. 14) In a broad sense, the uncontrollable elements of the foreign business environment constitute the culture. TRUE Difficulty: Hard Type: Comprehension 18. (p. 15) John refuses to buy Japanese products because he sees them as a way of selling out to nation known for its aggressive behavior. John is using a self-reference criterion to make his decision. TRUE Difficulty: Moderate Type: Application 19. (p. 15) A self-reference criterion is closely related to ethnocentrism. TRUE Difficulty: Moderate Type: Comprehension 20. (p. 5) Sam Watkins just recently ate and, therefore, feels justified in refusing food from his Middle Eastern host. In this instance, Sam's self-reference criterion has just saved him from making a cultural blunder. FALSE Difficulty: Hard Type: Application 21. (p. 16) To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that emphasizes the need for ethnocentrism. FALSE Difficulty: Moderate Type: Comprehension 22. (p. 17) To be globally aware, you should be tolerant of cultural differences. TRUE Difficulty: Easy Type: Comprehension 23. ( p. 7) To be globally aware, you should require that all of your international customers know about your cultural rules and adhere strictly to each one. FALSE Difficulty: Moderate Type: Comprehension 24. (p. 18) If a company is in a stage designated as being one with â€Å"no direct foreign marketing,† the company does not actively cultivate customers outside national boundaries. TRUE Difficulty: Easy Type: Knowledge 25. (p. 20) Of all the stages in international business, a stage called â€Å"regular foreign marketing† produces the most profound change in the orientation of the company toward markets and associated planning activities.FALSE Difficulty: Moderate Type: Knowledge 26. (p. 22) If a company uses a strategic orientation called domestic market extension, it views its international operations as secondary to and an extension of its domestic operations. TRUE Difficulty: Moderate Type: Knowledge 27. (p. 22-23) The global marketing concept views the marketplace as consisting of one primary domestic market that is complimented by several smaller regional markets. FALSE Difficulty: Hard Type: Knowledge Multiple Choice Questions 28. (p. 3) International __________ play an important role in promoting global peace and prosperity.A. foreign aid and treaties B. competition and consumer spending C. trade and marketing D. consumer and industrial services Difficulty: Easy Type: Knowledge 29. (p. 4) According to the text, all of the following events have impacted international business EXCEPT: A. the Indian Ocean tsunami in 2004 B. the high-tech bust of 2001. C. the steroids in major league sports scandal D. 2003 SARS outbreak in Asia. E. September 11, 2001 disasters. Difficulty: Easy Type: Comprehension 30. (p. 5) Of all the events and trends affecting global business today, four stand out as the most dynamic.Which of the following would be one of those events? A. The trend toward buying American cars in Europe. B. The trend toward the acceptance of t he free market system among developing countries in Latin America, Asia, and Eastern Europe. C. The trend toward using English as the global language. D. The trend toward establishing a world currency. E. The trend toward worldwide instant communication. Difficulty: Moderate Type: Comprehension 31. (p. 5) All of the following events and trends are among the four major trends described in the chapter as having a major impact or effect on global business EXCEPT: A. he trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe. B. the rapid growth of the World Trade Organization and regional free trade areas such as NAFTA and the European Union. C. the burgeoning impact of the Internet and other global media on the dissolution of national borders. D. the trend toward decreasing OPEC profits as oil reserves decline in the 21st century. E. the mandate to properly manage the resources and global environment for the generatio ns to come.Difficulty: Hard Type: Comprehension 32. (p. 5-6) Strategic plans that are competitive in global markets are _____. A. the challenge of international marketing B. expanded domestic marketing plans C. not necessary for small firms D. multilingual and multicultural in scope Difficulty: Easy Type: Knowledge 33. (p. 5) Every American company is international, at least to the extent that: A. Federal law requires all corporations to outsource whenever it is cost-effective. B. the Internet generates orders for all American businesses from abroad. C. ts business performance is affected by events that occur abroad. D. natural disasters create a greater global community. E. all of the above. Difficulty: Hard Type: Knowledge 34. (p. 5) Simi Khan wants to move his business into the international arena as quickly as possible; however, to be successful he must consider a variety of factors that have global dimensions. Which of the following factors would be most important to Simi Khan' s computer technology business as he moves forward with his global expansion plans? A. Electricity usage around the world. B.The drive toward a more ergonomic workplace. C. Communication and technology networks in third-world countries. D. Restrictions on advertising in Russia. E. Increasing licensing fees in Spain and Portugal. Difficulty: Moderate Type: Application 35. (p. 7) Foreign investment in the United States is growing yearly. At present, foreign investment in the United States is in excess of $16. 3 ______________. A. trillion B. million C. billion D. thousand E. cannot be determined. The government does not track foreign investment. Difficulty: Moderate Type: Knowledge 36. (p. ) Companies from ____________________ lead in foreign investment in the United States: A. Kingdom of Saudi Arabia B. Russia C. China D. United Kingdom E. Canada Difficulty: Hard Type: Knowledge 37. (p. 7) Foreign investment is a two-way street. An organization (through investment and acquisition) fr om which of the following countries now controls all United Kingdom rail freight business and runs the queen's private train via its English, Welsh, & Scottish Railway unit? A. Germany B. Switzerland C. United States D. Canada E. Netherlands Difficulty: Hard Type: Knowledge 38. (p. 9, Exhibit 1. ) Many U. S. firms do exceedingly well in the global arena. Which of the following organizations is considered to be the U. S. leader with global revenues approximated at $345 billion annually? A. IBM B. ExxonMobil C. Ford Motor D. Wal-Mart E. Hewlett-Packard Difficulty: Moderate Type: Knowledge 39. (p. 9) For firms venturing into international marketing for the first time, the first requirement is: A. employment of foreign nationals in target foreign markets. B. a thorough and complete commitment to foreign markets. C. obtain market data from consulate of the country being targeted.D. an assessment of the cost of doing business in the foreign market. E. performance reviews of all potential salespeople being considered for foreign assignment. Difficulty: Moderate Type: Knowledge 40. (p. 9) ___________ is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit. A. Global management B. Global business C. Marketing D. International marketing E. Global marketing concept Difficulty: Moderate Type: Knowledge 41. (p. ) 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 is called: A. global management. B. global business. C. marketing. D. the global marketing concept. E. international marketing. Difficulty: Moderate Type: Knowledge 42. (p. 9) The only difference between the definitions of domestic marketing and international marketing is that marketing activities: A. focus on consumers in domestic markets and bartere rs in foreign markets. B. take place in more than one country.C. follow traditional communication paths in domestic markets. D. focus on distribution in the domestic market. E. are usually non-regulated in foreign markets. Difficulty: Moderate Type: Comprehension 43. (p. 9) According to the text, the primary difference in the practice of marketing at the domestic versus the international level is: A. the environment within which the marketing plans must be implemented. B. the revenues necessary to be successful. C. the demand charts available to the marketer. D. the control over the budget. E. the accountability of board of directors. Difficulty: HardType: Comprehension 44. (p. 9) With respect to the environment in which a business operates, such factors as competition, legal restrains, government controls, and the weather would all be examples of what are called: A. controllable elements. B. uncontrollable elements. C. predictable elements. D. demographic elements. E. cultural elem ents. Difficulty: Easy Type: Knowledge 45. (p. 9-10) All of the following would be considered to be controllable elements of marketing decisions EXCEPT: A. product. B. price. C. promotion. D. research. E. government regulations. Difficulty: Easy Type: Knowledge 46. (p. 1, Exhibit 1. 3) Considering the model of the international marketing task displayed in the text, which of the following reasons demonstrates the most important difference between the international marketer's task and that of the domestic marketer? A. The international marketer must deal with at least two levels of uncontrollable uncertainty instead of one. B. The international marketer must rely on at least two levels of controllable certainty instead of one. C. The international marketer is never certain about supply or demand. D. The international marketer is never certain about total market size.E. The international marketer must be aware of international monetary exchange rates. Difficulty: Moderate Type: Compreh ension 47. (p. 11, Exhibit 1. 3) Robert Jonas is in charge of a new marketing effort directed toward Peru. In order for his company to effectively market and distribute to all of Peru's major cities, Mr. Jonas must devise a logistics plan for crossing the Andes Mountains on a daily basis. Which of the following foreign environment uncontrollable variables would be a chief concern as Mr. Jonas devises his plan? A. Competitive forces B. Cultural forces C.Geography and infrastructure D. Economic forces E. Political/legal forces Difficulty: Moderate Type: Application 48. (p. 11, Exhibit 1. 3) Compared to the foreign environment uncontrollable variables, which of the following elements is excluded from the domestic marketer's list of uncontrollable variables? A. Political forces B. Competitive structure C. Economic climate D. Cultural forces E. Legal forces. Difficulty: Hard Type: Comprehension 49. (p. 11, Exhibit 1. 3) All of the following would be among the domestic marketer's controll able environmental variables EXCEPT: A. esearch. B. price. C. product. D. channels of distribution. E. economic climate. Difficulty: Moderate Type: Comprehension 50. (p. 11, Exhibit 1. 3) All of the following appear as a foreign environment uncontrollable variable in the model of the international marketing task shown in the text EXCEPT: A. economic forces. B. competitive forces. C. product demand forces. D. cultural forces. E. political/legal forces. Difficulty: Easy Type: Knowledge 51. (p. 10) Amy Sims has been assigned the task of preparing a marketing plan for company for the next year's business activities.She knows that she should begin her plan by examining the variables that she has some control over. These controllable variables would include price, product, channels-of-distribution, and: A. demand. B. supply. C. competition. D. economic climate. E. promotion. Difficulty: Easy Type: Knowledge 52. (p. 10) A political decision involving _______________ would most likely have a direct effect on a firm's international marketing success. A. domestic foreign policy B. immigration reform C. oil exploration policy D. FCC satellite regulations E. FAA airline regulations Difficulty: ModerateType: Knowledge 53. (p. 11) Which of the following would be a chief way that U. S. companies attempt to influence domestic foreign policy? A. A company could lobby with respect to its own interests. B. A company could attempt to bribe elected officials to influence policy decisions. C. A company could ask a foreign government to bring pressure on U. S. legislative bodies. D. A company could threaten to withdraw operations from foreign markets. E. A company could threaten to move its corporate headquarters to a foreign market. Difficulty: Hard Type: Comprehension 54. (p. 2) Competition within the home country can have a profound effect on the international marketer's task. Which of the following BEST illustrates this statement? A. Boeing recently opened talks with its primary trade union to avoid a forecasted strike. B. Microsoft and Dell have jointly invested $700 million in a new venture to investigate high technology of the future. C. Fuji opened a $300 million plant in the U. S. and now commands a 12 percent share of the lucrative U. S. film market. D. Several name companies are still under investigation because of the Enron scandal.E. Declaration of independence by Baltic States after the collapse of the Soviet Union. Difficulty: Moderate Type: Application 55. (p. 12) With respect to challenges faced by the international marketer, a significant source of uncertainty is the number of factors in the: A. foreign environment controllables. B. foreign environment uncontrollables. C. domestic environment controllables. D. parallel environment uncontrollables. E. parallel environment controllables. Difficulty: Easy Type: Comprehension 56. (p. 12) Ralph Waite has just been assigned the task of reviewing his ompany's international investment opportunities. He knows that his view of the list of opportunities should be tempered by foreign environment uncontrollables that might be encountered. Which of the following would be the BEST illustration of a foreign environmental uncontrollable that Mr. Waite should investigate? A. A country's level of technology. B. Pricing policies in the foreign country. C. The ability to do research in the foreign country. D. Manufacturing capabilities in the foreign country. E. The ability to do advertising in the foreign country. Difficulty: Hard Type: Application 57. (p. 2) The _____________ is an uncontrollable element that can often be misread because of the vast differences that may exist between developed and undeveloped countries. A. Structure of distribution B. competitive forces C. economic forces D. political/legal forces E. level of technology Difficulty: Hard Type: Knowledge 58. (p. 13) The _____________ and issues abroad are often amplified by the â€Å"alien status† of the company, whi ch increases the difficulty of properly assessing and forecasting the dynamic international business climate. A. structure of distribution B. competitive forces C. economic forces D. olitical/legal forces E. level of technology Difficulty: Moderate Type: Knowledge 59. (p. 13) Which of the following would be the BEST illustration of the â€Å"alien status† found in the political and legal arena that sometimes cause problems for international marketers as they attempt to do business in foreign countries? A. A company in the U. K. recently purchased Ben & Jerry's ice cream operations. B. The Indian government told Coca-Cola that it must reveal its â€Å"secret formula† if it wished to continue do business in India. C. Richard Branson's Virgin Cola was not widely accepted in the United States. D.French Canadians prefer French to English when conducting business in Canada. E. British Airlines and Japan Airlines join American Airlines to form OneWorld Alliance. Difficulty: M oderate Type: Application 60. (p. 14) Global businesses must be willing to adjust and adapt a marketing program to a foreign market. In a broad sense, the environmental uncontrollable elements constitute the: A. problem. B. opportunity. C. culture. D. marketplace. E. commerce landscape. Difficulty: Hard Type: Comprehension 61. (p. 14) The task of ____________ is the most challenging and important one confronting international marketers.A. care for the environment B. dealing with politics C. international standardization D. cultural adjustment E. international branding Difficulty: Moderate Type: Comprehension 62. (p. 14) Which of the following would be the BEST example to illustrate the fact that international marketers need to make cultural adjustments as they seek to do business abroad? A. In America, white is an accepted color for wedding gowns; in Asia it is the color of mourning. B. Many teens earn extra income by working. C. Women out number men in the United States. D. Most Mi ddle Eastern women do not work outside the home. E.Many European nations require a period of national service for youth. Difficulty: Hard Type: Application 63. (p. 15) ____________ is the conscious effort on the part of the international marketer to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then adjust the marketing mix to minimize the effects. A. Standardization B. Adaptation C. Segregation D. Segmentation E. Projection Difficulty: Moderate Type: Knowledge 64. (p. 15) The primary obstacles to success in international marketing are a person's _________ and an associated ethnocentrism. A. egionalism B. holism C. self-reference criterion D. segregation E. integration Difficulty: Easy Type: Comprehension 65. (p. 15) _____________ is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions. A. Regionalism B. Holism C. Self-reference criterion D. Segregation E. Xenophobia Diff iculty: Moderate Type: Knowledge 66. (p. 15) In the United States, unrelated individuals keep a certain physical distance between themselves and others when talking or in groups. We do not consciously think about that distance; we just know what feels right without thinking.Someone from another culture would not necessarily understand this and would apply their own rules for contact when speaking. The preceding is an illustration of what is called applying a ___________ when reviewing the mentioned social custom of contact. A. self-space B. segregation C. integration D. space command theory E. self-reference criterion (SRC) Difficulty: Moderate Type: Application 67. (p. 15) Your ____________ can prevent you from being aware that there are cultural differences or from recognizing the importance of those differences. A. self-space B. personality C. demographic character D. elf-reference criterion (SRC) E. concept of integration Difficulty: Easy Type: Comprehension 68. (p. 16) The most effective way to control the influence of ethnocentrism and __________ is to recognize their effects on our behavior. A. the self-reference criterion (SRC) B. regionalism C. tunnel vision D. standardization E. xenophobia Difficulty: Moderate Type: Knowledge 69. (p. 17) To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences. Which of the following would be the BEST first-step to take to avoid the aforementioned errors?A. Redefine the problem without the SRC influence. B. Solve the problem for the optimum business goal situation. C. Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem. D. Define the business problem or goal in home-country cultural traits, habits, or norms. E. Define the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country. Difficulty: Hard Type: A pplication 70. (p. 17) Which of the following steps in a cross-cultural analysis to solate self-reference criterion influences would finalize the process and lead to a solution of the problem? A. Redefine the problem without the SRC influence and solve the problem for the optimal business goal situation. B. Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem. C. Define the business problem or goal in home-country cultural traits, habits, or norms. D. Define the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country. E.The last step is not indicated in the list of alternatives. Difficulty: Easy Type: Application 71. (p. 17) To be globally aware, an international marketer must have all the following EXCEPT: A. a tolerance of cultural differences. B. a knowledge of cultures. C. a knowledge of history. D. a knowledge of microeconomics. E. a knowledge of worl d market potential. Difficulty: Easy Type: Knowledge 72. (p. 17) Successful businesspeople in the twenty-first century have ___________ and a frame of reference that goes beyond a region or even a country and encompasses the world. A. a sense of fashion B. lobal awareness C. an intimate knowledge of ecological problems D. a consumer mind-set E. a pronounced skill in promotion Difficulty: Moderate Type: Knowledge 73. (p. 18) There are a variety of stages in the process of becoming involved in international marketing. Which of the following best describes the stage of development where the company's products reach a foreign market through no conscious effort on the part of the marketer? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing Difficulty: Easy Type: Comprehension 4. (p. 18) If a marketer is motivated to enter into an international marketing effort because of temporary surpluses in the dom estic market, which of the following stages BEST characterizes the stage of international marketing involvement for this marketer? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing Difficulty: Moderate Type: Comprehension 75. (p. 19) James Bright's company seek markets all over the world and attempts to sell products that are a result of planned production for markets in various countries.Which of the following stages BEST characterizes the stage of international marketing involvement for Mr. Bright's company? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing Difficulty: Hard Type: Application 76. (p. 20) Maria Peron's company treats the world, including the home market in Spain, as one market. Market segmentation decisions no longer focus on national borders. Instead, market segments are defined by income l evels, usage patterns, and other factors that span countries and regions.Which of the following stages BEST characterizes the stage of international marketing involvement for Ms. Peron's company? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing Difficulty: Moderate Type: Application 77. (p. 22) If a company basically sees the process of international marketing as one where the domestic company seeks a sales extension of its domestic products into foreign markets, the company is using which of the following concepts to formulate its international policies and strategies?A. Domestic market extension concept B. Multidomestic market concept C. Global marketing concept D. Universal marketing concept E. Standardized marketing concept Difficulty: Easy Type: Comprehension 78. (p. 22) The Ajax Corporation has decided to enter the international marketing arena by marketing its products on a country-by-co untry basis, with separate marketing strategies for each country. The company is using which of the following concepts to formulate its international policies and strategies? A. Domestic market extension concept B. Multidomestic market conceptC. Global marketing concept D. Universal marketing concept E. Standardized marketing concept Difficulty: Moderate Type: Comprehension 79. (p. 22-23) A company using the ________________ views an entire set of country markets as a unit, identifying groups of prospective buyers with similar needs as an opportunity market segment and develops a marketing plan that strives for standardization wherever it is cost and culturally effective. A. domestic market extension concept B. multidomestic market concept C. global marketing concept D. universal marketing concept E. tandardized marketing concept Difficulty: Hard Type: Comprehension Fill in the Blank Questions 80. (p. 3) _____________ commerce thrives during peacetime. Global (or international) Diff iculty: Easy Type: Knowledge 81. (p. 7) ___________ (country) leads in foreign investment in the United States. The United Kingdom Difficulty: Hard Type: Knowledge 82. (p. 9, Exhibit 1. 2) Among the top ten players in the global game of commerce, __________ (company) leads the pack with $345 billion in revenues coming from global markets. Wal-Mart Difficulty: Hard Type: Knowledge 83. (p. ) ___________ marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit. International Difficulty: Easy Type: Knowledge 84. (p. 11, Exhibit 1. 3) Domestic marketing elements as price, product, promotion, channels of distribution, and research are called ____________ elements. controllable Difficulty: Moderate Type: Comprehension 85. (p. 15) A person's self-reference criterion is often associated with an associated term called ________. ethnocentrism Difficulty: ModerateType: Knowledge 86. (p. 15) A person's ________________ is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions. self-reference criterion (SRC) Difficulty: Moderate Type: Knowledge 87. (p. 17) The successful businessperson in the twenty-first century has global _____________ and a frame of reference that goes beyond a region or even a country and encompasses the world. awareness Difficulty: Moderate Type: Comprehension 88. (p. 20) At the __________ marketing level, companies treat the world, including their home market, as one market. globalDifficulty: Hard Type: Knowledge 89. (p. 23) The global _____________ views an entire set of country markets as a unit, identifying groups of prospective buyers with similar needs as a global market segment. marketing concept Difficulty: Moderate Type: Knowledge Essay Questions 90. (p. 3) Global commerce thrives in peacetime. Explain why this statement is true. Economic booms often oc cur as the world finds itself at peace. Resources go toward research and technology rather than â€Å"war machines. † Peace brings renewed efforts to negotiate and trade. Barriers generally come down between nations.Nations enter into partnerships and alliances that foster trade. Individual companies are willing to take greater investment risks when peacetime is blooming. Difficulty: Easy Type: Comprehension 91. (p. 4) Provide examples of events and issues that contribute to uncertainty in the international marketing environment. Answers will vary but may include any of the issues discussed on page 4 including, terrorism, growth of the U. S. balance of payments deficit, conflicts between the U. S. and China, predictions of collapse in U. S. consumer spending and housing markets. Difficulty: Moderate Type: Comprehension 92. (p. ) List and briefly describe the four events or trends described in the text that have shaped international business beyond today's bumpy roads and into the future. The events or trends are: (1) the rapid growth of the World Trade Organization and regional free trade areas such as NAFTA and the EU; (2) the trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe; (3) the burgeoning impact of the Internet and other global media on the dissolution of national borders; and, (4) the mandate to properly manage the resources and global environment for the generations to come.Difficulty: Hard Type: Comprehension 93. (p. 6) Joan Wilson owns a small software company, SecureSoft, that specializes in home network security. The company has been in business for 5 years and its sales have grown rapidly. Last year the company began offering international versions (multilanguage) of its software. SecureSoft sells its products through a network of software distributors. However, recently Ms. Wilson has become concerned that Russian software hackers have produced pirated copies of th e company's leading software. Explain how the Russian hackers disrupt SecureSoft's international marketing efforts.SecureSoft international marketing efforts will now have to take into account the lost of sales/profits due to the pirated software. Virtually all components of marketing will likely be impacted. Marketing will have to consider product modifications to preclude prirating efforts, a change in distribution to direct sales, and other software protection schemes. In addition, special advertisement and promotion may be required to promote the security-enhanced products. These efforts to protect is software against piracy come at a cost which means that software retail prices will increase. Difficulty: ModerateType: Application 94. (p. 9) Define international marketing. International marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a pro fit. Difficulty: Moderate Type: Knowledge 95. (p. 10-12, Exhibit 1. 3) List and briefly discuss the domestic environment uncontrollable elements found in the model that describes the international marketing task. The domestic environmental uncontrollable elements include political/legal forces, competitive structure, and the economic climate.For a brief discussion of each element see pages10-12. Difficulty: Moderate Type: Comprehension 96. (p. 11, Exhibit 1. 3) List and briefly comment on the elements found in a company's domestic controllable environment. The elements include price, product, promotion, channels of distribution, and research. For more information see page 10. Difficulty: Easy Type: Comprehension 97. (p. 10-14, Exhibit 1. 3) Explain the differences between the domestic environment uncontrollable elements and the foreign environment uncontrollable elements. According to information presented in the text and in Exhibit 1. , the domestic environmental uncontrollable ele ments include the political/legal forces, competitive structure, and the economic climate. The foreign environment is more inclusive with the following elements political/legal forces, economic forces, competitive forces, level of technology, structure of distribution, geography and infrastructure, and cultural forces. For additional information on differences see pages 10-14. Difficulty: Hard Type: Comprehension 98. (p. 14-15) To be an effective international marketer, why is it necessary to master cultural adjustment? Explain.The marketers must adjust their marketing efforts to cultures to which they are not attuned. In dealing with unfamiliar markets, marketers must be aware of frames of reference they are using in making their decisions or evaluating the potential of a market. As an illustration, the story goes that two shoe salesmen report back to their companies after making a survey trip to an impoverished portion of Africa. One salesman says, â€Å"There is no market for sh oes–no one has any money–poverty is everywhere. † The other shoe salesman (representing world famous Bata Shoe Company) says, â€Å"Great news everybody needs shoes. Bata leads the world in selling shoes to third-world countries. Difficulty: Moderate Type: Comprehension 99. (p. 15) Explain the concept of the self-reference criterion (SRC). SRC is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions. The concept is closely associated with ethnocentrism. Difficulty: Moderate Type: Knowledge 100. (p. 16) To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences.List the four steps that make up the framework for such an analysis. The steps are: (1) define the business problem or goal in home-country cultural traits, habits, or norms; (2) define business problem or goal in foreign-country cultural traits, habits, or norms throu gh consultation with natives of the target country–make no value judgments; (3) isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem; and, (4) redefine the problem without the SRC influence and solve for the optimum business goal situation.Difficulty: Hard Type: Comprehension 101. (p. 17) In order for a company to be globally aware, the company must do what two things (according to the text)? The company must (1) have a tolerance for cultural differences and (2) have knowledge of cultures, history, world market potential, and global economic, social, and political trends. Difficulty: Moderate Type: Comprehension 102. (p. 23) With respect to a strategic orientation to conducting international marketing, describe the global marketing concept.The global marketing concept views an entire set of country markets (whether the home market and only 1 other country, or the home market and 100 other countries) as a unit, identifying gro ups of prospective buyers with similar needs as a global market segment and developing a marketing plan that strives for standardization wherever it is cost and culturally effective. Difficulty: Moderate Type: Comprehension 103. (p. 5) Rick Russell owns a small company that specializes in waste cleanup on the high seas. He believes that his company can grow dramatically if he can find foreign partners and investors.According to the events and trends cited in the text as affecting global business today, which of these trends would have the most impact on Mr. Russell's business? Explain your rationale. After reviewing the trends, the trend that is most likely to affect Russell's operation is the fourth trend–the mandate to properly manage the resources and global environment for the generation to come. Students should supply their own rationale. If another trend is chosen, it should be explained, characterized, and justified. Difficulty: Moderate Type: Application 04. (p. 11, E xhibit 1. 3) Scott Web Services has decided to go international with their new anti-spam software. Using the International Marketing Task model shown in the text, discuss which factors will impact Scott Web Services the most as it gears up to pursue international expansion. To effectively answer this question, students must be familiar with Exhibit 1. 3. Students can comment on the inner ring (domestic controllables), middle ring (domestic environment [uncontrollables]), and the outer ring (foreign environment [uncontrollables]).Students should focus on the technological aspects of the company, political/legal forces, competitive forces, and cultural forces that might impact the company. Students can be creative with this answer; therefore, you might wish to establish ground rules or guidelines. Difficulty: Hard Type: Application 105. (p. 15-17) You are about to eat at a friend's house for dinner. However, your friend is from a foreign country and you are sure that his family will h ave prepared an ethnic meal for you.Explain how your self-reference criterion (SRC) might cause you problems with your upcoming new experience. What should do about this? This example is created to stimulate students into thinking about how that their own â€Å"cultural baggage† can sometimes make a new experience frightening. Eating strange food among â€Å"foreigners† is a common occurrence. Stimulate students think about what SRC is and how it can either hinder or help a relationship. For additional information on SRC, see pages 15-18. Difficulty: Easy Type: Application