INTERNATIONAL MARKETING - FINAL TERM - QUIZ 1

True or False: Business ethics are universal principles that apply uniformly across all cultures and societies.

• TRUE

• FALSE

Answer explanation

Business ethics can vary across cultures, and what is considered ethical in one culture may differ in another.

Corruption is generally detrimental to international business as it can lead to legal consequences and damage the reputation of companies involved.

• TRUE

• FALSE

Answer explanation

Corruption can have severe consequences for companies, including legal repercussions and harm to their reputation.

Offering bribes to foreign officials is an acceptable business practice in some cultures and can facilitate smoother business operations.

• TRUE

• FALSE

Answer explanation

While bribery may be more prevalent in certain cultures, it is generally considered unethical and is often illegal in many jurisdictions.

True or False: Social responsibility in international marketing involves a company's commitment to contribute to the well-being of society, beyond its economic responsibilities.

• TRUE

• FALSE

Answer explanation

Social responsibility goes beyond economic objectives and involves contributing to the broader well-being of society.

True or False: Exporting is a market entry strategy that involves producing goods in a foreign country to sell domestically.

• TRUE

• FALSE

True or False: Franchising provides a standardized approach to business operations, ensuring consistency across different locations.

• TRUE

• FALSE

True or False: McDonald's operating in various countries through locally owned and operated franchises is an example of a strategic alliance.

• TRUE

• FALSE

What is a characteristic of franchising?

• High control by the franchisor over franchisees' operations

• Diverse business operations across franchise locations

• Limited standardization of products and services

• Franchisees have full autonomy in decision-making

Why do companies often engage in joint ventures in international marketing?

• To avoid sharing risks

• To gain full control over the project

• To access local knowledge and resources

• To limit competition

McDonald's, a global fast-food giant, is considering entering the Russian market. McDonald's wants to ensure uniformity in its brand image, menu offerings, and operational standards across its locations in Russia. What market entry strategy aligns with McDonald's objective of maintaining consistency?

• a. Exporting

• b. Franchising

• c. Joint Venture

• d. Strategic Alliance