Global Marketing Chapter 12

Which of the following statements is true for domestic-based sales representatives?

• the sales representative is a company employee, less control of sales activities can be achieved than with independent intermediaries.

• the sales representative is a company employee, better control of sales activities can be achieved than with independent intermediaries.

• 1. the sales representative is a company employee, better control of purchasing activities can be achieved than with independent intermediaries.

• 1. the sales representative is a company employee, better control of purchasing activities can be achieved than with dependent intermediaries.

Which of the following is NOT mentioned as a main reason for establishing local production?

• To defend existing business

• 1. To gain new business 

• 1. To increase market share 

• 1. To save costs

In the "Types of transfer of company (HQ) culture to the subsidiary" matrix, what does "Integration" represent?

• High company values transfer, low interaction with the region

• Low company values transfer, high interaction with the region

• High company values transfer, high interaction with the region

• 1. Low company values transfer, low interaction with the region

What is a common challenge of greenfield investments compared to acquisitions?

• Greenfield requires building operations from scratch, delaying market entry
  

• Greenfield avoids building operations from scratch, leading to faster market entry
  

• Greenfield requires building new operations and reduces market entry time

• Greenfield avoids delays by taking over operations

Formation of region centres implies creation of a regional HQ or appointment of a lead country', which will usually play the role of coordinator and stimulator with reference to a single homogeneous product group. Which things do the coordination and stimulator consist of:

• 
  Country and business strategies are mutually coherent; facilitating the translation of ‘global’ products into local country strategies

• Country and business strategies are mutually coherent; adequate synergies are fully identified and exploited across business and countries

• Country and business strategies are mutually coherent; facilitating the translation of ‘global’ products into local country strategies

• Country and business strategies are mutually coherent; facilitating the transition of 'global products into local country strategies

  
  

  
  
  

What could possibly be the consequence of closing down a foreign subsidiary ?

• 1. The business goes bankrupt immediately

• 1. The foreign entry mode could be greatly altered

• The complete withdrawal from the host country

• 1. B and C are correct

A foreign branch is an ...… and a legal part of the firm. A foreign branch also often employs nationals of the country in which it is located as ...… If foreign market sales develop in a ...… direction, the firm (at a certain point) may consider establishing a wholly owned sales…...

• Extension - scale-people - positive - subsidiary

• Extension - sales-pepper - positive - subsidiary

• Extension - sales-people - positive - subsidiary

• Extension - sales-people - position - subsidiary

What is the primary reason subsidiaries in developed countries are becoming more vulnerable?

• Increasing competition

• 1. Globalization of systems and processes 

• 1. Lack of innovation 

• 1. Restrictions from headquarters

How does strategic renewal influence a company’s decision to relocate its headquarters?

• It offers the company a chance to stay in place and maintain its past legacy

• It forces the company to break from its market and signal an unstable future

• It offers the company a chance to break with its past and signal a fresh start

• It offers the company to stay in its market to preserve an unstable past

Which factors affect the choice of a lead country?

• The marketing competences of the foreign subsidiaries; the quality of human resources in the countries represented; the strategic importance of the countries represented; location of production; legal restrictions of host countries

  
  

• The marketing competences of the foreign subsidiaries; the quality of human resources in the countries represented; the strategic importance of the countries represented; location of production; legal restrictions of home countries

• The marketing competences of the domestic subsidiaries; the quality of human resources in the countries represented; the strategic importance of the countries represented; location of production; legal restrictions of host countries

  
  

• The marketing competences of the foreign subsidiaries; the quality of human resources in the countries represented; the strategic importance of the countries represented; location of distribution; legal restrictions of host countries