WorksheetsGlobal Marketing Fundamentals (Chapters 1-3)
Total questions: 60
Worksheet time: 30mins
Which statement best describes ethnocentric orientation in international marketing?
Local subsidiaries design independent strategies
Home-market practices dominate foreign operations
Global integration overrides local preferences
Decentralized decision-making across regions
SME internationalization commonly begins with which entry mode due to limited resources and risk tolerance?
Cross-border mergers and acquisitions
Greenfield foreign subsidiaries
Exporting via intermediaries
Licensing exclusive global rights
In the Uppsala model, firms increase international involvement primarily by which process?
Government-mandated outward investment
Centralized global product standardization
Immediate large-scale market entry
Gradual learning and incremental commitment
Economies of scale in global marketing arise mainly from which source?
Outsourcing compliance documentation
Reducing culture-specific adaptations
Eliminating tariffs through lobbying
Spreading fixed costs over larger volumes
Which pair of advantages typically explains early exporting for SMEs?
Access to tacit market knowledge
Immediate global brand recognition
Lower commitment and reversible risk
Guaranteed tariff exemptions
Minimal fixed investment required
Global market segmentation is most effective when segments are defined by which criterion?
Random demographic clusters
National income per capita only
Shared behavior and benefits sought
Currency stability indices
According to incremental internationalization logic, what typically precedes establishing a sales subsidiary?
Direct exporting with agents or distributors
Full-scale manufacturing abroad
Equity joint venture formation
Global licensing of core technologies
Which statement correctly distinguishes scale from scope economies?
Scope depends on tariffs; scale depends on culture
Scale needs multiple brands; scope needs volume
Scope lowers unit costs only; scale diversifies
Scale spreads fixed costs; scope shares assets
What is the primary risk of relying solely on ethnocentric decision-making for global markets?
Misfit with local consumer preferences
Excessive regulatory compliance costs
Loss of global logistics efficiency
Overdiversification of product portfolios
Which sequence aligns with the Uppsala model’s typical establishment chain?
Franchise network, global brand, local manufacturing
M&A entry, regional HQ, local joint venture
Greenfield plant, licensing, exporting, franchising
No export, occasional export, agents, sales subsidiary
In early exporting, what is a realistic misconception leading to errors?
Tracking exchange rates regularly
Expecting learning to reduce uncertainty
Assuming domestic pricing works unchanged
Using intermediaries to access customers
What metric best indicates achieved economies of scale in production?
Increase in regional management layers
Lower average unit cost at higher volume
Higher advertising spend per market
Greater number of SKUs offered
Which rationale supports moving from exporting to establishing a local sales subsidiary?
Guaranteed tax holidays for all investors
Requirement to centralize decisions globally
Need for deeper market control and learning
Desire to avoid any local adaptation
Which factor most strongly drives the choice between exporting and licensing for an early-stage firm entering a low-risk market?
Degree of control over branding
Tariff levels on imports
Speed of market coverage
Access to local financing
A company facing high political risk but attractive demand should prioritize which entry mode to balance control and exposure?
Indirect exporting via agents
Pure franchising network
Joint venture with local firm
Greenfield subsidiary
When would a hierarchical entry mode be superior to cooperative modes like alliances?
When political risk is extremely high
When minimizing capital outlay is essential
When local distributors are highly capable
When proprietary know-how needs strong protection
Strategic alliances differ from joint ventures primarily in which way?
Alliance limits technology sharing
Alliance requires majority ownership
Alliance coordinates without equity creation
Alliance forms a new legal entity
Zara’s fast-fashion model most benefits from which internationalization approach?
High-control subsidiaries for rapid replenishment
Loose licensing for broad brand reach
Agent-based exporting for flexibility
Franchising to reduce capital intensity
For the Tata Nano case, which barrier most constrained global rollout?
Safety and regulatory standards
Luxury positioning conflicts
Lack of distribution partners
Currency convertibility issues
Which entry mode best supports tight quality control and uniform customer experience across markets?
Contract manufacturing
Master franchising
Exporting via trading houses
Wholly owned subsidiary
Political risk primarily includes which types of events? Select all that apply.
Consumer preference shifts
Competitor price wars
Civil unrest disruptions
Government expropriation
When is a joint venture especially suited for market entry?
When local knowledge and regulation require a domestic partner
When speed matters more than compliance
When avoiding any capital investment is necessary
When brand control is unimportant
Commercial risk assessment mainly evaluates which dimensions? Select all that apply.
Price elasticity variability
Demand uncertainty
Trade sanctions probability
Regulatory expropriation
Which feature distinguishes strategic alliances from hierarchical modes in knowledge transfer?
Alliances mandate full disclosure of technology
Alliances enable selective sharing via contracts
Hierarchical modes rely on informal sharing only
Hierarchical modes block any learning by partners
In markets with strong brand counterfeiting risk, which entry mode best protects IP?
Licensing to multiple franchisees
Direct exporting
Commission-based agents
Wholly owned subsidiary production
What is the main trade-off when choosing franchising for global expansion?
Faster learning versus slower market access
Higher margins versus higher fixed costs
Greater IP safety versus weaker local ties
Lower capital needs versus reduced operational control
Which combined risks would most justify a staged entry starting with exporting?
Strong demand, reliable governance
Moderate demand, uncertain institutions
Weak demand, heavy regulation
Stable demand, proven partners
A firm considers a strategic alliance in a sensitive industry. Which governance provision most reduces opportunism risk?
Detailed performance metrics and exit clauses
Vague IP language to encourage trust
Open-ended commitments without milestones
Exclusive territorial rights with no audits
In which of the following situations do geographical structures best serve firms in international marketing?
When firms operate in domestic markets only with limited exports
When company is new or inexperienced with international markets and business
When firms want to move capacity and production fast with efficient world wide manufacturing methods
When firms have diversified product lines and operate in many countries
The market share of a multinational company increases when domestic markets and international markets are concurrently managed under the organization structure as
The international division structure
High risk
Matrix structure
The functional structure
One of the advantages of a matrix structure in setting prices in international markets is
Ease of reporting lines and evaluation decisions
Speed of response to different constraints across subsidiaries
Lower cost of negotiation in distribution channels
The sharing of relationship management responsibilities
The world’s number one product at all times is
Sex and recreation
Brand relationships
A good education
Good health
Which communication organization is most appropriate in global marketing?
Regional structure
International structure
Functional structure
National structure
The main situations where the existence of regional management centers is necessary are
When sales volume in a particular region becomes substantial and when each region needs to be treated separately due to the heterogeneity within region and the heterogeneity between the regions are extensive
When domestic demand is declining and product life cycles are shortening across countries
When subsidiaries lack autonomy and require centralized headquarters control
When exclusive distribution contracts are expiring in multiple territories
The key factor in Richard Branson Virgin global success lies in
Intensive expatriate hiring
Quality deployment function
Cost leadership pricing
Constantly extending the brand
QPR is
Quality deployment function
Quality price relationship
Quantified promotion research
Quick product repositioning
Which of the following factors does not contribute to price escalation in global marketing?
Tariff and insurance charge
Local taxes
Product configuration
Shipping
Which economy is also referred to as a ‘sellers economy’?
The United States dollar
A sellers market when demand exceeds supply
A free economy with high relation to low inflation
An economy of the Eastern European states dependent relative to total Western economies
Dumping is an important global pricing issue that involves
A company exporting a product at a lower price than it normally charges in its own market
A company importing goods at higher prices due to tariff differences across countries
A firm using local distributors to bypass price controls
A brand bundling services to reduce perceived price escalation
Transfer pricing in international trade is usually used to
Increase market coverage through licensing
Avoid customer warranty claims
Control exchange rate risks
Reduce tax burdens across regions
If you were a marketing manager in a small motorcycle manufacturer and you were given the company’s plan of launching the new model in Vietnam, you would need to know which facts about the market?
Average disposable income in Vietnam is too low to support vehicle purchases
Net annual growth of scooter purchases in Vietnam is rising
Worldwide retail sales of motorcycles have dropped continuously since 2006
Motorcycles are the most popular means of transportation in Vietnam
Which strategies are available in order to counter price escalation?
Manufacturing products in-country to avoid import duties
Shortening the price list to simplify customer choices
Reengineering the distribution process to lower profit margins
Redesigning product packaging to reduce logistics costs
In international marketing, the most critical distribution question are
Warehousing
Choice of transportation methods
Who should distribute channel
Bonding
The two types of channel integration are
The contractual and administered integration
The vertical and horizontal integration
The cooperative and competitive integration
The forward and backward integration
In international marketing, containerization improved the cost savings of total marketing communications and efficiencies through
Uniform global advertising standards
Better sales force compensation
Costs, reliability, safe for money and convenience
Reduced legal compliance costs
Factors influencing the communications situation do not include
Market coverage differences
Technological differences
Language differences
International differences
The most effective model for efficiency marketing communication exposes
The best method to position and identify market segments quickly and accurately
The average time media channels reach consumers
The cost per thousand impressions across channels
The optimal mix of sales promotion and public relations
Advertising strategy is usually based on a consistent positioning approach. What is CPI?
Competitive parity approach
Country performance indicator
Customer preference index
Cost per impression
Which communication model discusses information circulation, the transferring of perceptions, knowledge and beliefs or ideas through various media and combining facts in order to make sense with positions in the supply of information?
The basic communication model
The diffusion of innovations model
The marketing funnel model
The public relations model
A masculine culture’s strategy for negotiation is usually
Consensus-based, seeks harmony across groups
Avoidant, defers decisions to seniority
Cooperative, focused on relationship first
Competitive, focused on winning the deal
Which of the following best true of negotiations in international markets?
Concessions are always given late after signing
Silence should never be used as a tactic
Goals and aspirations are identical across regions
The style and management of negotiating varies greatly across cultures
Compared to North Americans and North Europeans who prefer phone negotiations and the fast pace, the Japanese prefer and pay attention to
Low power distance and informality
More face-to-face meetings and formal protocol
Short-term contracts with fast results
High-pressure tactics with hard deadlines
The main differences between bribery and lubrication are
Bribery is a payment to secure unlawful advantage, lubrication is a small payment to speed routine process
Bribery and lubrication are identical across cultures
Lubrication is a large payment to influence policy outcomes
Bribery is legal in most international markets today
Lobbying as a promotional method in foreign markets is important, and they vary most often in terms of national political structure based on
Whether the system is democratic, authoritarian, or mixed
The domestic legal code and court independence
The media mix buyers can rely on from TV ads, social networks
The role of central bank monetary policy on interest rates
Implementing a global, standardized advertising program has the following advantages except
Perfect cultural fit in every country
Better coordination and control
Strong brand consistency across markets
Lower costs and faster execution
A strategy of using pricing anchoring and as a competitive weapon in order to increase market share is
Cost-plus pricing
Everyday low pricing
Predatory pricing
Skimming pricing
What are the main advantages of employing expatriates?
Better co-ordination and control
Greater cultural sensitivity
Faster local adaptation and protocol
More consistent company policy execution
Three supranational international firms such as Nestlé, Ikea and H&M integrate
Supply chain standardization
Preferred localized brand management
Product and advertising budgets
Global content and localization balance
When the domestic market is saturated with 80% of the market share, the largest global competitor remains
Domestic Niche Market
Regional Mass Market
United States market
International Mass Market
One international structure is based on functional departments
Only in franchises
Sometimes
False
True
