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Business marketing management b2b 11th edition

25/03/2021 Client: saad24vbs Deadline: 3 days

Test Bank For Business Marketing Management B2B, 11th Edition Michael D. Hutt
SAMPLE
Chapter 6—Business Marketing Strategies for Global Markets

MULTIPLE CHOICE

An industrial firm’s first encounter with an overseas market usually involves _____ because it involves the least commitment and risk.
a.contractingb.licensingc.exportingd.franchisinge.a turnkey operation

ANS: C PTS: 1

NAT: AACSB Reflective Thinking | CB&E Model International perspective | R&D Managing strategy & innovation

Exporting is a viable international entry strategy when the firm:
a.wishes to maintain direct control of the marketing program.b.lacks the resources to make a significant commitment to the market.c.wants to form long-term relationships with international customers.d.all of the abovee.none of the above

ANS: B PTS: 1

NAT: AACSB Reflective Thinking | CB&E Model International perspective | R&D Managing strategy & innovation

Included among the contractual modes of international market participation are:
a.licensing.b.management contracts.c.exporting.d.all of the abovee.both (a) and (b)

ANS: E PTS: 1

NAT: AACSB Reflective Thinking | CB&E Model International perspective | R&D Managing strategy & innovation

As a mode of international market entry, licensing agreements pose the following limitation(s):
a.a firm has less control over a license than over its own exporting or manufacturing abroad.b.licensing agreements include a time limit and additional extensions (beyond the first) that may not be readily permitted by a number of foreign governments.c.the licensee may become an important competitor in the future.d.all of the abovee.(b) and (c) only

ANS: D PTS: 1

NAT: AACSB Reflective Thinking | CB&E Model International perspective | R&D Managing strategy & innovation

_____ involves sourcing a product from a producer located in a foreign country for sale there or in other countries.
a.Contract manufacturingb.Exportingc.Franchisingd.A joint venturee.A turnkey operation

ANS: A PTS: 1

NAT: AACSB Reflective Thinking | CB&E Model International perspective | R&D Managing strategy & innovation

This mode of international market participation permits a client to require a complete operational system, together with skills sufficient to allow the unassisted maintenance and operation of the system. Once the package agreement is on line, the system is owned, controlled, and operated by the client. This provides an apt description of:
a.licensing.b.a turnkey operation.c.a joint venture.d.contract manufacturing.e.importing.

ANS: B PTS: 1

NAT: AACSB Reflective Thinking | CB&E Model International perspective | R&D Managing strategy & innovation

In pursuing international entry options, joint ventures often constitute a feasible option because:
a.they provide the only path of entry into many foreign markets.b.they may provide for better relationships with local organizations (for example, local authorities) and with customers.c.they may open up market opportunities that neither party to the venture could pursue alone.d.all of the abovee.(a) and (b) only

ANS: D PTS: 1

NAT: AACSB Reflective Thinking | CB&E Model International perspective | R&D Managing strategy & innovation

Consider this position: If you run a pharmaceutical company with a good product to distribute in Japan but have no sales force to do it, find someone in Japan who also has a good product but no sales force in your country. Why not join forces to maximize contribution to each other’s fixed costs? This describes the logic of:
a.a joint venture.b.exporting.c.franchising.d.importing.e.global marketing.

ANS: A PTS: 1

NAT: AACSB Reflective Thinking | CB&E Model International perspective | R&D Managing strategy & innovation

Multinational firms have traditionally managed operations outside their home country with an approach that permits individual subsidiaries to compete independently in different country-markets. Here each subsidiary resembles a strategic business unit that is expected to contribute earnings and growth to the organization. This describes:
a.a multidomestic strategy.b.a differentiated strategy.c.a global strategy.d.an export-based strategy.e.a coordinated strategy.

ANS: A PTS: 1

NAT: AACSB Reflective Thinking | CB&E Model International perspective | R&D Managing strategy & innovation

When a firm seeks competitive advantage with strategic choices that are highly integrated across countries (for example, a standardized core product that requires minimal local adaptation across country-markets), this describes:
a.a multidomestic strategy.b.a differentiated strategy.c.a global strategy.d.an export-based strategy.e.a coordinated strategy.

ANS: C PTS: 1

NAT: AACSB Reflective Thinking | CB&E Model International perspective | R&D Managing strategy & innovation

_____ is one in which a firm’s competitive position in one country is significantly influenced by its position in other countries.
a.A multidomestic industryb.A differentiated industryc.A global industryd.An export-based industrye.A coordinated industry

ANS: C PTS: 1

NAT: AACSB Reflective Thinking | CB&E Model International perspective | R&D Managing strategy & innovation

In _____, firms pursue separate strategies in each of their foreign markets-competition in each country is essentially independent of competition in other countries.
a.a multidomestic industryb.a differentiated industryc.a global industryd.an export-based industrye.a coordinated industry

ANS: A PTS: 1

NAT: AACSB Reflective Thinking | CB&E Model International perspective | R&D Managing strategy & innovation

The type of international strategy that concentrates as many activities as possible in one country, serves the world market from the home base, and closely coordinates those activities that must be performed near the buyer (for example, service) is referred to as:
a.a country-centered strategy.b.an export-based strategy.c.a purest global strategy.d.a segmented international strategy.e.a coordinated international strategy.

ANS: C PTS: 1

NAT: AACSB Reflective Thinking | CB&E Model International perspective | R&D Managing strategy & innovation

Concerning international strategy, a firm that concentrates manufacturing and support activities in one country but gives local marketing subsidiaries significant latitude in each region of the world is following which type of international strategy?
a.a country-centered strategyb.an export-based strategyc.a purest global strategyd.a segmented international strategye.a coordinated international strategy

ANS: B PTS: 1

NAT: AACSB Reflective Thinking | CB&E Model International perspective | R&D Managing strategy & innovation

The choice of a particular international market entry mode depends on a range of factors including the size of the market and its growth potential. Markets of limited size surrounded by trade barriers may be supplied most cost effectively via:
a.licensing or contract manufacturing.b.a local production and marketing subsidiary.c.exporting.d.selective distribution.e.none of the above

ANS: A PTS: 1

NAT: AACSB Reflective Thinking | CB&E Model International perspective | R&D Managing strategy & innovation

In entering high-risk country-markets, firms can reduce their risk exposure by adopting low-commitment modes of entry such as:

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