INTERNATIONAL MARKETING

Section 1 & 2
MCQ:

1- when a firm uses the same marketing strategies abroad as that used at home it
Probably is…
a- ethnocentric
b- Polycentric
c- geocentric
d- all of the above
answer: a

2- extension of marketing activities across the globe is called as…..

a- international business
b- universal marketing
c- international marketing
d- borderless marketing
answer: c

3- ………….. is/are factors that affect international marketing decisions.

a- Political
b- economical
c- Social.
d- all of the above
answer: d

4- is the performance of business activities that direct the flow of a company's

goods and services to consumers or users in more than one nation for a Profit.
a- international marketing
b- international management.
c- global branding
d- brand equity.

answer: a
5- the term green marketing in international marketing is related to ...

a- Influence of green Color on marketing decisions.

b- environmental concerns and protection.
c- marketing of natural farming
d- green house effect.
answer: b

6- Contractual agreements include……….

a- licensing
b- Franchising
c- Joint ventures.
d- all of the above.
answer: d

7- the advantages of licensing are most apparent when:

a- Capital is scare.
b- impost restrictions
c- Forbid other means of entry
d- all of the above
answer: d

8- Companies have different modes of foreign market entry which are:

a- Exporting
b- contractual agreements.
c- direct foreign investment.
d- all of the above.
answer: d

9- Direct Foreign investment as a means of foreign market entry is used to:

a- Capitalize on low-Cost Labor

b- avoid risk
c- avoid financial commitment
d- none of the above.
answer: a
 10- which of the following is a form of SIA:

a- Joint Ventures
b- licensing
c- equity ownership
d- all of the above.
answer: d

11- This strategy involves selling a product from a home base,

usually without any product modification.
a) exporting
b) licensing
c) joint venture
d) manufacturing
answer: a

12- This entry strategy involves having an agreement that permits a

foreign company to use industry property, technical knowhow, or
engineering design in a foreign market.
a) exporting
b) licensing
c) joint venture
d) manufacturing
answer: b

13- Disney (U.S.A.) does not own the Disneyland amusement park
in Japan but receives royalties because of this type of arrangement.
a) exporting
b) joint venture
c) licensing
d) manufacturing
answer: c

14- The least profitable entry strategy is

a) licensing
b) joint venture
c) manufacturing
d) foreign direct investment
answer: a
15- This is not an advantage of licensing.
a) protection of patent
b) degree of risk
c) amount of capital required
d) amount of profit
answer: d

16- Regarding foreign direct investment, developed countries are

a) largest recipients and largest sources
b) largest recipients and moderate sources
c) moderate recipients and largest sources
d) moderate recipients and moderate sources
answer: a

17- Sony and Pepsi joined together to market Wilson sporting goods
in Japan. This strategy is
a) exporting
b) licensing
c) joint venture
d) assembly operations
answer: c

18- Joint ventures may not overcome this problem.

a) amount of resources
b) legal requirements
c) social requirements
d) control
answer: d

19- This market entry strategy should be used when a company faces
high tariffs but does not want to lose control of its operations.

a) management contract
b) licensing
c) exporting
d) joint venture
e) manufacturing
answer: e
 20- German firms were asked to build the biggest steel mills in the
world in China and to train local personnel. This is known as
a) licensing
b) manufacturing
c) joint venture
d) turnkey
answer: d

21- This market entry strategy offers the largest potential profits and
control.
a) exporting
b) joint venture
c) licensing
d) manufacturing
answer: d

22- Which of the following is not a strategic alliance?

a) mergers
b) acquisitions
c) joint ventures
d) licensing agreements
e) sole ventures
answer: e

23- This entry strategy is usually the most effective.

a) exporting
b) licensing
c) joint venture
d) manufacturing
e) none of the above

answer: e

True and False questions:

1- Culture is pervasive in all marketing activities (T)

2- with the multidomestic market concept, the world is the market and, wherever
Cost - and Culturally effective Standardized marketing mix is developed for
entire sets of Country markets. (F)
3- Government legislation is the only condition that differentiates between
international and domestic marketing. (F)
4- The difference between domestic marketing and international marketing lies
in the different concepts of marketing. (F)
5- International marketing has a very important role to play in different
economies. (T)
6- Government legislation is an important differentiation between international
marketing and domestic marketing. (T)
7- Marketing concepts, processes and principles are universally applicable. (T)
8- indirect exporting requires no equity investments, and has a high risk and
high rate of return. (F)
9- Direct foreign investment requires the most equity of the four modes and
creates the greatest potential for risk. (T)
10- Companies taking their first international step should not use direct
exporting because the risks of financial loss can be huge. (F)
11- exporting is a common approach for the mature international Company
but not for the small Company (F)
12- exporting is long-term, non equity associations between a company
and another in a foreign market. (F)
13- Contractual agreements serve as a means of transfer of knowledge
rather than equity. (T)
14- patent rights, trademark rights, and the right to use technological
processes are granted in foreign Licensing. (T)
15- not all experiences with licensing are Successful because of the burden
of finding, Supervising and inspiring licensees. (T)
16- Franchising is the fastest-growing market - entry Strategy. (T)
17- the Franchiser can follow through on marketing of the products to the
point of final Sale. (T)
18- Franchising is not an attractive form of Corporate organization for
companies wishing to expand quickly with low Capital investment. (F)
19- JVs are Partnerships between individuals (F)
20- SIA implies that one partner's weakness is offset by the other's
Strength. (T)
21- SIA is a relationship established to achieve a goal where only one party
benefits. (F)
22- SIAs may dissolve after reaching their goals or because of different
goals and management styles. (T)
23- A service cannot be licensed internationally. (F)
24- A licensor should assign a trademark to a licensee rather than specify
the conditions under which the mark can be used. (F)
 25- Developed countries are both the largest recipients and sources of
foreign direct investment. (T)
26- A host government is usually indifferent to whether foreign direct
investment is in the form of acquisition. (F)
27- While cultural differences affect international joint venture
performance, culture distance stems more from differences in organizational
culture than from differences in national cultures. (T)
28- All joint ventures are strategic alliances, but not all strategic alliances
are joint ventures. (T)
29- Unlike joint ventures which require a new, separate entity, a strategic
alliance does not necessarily require a new legal entity. (T)

Section 3
True and false questions:
1- Evaluation of a company objectives and resources is crucial in all stages of
planning for international operations. (T)
2- The first step in the international planning Process is deciding in which
existing Country market to make a market investment. (T)
3- Whatever approach to international marketing strategy is adopted, most films
feel the need to segment Foreign market, Targeting and Positioning are also
considered. (T)
4- The first filter in the screening Process is concerned with the ability to access
market in terms of available market Channels and media. (F)
5- A local brand gives a company a uniform worldwide image that enhances
efficiency and cost savings when introducing other Products associated with
the brand name. (F)
6- The market controllables represent the level of uncertainty that are created by
the domestic and foreign environments. (F)
7- One benefit of local branding is the prestige factor. (F)
8- One factor that affects brand image is the influence the country of manufacture
has on a consumer’s positive or negative perception of a product (T)
9- Local branding is the one that has consistent identity with consumers across
the world. (F)
10- Targeting involves associating the product with a particular consumer
benefit and also against competition. (F)
 11- One motives for internalization is the desire to spread geographical
risk. (F)
12- The ultimate purpose of marketing planning is to ensure the
achievement of goals by focusing on the formulation of a suitable marketing
strategy. (T)

MCQ:
1- ………..is the process of increasing involvement of enterprises in
international market.
a- International Planning
b- internationalization
c- Positioning.
d- targeting
answer: b

2- a ……………Can be defined as a name, tern Sign, Symbol or combination

of them which is intended to identify the goods and services to Differentiate
them from Competitors.
a- Segmentation
b- Targeting
c- brand
d- screening.
answer: c

3- there are several drivers impact the Composition of a firm's international

product line:
a- Customer Preferences
b- Price spectrum
c- competitive climate
d- organizational structure
e- all of the above
answer: e
4- Burberry's global marketing strategy of offering "affordable luxury" to
customers in the United States, with a value proposition of being more
expensive than Coach and less expensive than Prada represents a focus on:
a- product.
b- price.
c- promotion.
d- place.
Answer: B

5- A company that succeeds in global marketing:

a- pursues a "one size fits all" strategy by creating identical products for
homogeneous markets.
b- customizes special products for each world country or region.
c- creates both standardized and localized products.
d- uses localized products only.
Answer: C

6- An important managerial task in global marketing is learning to recognize the

extent to which it is possible to extend marketing plans as well as the extent
to which adaptation is desired. The way a company addresses this task is a
reflection of the company's:
a- market penetration.
b- global marketing strategy.
c- product development.
d- product standardization.
Answer: b

7- McDonald's serves McAloo Tikki Burger in India, McRice Burger in

Malaysia, MCOZ Burger in Australia, Kiwi Burger in New Zealand, and
McHuevo Burger in Uruguay and McSamurai Burger in Thailand. These
menu variations are examples of a:
a- combination of global and local marketing mix elements.
b- reflection of failure of U.S. menu items in those countries.
c- deviation from successful marketing practices.
d- replacement of standard menu names with fancy names.
Answer: A
8- Examples of effective global marketing by McDonald's include both
standardized and localized marketing mix elements. Which of the following
does not represent a localized element?
a- It serves McAloo tikki potato burger in India.
b- It uses the advertising slogan "I'm lovin' it."
c- It operates themed dining cars on the Swiss national rail system.
d- It has slang nicknames such as MakDo in the Philippines and McDo in
France. Answer: B

9- A firm’s global marketing strategy addresses which of the following issues?

a- Global market participation
b- Coordination of marketing activities
c- Integration of competitive moves
d- All of the above
answer: d

10- A fundamental difference between local marketing and global

marketing is
a- The lack of marketing mix
b- The scope of activities
c- The lack of strategic planning
d- The focus on resources.
answer: b

11- ………………………. refers to the process of dividing the total market

into internally homogenous groups:
a- Targeting
b- Positioning
c- Segmentation
d- None of the above
answer: c
 12- Which of the following is not a reason that makes global marketing is
imperative?
a. Favorable domestic economy
b. Emerging markets
c. Global competition
d. Saturation of domestic markets
answer: a
13- …………………….. refers to a value premium that a firm generates
from a product with recognizable name:
a- Consistent image
b- Differential advantage
c- Brand equity
d- Global branding
answer: c

Section 4
True or false:
1- Adapting the advertising message means that one or more elements of the
communication campaign are kept the same. (F)
2- one benefit of standardized campaigns is economies of scale.(T)
3- Gaps in cross market maturity levels mandate different advertising
approaches. (T)
4- Export advertising means that every subsidiary develops its own ads based
on what the local affiliate thinks works best in its market. (F)

5- Licensing is considered as a low commitment foreign market entry

method. (T)
6- Once the international sales potential becomes substantial, indirect
exporting often looks more appealing than direct exporting. (F)
7- Acquiring a global perspective requires adopting new approaches. (T)
8- Internationalization is the process of transforming a domestic marketing
management system into an international marketing management over
time. (T)
 9- Globalization aims at increasing trade barriers across the world.
international (F)
10- Joint ventures are static in terms of the mission and the partners’ power
over time. (F)
11- According to the "natural" investment process, a local firm over time
tends to become more powerful than its technology- supplying partner and
buy up more equity in the joint venture. (F)
12- Multinational corporations have shied away from investing in
developing economies. (F)
13- Multinational corporations are more interested in countries that offer
highly skilled labor at relatively low wages than in countries that offer
cheap, unskilled labor. (T)
14- Host countries prefer that multinational corporations invest in
acquisition investments than in greenfield investments for continuity and
job retention reasons. (F)
15- A strategic alliance can only be formed when a joint venture takes
place. (F)
16- For the sake of uniformity and effectiveness, marketers should use the
same market entry strategy in all foreign countries. (F)
17- Free trade zones are used for import purpose but are unsuitable for
export. (F)
18- financing is critical for a turnkey project. (T)
19- According to evidence, mergers and acquisitions do not benefit
stockholders. (T) ( have experienced a high failure rate)
20- A strategic alliance must require partners to make arrangements to
share equity. (F)
21- Global marketing is the business activity of meeting the demand for
goods in foreign markets. (F)

MCQ:
1. ………………………is a separate organization which is formed by the
partners, who contribute equity in equal or different proportion:
a. Wholly-owned subsidiaries
b. Equity joint ventures
c. Franchising
d. Strategic alliance answer: b
2. A partnership at corporate level is:
a. licensing
b. Joint venture
c. Management contract
d. turnkey operation
answer: b

3. The term global marketing refers to a strategy used to achieve all the following
benefits, Except:
a- Cost reduction
b- Enhanced customer preferences
c- Dominate all world markets
d- Increase competitive advantage.
answer: c

4. A host government prefers this method of investment by a foreign firm.

a. screwdriver assembly
b. acquisition
c. indirect investment
d. greenfield enterprise
answer: d

5. Strategic alliances do not necessarily require

a- a new legal entity
b- joint ventures
c- an equity-based investment
e- none of the above is always required
answer: e

6. with …….. headquarters spell out guidelines on the positioning theme, the
brand identity to be used in the ads and brand values are mapped out centrally.
a. laissez- faire
b. concept cooperation
c. export advertising
d. prototype standardization
answer: b
 7. export advertising has all the benefits of standardized campaigns such as:
a. confusion among customers is achieved
b. the same brand image and identity worldwide
c. every subsidiary has a freedom of control over planning and execution of
the global communication
d. none of the above
answer: b

‫اسئلة لم يتم مناقشتها في السكشن‬

True or false:
1- Global marketing is the business activity of meeting the demand for goods
in foreign markets. (F) (definition of exporting)
2- The exporting strategy works well when a company's home- country
currency is strong. (F)
3- Once noticeable feature of foreign direct investment flows is that their
share in total inflows is higher in countries where the quality of institutions
is lower. (T)
4- 14. Maquiladora plants focus on assembly activities. (T)
5- 15. In general, a host country prefers the establishment of a screwdriver
assembly operation. (F)
6- Customs duties are collected from goods entering a free trade zone but are
refunded if such goods do not subsequently enter that country's customs
territory. (F)
7- An export processing zone, as a special type of free trade zones, is used for
manufacturing for export. (T)
8- Free trade zones do not offer any tax advantage other than the
postponement of the payment of customs duties. (F)
9- An importer using a free trade zone does not have to pay duties while goods
are being stored there. (T)
10- Free trade zones are basically used for warehousing because such zones
cannot be used for manufacturing activities. (F)
MCQ:
1- This strategy involves manufacturing operations in a host country for the
purpose of exporting a product made there to a company's home country or to
other third countries.
a) sourcing (X)
b) joint venture
c) assembly
d) licensing

2- Warnaco uses this strategy to save on labor by cutting fabrics in the United
States and ships them to Costa Rica to be sewn.
a) exporting
b) management contract
c) turnkey
d) assembly operation (X)

3- This entry mode happens when an investor's transferred resources dominate

over those provided by an acquired firm.
a) assembly
b) brownfield (X)
c) greenfield
d) redfield
4- The future of free trade zones lies in
a) warehousing
b) manufacturing (X)
c) sorting
d) salvaging

5- Free trade zones do not offer this benefit.

a) cash flow
b) export facilitation
c) production costs
d) duties
e) all of them are benefits (X)
 ‫اسئلة تم االجابة عليها في السكشن ولكن مصاغة بشكل مختلف‬
True OR False:
1- Joint ventures are dynamic in terms of the mission and the partners’ power
over time. (T)
2- According to the "natural" process of joint ventures, over time, the
technology-supplying firm buys more or all equity. (T)
3- Compared to the “political leverage” process, the “natural” process of joint
ventures indicates that, over time, the technology supplying firm gets stronger
and buys more or all equity from its local partner. (T)
4- Multinational corporations’ plant location decisions are influenced less by
cheap, unskilled labor and more by highly skilled labor at relatively low
wages. (T)
5- Because it takes time to start a greenfield enterprise, a host government
generally prefers a foreign firm to acquire an existing local business. (F)
6- Cross-border acquisitions have experienced a high failure rate. (T)
7- All joint ventures are strategic alliances. (T)
8- Free trade zones can be used to facilitate both exports and imports. (T)
9- Free or foreign trade zones (FTZs) are regulated to allow only import activities
while prohibiting using such zones for export activities. (F)