The Scope and Challenge of International Marketing

Chapter 01 The range of a function and Ch each(prenominal)enge of Inter demesneal Marketing True / False Questions 1. (p. 3) globular commerce thrives during peacetime. full-strength worry piano sheath K at bingle timeledge 2. (p. 4) To date, the lesson for external commerce in the 21st century is expect the unexpected. TRUE trouble leisurely lineament association 3. (p. 5) Today, every Ameri cornerstone commercial enterprise is world(prenominal). TRUE barrier unemotional character reference acquaintance 4. (p. 5) one and only(a) tied(p)t that will stoop the shape of worldwide line of credit as the hereafter unfolds is the rapid growth of the World make out nerve, NAFTA, and the European Union.TRUE barrier tick grammatical case light 5. (p. 5) One event that will influence the shape of outside(prenominal) melody as the future unfolds is the unprecedented credenza of communism and socialism in Latin America. irrational encumbrance Moderate geek c ognition 6. (p. 5) A movement that will chip in-to doe with global art in the future is a mandate to the right way manage the re addresss and planetary environment. TRUE Difficulty Moderate emblem lore 7. (p. 5) Today, roughly course activities be local or countryal in backdrop. FALSE Difficulty Moderate theatrical role cognition . (p. 6, mark Borders 1. 1) What do French farmers, Chinese fishermen, and Russian hackers stool in commonthey can all possess subsidy payments from the U. S. political sympathies. FALSE Difficulty Moderate Type K presentlyledge 9. (p. 6) Foreign-made products remain a small muckle of all consumer products sold in the United States. FALSE Difficulty liberal Type experience 10. (p. 8) U. S. companies get by with global competitors in immaterial foodstuffs and have little competition in interior(prenominal) foodstuffs from global competitors. FALSE Difficulty Easy Type K this instantledge 11. (p. , promenade 1. 2) The leading U. S. multinational with contrasted revenues of $345 billion improver each year is Wal-Mart. TRUE Difficulty life- queering Type Knowledge 12. (p. 9) planetary merchandising is the performance of business activities designed to plan, price, promote, and unmediated the flow of a associations goods and go to consumers or users in more than than one nation for a profit. TRUE Difficulty Moderate Type Knowledge 13. (p. 9-10) A good illustration of an intractable variable that efficacy impact external business is a trade decision with respect to question.FALSE Difficulty unattackable Type cover 14. (p. 11, promenade 1. 3) The foreign un manageable environment is the same as the house servant help uncorrectable environment. FALSE Difficulty dense Type experience 15. (p. 12) The level of technology is an refractory fragment for planetary marketers. TRUE Difficulty Moderate Type Knowledge 16. (p. 14) The political and lawful environment is a controllable element for p lanetary marketers because of the ability to lobby and influence legislation. FALSE Difficulty Moderate Type Knowledge 7. (p. 14) In a all-encompassing sense, the uncontrollable elements of the foreign business environment constitute the culture. TRUE Difficulty Hard Type erudition 18. (p. 15) John refuses to buy Japanese products because he sees them as a way of selling out to nation kn have got for its aggressive behavior. John is using a self-reference measuring to make his decision. TRUE Difficulty Moderate Type Application 19. (p. 15) A self-reference touchstone is closely related to to ethnocentrism. TRUE Difficulty Moderate Type erudition 20. (p. 5) Sam Watkins just recently ate and, therefore, feels reassert in refusing food from his Middle Eastern host. In this instance, Sams self-reference criterion has just saved him from making a heathenish blunder. FALSE Difficulty Hard Type Application 21. (p. 16) To invalidate errors in business decisions, it is necessity to conduct a cross- pagan analysis that emphasizes the need for ethnocentrism. FALSE Difficulty Moderate Type Comprehension 22. (p. 17) To be globally aw are, you should be tolerant of ethnical balances. TRUE Difficulty Easy Type Comprehension 23. (p. 7) To be globally aware, you should require that all of your international customers know about your cultural rules and adhere strictly to each one. FALSE Difficulty Moderate Type Comprehension 24. (p. 18) If a confederacy is in a stage designated as being one with no train foreign market, the company does not actively cultivate customers outside national boundaries. TRUE Difficulty Easy Type Knowledge 25. (p. 20) Of all the stages in international business, a stage called regular foreign selling produces the most profound change in the orientation of the company toward markets and associated planning activities.FALSE Difficulty Moderate Type Knowledge 26. (p. 22) If a company uses a strategic orientation called domestic market e xtension, it views its international operations as secondary to and an extension of its domestic operations. TRUE Difficulty Moderate Type Knowledge 27. (p. 22-23) The global trade image views the marketplace as consisting of one primary domestic market that is complimented by several smaller regional markets. FALSE Difficulty Hard Type Knowledge Multiple Choice Questions 28. (p. 3) International __________ play an important role in promoting global peace and prosperity.A. foreign aid and actionies B. competition and consumer spending C. trade and selling D. consumer and industrial services Difficulty Easy Type Knowledge 29. (p. 4) According to the text, all of the come ining events have impacted international business EXCEPT A. the Indian Ocean tsunami in 2004 B. the high-tech bust of 2001. C. the steroids in major partnership sports scandal D. 2003 SARS outbreak in Asia. E. September 11, 2001 disasters. Difficulty Easy Type Comprehension 30. (p. 5) Of all the events and t rends affecting global business today, four stand out as the most dynamic.Which of the followers would be one of those events? A. The trend toward buying American cars in Europe. B. The trend toward the acceptance of the bleak market schema among developing countries in Latin America, Asia, and Eastern Europe. C. The trend toward using English as the global language. D. The trend toward establishing a world currency. E. The trend toward worldwide instant communication. Difficulty Moderate Type Comprehension 31. (p. 5) exclusively of the spare-time activity events and trends are among the four major trends described in the chapter as having a major impact or effect on global business EXCEPT A. he trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe. B. the rapid growth of the World Trade Organization and regional free trade areas such as NAFTA and the European Union. C. the burgeoning impact of the Internet a nd other global media on the dissolution of national borders. D. the trend toward decreasing OPEC profits as oil militia decline in the 21st century. E. the mandate to properly manage the resources and global environment for the multiplications to come.Difficulty Hard Type Comprehension 32. (p. 5-6) Strategic plans that are competitive in global markets are _____. A. the challenge of international merchandise B. expanded domestic merchandise plans C. not prerequisite for small firms D. multilingual and multicultural in scope Difficulty Easy Type Knowledge 33. (p. 5) Every American company is international, at least to the design that A. Federal law requires all corporations to outsource whenever it is cost- in force(p). B. the Internet generates orders for all American businesses from abroad. C. ts business performance is moved(p) by events that occur abroad. D. natural disasters create a greater global community. E. all of the above. Difficulty Hard Type Knowledge 34. (p. 5) Simi Khan wants to move his business into the international field as quickly as possible however, to be successful he mustiness consider a variety of factors that have global dimensions. Which of the chase factors would be most important to Simi Khans computer technology business as he moves onwards with his global expansion plans? A. Electricity usage around the world. B.The drive toward a more ergonomic workplace. C. dialogue and technology networks in third-world countries. D. Restrictions on advertising in Russia. E. Increasing licensing fees in Spain and Portugal. Difficulty Moderate Type Application 35. (p. 7) Foreign investment in the United States is growing yearly. At present, foreign investment in the United States is in excess of $16. 3 ______________. A. trillion B. million C. billion D. thousand E. cannot be de depotined. The government does not track foreign investment. Difficulty Moderate Type Knowledge 36. (p. ) Companies from ____________________ lead in for eign investment in the United States A. Kingdom of Saudi Arabia B. Russia C. China D. United Kingdom E. Canada Difficulty Hard Type Knowledge 37. (p. 7) Foreign investment is a two-way street. An organization ( by dint of and through investment and acquisition) from which of the by-line countries now controls all United Kingdom rail freight business and runs the queens private train via its English, Welsh, & Scottish railway system unit? A. Germany B. Switzerland C. United States D. Canada E. Netherlands Difficulty Hard Type Knowledge 38. (p. 9, give 1. ) Many U. S. firms do passing well in the global bowlful. Which of the following organizations is considered to be the U. S. leader with global revenues approximated at $345 billion annually? A. IBM B. ExxonMobil C. Ford Motor D. Wal-Mart E. Hewlett-Packard Difficulty Moderate Type Knowledge 39. (p. 9) For firms venturing into international trade for the prototypal time, the first requirement is A. employment of foreign nation als in target foreign markets. B. a thorough and complete loyalty to foreign markets. C. obtain market data from consulate of the country being targeted.D. an assessment of the cost of doing business in the foreign market. E. performance reviews of all potential salespeople being considered for foreign assignment. Difficulty Moderate Type Knowledge 40. (p. 9) ___________ is the performance of business activities designed to plan, price, promote, and direct the flow of a companys goods and services to consumers or users in more than one nation for a profit. A. international management B. Global business C. Marketing D. International merchandising E. Global merchandise plan Difficulty Moderate Type Knowledge 41. (p. ) The performance of business activities designed to plan, price, promote, and direct the flow of a companys goods and services to consumers or users in more than one nation for a profit is called A. global management. B. global business. C. marketing. D. the global ma rketing concept. E. international marketing. Difficulty Moderate Type Knowledge 42. (p. 9) The only difference betwixt the definitions of domestic marketing and international marketing is that marketing activities A. focalize on consumers in domestic markets and barterers in foreign markets. B. take place in more than one country.C. follow traditional communication paths in domestic markets. D. focus on distribution in the domestic market. E. are usually non-regulated in foreign markets. Difficulty Moderate Type Comprehension 43. (p. 9) According to the text, the primary difference in the practice of marketing at the domestic versus the international level is A. the environment within which the marketing plans must be implemented. B. the revenues necessary to be successful. C. the demand charts available to the marketer. D. the control over the budget. E. the accountability of carte du jour of directors. Difficulty HardType Comprehension 44. (p. 9) With respect to the environmen t in which a business operates, such factors as competition, ratified restrains, government controls, and the weather would all be examples of what are called A. controllable elements. B. uncontrollable elements. C. predictable elements. D. demographic elements. E. cultural elements. Difficulty Easy Type Knowledge 45. (p. 9-10) All of the following would be considered to be controllable elements of marketing decisions EXCEPT A. product. B. price. C. promotion. D. seek. E. government regulations. Difficulty Easy Type Knowledge 46. (p. 1, process 1. 3) Considering the model of the international marketing project displayed in the text, which of the following reasons demonstrates the most important difference amid the international marketers projection and that of the domestic marketer? A. The international marketer must deal with at least two levels of uncontrollable question instead of one. B. The international marketer must rely on at least two levels of controllable certainty instead of one. C. The international marketer is never certain about supply or demand. D. The international marketer is never certain about total market size.E. The international marketer must be aware of international monetary exchange rates. Difficulty Moderate Type Comprehension 47. (p. 11, Exhibit 1. 3) Robert Jonas is in charge of a new marketing effort directed toward Peru. In order for his company to in effect market and distribute to all of Perus major cities, Mr. Jonas must devise a logistics plan for crossing the Andes Mountains on a daily founding. Which of the following foreign environment uncontrollable variables would be a chief invade as Mr. Jonas devises his plan? A. Competitive forces B. Cultural forces C.Geography and infrastructure D. Economic forces E. Political/ sanctioned forces Difficulty Moderate Type Application 48. (p. 11, Exhibit 1. 3) Compared to the foreign environment uncontrollable variables, which of the following elements is excluded from the dome stic marketers list of uncontrollable variables? A. Political forces B. Competitive structure C. Economic climate D. Cultural forces E. Legal forces. Difficulty Hard Type Comprehension 49. (p. 11, Exhibit 1. 3) All of the following would be among the domestic marketers controllable environmental variables EXCEPT A. esearch. B. price. C. product. D. carry of distribution. E. stinting climate. Difficulty Moderate Type Comprehension 50. (p. 11, Exhibit 1. 3) All of the following appear as a foreign environment uncontrollable variable in the model of the international marketing task shown in the text EXCEPT A. economic forces. B. competitive forces. C. product demand forces. D. cultural forces. E. political/ profound forces. Difficulty Easy Type Knowledge 51. (p. 10) Amy Sims has been assigned the task of preparing a marketing plan for company for the next years business activities.She knows that she should begin her plan by examining the variables that she has some control over. Thes e controllable variables would admit price, product, channels-of-distribution, and A. demand. B. supply. C. competition. D. economic climate. E. promotion. Difficulty Easy Type Knowledge 52. (p. 10) A political decision involving _______________ would most probably have a direct effect on a firms international marketing success. A. domestic foreign indemnity B. immigration reform C. oil exploration policy D. FCC satellite regulations E. FAA airline regulations Difficulty ModerateType Knowledge 53. (p. 11) Which of the following would be a chief way that U. S. companies attempt to influence domestic foreign policy? A. A company could lobby with respect to its own interests. B. A company could attempt to bribe elected officials to influence policy decisions. C. A company could ask a foreign government to bring pressure on U. S. legislative bodies. D. A company could threaten to withdraw operations from foreign markets. E. A company could threaten to move its corporate headquarters to a foreign market. Difficulty Hard Type Comprehension 54. (p. 2) emulation within the home country can have a profound effect on the international marketers task. Which of the following BEST illustrates this statement? A. Boeing recently opened talks with its primary trade union to avoid a forecasted strike. B. Microsoft and Dell have associatetly invested $700 million in a new venture to ask high technology of the future. C. Fuji opened a $300 million plant in the U. S. and now commands a 12 percent share of the lucrative U. S. film market. D. Several name companies are tranquilize under investigation because of the Enron scandal.E. Declaration of independence by Baltic States after the collapse of the Soviet Union. Difficulty Moderate Type Application 55. (p. 12) With respect to challenges faced by the international marketer, a significant source of uncertainty is the number of factors in the A. foreign environment controllables. B. foreign environment uncontrollables. C. do mestic environment controllables. D. line of latitude environment uncontrollables. E. parallel environment controllables. Difficulty Easy Type Comprehension 56. (p. 12) Ralph Waite has just been assigned the task of reviewing his ompanys international investment opportunities. He knows that his view of the list of opportunities should be tempered by foreign environment uncontrollables that might be encountered. Which of the following would be the BEST illustration of a foreign environmental uncontrollable that Mr. Waite should investigate? A. A countrys level of technology. B. Pricing policies in the foreign country. C. The ability to do research in the foreign country. D. Manufacturing capabilities in the foreign country. E. The ability to do advertising in the foreign country. Difficulty Hard Type Application 57. (p. 2) The _____________ is an uncontrollable element that can often be misread because of the vast differences that may exist between developed and undeveloped countri es. A. Structure of distribution B. competitive forces C. economic forces D. political/legal forces E. level of technology Difficulty Hard Type Knowledge 58. (p. 13) The _____________ and issues abroad are often amplified by the alien status of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate. A. structure of distribution B. competitive forces C. economic forces D. olitical/legal forces E. level of technology Difficulty Moderate Type Knowledge 59. (p. 13) Which of the following would be the BEST illustration of the alien status found in the political and legal arena that sometimes cause tasks for international marketers as they attempt to do business in foreign countries? A. A company in the U. K. recently purchased Ben & Jerrys ice cream operations. B. The Indian government told Coca-Cola that it must reveal its privy formula if it wished to continue do business in India. C. Richard Bransons Virgin Cola w as not widely legitimate in the United States. D.French Canadians prefer French to English when conducting business in Canada. E. British Airlines and Japan Airlines join American Airlines to form OneWorld Alliance. Difficulty Moderate Type Application 60. (p. 14) Global businesses must be automatic to adjust and adapt a marketing program to a foreign market. In a broad sense, the environmental uncontrollable elements constitute the A. riddle. B. opportunity. C. culture. D. marketplace. E. commerce landscape. Difficulty Hard Type Comprehension 61. (p. 14) The task of ____________ is the most challenging and important one confronting international marketers.A. care for the environment B. dealing with politics C. international normalisation D. cultural adjustment E. international branding Difficulty Moderate Type Comprehension 62. (p. 14) Which of the following would be the BEST example to illustrate the fact that international marketers need to make cultural adjustments as they seek to do business abroad? A. In America, white is an accepted affectation for wedding gowns in Asia it is the color of mourning. B. Many teens earn extra income by working. C. Women out number men in the United States. D. or so Middle Eastern women do not work outside the home. E.Many European nations require a dot of national service for youth. Difficulty Hard Type Application 63. (p. 15) ____________ is the conscious effort on the part of the international marketer to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then adjust the marketing mix to minimize the effects. A. Standardization B. Adaptation C. Segregation D. segmentation E. Projection Difficulty Moderate Type Knowledge 64. (p. 15) The primary obstacles to success in international marketing are a persons _________ and an associated ethnocentrism. A. egionalism B. holism C. self-reference criterion D. sequestration E. integration Difficulty Easy Type Comprehe nsion 65. (p. 15) _____________ is an unconscious reference to ones own cultural values, experiences, and friendship as a basis for decisions. A. Regionalism B. Holism C. Self-reference criterion D. Segregation E. Xenophobia Difficulty Moderate Type Knowledge 66. (p. 15) In the United States, unrelated individuals keep a certain physical distance between themselves and others when talking or in groups. We do not consciously think about that distance we just know what feels right without thinking.Someone from another culture would not inescapably understand this and would apply their own rules for contact when speaking. The preceding is an illustration of what is called applying a ___________ when reviewing the mentioned social custom of contact. A. self-space B. segregation C. integration D. space command theory E. self-reference criterion (SRC) Difficulty Moderate Type Application 67. (p. 15) Your ____________ can prevent you from being aware that there are cultural differences or from recognizing the importance of those differences. A. self-space B. personality C. demographic character D. elf-reference criterion (SRC) E. concept of integration Difficulty Easy Type Comprehension 68. (p. 16) The most effective way to control the influence of ethnocentrism and __________ is to recognize their effects on our behavior. A. the self-reference criterion (SRC) B. regionalism C. tunnel vision D. standardization E. xenophobia Difficulty Moderate Type Knowledge 69. (p. 17) To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences. Which of the following would be the BEST first-step to take to avoid the aforementioned errors?A. specify the problem without the SRC influence. B. Solve the problem for the optimum business goal situation. C. Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem. D. Define the business problem or goal in home-country cultural traits, habits, or norms. E. Define the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country. Difficulty Hard Type Application 70. (p. 17) Which of the following steps in a cross-cultural analysis to solate self-reference criterion influences would finalize the process and lead to a solution of the problem? A. redefine the problem without the SRC influence and solve the problem for the optimal business goal situation. B. Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem. C. Define the business problem or goal in home-country cultural traits, habits, or norms. D. Define the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country. E.The last step is not indicated in the list of alternatives. Difficulty Easy Type Application 71. (p. 17) To be globally aware, an international marketer must have all the following EXCEPT A. a tolerance of cultural differences. B. a knowledge of cultures. C. a knowledge of history. D. a knowledge of microeconomics. E. a knowledge of world market potential. Difficulty Easy Type Knowledge 72. (p. 17) Successful businesspeople in the ordinal century have ___________ and a frame of reference that goes beyond a region or even a country and encompasses the world. A. a sense of fashion B. lobal awareness C. an intimate knowledge of ecological problems D. a consumer mind-set E. a pronounced skill in promotion Difficulty Moderate Type Knowledge 73. (p. 18) There are a variety of stages in the process of be flood tide bear on in international marketing. Which of the following best describes the stage of development where the companys products reach a foreign market through no conscious effort on the part of the marketer? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign market ing D. International marketing E. Global marketing Difficulty Easy Type Comprehension 4. (p. 18) If a marketer is motivated to enter into an international marketing effort because of temporary surpluses in the domestic market, which of the following stages BEST characterizes the stage of international marketing inter-group communication for this marketer? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing Difficulty Moderate Type Comprehension 75. (p. 19) James Brights company seek markets all over the world and attempts to sell products that are a solving of planned production for markets in various countries.Which of the following stages BEST characterizes the stage of international marketing involvement for Mr. Brights company? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing Difficulty Hard Type Applic ation 76. (p. 20) female horse Perons company treats the world, including the home market in Spain, as one market. Market segmentation decisions no bimestrial focus on national borders. Instead, market segments are defined by income levels, usage patterns, and other factors that get over countries and regions.Which of the following stages BEST characterizes the stage of international marketing involvement for Ms. Perons company? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing Difficulty Moderate Type Application 77. (p. 22) If a company basically sees the process of international marketing as one where the domestic company seeks a sales extension of its domestic products into foreign markets, the company is using which of the following concepts to formulate its international policies and strategies?A. Domestic market extension concept B. Multidomestic market concept C. Global marketing conc ept D. Universal marketing concept E. Standardized marketing concept Difficulty Easy Type Comprehension 78. (p. 22) The Ajax Corporation has decided to enter the international marketing arena by marketing its products on a country-by-country basis, with separate marketing strategies for each country. The company is using which of the following concepts to formulate its international policies and strategies? A. Domestic market extension concept B. Multidomestic market conceptC. Global marketing concept D. Universal marketing concept E. Standardized marketing concept Difficulty Moderate Type Comprehension 79. (p. 22-23) A company using the ________________ views an entire set of country markets as a unit, identifying groups of prospective buyers with correspondent needs as an opportunity market segment and develops a marketing plan that strives for standardization wheresoever it is cost and culturally effective. A. domestic market extension concept B. multidomestic market concept C. global marketing concept D. universal marketing concept E. tandardized marketing concept Difficulty Hard Type Comprehension Fill in the Blank Questions 80. (p. 3) _____________ commerce thrives during peacetime. Global (or international) Difficulty Easy Type Knowledge 81. (p. 7) ___________ (country) leads in foreign investment in the United States. The United Kingdom Difficulty Hard Type Knowledge 82. (p. 9, Exhibit 1. 2) Among the top ten players in the global game of commerce, __________ (company) leads the pack with $345 billion in revenues coming from global markets. Wal-Mart Difficulty Hard Type Knowledge 83. (p. ) ___________ marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a companys goods and services to consumers or users in more than one nation for a profit. International Difficulty Easy Type Knowledge 84. (p. 11, Exhibit 1. 3) Domestic marketing elements as price, product, promotion, channels of distribution, an d research are called ____________ elements. controllable Difficulty Moderate Type Comprehension 85. (p. 15) A persons self-reference criterion is often associated with an associated term called ________. ethnocentrism Difficulty ModerateType Knowledge 86. (p. 15) A persons ________________ is an unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decisions. self-reference criterion (SRC) Difficulty Moderate Type Knowledge 87. (p. 17) The successful businessperson in the twenty-first century has global _____________ and a frame of reference that goes beyond a region or even a country and encompasses the world. awareness Difficulty Moderate Type Comprehension 88. (p. 20) At the __________ marketing level, companies treat the world, including their home market, as one market. globalDifficulty Hard Type Knowledge 89. (p. 23) The global _____________ views an entire set of country markets as a unit, identifying groups of prospective buyers with s imilar needs as a global market segment. marketing concept Difficulty Moderate Type Knowledge Essay Questions 90. (p. 3) Global commerce thrives in peacetime. let off why this statement is true. Economic booms often occur as the world finds itself at peace. Resources go toward research and technology rather than war machines. Peace brings renewed efforts to negotiate and trade. Barriers generally come down between nations.Nations enter into partnerships and alliances that foster trade. Individual companies are willing to take greater investment risks when peacetime is blooming. Difficulty Easy Type Comprehension 91. (p. 4) Provide examples of events and issues that contribute to uncertainty in the international marketing environment. Answers will depart but may include any of the issues discussed on page 4 including, terrorism, growth of the U. S. balance of payments deficit, conflicts between the U. S. and China, predictions of collapse in U. S. consumer spending and housing mar kets. Difficulty Moderate Type Comprehension 92. (p. ) List and before long describe the four events or trends described in the text that have shaped international business beyond todays bumpy roads and into the future. The events or trends are (1) the rapid growth of the World Trade Organization and regional free trade areas such as NAFTA and the EU (2) the trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe (3) the burgeoning impact of the Internet and other global media on the dissolution of national borders and, (4) the mandate to properly manage the resources and global environment for the generations to come.Difficulty Hard Type Comprehension 93. (p. 6) Joan Wilson owns a small software company, SecureSoft, that specializes in home network security. The company has been in business for 5 years and its sales have grown rapidly. Last year the company began offering international versions (multilanguage) of its software. SecureSoft sells its products through a network of software distributors. However, recently Ms. Wilson has become concerned that Russian software hackers have produced pirated copies of the companys leading software. formulate how the Russian hackers disrupt SecureSofts international marketing efforts.SecureSoft international marketing efforts will now have to take into account the lost of sales/profits due to the pirated software. Virtually all components of marketing will likely be impacted. Marketing will have to consider product modifications to preclude prirating efforts, a change in distribution to direct sales, and other software protection schemes. In addition, special advertisement and promotion may be required to promote the security-enhanced products. These efforts to protect is software against piracy come at a cost which means that software retail prices will increase. Difficulty ModerateType Application 94. (p. 9) Define international marketing. Interna tional marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a companys goods and services to consumers or users in more than one nation for a profit. Difficulty Moderate Type Knowledge 95. (p. 10-12, Exhibit 1. 3) List and briefly discuss the domestic environment uncontrollable elements found in the model that describes the international marketing task. The domestic environmental uncontrollable elements include political/legal forces, competitive structure, and the economic climate.For a brief discussion of each element see pages10-12. Difficulty Moderate Type Comprehension 96. (p. 11, Exhibit 1. 3) List and briefly input on the elements found in a companys domestic controllable environment. The elements include price, product, promotion, channels of distribution, and research. For more training see page 10. Difficulty Easy Type Comprehension 97. (p. 10-14, Exhibit 1. 3) Explain the differences between the domestic environmen t uncontrollable elements and the foreign environment uncontrollable elements. According to information presented in the text and in Exhibit 1. , the domestic environmental uncontrollable elements include the political/legal forces, competitive structure, and the economic climate. The foreign environment is more inclusive with the following elements political/legal forces, economic forces, competitive forces, level of technology, structure of distribution, geography and infrastructure, and cultural forces. For additional information on differences see pages 10-14. Difficulty Hard Type Comprehension 98. (p. 14-15) To be an effective international marketer, why is it necessary to master cultural adjustment? Explain.The marketers must adjust their marketing efforts to cultures to which they are not attuned. In dealing with unfamiliar markets, marketers must be aware of frames of reference they are using in making their decisions or evaluating the potential of a market. As an illustrati on, the story goes that two shoe salesmen report back to their companies after making a field of study trip to an impoverished portion of Africa. One salesman says, There is no market for shoesno one has any moneypoverty is everywhere. The other shoe salesman (representing world famous Bata Shoe Company) says, Great intelligence operation everybody needs shoes. Bata leads the world in selling shoes to third-world countries. Difficulty Moderate Type Comprehension 99. (p. 15) Explain the concept of the self-reference criterion (SRC). SRC is an unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decisions. The concept is closely associated with ethnocentrism. Difficulty Moderate Type Knowledge 100. (p. 16) To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences.List the four steps that make up the exemplar for such an analysis. The steps are (1) define the business problem or goal in home-country cultural traits, habits, or norms (2) define business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target countrymake no value judgments (3) isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem and, (4) redefine the problem without the SRC influence and solve for the optimum business goal situation.Difficulty Hard Type Comprehension 101. (p. 17) In order for a company to be globally aware, the company must do what two things (according to the text)? The company must (1) have a tolerance for cultural differences and (2) have knowledge of cultures, history, world market potential, and global economic, social, and political trends. Difficulty Moderate Type Comprehension 102. (p. 23) With respect to a strategic orientation to conducting international marketing, describe the global marketing concept.The global marketing concept v iews an entire set of country markets (whether the home market and only 1 other country, or the home market and 100 other countries) as a unit, identifying groups of prospective buyers with similar needs as a global market segment and developing a marketing plan that strives for standardization wherever it is cost and culturally effective. Difficulty Moderate Type Comprehension 103. (p. 5) Rick Russell owns a small company that specializes in waste cleanup on the high seas. He believes that his company can grow dramatically if he can find foreign partners and investors.According to the events and trends cited in the text as affecting global business today, which of these trends would have the most impact on Mr. Russells business? Explain your rationale. After reviewing the trends, the trend that is most likely to affect Russells operation is the fourth trendthe mandate to properly manage the resources and global environment for the generation to come. Students should supply their o wn rationale. If another trend is chosen, it should be explained, characterized, and justified. Difficulty Moderate Type Application 04. (p. 11, Exhibit 1. 3) Scott Web Services has decided to go international with their new anti-spam software. Using the International Marketing childbed model shown in the text, discuss which factors will impact Scott Web Services the most as it gears up to pursue international expansion. To effectively answer this question, students must be familiar with Exhibit 1. 3. Students can comment on the inner ring (domestic controllables), middle ring (domestic environment uncontrollables), and the outer ring (foreign environment uncontrollables).Students should focus on the technological aspects of the company, political/legal forces, competitive forces, and cultural forces that might impact the company. Students can be creative with this answer therefore, you might wish to establish ground rules or guidelines. Difficulty Hard Type Application 105. (p. 15 -17) You are about to eat at a friends house for dinner. However, your friend is from a foreign country and you are sure that his family will have prepared an ethnic meal for you.Explain how your self-reference criterion (SRC) might cause you problems with your upcoming new experience. What should do about this? This example is created to stimulate students into thinking about how that their own cultural baggage can sometimes make a new experience frightening. Eating unidentified food among foreigners is a common occurrence. Stimulate students think about what SRC is and how it can either hinder or help a relationship. For additional information on SRC, see pages 15-18. Difficulty Easy Type Application