The role of education in a culture

International Marketing 11e: Terpstra, Foley, Sarathy 1

International Marketing 11e: Terpstra, Foley, Sarathy 2

No. Correct

Pct Correct Ques No. Question

16 100% 14 Which of the seven elements of culture was labeled the most

“obvious”?

16 100% 16 Give two examples of how religion could affect a country’s

economy.

16 100% 25 What are the main moral principles or ethical standards discussed in detail the text or lecture? Click all that apply.

15 94% 7 The WTO fosters agreements what concepts and practices in

the area of international trade?

15 94% 15 Spanish speakers in the US all speak the same dialect.

15 94% 18 High or Low Context language 1

15 94% 20 What is the role of education in a culture?

15 94% 26 What is greenwashing?

15 94% 27 Define utilitarianism. Why is it a subjective concept?

15 94% 31 What trade agreement involving Canada and Mexico did we

discover was impacted by President Trump’s executive order

on rejecting the Trans Pacific Partnership?

International Marketing 11e: Terpstra, Foley, Sarathy 3

No. Correct

Pct Correct

Ques No. Question

14 88% 12 What are the seven elements of culture from the text and lectures?

14 88% 17 What popular US sandwich meat would fail in an Islamic country based on religious grounds?

13 81% 1 Give an example of what you consider to be an absolute advantage in a country other than Portugal.

13 81% 2 Give an example of comparative advantage between two US states on a product, service or destination and explain why.

13 81% 3 Match the Product Life Cycle step with the graphic.

13 81% 11 Expropriation and nationalization are examples of the worst case of political risk in foreign markets.

13 81% 19 High or low context language 2

13 81% 22 What is the acronym we discussed in class for the Hofstede quantitative assessment of culture?

13 81% 28 Which of the following is an example of a firm using hypernorms as a guide for ethical behavior?

13 81% 30 As a country develops economically, to encourage local proprietary technology development (which could result in patents) and foreign direct investment from venture capital looking for new technology, it may

International Marketing 11e: Terpstra, Foley, Sarathy 4

No. Correct

Pct Correct Ques No. Question

12 75% 5 An ad valorem duty is a

12 75% 6 What is the correct order of the stages of regional economic integration between nations?

12 75% 8 If you are launching a new export business expanding globally, list an agency that can help you and how it can help.

12 75% 9 What are the dimensions of the legal environment in international marketing? Check all that apply.

WTO common incorrect.

International Marketing 11e: Terpstra, Foley, Sarathy 5

No. Correct

Pct Correct Ques No. Question

11 69% 21 In a developed nation, why would it be politically and profitably attractive to target the people in the “BOP”?

10 63% 13 Which brand colors are probably safe to use in Ecuador and which colors in Mexico?

10 63% 24 For the element you selected in Question 23, which is/arethe most favorable country(s) shown in the Table on p 99 and why?

9 56% 4 How do tariffs distort the comparative advantage of good that are traded internationally?

9 56% 10 Give an example of a standards organization in international law and trade. What does it do?

7 44% 23

You are considering selling your company’s consumer product in a foreign country which already has similar products, but of inferior quality. Which Hofstede element shown in Table on page 99 would be most important and why?

7 44% 29

Assume you are a US international marketing manager and you discover that your business school classmate who is your firm’s sales representative in India has paid a large bribe to an Indian colleague working at a private company in order to win a big contract. Should you be worried that the bribe is a violation of US law?

6

International Marketing 11e: Terpstra, Foley, Sarathy 7

3 Because Valentine’s day is around the corner, Ecuador has an absolute advantage in

producing and exporting roses to the USA. Ecuador has the resources and perfect

weather

4 California has a comparative advantage in milk compared to Chicago who would have

a comparative advantage in skyscrapers. Chicago has the schools and companies

that can build skyscrapers.

8 The U.S. Department of Commerce, Bureau of Industry and Security (BIS) is

responsible for dual-use goods and any technology that could threaten the U.S. security

if improperly exported in the case you would like to export highly dangerous chemicals

for the Indian pharmaceutical producer that can be used as a chemical weapon against

US.

16 the Muslim prohibition against alcohol it has caused Heineken and other brewers to

have to sell nonalcoholic beer in Saudi Arabia. how religion could affect a country’s

economy would be by the divisions within a country can impact marketing efforts. For

example, in the Netherlands there are major Catholic and Protestant groups who have

their own political parties and newspapers. …

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XTRA CREDIT ANS

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TOC

Part Chapter Description

1 1 Intro: The Global Marketing Manager

2 Global Economic environment

3 Political-Legal environment

4 Cultural Environment

5 Ethics and International Marketing

2 6 Global Marketing Research

7 Foreign Marketing Selection

8 Foreign Marketing Entry, Partner Select, Distribution

9 International Product Policy

10 International Branding, Advertising and Promotion

11 Supply Chain Management and Intl Marketing

12 International Pricing

13 Global Marketing of Services

3 14 Global Marketing Strategy

15 Planning, organization and control of International

Marketing

Characteristics of a country or market that would be useful to predict demand for a product or service.

Identify other market conditions that would impact profitability, such as political and economic risk factors.

Model for screening suitable foreign markets to rank market opportunities.

Importance of primary research to understand the opportunities and risks in a foreign market.

International Marketing 11e: Terpstra, Foley, Sarathy 11

-List of top foreign markets

-Rank opportunities

-Often neglected task -Firms often fail to do adequate research

-Firms react to market opportunities

-Don’t proactively seek the best ones.

is frequently done wrong

or not done at all. International Marketing 11e: Terpstra, Foley, Sarathy 12

Entering a foreign market mostly based on reacting to opportunities or following competitors

rather than proactively seeking the best opportunity for the firm

Costs of reactive foreign market selection include:

Loss of first mover advantage

Following competitors gives the competitors first mover advantage -establish their brand, set market expectations, and build strong relationships.

Opportunity costs

Firms cannot enter all markets simultaneously and therefore must expend resources on the markets it does enter.

Sub-optimal market consumes resources better spent on better markets that allow the firm to earn higher returns.

International Marketing 11e: Terpstra, Foley, Sarathy 13

Planned approach of listing potential markets, a time frame for entering the markets, and incorporating those decisions into the international marketing plan

Firms to select the most optimal markets by researching, anticipating market demand and ranking opportunities.

Firms become market seekers and leaders taking advantage of first mover advantages and minimizing opportunity costs

“How-to” research and rank foreign market opportunities.

International Marketing 11e: Terpstra, Foley, Sarathy 14

Potential Demand

Size of market

Population indicators

Income

Nature of the economy

Infrastructure of the nation

Entry Barriers

Tariffs and quotas (see Chapter 2)

Non-tariff barriers (see Chapter 2)

Market Risks

Political, legal, and economic risks (see Chapter 3)

International Marketing 11e: Terpstra, Foley, Sarathy 15

The international marketing manager can assess potential demand using the following indicators in the following areas:

Size of Market

Nature of the Economy

Infrastructure of the Nation

International Marketing 11e: Terpstra, Foley, Sarathy 16

1 of 5

Absolute size (total population)

People (consumers) are needed to make a market

Population growth rates

Trends (growth or decline) over time indicate future market potential

Distribution of population

Characteristics like age, density, and gender reflect meaningful differences in the market potential

Population Indicators

International Marketing 11e: Terpstra, Foley, Sarathy 17

Which exchange rate?

A number in the same unit (currency is required to compare country incomes)

Often, the U.S. dollar is used as a common currency

Purchasing power parity (PPP) takes into account relative price differences and purchasing power between countries

Income

National Income: GDP and GNI

2 of 5

Gross Domestic Product (GDP) – measure of the total domestic value created by resident producers plus any product taxes minus any subsidies.

Gross National Income (GNI) – measure of a countrys wealth by summing the value added of all resident producers, plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad.

International Marketing 11e: Terpstra, Foley, Sarathy 18

Per Capita Income

3 of 5

Roughly equates to a countrys level of economic development and is a good indicator of the size or quality of a market

Atlas and PPP measures of per capita income attempt to get better measures of the actual purchasing power in a country

Some goods (e.g., industrial goods) may not correlate with per capita income

Income

International Marketing 11e: Terpstra, Foley, Sarathy 19

Exchange rate calculations may not be accurate

Domestic value of a currency is different from its international value

It lacks comparability

Not all goods that are counted for in a developed nations national income are counted for in a less-developed nations income

National income does not reflect wealth because not all countries have the same sources of income

Sales of some goods have no relation to per capita income

These goods may link more closely to households

It does not accurately reflect GDP or the potential of a product within a market

Income

Per capita income may not always be useful as a demand indicator because:

4 of 5

International Marketing 11e: Terpstra, Foley, Sarathy 20

Even in a lower per capita income country, there may be pockets of high income that can be targeted

Income

Distribution of Income

Gini Index – also known as the Gini coefficient, this is a common indicator of income distribution such that the higher the number, the greater the income inequality between people in a country.

5 of 5

International Marketing 11e: Terpstra, Foley, Sarathy 21

Generally, the larger and more diverse the endowments, the higher the countrys potential for favorable economic development

Physical endowment

Important as raw materials for local production and as an indicator of favorable economic development

Natural Resources

1 of 2