International Marketing 11e: Terpstra, Foley, Sarathy 1
International Marketing 11e: Terpstra, Foley, Sarathy 2
Pct Correct Ques No. Question
16 100% 14 Which of the seven elements of culture was labeled the most
16 100% 16 Give two examples of how religion could affect a country’s
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
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
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.
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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?
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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
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
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. …
XTRA CREDIT ANS
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
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.
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-List of top foreign markets
-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.
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.
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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
Size of market
Nature of the economy
Infrastructure of the nation
Tariffs and quotas (see Chapter 2)
Non-tariff barriers (see Chapter 2)
Political, legal, and economic risks (see Chapter 3)
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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
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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
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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
National Income: GDP and GNI
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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.
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Per Capita Income
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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
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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
Per capita income may not always be useful as a demand indicator because:
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Even in a lower per capita income country, there may be pockets of high income that can be targeted
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.
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Generally, the larger and more diverse the endowments, the higher the countrys potential for favorable economic development
Important as raw materials for local production and as an indicator of favorable economic development
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