Ch. 8 M.K

Question 1

International Marketing

Answer 1

Developing and performing marketing activities across national boundaries

o Provides growth opportunities
o Promotes innovation
o Fosters marketing of better, less expensive products

Question 2

Environmental Forces in International Markets

Answer 2

• Sociocultural Forces
• Economic Differences Affecting International Marketing
• Political Legal and Regulatory Forces
• Social Responsibility and Ethics Forces
• Competitive Forces
• Technological Forces

Question 3

Sociocultural Forces

Answer 3

o	Beliefs and values about:
•	Family
•	Religion
•	Education
•	Health
•	Recreation

Question 4

Economic Differences Affecting International Marketing

Answer 4

o	Standards of living
o	Credit
o	Buying power
o	Income distribution
o	National resources
o	Exchange rates

Question 5

Political Legal and Regulatory Forces

Answer 5

o Tariffs
o Embargo
o Quota
o Exchange Controls

Question 6

Social Responsibility and Ethics Forces

Answer 6

Social Responsibility and Ethics Forces

Question 7

Competitive Forces

Answer 7

Competitive Forces

Question 8

Technological Forces

Answer 8

o	Telecommunications (e-mail, cell phones, Internet)
o	Extent of technological infrastructure

Question 9

Regional Trade Alliances, Markets, and Agreements

Answer 9

EU
MERCOSUR
APEC
WTO
NAFTA

Question 10

The North American Free Trade Agreement (NAFTA)

Answer 10

An alliance that merges Canada, Mexico, and the United States into a single market
• Eliminates barriers
• Eases investment
• Simplifies trade

Question 11

The European Union (EU)

Answer 11

An alliance that promotes trade among its member countries in Europe
• Market unification
• Common currency (euro)
• Economic efficiency

Question 12

The Common Market of the Southern Cone (MERCOSUR)

Answer 12

An alliance that promotes the free circulation of goods, services, and production factors, and has a common external
tariff and commercial policy among member nations in South America

Question 13

Asia-Pacific Economic Cooperation (APEC)

Answer 13

An alliance that promotes open trade and economic and technical cooperation among member nations throughout the world

Question 14

World Trade Organization (WTO)

Answer 14

An entity that promotes free trade among member nations
• Provides legal ground rules for international commerce
and trade policy

Question 15

Levels of Involvement in Global Marketing

Answer 15

Domestic Marketing
Limited Exporting
International Marketing
Globalized Marketing

Question 16

Domestic Marketing

Answer 16

All marketing strategies focus on the market in the country of origin

Question 17

Limited Exporting

Answer 17

The firm develops no international marketing strategies, but international distributors or foreign firms purchase some of its products

Question 18

International Marketing

Answer 18

International markets are a consideration in the marketing strategy

Question 19

Globalized Marketing

Answer 19

Marketing strategies are developed for major regions or the entire world so firms an compete globally

Question 20

International Marketing Strategies

Answer 20

• Customization

* Globalization

Question 21

Customization

Answer 21

Adjusting marketing mixes according to cultural, regional, and national differences

Question 22

Globalization

Answer 22

The development of marketing strategies that treat the entire world (or its major regions) as a single entity
• Includes standardization of products, promotion campaigns, prices, and distribution channels
• “Think globally, act locally”