International Marketing
Quiz 1/S1
MKT 456
Dr. Alexander Nill
Good Luck
1) A company entering a leading market typically seeks:
a) To become a better competitor spurred by little competition, little governmental
regulation, and highly demanding consumers
b) to take advantage of the weak competition, little governmental regulation, and
cooperating consumers
c) to take advantage of the weak competition, large market size and highly demanding
consumers
d) To become a better competitor spurred by strong competition, little governmental
regulation, and highly demanding consumers
2) If the correlation factor between the economies of the two countries is 0, doing business in
these two countries versus one country
a) Will lower the risk
b) Will not lower the risk
c) Will eliminate the risk
d) Diversification will always lower the risk independent of the correlation factor
3) One of the global trends in most industrialized countries is that:
a) The rich get richer; the poor get poorer while the middle class stays the same
b) The divide between rich and poor is shrinking and the middle class is growing
c) The divide between rich and poor is increasing and the middle class is growing
d) The divide between rich and poor is increasing and the middle class is decreasing
4) Starbucks’ management plans to foster the company’s internationalization as an important
strategic objective for the next few years. The following potential advantages of going
international can be expected except:
a) Reaching more customers
b) Diversification
c) more simplified and streamlined marketing
d) economies of scale
5) Which of the following shows global market entry modes listed in order from lowest level of
risk/commitment to highest:
a) licensing—>joint venture—>exporting—>investment
b) investment—>licensing—>exporting—>joint venture
c) joint venture—>exporting—>investment—>licensing
d) exporting—>licensing—>joint venture—>investment
6) The phenomenon of economic clusters such as the high tech industry in Silicon Valley, the
shoe industry in Milano, Italy, or the film industry in Hollywood can be explained through:
a) more competition and cooperation
b) better access to skilled labor, local suppliers, and public institutions
c) lower transaction cost
d) all of the above
7) Going global may allow for cost advantages because of:
a) Economies of scale
b) Economies of competitive advantage
c) Global warming
d) All of the above
8) IKEA, the world’s biggest furnishing company, decided to come to the U.S. mainly because:
a) The U.S. market is the biggest in the world
b) The market entry will allow to drastically reduce risk through diversification
c) There is much to learn in the U.S. since the U.S. market is considered a leading market
for furniture
d) Take advantage of being the first (first mover advantage)
9) The Gini Index can best be described as:
a) A measure for the speed the ghost climbs out of the bottle
b) A measure for the global competitiveness of a country
c) A measure for the degree of inequality in the distribution of family income in a country
d) A measure for the longevity of people in a country
10) NAFTA is one of the most important trade agreements. It stands for:
a) Free movement of goods, capital, and people between Canada and the United States
b) Free movement of goods, capital, but not people between Canada and the United States
c) Free movement of goods, capital, but not people between Canada, United States, and
Mexico
d) Free movement of goods, but not capital and people Canada, the United States, and
Mexico.
11) Which are good criteria to assess the attractiveness of a foreign market except:
a) Growth of the market
b) Political and regulatory environment of the market
c) Population size of the country
d) Competitive environment of the market