BUSN 501 EXAM 1 QUESTIONS AND ANSWERS
five most important trends affecting global business - CORRECT ANSWER✅✅1. rapid growth of the
WTO and regional free trade areas
2. acceptance of the free market system
3. growing middle class in developing countries
4. impact of the Internet, mobile phones, and other global media on the dissolution of national borders
5. mandate to properly manage the resources and global environment
(what is the impact of) non-U.S. companies in the U.S.? - CORRECT ANSWER✅✅increased competition
for U.S. companies
U.S. multinational companies _______________ domestic companies - CORRECT
ANSWER✅✅outperform
International Marketing
(definition) - CORRECT ANSWER✅✅the performance of business activities designed to plan, price,
promote, and direct the flow of a company's goods and services to consumers or users in more than one
nation for a profit
the difference between marketing and international marketing - CORRECT ANSWER✅✅uncontrollable
environment
controllable environment - CORRECT ANSWER✅✅product, price, promotion, channels of distribution,
firm characteristics, research
uncontrollable environment - CORRECT ANSWER✅✅-domestic environment
-foreign environment
domestic environment - CORRECT ANSWER✅✅political/legal forces, competitive structure, economic
climate
, foreign environment - CORRECT ANSWER✅✅political/legal forces, economic forces, cultural forces,
competitive forces, geography and infrastructure, level of technology, structure of distribution
adaptation - CORRECT ANSWER✅✅-a conscious effort to anticipate the influences of both the foreign
and domestic uncontrollable factors on a marketing mix
-adjust the mktg mix to minimize the effects
what are the most challenging and important adaptation for int'l marketers? - CORRECT
ANSWER✅✅cultural adjustments
Self-Reference Criterion (SRC) - CORRECT ANSWER✅✅an unconscious reference to one's own cultural
values, experiences, and knowledge as a basis for decision
ethnocentrism - CORRECT ANSWER✅✅the notion that people in one's own company, culture, or
country know [best] how to do things
risks of SRC - CORRECT ANSWER✅✅influence the evaluation of the appropriateness of a domestically
designed marketing mix for a foreign market
-SRCs cause bias which causes poor decision making
most effective ways to control the influence of SRC and ethnocentrism are... - CORRECT ANSWER✅✅-to
recognize the effects on our behavior
-to recognize that there may be more similarities than diffs between countries
-to conduct cross-cultural analysis
Global awareness involves... - CORRECT ANSWER✅✅-tolerance of cultural differences
-knowledge of cultures, history, world market potential, and global economic, social, and political trends
5 stages of international marketing involvement - CORRECT ANSWER✅✅Reactive:
1. no direct foreign marketing
2. infrequent foreign marketing
five most important trends affecting global business - CORRECT ANSWER✅✅1. rapid growth of the
WTO and regional free trade areas
2. acceptance of the free market system
3. growing middle class in developing countries
4. impact of the Internet, mobile phones, and other global media on the dissolution of national borders
5. mandate to properly manage the resources and global environment
(what is the impact of) non-U.S. companies in the U.S.? - CORRECT ANSWER✅✅increased competition
for U.S. companies
U.S. multinational companies _______________ domestic companies - CORRECT
ANSWER✅✅outperform
International Marketing
(definition) - CORRECT ANSWER✅✅the performance of business activities designed to plan, price,
promote, and direct the flow of a company's goods and services to consumers or users in more than one
nation for a profit
the difference between marketing and international marketing - CORRECT ANSWER✅✅uncontrollable
environment
controllable environment - CORRECT ANSWER✅✅product, price, promotion, channels of distribution,
firm characteristics, research
uncontrollable environment - CORRECT ANSWER✅✅-domestic environment
-foreign environment
domestic environment - CORRECT ANSWER✅✅political/legal forces, competitive structure, economic
climate
, foreign environment - CORRECT ANSWER✅✅political/legal forces, economic forces, cultural forces,
competitive forces, geography and infrastructure, level of technology, structure of distribution
adaptation - CORRECT ANSWER✅✅-a conscious effort to anticipate the influences of both the foreign
and domestic uncontrollable factors on a marketing mix
-adjust the mktg mix to minimize the effects
what are the most challenging and important adaptation for int'l marketers? - CORRECT
ANSWER✅✅cultural adjustments
Self-Reference Criterion (SRC) - CORRECT ANSWER✅✅an unconscious reference to one's own cultural
values, experiences, and knowledge as a basis for decision
ethnocentrism - CORRECT ANSWER✅✅the notion that people in one's own company, culture, or
country know [best] how to do things
risks of SRC - CORRECT ANSWER✅✅influence the evaluation of the appropriateness of a domestically
designed marketing mix for a foreign market
-SRCs cause bias which causes poor decision making
most effective ways to control the influence of SRC and ethnocentrism are... - CORRECT ANSWER✅✅-to
recognize the effects on our behavior
-to recognize that there may be more similarities than diffs between countries
-to conduct cross-cultural analysis
Global awareness involves... - CORRECT ANSWER✅✅-tolerance of cultural differences
-knowledge of cultures, history, world market potential, and global economic, social, and political trends
5 stages of international marketing involvement - CORRECT ANSWER✅✅Reactive:
1. no direct foreign marketing
2. infrequent foreign marketing
