Questions and Answers of Essentials Of Marketing Analytics

1 Before becoming IBM’s chairman and chief executive officer, Louis V. Gerstner, Jr. was a vice-chairman of American Express. While at American Express, he stated: “The split between
6 What are the benefits of international marketing?
5 Distinguish among: (a) ethnocentricity, (b) polycentricity, and (c) geocentricity.
4 Explain the following criteria used to identify MNCs: (a) size, (b) structure, (c) performance, and (d) behavior.
3 Are domestic marketing and international marketing different only in scope but not in nature?
2 Distinguish among: (a) domestic marketing, (b) foreign marketing, (c) comparative marketing, (d) international marketing, (e) multinational marketing, (f) global marketing, and (g) world marketing.
1 What are the strengths and limitations of the AMA’s definition of marketing as adapted for the purpose of defining international marketing?
9 International travelers often wonder why it is necessary to have so many different currencies. Obviously it would be preferable to have just one worldwide currency that could be used anywhere on
8 Honda was the first of the Japanese car makers to manufacture its cars in Ohio for the US market. The success of its assembly plant in Marysville (Ohio) led to a second Ohio plant. Honda also began
7 How should an MNC reduce its foreign exchange risks?
6 Both fixed and floating rates claim to promote exchange rate stability while controlling inflation. Is it possible for these two divergent systems to achieve the same goals?
5 Should the USA abandon the float in favor of the gold standard or some other type of fixed or semifixed system?
4 Japan has aggressively pursued the lower yen value. Is this strategy good for Japan?
3 Should European firms insist on the euro for all buying as well as selling transactions?
2 Should the world adopt a basket of the five or ten leading currencies (e.g., US dollar, Japanese yen, Swiss franc) as a global currency for international trade?
1 Should the world abolish all local currencies except the US dollar, which would function as a global currency?
11 What are leading and lagging, and how should they be employed with regard to payment and collection?
10 How does inflation affect a country’s currency value? Is it a good idea to borrow or obtain financing in a country with high inflation?
9 How does the forward market differ from the futures and options markets?
8 How can an MNC hedge or cover its foreign exchange exposure?
7 How does a clean float differ from a dirty float?
6 Explain how these exchange rate systems function: (1) gold standard, (b) par value, (c) crawling peg, (d)wide band, and (e) floating.
5 Is devaluation good for exports and imports? Why is the impact of devaluation usually not immediate?
4 Should an exporter use the spot rate or forward rate for quotation?
3 Distinguish between the spot market and the forward market.
2 Why do companies involved in international trade have to hedge their foreign exchange exposure?
1 Explain how inflation and nationalism make it impossible for a single global currency to exist.
5 Consider the exchange rates at the end of the three-month period and see how the profit from the sale of your products is affected by the rate changes as determined by your decisions.
4 When do you want to hedge? (NB: You can hedge at any time within three months.)
3 Do you want to hedge both the Japanese yen and euro?
2 Assuming that hedging is desirable, what is your hedging preference: cash, forward, futures, or options?
1 Since you will receive payments in three months, do you think that there is any need to hedge your exposure?
5 The worldwide demand of many financial products results in the mutual offset link by the Singapore International Monetary Exchange (SIMEX) to the Chicago Mercantile Exchange (CME), which allows a
4 The Hawley Group has plans to widen its shareholder base: “In addition to common share lists in the U.K.and Bermuda, and its sponsored American Depository Receipt (ADR) facility in the US, Hawley
3 Since New York is the financial center of the world, is there any need for US multinationals to use the Euromarket and/or the Asian Dollar Market?
2 Given that foreign competitors through their governments’ assistance are able to offer below-market interest rates or financing, how can US firms fight back to remain competitive?
1 The WTO has ruled against the USA three times that a FSC is an illegal subsidy. Should the USA reformulate the program to conform to the WTO’s trade rules?
8 What are the Euromarket and Eurocurrencies?
7 What is SDR?
6 What are the role and functions of the IMF?
5 What are the goals and functions of the World Bank, IDA, and IFC?
4 What is mixed or blended credit?
3 What are the functions (or services) of a factor?
2 Is it possible to raise capital by issuing stocks in a foreign country?
1 Name some of the financing sources for exporters.
4 Stock indices are like brand names, with the world’s most well-known stock index being the Dow Jones Industrial Average (DJIA). All stock indices have one thing in common: they are supposed to
3 Because of the globalization of the financial market, some financial experts predict that the international stock indices (based on stock prices of companies worldwide) may eventually replace such
2 At the time of those difficult weeks in October 1987, Germany was in better economic shape than the USA, which had record trade deficits and budget deficits. Germany planned just before Black
1 Black Monday and the Asian economic crisis were about ten years apart. Can an event like that of Black Monday happen again – perhaps in three to five years’ time?
2 Assume that you are a manufacturer being asked to submit a quotation to a potential buyer. How are you going to prepare your quotation in terms of (a) terms of sale and (b) terms of payment?
1 Given that countertrade is a fact of life which is not going to go away, is there any valid argument from a theoretical standpoint for this method of doing business?
4 Explain these types of letter of credit: revocable, irrevocable, confirmed, unconfirmed, back-to-back, and transferable.
3 Explain: (a) bill of exchange, and (b) bankers’ acceptance.
2 Explain these terms of sale: EXW, FAS, FOB, CFR, CIF, DEQ, and DDP.
1 Explain these terms of countertrade: barter, counterpurchase, buyback, offsets, clearing agreement, and switch trading.
2 As a manufacturing firm located in a developed country, you are interested in taking advantage of the Eastern European markets’ movement toward market-oriented economies. However, your potential
1 Discuss the pros and cons of countertrade as a form of trade.
Is the product standardized or specialized, and is it resaleable?
Is this a one-time shipment or does the possibility exist for additional orders?
What is the value of the goods?
What credit terms are offered by the competition?$#!#$ What are the political and economic conditions within the importer’s and exporter’s countries?
American firms involved in international trade face a unique set of problems. Ultimately, the goal of any exporter is to make a sale and be paid. In return, the importer wants to receive the agreed
4 Explain why US car makers prefer to use the “unbundling” approach in pricing their cars while their foreign competitors tend to use the “bundling” pricing approach.
3 Price haggling is an art. Discuss how you can haggle effectively.
2 To protect itself, how should a marketer price its product in a country with high inflation?
1 How should US farmers price their products?
3 What methods can be used to compute a transfer price (for transactions between affiliated companies)?
2 What is dumping? When does it become illegal? What can a seller do to circumvent antidumping regulations?
1 Explain how exchange rate and inflation affect the way you price your product.
3 Will consumers care where a diamond comes from?
2 Evaluate DeBeers’ attempt to promote a new image.
1 Evaluate DeBeers’ pricing practice.
6 Harman Kardon audio and video products are aimed at the high-end segment of the market. The company has decided to advertise its products with the same graphic throughout the world. By producing
5 As an advertising manager, do you plan to use a standardized advertisement?
4 Many American consumers consider direct mail as junk mail, a term that is offensive to the direct marketing industry. At present, this medium is largely underdeveloped outside of the USA. What is
3 Do you think that there is a market for a world or international newspaper?
2 Explain how the programming approach of the US television industry may differ from those used in other countries.
1 Does advertising serve any useful purpose in developing countries and socialist/communist countries?
7 Are standardization and market segmentation compatible strategies?
6 Is there any empirical evidence to support standardized advertising (or its homogeneity assumption)?
5 Offer the arguments for each of these three schools of thought: standardization, individualization, and compromise.
4 Although the USA is well known for the creation of many new media, what media are more popular overseas than in the USA?
3 Outside of the USA, why is radio probably the closest thing to a national medium of communication?
2 Why is it difficult in most countries to buy (a) TV time and (b) newspaper space?
1 Cite some foreign regulations that restrict the use of either advertising in general or certain advertising practices in particular, and offer the rationale for these regulations.
3 Should expatriate personnel be used? What are some of the difficulties that they may encounter overseas?What can be done to minimize these problems?
2 Why is telemarketing not as widely used outside of the USA?
1 Compare domestic communication with international communication. Explain why “noise” is more likely to occur in the case of international communication process in all five stages (source,
4 Explain why standard sales promotion tools (e.g., premium, coupon) may not be applicable or effective abroad.
3 What is a carnet?
2 What are the requirements of a good publicity program?
1 Explain how personal selling overseas may differ from how it is used in the USA.
3 What elements of the marketing mix does AllWorld need to focus on in order to accomplish its goals, and why? How would it structure the marketing mix in order to accomplish these goals?
2 Where should AllWorld corporate headquarters be located, and why?
1 If you were a corporate manager with overseas locations, would you consider AllWorld Corporation for your expatriate needs? Why or why not?
3 Would you agree that commitment and trust are qualities that can be sold in a similar way to that of products and services? If so, is “relationship selling” a selling from a
2 Are business relationships that are enhanced by social interaction better for global selling?
1 What is relationship selling and how does its application vary among different cultures?
4 What are the functions of a freight forwarder and a customhouse broker? Is it worthwhile to use these agents?
3 Explain how containerization can solve the four packing problems of weight, breakage, moisture, and temperature, and pilferage and theft.

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