Which is

WRONG

with regard to global strategy:

- companies may experience manufacturing scale economies by expanding into additional global markets.

- global competitors can subsidize aggressive tactics in one country because of large cash flows in others.

- strategic business units may be integrated to respond to the investment needed to succeed globally.

- a low-cost manufacturing advantage can be expected to last for a decade or more.

Which is a

DISADVANTAGE

of licensing?

- The licensing company gains entry into a foreign market at a high risk.

- It takes a lot of time for the licensee to gain production expertise and name.

- Licensing is a complex way for a manufacturer to enter international marketing.

- The licensor potentially creates a competitor in the form of the licensee.

To have an ethical business climate requires all employees to be dedicated to that goal because:

- employees have to be taught ethical standards.

- managers rarely enforce values unless employees ask them to do so.

- customers are only vaguely interested in a firms ethical standards.

- the roots of ethical conflict often are competing values of individuals.

When auditing expenses claimed by the university president, the auditors found extravagant spending on $1000

per night hotels, banquets, and luxurious restaurants. As a result the president was fired, alumni donations

declined, and staff members, who were disturbed by the extravagance, left. This example illustrates:

- the interdependence of responsibilities for ethical decision making.

- universities are more corrupt than companies.

- the foolishness of the board of trustees.

- the need to identify issues.

When looking at ethical issues associated with the strategic marketing planning process, questions:

- should only be addressed during the evaluation stage.

- should never be asked, for only managers should deliberate marketing ethical issues.

- vary at each stage of the process.

- are never asked during the implementation stage.

Critics of the marketing system are most likely to charge that intermediaries:

- are too few in number

- are inefficient

- provide only necessary services

- underprice their services