Question

In: Economics

5. Which IS NOT a problem when firms pursue multi-domestic strategies? a. Lessons from one market...

5. Which IS NOT a problem when firms pursue multi-domestic strategies?

a. Lessons from one market aren't applied in others

b. Product promotion ideas are not shared within the firm

c. Cultural differences are often overlooked

d. Firms fail to take advantage of their global size when negotiating with suppliers

6. International marketing strategies take advantage of economies of scale, marketing synergies, and political integration.

a. True

b. False

10. Soft currencies are currencies that attract little global demand.

a. True b. False

11. Which organization(s) has helped decrease tariffs?

a. GATT b. WTO c. GATT and WTO d. World Bank

12. In the United States, export tariffs are prohibited by the constitution.

a. True b. False

13. Which IS NOT a factor influencing a country's competitive advantage in an industry?

a. Balance of payments b. Elements of production c. Nature of domestic demand d. Presence of related industries

14. For domestic producers, a strong domestic currency provides the greatest protection.

a. True b. False

15. In the balance of payments, stock purchases are never considered direct investments.

a. True b. False


Solutions

Expert Solution

5. Which IS NOT a problem when firms pursue multi-domestic strategies?

Theory: Multi domestic strategy is a strategy which makes companies to respond to different local demands by customizing products accordingly. Eg. Car makers- GM caters US and China customers seperately.

a. Lessons from one market aren't applied in others- As firms cater different markets with different needs hence lessons from one marketing need not applied in others. Hence this is correct option.

b. Product promotion ideas are not shared within the firm- If this is not followed then there is problem of communication.

c. Cultural differences are often overlooked- Overlooking difference will be self destructive.

d. Firms fail to take advantage of their global size when negotiating with suppliers- It is not a problem as firm has to cater local demands.

6. International marketing strategies take advantage of economies of scale, marketing synergies, and political integration.

a. True

International marketing will take advantage of all listed.

10. Soft currencies are currencies that attract little global demand.

a. True- Soft currency is a low value currency and has low demand due to economic and political instability of a country. Opposite is hard currency.

11. Which organization(s) has helped decrease tariffs?

c. GATT and WTO

Both GATT- General aggrement on trade and tariff. WTO(World trade organization) is successor of GATT, both aimed at reducing tariff.


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