MIB International Marketing Strategy 2 — Questions and Answers
Question 1: Which framework analyzes a country's competitive advantage in specific industries using four key determinants?
- PEST analysis
- Porter's Diamond Model (Correct answer)
- BCG Matrix
- Ansoff Matrix
Correct answer: Porter's Diamond Model
Porter's Diamond Model identifies four determinants—factor conditions, demand conditions, related industries, and firm strategy—that explain national competitive advantage.
Question 2: What is 'country-of-origin effect' in international marketing?
- Tax incentives for domestic products
- Consumer bias based on where a product was made (Correct answer)
- Import quota regulations
- Currency exchange impact on pricing
Correct answer: Consumer bias based on where a product was made
Country-of-origin effect refers to consumers' positive or negative perceptions of products based on the nation where they were manufactured or branded.
Question 3: In international distribution, an 'exclusive distribution' strategy means:
- Selling through all available retailers
- Limiting distribution to a single intermediary per territory (Correct answer)
- Using only direct online channels
- Distributing only to premium retailers
Correct answer: Limiting distribution to a single intermediary per territory
Exclusive distribution grants a single intermediary the sole right to distribute a product within a defined geographic territory, ensuring brand control.
Question 4: Which cultural dimension by Hofstede measures the degree to which less powerful members accept unequal power distribution?
- Individualism vs. Collectivism
- Uncertainty Avoidance
- Power Distance Index (Correct answer)
- Long-term Orientation
Correct answer: Power Distance Index
The Power Distance Index (PDI) measures the extent to which less powerful members of society accept and expect that power is distributed unequally.
Question 5: Which international pricing approach sets prices based on what customers in each market are willing to pay?
- Cost-plus pricing
- Competitor-based pricing
- Market-differentiated pricing (Correct answer)
- Transfer pricing
Correct answer: Market-differentiated pricing
Market-differentiated pricing (also called price discrimination) sets different prices in different international markets based on local willingness to pay and competitive conditions.
Question 6: A gray market in international trade refers to:
- Illegal black market transactions
- Authorized reselling of trademarked goods outside official channels (Correct answer)
- Government-controlled trade zones
- Counterfeit product distribution
Correct answer: Authorized reselling of trademarked goods outside official channels
Gray markets involve the unauthorized but legal import and sale of genuine branded goods through distribution channels not approved by the manufacturer.
MIB International Marketing Strategy 2
Which framework analyzes a country's competitive advantage in specific industries using four key determinants?