MIB International Marketing Strategy

Question 1

Which pricing strategy involves setting a low initial price to quickly gain market share in a new international market?

Accepted Answer

Market penetration pricing

Answer

Price skimming

Answer

Cost-plus pricing

Answer

Value-based pricing

Question 2

What is the term for adapting a product and its marketing mix to suit local market conditions in international business?

Accepted Answer

Localization

Answer

Standardization

Answer

Diversification

Answer

Segmentation

Question 3

A company sells its products in a foreign market below the cost of production to eliminate competition. This practice is known as:

Accepted Answer

Dumping

Answer

Transfer pricing

Answer

Predatory pricing

Answer

Grey market pricing

Question 4

Which global market entry mode provides the highest degree of control but also the highest financial risk?

Accepted Answer

Wholly owned subsidiary

Answer

Licensing

Answer

Franchising

Answer

Joint venture

Question 5

The concept of 'glocalization' in international marketing refers to:

Accepted Answer

Combining global standardization with local adaptation

Answer

Exporting only to global cities

Answer

Focusing solely on emerging markets

Answer

Eliminating local intermediaries

Question 6

Which of the following best describes a 'born global' firm?

Accepted Answer

A firm that internationalizes rapidly from inception

Answer

A firm that only operates domestically

Answer

A multinational that acquires local firms

Answer

A firm that exclusively uses licensing