MIB International Marketing Strategy 1

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

Market penetration pricing sets low initial prices to rapidly capture market share and deter competitors in new international markets.

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

Localization involves tailoring products, messaging, and marketing mix elements to fit the cultural, legal, and consumer preferences of specific local markets.

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

Dumping is the practice of exporting goods at prices lower than their production cost or home-market price, often subject to anti-dumping duties.

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

A wholly owned subsidiary gives the parent company full control over operations but requires the largest capital investment and bears all financial risk alone.

Question 5

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

Accepted Answer

Combining global standardization with local adaptation

Answer

Glocalization blends a globally consistent brand strategy with locally adapted products and campaigns to resonate with specific regional audiences.

MIB - Master of International Business Practice Test

MIB - Master of International Business Practice Test

MIB International Marketing Strategy 1