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Page 29
Answer
price skimming.
market penetration.
dumping.
differential pricing.
inventory compensation.
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Question 120
Multiple Choice
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Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites.
With a large number of its bikes sold in markets all around the world, it still retains the
manufacturing close to the headquarters for several reasons, one being that its management
wants to keep close watch on the quality of its products. However, for all the accessories,
apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to
produce the items with the Harley name and logo. Some of these items, particularly the
apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG)
have been complaining to the company about this practice, citing that "everything Harley
should be made in America".
Reference: Ref 9-1
At what level of involvement in international marketing is Harley-Davidson with regard to its
bikes?
Answer
Full-scale
Globalization
Joint venture
Direct ownership
Exporting
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Question 121
Multiple Choice
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KFC opened its first franchised restaurant outside of North America in England in 1964. Now,
over a billion KFC chicken dinners are sold annually at more than 80 countries and territories
around the world. KFC has established its own processing plants in these countries to
ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is
usually the same in all restaurants, with only a very few additional items available in different
regions. However, when KFC first franchised into Asian countries, it added many unusual
local delicacies to the menu -- items such as fried octopus and squid. Additionally, the
franchised stores in Asian countries display cooked food in "plates" near windows at the front
of the store. This is a tradition for many restaurants in these countries --
to offer the customer
passing by a preliminary view of their product.
Reference: Ref 9-2
KFC's establishment of international production/processing facilities is an example of
Answer
direct ownership.
franchising.
strategic alliance.
outsourcing.
a trading company.
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Question 122
Multiple Choice
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Page 30
Question
KFC opened its first franchised restaurant outside of North America in England in 1964. Now,
over a billion KFC chicken dinners are sold annually at more than 80 countries and territories
around the world. KFC has established its own processing plants in these countries to
ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is
usually the same in all restaurants, with only a very few additional items available in different
regions. However, when KFC first franchised into Asian countries, it added many unusual
local delicacies to the menu -- items such as fried octopus and squid. Additionally, the
franchised stores in Asian countries display cooked food in "plates" near windows at the front
of the store. This is a tradition for many restaurants in these countries --
to offer the customer
passing by a preliminary view of their product.
Reference: Ref 9-2
The practice of offering fried octopus and squid at Asian KFC's is best described as
Answer
a strategy of standardization.
a strategy of globalization.
a strategy of some customization
.
competitive advantage.
internationalizing the franchise.
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Question 123
Multiple Choice
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Question
KFC opened its first franchised restaurant outside of North America in England in 1964. Now,
over a billion KFC chicken dinners are sold annually at more than 80 countries and territories
around the world. KFC has established its own processing plants in these countries to
ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is
usually the same in all restaurants, with only a very few additional items available in different
regions. However, when KFC first franchised into Asian countries, it added many unusual
local delicacies to the menu -- items such as fried octopus and squid. Additionally, the
franchised stores in Asian countries display cooked food in "plates" near windows at the front
of the store. This is a tradition for many restaurants in these countries --
to offer the customer
passing by a preliminary view of their product.
Reference: Ref 9-2
Suppose that KFC's parent company experienced difficulty in opening its restaurants in
China unless KFC was willing to pay the government a "bribe". If KFC were to resort to
paying this bribe in China saying that "it's different doing business there" -- this would be an
example of
Answer
a licensing arrangement.
the self-
reference criterion.
cultural relativism.
balance of trade issues.
exchange controls.
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Question 124
Multiple Choice
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KFC opened its first franchised restaurant outside of North America in England in 1964. Now,
over a billion KFC chicken dinners are sold annually at more than 80 countries and territories
around the world. KFC has established its own processing plants in these countries to
ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is
usually the same in all restaurants, with only a very few additional items available in different
regions. However, when KFC first franchised into Asian countries, it added many unusual
local delicacies to the menu -- items such as fried octopus and squid. Additionally, the
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