CHAPTER FOUR

GLOBAL MARKETS 3.0

Multiple Choice

1. According to the text, the Web’s content and language will become ________ while
companies cater to a variety of cultures and provide local content.
a. less diversified
b. more diversified
c. less visual
d. none of the above
(b; Moderate; LO1; Dynamics of Global Economy)

2. The greatest challenges to e-marketing opportunities lie in ________.

a. countries with emerging economies
b. countries with developed economies
c. countries in Asia
d. countries in South America
(a; Moderate; LO3; Dynamics of Global Economy)

3. ________ are ideally suited for the broad range of e-marketing activities.
a. Emerging economies
b. Developed countries
c. Underdeveloped countries
d. Least developed countries (LDCs)
(b; Moderate; LO2; Multicultural and Diversity Understanding)

4. Emerging economies ________.

a. have low levels of GDP
b. are experiencing rapid growth
c. are working toward improved standards of living for their citizens
d. all of the above
(d; Easy; LO2; Dynamics of Global Economy)

5. Businesses in emerging economies must deal with problems such as ________.

a. fewer computer users
b. expanded credit card use
c. several methods of online payment
d. all of the above
(a; Moderate; LO2; Dynamics of Global Economy)

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6. A company operating from a country with an emerging economy and wanting to target
markets in developed countries must understand ________ within the population.
a. market similarity
b. market differences
c. market dissimilarity
d. domestic markets
(b; Moderate; LO3; Multicultural and Diversity Understanding)

7. All of the following are examples of market similarity between developed countries, except
________.
a. high literacy rates
b. high internet usage rates
c. distrust of credit cards
d. efficient package delivery services
(c; Moderate; LO3; Multicultural and Diversity Understanding)

8. E-commerce is emerging markets is often hampered, or hindered, by ________.

a. limited use and acceptance of credit cards
b. types of products purchased online
c. clear definition of market segments willing to shop online
d. all of the above
(a; Moderate; LO3; Dynamics of Global Economy)

9. E-marketers working in emerging economies should know and understand ________.

a. how many credit cards are in circulation
b. consumer attitudes toward online purchasing
c. both of the above
d. none of the above
(c; Easy; LO3; Analytic Skills)

10. Why are diaspora communities an important consideration for e-businesses?

a. Infrastructure is not yet sufficiently developed in home countries.
b. Markets in home countries must deal with slow internet connection speeds.
c. E-businesses operating in countries with emerging markets can use market similarity
to target diaspora communities living abroad.
d. Market convergence runs ahead of the curve in emerging economies, providing a useful
entry point to e-businesses.
(c; Moderate; LO3; Dynamics of the Global Economy)

11. Within emerging economies, labor costs may be quite low, but technology and other
business costs can be quite high because of ________.
a. privately-owned telephone monopolies
b. lack of competition between ISPs

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 c. lower internet-related business costs than those in developed countries
d. all of the above
(b; Difficult; LO2; Analytic Skills)

12. According to the text, _________ is the most common language with 499 million web users,
followed by _________with 407 million web users.
a. Chinese; English
b. English; Chinese
c. English; Spanish
d. Spanish; English
(b; Difficult; LO1; Analytic Skills)

13. With the explosive growth and diffusion of ________ the face of e-marketing has changed
quite dramatically throughout the world.
a. electricity sources
b. mobile/cellular phones
c. language translators
d. internet cafes
(b; Moderate; LO1; Dynamics of Global Economy)

14. According to the text, experts suggest that the mobile phone industry took over 20 years to
connect the first billion subscribers and _________ to connect the second billion.
a. 10 years
b. 8 years
c. 5 years
d. 40 months
(d; Moderate; LO5; Analytic Skills)

15. ________ are those countries with the world’s poorest economies.
a. Underdeveloped countries
b. Emerging economies
c. Least developed countries
d. Developed countries
(c; Easy; LO2; Multicultural and Diversity Understanding)

16. Least developed countries (LDCs) often have population segments with much higher
income level, dividing them into haves and have-nots. This is known as a ________
economy.
a. side by side
b. dual
c. double
d. mixed
(b; Difficult; LO2; Multicultural and Diversity Understanding)

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17. ________ means that between countries and between different groups of people within
countries, there is a wide division between those who have real access to information and
communication technology and those who do not.
a. Digital disparity
b. The digital divide
c. Technological division
d. Technological poverty
(b; Moderate; LO3; Multicultural and Diversity Understanding)

18. The developing world accounts for a considerable proportion of the world’s ________.
a. broadband connections
b. wireless connections
c. dial-up connections
d. DSL connections
(c; Moderate; LO1; Multicultural and Diversity Understanding)

19. Successful global e-marketers understand that one of the keys to success is to ________.
a. have a strategy that is adaptable to different local markets
b. have a strategy that is similar in all countries
c. have a strong wireless campaign
d. emphasize web design and graphic in their web sites
(a; Difficult; LO3; Multicultural and Diversity Understanding)

20. Internet penetration can be affected by many factors, including ________.

a. income
b. infrastructure
c. computer ownership
d. all of the above
(b; Moderate; LO3; Multicultural and Diversity Understanding)

True/False

21. According to the text, a truly global internet is likely to accelerate the convergence of styles,
tastes, and products to create a more homogeneous marketplace.
a. True
b. False
(a; Moderate; LO1; Dynamics of Global Economy)

22. BRIC nations among the world’s Big Emerging Economies (BEMs) account for nearly 40%
of the world’s population.
a. True
b. False
(a; Moderate; LO1; Multicultural and Diversity Understanding)

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23. Technology plays an important role in helping any country improve its level of economic
development through increased efficiencies in production, distribution, and sale of goods
and services.
a. True
b. False
(a; Difficult; LO2)

24. Limited credit card use among non-US customers slightly restricts a target market’s
purchasing ability.
a. True
b. False
(b; Moderate; LO3; Analytic Skills)

25. As evidenced by Druk.net of Bhutan, successful e-marketing can leapfrog a company from
nowhere to somewhere in a relatively short period of time.
a. True
b. False
(a; Easy; LO2; Use of Information Technology)

26. Low rates of computer ownership always inhibit opportunities for e-business entrepreneurs
in emerging economies.
a. True
b. False
(b; Difficult; LO2; Use of Information Technology)

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27. Countries with emerging economies often have lower internet-related business costs.
a. True
b. False
(b; Moderate; LO1; Analytic Skills)

28. Companies often consider market similarities across different in order to evaluate entry
risks.
a. True
b. False
(a; Easy; LO3; Multicultural and Diversity Understanding)

29. Understanding the national infrastructure for providing electricity throughout a country is
an unimportant element in assessing foreign markets.
a. True
b. False
(b; Moderate; LO3; Analytic Skills)

30. The increased availability of mobile phones will definitely eliminate the challenges of
wireless e-marketing.
a. True
b. False
(b; Difficult; LO2; Use of Information Technology)

31. Media dark refers to rural Indian communities that have no access to radio or TV.
a. True
b. False
(a; Easy; LO2; Use of Information Technology)

32. With regarding to purchasing patterns and practices, it is crucial for global e-marketer to
understand the world from their target market’s perspective.
a. True
b. False
(a; Moderate; LO3; Multicultural and Diversity Understanding)

Essay Questions

33. What effects will the increasing number of non-US users have on the internet?
 Content more diversified
 Language more important issue
 Convergence of style, tastes and products
 More homogeneous marketplace
(Easy, LO1; Dynamics of Global Economy)

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34. What are some of the possible solutions to the limited use of credit cards in emerging
economies?
 Cash on delivery (COD)
 Payment at physical location
 Bank Transfers
 Postal or money orders
 Prepaid credit cards or digital cash (eBanka of the Czech Republic)
(Moderate, LO3; Analytic Skills)

35. What are some significant technological challenges to e-marketing in emerging economies?
 Limited access to computers
 Telephone access
 Slow internet connection speeds
 Cost or lack of availability of internet Service Providers (ISPs)
 Inconsistent or lack of electricity
 Limited use of and support for credit cards for purchases
(Moderate; LO2; Analytic Skills)

36. The use of mobile phones to connect to the internet solves some of the problems for e-
marketers in emerging economies. What new challenges arise out of the use of mobile
phones for internet access?
 Smaller screens
 Small keypads
 Short length for e-mails
 Create content that works on the Short Messaging Service (SMS)
(Moderate; LO5; Use of Information Technology)

37. Discuss global trends related to the adoption of smartphones, and what e-marketers must
understand about these trends.
 Globally, smartphone use is on the rise
 Smartphone adoption rates the fastest of any technology innovation ever
 E-marketers must understand how smartphones are actually influencing consumer
purchase behavior in various countries
 E-marketers must understand that while mobile and smartphone devices may be
fairly similar, consumer behavior in various countries is not
(Moderate; LO1; Use of Information Technology)

38. Consider an internet or e-commerce company that sells exclusively in the US but wants to
expand globally. What kind of strategy would you recommend for their initial expansion?
What are some of the factors they should consider in pursuing this expansion?
 Market similarity strategy
 Foreign markets that have similar characteristics to the US
 Developed economy
 High usage of computers and the internet

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  High penetration of broadband
 High literacy rates
 General acceptance and usage of credit cards
 Efficient delivery system
 Secure online payment system
(Difficult; LO3; Multicultural and Diversity Understanding)

39. How has the China-based company Haier used its web presence to improve its global
engagement of consumers and overall competitiveness?
 Language-specific versions of its website (e.g., www.haieramerica.com/en)
 Enabling customers to shop for and register products, and get warranty details
 Helping consumers locate after-sales and maintenance support
 Receiving inquiries from prospective dealers and distributors
(Difficult; LO3; Use of Information Technology)

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