International Marketing Chapter 1

64) The highest-ranked German company in the 2008 Fortune Global 500 survey was: A) Daimler. B) Allianz. C) Volkswagen. D) Siemens. E) none of the above

A) Daimler.

57) McDonald's serves McAloo Tikki Burger in India; McRice Burger in Malaysia; McOZ Burger in Australia; Kiwi Burger in New Zealand; and McHuevo Burger in Uruguay and McSamurai Burger in Thailand. These menu variations are examples of: A) a combination of global and local marketing mix elements. B) a reflection of failure of US menu items in those countries. C) a deviation from successful marketing practices. D) a replacement of standard menu names with fancy names. E) a selection of menu items that can be sold eventually in U.S. markets.

A) a combination of global and local marketing mix elements.

46) When a company succeeds in creating more value for customers than its competition, that company is said to enjoy ________ in an industry. A) competitive advantage B) value C) leverage D) focus E) scale economies

A) competitive advantage

67) A person who assumes that his or her home country is superior to the rest of the world is said to have: A) ethnocentric orientation. B) polycentric orientation. C) regiocentric orientation. D) geocentric orientation. E) no correct answer

A) ethnocentric orientation.

75) When a country like China is experiencing rapid economic growth, policymakers are likely to: A) look more favorably on outsiders. B) look less favorably on outsiders. C) experience more resistance toward outsiders. D) feel threatened by outsiders. E) no correct answer

A) look more favorably on outsiders.

45) A German-made Montblanc fountain pen retailing for $250 in the U.S. is a luxury good that represents an exception to which general principle? A) The smaller the denominator in the value equation, the higher the overall value created. B) Japanese companies exploited economies of scale to become world-class competitors. C) The world is becoming more homogeneous. D) Higher product development costs are a driving force behind globalization. E) Luxury goods are taxed at a higher rate.

A)The smaller the denominator in the value equation, the higher the overall value created.

54) Global localization means that a successful global marketer must have the ability to: A) "think globally, act globally." B) "think globally, act locally." C) "think locally, act locally." D) "think locally, act globally." E) none of the above

B) "think globally, act locally."

44) The essence of marketing worldwide is to surpass the competition in creating perceived value which can be represented as: A) Value = Price/Benefits B) Value = Benefits/Price C) Value = Benefits x Price D) Value = Benefits — Price E) Value = Benefits + Price

B) Value = Benefits/Price

66) Based on the total annual units sold in the worldwide market, the leading product category is: A) flat-panel TV sets. B) cigarettes. C) cell phone handsets. D) cars and light trucks. E) HDTV sets.

B) cigarettes.

47) According to Michael Porter, a global industry is one in which ________ can be achieved by integrating and leveraging operations on a worldwide scale. A) marketing mix B) competitive advantage C) cross border infiltration D) ration analysis E) production capability

B) competitive advantage

53) Coca-Cola achieved success in Japanese market primarily by: A) standardization of marketing mix elements. B) global localization. C) vending machine operations. D) selecting market mix options. E) homogenization.

B) global localization.

41) When you call United Airlines for reservation on a toll free number and get a response from an operator in Mumbai, this is an example of: A) anti-globalization. B) global marketplace. C) multilingual expression. D) discrimination. E) E-ticketing.

B) global marketplace

51) An example of the benefit of globalization is that Apple can market iPod models worldwide without extensive: A) standardization. B) modification. C) integration. D) concentration. E) market participation.

B) modification

69) Unilever, the Anglo-Dutch consumer products company, at one time had 30 different package designs and 48 different formulations for its Rexona deodorant brand. This is an example of: A) ethnocentric orientation. B) polycentric orientation. C) regiocentric orientation. D) geocentric orientation. E) transnational orientation.

B) polycentric orientation.

43) A fundamental difference between regular marketing and global marketing is: A) the lack of marketing mix. B) the scope of activities. C) the lack of strategic planning. D) the focus on resources. E) the lack of communication.

B)the scope of activities.

60) Measured by national income, the United States represents the world's largest single market for goods and services. Roughly what percentage of world income is found outside the U.S.? A) 25% B) 50% C) 75% D) 95% E) 35%

C) 75%

52) Two decades ago, professor Ted Levitt wrote a classic Harvard Business Review article titled "The Globalization of Markets." Which of the following statements about the author and the article is accurate? A) Levitt urged companies to adopt products on a country-by-country basis. B) There was universal agreement about his thesis that the world is becoming homogeneous. C) Levitt urged companies to develop standardized products that could be marketed worldwide with little adaptation. D) Levitt warned of the coming backlash against globalization. E) Levitt did not recommend developing standardized products.

C) Levitt urged companies to develop standardized products that could be marketed worldwide with little adaptation.

63) Based on 2008 rankings of Fortune Global 500 companies, the world's most valuable car company today is: A) GM. B) Daimler AG. C) Toyota. D) Ford. E) Chrysler.

C) Toyota.

62) According to the Fortune global 500 companies for 2008, the largest corporation based on revenue is: A) Exxon Mobil. B) Toyota Motors. C) Wal-Mart Stores. D) General Electric. E) Citigroup.

C) Wal-Mart Stores.

65) Based on the size of the market in U.S. dollars the leading consumer products are: A) cell phones. B) bottled water. C) cigarettes. D) video games. E) recorded music.

C) cigarettes.

55) A company that engages in global marketing: A) pursues a "one size fits all" strategy by creating identical products for homogeneous markets. B) customizes special products for each world country or region. C) creates both standardized and localized products. D) nurtures an ethnocentric management orientation. E) uses localized products only.

C) creates both standardized and localized products.

79) In the United States, some people believe that globalization has depressed the wages of American workers and resulted in the loss of both blue-collar and white-collar jobs. This is an example of: A) discrimination. B) domination. C) globaphobia. D) management myopia. E) economic crisis.

C) globaphobia.

73) Pfizer, Merck, Novartis, and other pharmaceutical companies have little choice but to engage in global marketing since: A) there is little demand for their products in home countries. B) their research centers are located overseas. C) no single market is large enough to recover costs incurred in research. D) there is more demand overseas for their products. E) technology is not available in home countries.

C) no single market is large enough to recover costs incurred in research.

48) The former chairman of Nestlé recently told an interviewer: "We are food and beverages. We are not running bicycle shops. Even in food we are not in all fields. There are certain areas we do not touch. Also, we have no soft drinks because I have said we either buy Coca-Cola or we leave it alone." What strategic marketing principle does the chairman's comment emphasize most specifically? A) customer value B) competitive advantage C) focus on specific food and beverages D) myopia E) policy of dealing only with Swiss businesses

C)focus on specific food and beverages

61) Measured by national income, Japan represents the world's second largest single market for goods and services. What percentage of world income is found outside Japan? A) 40% B) 55% C) 70% D) 85% E) 75%

D) 85%

42) Slumdog Millionaire, a movie which received several awards and an Oscar in 2009 was filmed on a location in and around: A) London. B) San Francisco. C) Cancun. D) Mumbai. E) Moscow.

D) Mumbai

68) The cell phone divisions of Toshiba, Sharp, and other Japanese companies prospered by focusing on the domestic market. When handset sales in Japan slowed a few years ago, the Japanese companies realized that Nokia, Motorola, and Samsung already dominated key world markets. Atsutoshi Nishida, president of Toshiba, noted, "We were thinking only about Japan. We really missed our chance." This example illustrates: A) geocentric orientation. B) regiocentric orientation. C) polycentric orientation. D) ethnocentric orientation. E) poor globalization orientation.

D) ethnocentric orientation.

49) PepsiCo divested its restaurant divisions. A new company, YUM! Brands, is comprised of Taco Bell, Pizza Hut, and KFC. By spinning off the restaurants, PepsiCo management will be able to concentrate its attention on the beverage and snack foods industries. PepsiCo's actions illustrate the concept of: A) leverage. B) standardized global marketing. C) ethnocentric orientation. D) focus. E) myopia.

D) focus

78) Despite the impact of the driving forces, several restraining forces may slow a company's efforts to engage in global marketing. These restraining forces may include all of the following except: A) management myopia. B) national controls. C) opposition to globalization. D) newcomers from emerging markets. E) organizational culture.

D) newcomers from emerging markets.

76) H.F. Iskander, general manager of Chevron's Kuwait office stated "Chevron is pumping oil in different locations all over the world ... there isn't a rock we haven't drilled through. We centralize all that knowledge at our headquarters, analyze it, sort it out, and that enables us to solve any oil-drilling problem anywhere." From the global marketing point of view this is an example of a global company: A) that is hungry to exploit natural resources. B) that is trying to be first to explore oil. C) that it is trying to solve world problems. D) that gains leverage through experience transfers. E) that it does not have easy access to information.

D) that gains leverage through experience transfers.

50) A firm's global marketing strategy addresses which of the following issues? A) standardization versus adaptation of the marketing mix B) global market participation C) coordination of marketing activities D) integration of competitive moves E) all of the above

E) all of the above

56) Examples of companies that have successfully pursued global marketing by creating strong global brands include: A) Italy's Benetton using a sophisticated distribution system. B) Marlboro identifying the brand name with a cowboy. C) Gillette using the same packaging for Mach3 razor worldwide. D) A and C E) all of the above

E) all of the above

58) Which of the following correctly states McDonald's approach to standardization and adaptation of the marketing mix? A) McDonald's standardizes some product elements and adapts others. B) McDonald's standardizes some place elements and adapts others. C) McDonald's standardizes some promotion elements and adapts others. D) McDonald's standardizes some price elements and adapts others. E) all of the above

E) all of the above

59) As of 2007 Gap operated 2,692 stores in the United States and more than 450 stores internationally. The company sources most of its clothing from apparel factories in Honduras, the Philippines, India, and other low-wage countries. If Gap would like to open more stores in Japan, primary consideration should include: A) industry conditions. B) sources of competitive advantage. C) the condition of the apparel market worldwide. D) demand in Japan for U.S. style garments. E) all of the above

E) all of the above

70) Transnational companies, such as Toyota and Honda, have characteristic features that include: A) being in both global markets and utilizes global supply chains. B) characterized by a mind-set of being "stateless." C) using both localized and standardized elements in marketing programs. D) decisions made on the basis of ongoing research. E) all of the above

E) all of the above

71) Nestlé, Unilever, GlaxoSmithKline, and Royal Philips Electronics can be considered transnational companies on the basis of: A) sales outside the home country to total sales. B) assets outside the home country to total assets. C) employees outside the home country to total employees. D) headquartered in a relatively small home country market. E) all of the above

E) all of the above

72) A number of multilateral trade agreements have accelerated the pace of global integration which include: A) NAFTA. B) GATT. C) WTO. D) EU. E) all of the above

E) all of the above