International Marketing MC Questions

Global localization means that a successful global marketer must have the ability to:

"think globally, act locally."

In international marketing, the most critical distribution questions are:

'choice of international shipping method' and 'choice of local logistics in foreign markets'

The main situations when the existence of regional management centers is necessary are:

'when sales volume in a particular region becomes substantial' and 'when each region needs to be treated separately due to the homogeneity within regions and the heterogeneity between them' are correct.

______ of the world's population is collectivist.

70-80%

Approximately ______ of world income is found outside the United States of America.

75%

In the EU, SMEs constitute approximately _____per cent of all firms.

99

________ consists of people, equipment, and procedures to gather, sort, analyse, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

A marketing information system

______ implies that the prices in the individual countries may only vary within a set range.

A price corridor

Which of the following are members of CARICOM?

All of the above (Antigua, St. Lucia and Jamaica, The Bahamas)

Which of the following tools measure the general quality of a country's business climate?

All of the above (BERI, BMI, Euromoney)

Which of the following is a preferential trading agreement in Latin America?

All of the above (MERCOSUR, SICA, CARICOM)

A marketing director for a car manufacturer is given particular responsibility for the Far East markets. Which information will the marketing director require as a priority in order to analyze and screen these markets?

All of the above (competition levels in each country, price levels in each country, the number of cars sold and income distribution per country)

Which of the following are positive reasons for internationalization?

All of the above (economies of scale, market diversification, international competitiveness)

Major components of the foreign environment that the international marketing company faces include:

All of the above (political/ legal forces, socio-cultural forces, competition)

Which of the following is an appropriate guideline for companies selecting independent distributors in international markets?

All of the above are appropriate guidelines. (Treat local distributors as long-term partners., Look for distributors capable of developing markets.)

An indication of fierce international competition is given by which factors?

All of the above factors (high levels of substitutes, competitors are numerous and of equal size and power, high exit barriers)

Which of the following statements about Saudi Arabia is true?

All of the above statements are true. (Saudi Arabia has the world's highest per capita consumption of fragrance.,Saudi Arabia has a population of about 9 million people, yet it is the sixth biggest fragrance market in the world behind The United States of America, Japan, Germany, France and Italy.,Saudi Arabia has a high-touch culture, however, inappropriate use of touch in advertising messages may cause problems.)

Useful techniques for estimating export market size include

All of the above. (income elasticity measurements, lead-lad analysis, regression analysis)

Problems in international marketing research data collection and interpretation include:

All of the above. (lack of secondary data available for some countries., problems in establishing comparability and equivalence of data and research conducted in different contexts., translation equivalence in questions.)

Secondary sources of information available to exporters:

All of the above. (may provide an overwhelming amount of information., include information from commercial banks, consulates, and freight forwarders.,usually should not be relied upon as a sole source.)

Culture affects:

All of the above. (types, designs, styles, and colours of products., methods of negotiation., themes and presentation of advertisement.)

In this culture, equality is a desirable value. However the actual behaviour of _________ does not show so much equality, as in this culture people should get what they deserve if they have the capabilities to work hard.

Americans

Which of the following is true about etic and emic approaches to country analysis?

An emic approach studies a culture from within; etic analysis is "from the outside"

In which of the following countries would an organization expanding internationally encounter the highest potential for political risk:

Argentina

Which of the following is not true about a personal visit to size up the market firsthand and begin the development of an actual export-marketing program?

Arrange a face-to-face meeting and avoid going to trade shows

______ is a type of negotiation in which the buyer and seller of a product dispute the price which will be paid and the exact nature of the transaction that will take place in hope that they will come to an agreement.

Bargaining

"Usage rates" and "user status" are important criteria for which segmentation variable?

Behavioral

A quick method that can help international marketers compare relative value of currencies is to check the price of a ______ in different countries.

Big Mac

Which of the following statements about the WTO anti-dumping agreement is true?

Both (The WTO anti-dumping agreement allows governments to act against dumping where there is genuine ("material") injury to the competing domestic industry.,The WTO anti-dumping agreement enables governments to protect their local producers from foreign producers that sell their products on local markets at very low prices.)

Which of the following industries are known for their high degree of globalism?

Both 1 and 2: PCs, IT (software, records (CDS), movies and aircraft

Dangers arising from measure equivalence (translation equivalence) in questionnaires are that a poorly worded item:

Both of the above (may cause respondent's difficulty in answering, may produce data that are not valid.)

The country with the largest telecommunication sector in all of Latin America is:

Brazil

BRIC, the acronym coined by Goldman Sachs in 2001, stands for:

Brazil, Russia, India and China

BERI, a useful tool in the coarse-grained, macro-oriented screening of international markets, stands for:

Business Environment Risk Index

BERI stands for:

Business Environment Risk Index.

In which way do Japanese firms typically exploit foreign market opportunities?

By using penetration pricing strategies.

______ is the economic system whereby the state holds broad powers to serve the public interest, it decides what goods and services are produced and in what quantities and demand typically exceeds supply:

Centrally planned socialism

Which of the following forms of industry structure is Korean?

Chaebol

Which of the following sentences is not true?

Characteristic of weak uncertainty avoidance is resistance to change, a desire for stability.

_______ is the most important aspect of a company's international orientation.

Commitment

________ is never simple, yet understanding it is the essential task of marketing management.

Consumer buying behavior

Which of the following most accurately describes the relative length of consumer and industrial distribution channels?

Consumer channels tend to be longer (consist of more intermediaries) than industrial channels.

________ is sometimes called a mother hen, a piggyback exporter, or an export vendor

Cooperative exporter

_____ implies that the export price quote includes the cost of delivery to the importer's premises.

Delivery duty paid

Diageo PLC, V&S Vin & Spirit AB, and Seagram and other marketers know that Russians consume a great deal of vodka. This type of market segmentation can be classified as:

Demographic

Which of the following is not one of the basic internationalization routes suggested by Andersen et al (1995)?

Dependent internationalization The basic routes are: supply chain of MNC, cooperation with domestic, independent)

Which of the following lists some of the steps in the market research process in the correct order?

Determine information requirement -> problem definition -> choose unit of analysis -> examine data availability -> assess value of research

Regionally, __________ has seen the largest decrease in child population.

Eastern Europe

Which form of regional cooperation agreement, when fully implemented, entails creation of a unified central bank, the use of a single currency, and common policies on agriculture, social services and welfare?

Economic union

Which of the following received a fee for bringing together a exporter and buyer in another country?

Export broker

Which is the most traditional and well established form of operating in foreign markets?

Exporting

Which of the following approaches is most appropriate for an organization with little experience in international markets?

Exporting

Which of the following statements best describes the typical behaviour of national governments towards imports and exports?

Exports are encouraged; imports are discouraged.

Which of the following is not a major reactive motif for initiating export?

Foreign market opportunities/market information Reactive motives are: unsolicited foreign orders, competitive pressures, and proximity

Which is the largest country within the EU by size of the population?

Germany

GAM stands for ______

Global Account Management

Which of the following represents a company's effort to identify and categorize groups of customers and countries according to common characteristics?

Global market segmentation

Which of the following countries outranks the others in Hofstede's dimension of uncertainty avoidance:

Greece

Two countries that outrank the others in uncertainty avoidance are:

Greece and Portugal

The terminology used to describe the new norms of cooperation strategies varies widely and the phrases used include all of the following except:

Greenfield operations They include: strategic international alliances, global strategic partnerships, and collaborative agreements

According to the Heritage Foundation, the country with the highest degree of economic freedom is:

Hong Kong

Which statement is not true about how L'Oreal, a global brand, is perceived in various world markets?

In individualistic cultures L'Oreal is viewed as a 'must have in order to be successful'.

Which of the following sentences best summarizes the differences between the red and blue oceans strategies?

In the red oceans, industry boundaries are defined and accepted and the competitive rules of the game are known. Blue oceans are occasionally created well beyond existing industry boundaries.

In this country, beliefs emphasize the spiritual progress of each person's soul rather than hard work and wealth creation.

India

Which country has the largest economy (as measured by GNP) of the nations in ASEAN?

Indonesia

Any Western country doing business in Malaysia or the Middle East should have an understanding of:

Islamic law

Which of the following countries is the most culturally challenging for a Westernized organization wishing to expand internationally?

Japan

Which of the following is not a common-law country?

Korea

______ is the fundamental reason for exporting.

Making money

Hyperbole, persuasiveness, dreams, great expectations, and comparative advertising are reflections of which Hofstede's dimension?

Masculinity

A true multinational organization will often adopt a ______ strategy.

Multidomestic

Which of the following is not true about high-context cultures?

Negotiations are lengthy.

Original Equipment Manufacturers (OEMs) are different from other typical buyer-seller relationship in that:

OEMs have much stronger bargaining power than the subcontractors.

OEM stands for

Original Equipment Manufacturer

Which of the following is not a characteristics of global strategic alliances?

Participants focus on an individual country market

In Svend Hollensen's classification, which of the following is not a major type of political risk?

Partnership risk The major political risks are ownership, operating, and transfer

______________ is the world global sports drinks market leader.

PepsiCo

PEST is an acronym which stands for:

Political, Economic, Social, Technological

Which staffing policy is the most consistent with an international multidomestic strategy?

Polycentric

A strategic business manager wishing to develop an edge over rival organizations can use ______ in order to gain a better understanding of the industry in which the organization operates.

Porter's Five Forces model

Which of the following does not contribute to price escalation in foreign markets?

Product image

An important new tool for inventory management is:

RFID.

Within an international context, what are 'economies of scope' synonymous with?

Reusing a resource from one business/country in additional businesses/countries.

______ typically offer more flexibility in international markets.

SMEs

Which member of the Gulf Cooperation Council (GCC) has both the largest economy and population?

Saudi Arabia

______ involves charging a high price to achieve the highest possible contribution in a short period of time.

Skimming

___________ enhance brand performance in countries that rank high on the power distance dimension in Hofstede's model.

Social brand images

________ is defined as being relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behaviour.

Social class

________ shapes the beliefs, values, and norms that largely define tastes and preferences.

Society

A marketing director for a condom manufacturer is given particular responsibility to market condoms internationally. Which environmental factors will likely have the greatest impact on the marketing director's decision?

Socio-cultural

A marketing director for a condom manufacturer is given particular responsibility to market condoms internationally. Which environmental factors will likely have the greatest impact on the marketing director's decision?

Socio-cultural.

There are 11 official languages in ______ and these tend to be vernacular/dialects. In consequence, researchers must fix the conceptual aspect and then adjust it in order to be able to convey the same idea and try t

South Africa

Uppsala is a city in:

Sweden

Buyer-seller interaction theory was developed by the:

Swedes

Which type of relationship has the advantage of allowing the understanding of global account opening?

The 'diamond' relationship

Which one of the following statements is true?

The German model of organization is more like a well-oiled machine compared to the British model of organization which resembles that of a village market with no decisive hierarchy.

Confucianism has adherents mainly in:

The People's Republic of China, Korea and Japan

Which currency is also referred to as a vehicle currency?

The US Dollar.

Mystery shopping, a popular global ethnographic tool, formally originated in:

The United States of America

Which country represents the largest market for breakfast cereals in the world?

The United States of America

Which type of marketing structure implies that divisions become primarily responsible for the development and implementation of the overall international strategy?

The international division structure

Which of the following statements is true?

The main consequence according to the Uppsala School model is that organizations tend to intensify their commitment towards as their experience grows.

How can a marketer use the age distribution of the population in a market?

The marketer can use it to identify the potential number of customers in various age groups.

Which of the following is the best organisation structure for global marketing?

There is no single "best" structure for global marketing

The international standard by which letters of credit (L/Cs) are interpreted is known as the ______ 500:

UCP

The essence of marketing worldwide is to surpass the competition in creating perceived value which can be represented as:

Value = Benefits/Price

The cultural environment of a country is best defined by which characteristics?

Values, attitudes, heroes, myths and symbols.

________ occurs when a manufacturer conspires with wholesalers or retailers to ensure certain retail prices are maintained.

Vertical price fixing

Business negotiations between which cultures usually result in more cooperative and creative behaviour?

When a business person from a low masculine culture meets a business person from a low power distance culture.

In which of the following situations do geographical structures best serve firms wishing to internationalize?

When firms have a homogeneous range of products that need fast and efficient world-wide distribution.

Managers must decide how well a company's product fits the country market by asking the following questions except:

Will it be possible to neglect home-country regulations?

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 combination of global and local marketing mix elements.

In international marketing the main difference between a foreign branch and a foreign subsidiary is:

a foreign subsidiary is a local company owned and operated by a foreign company under the laws of the host country.

Export marketing does not require

a selling approach -it needs identification of market potential, use of marketing research, understanding of target market environment

A person or a firm that agrees to provide semi-finished products or services needed by another main party to perform another service, to which this person or firm is not a party, is called:

a subcontractor

The overall goal of ____________ is to achieve global competitiveness through recognizing cross-border market similarities and differences and to link the capabilities of the organization across national boundaries.

a transnational organization; they do businesses in many countries; they are borderless and doesn't have HQ

If Portugal can produce wheat and wine much cheaper than England can, then it can be concluded that Portugal has a(n) ______ advantage in both commodities.

absolute

The main aim of global marketing is to:

achieve all of the above (satisfy global customers better than competition, coordinate the marketing activities within the constraints of the global environment, find global customers)

A duty that represents a certain percentage of the value of a particular product is a(n):

ad valorem duty

Licensing as a market entry mode has several disadvantages and opportunity costs, which do not include:

adaptations by licensee to fit local tastes.

The work of an international marketer is mainly concerned with:

adapting a marketing mix to enter a market in another country.

A global segment is referred to as "global elite" which include:

affluent, well-traveled persons

Business negotiations between equals (low power distance) is not a concept found in:

all (Korea, Japan, Russia)

The main differences between bribery and lubrication are:

all of the above

A firm without much export experience uses the rigid cost-based pricing method. Which of the following considerations is the exporter ignoring?

all of the above (Does the price take antidumping laws into consideration?,Will authorities in export markets view the price as reasonable or exploitative?,Is the price competitive in view of local market conditions?)

A number of multilateral trade agreements have accelerated the pace of global integration which include:

all of the above (EU, GATT, NAFTA)

Quotas are classified as:

all of the above (absolute, tariff, and voluntary)

Transnational companies, such as Toyota and Honda, have characteristic features that include:

all of the above (characterized by a mind-set of being "stateless", being in both global markets and utilizes global supply chains, using both localized and standardized elements in marketing programs

Multinationals have been criticized for:

all of the above (having a significant impact on government policy primarily through the threat of market withdrawal.,creating a 'race to the bottom' through their capital mobility.,dominating over local firms and offering higher wages.)

According to Svend Hollensen, the main internal triggers of export initiation are:

all of the above (importing as inward internationalization, perceptive management, specific internal event)

'Developing countries' such as China or India benefit from the patronage of companies that outsource to them in terms of:

all of the above (increased wages, increased quality of life job prestige and education)

Nintendo's Wii has managed to become a market leader by emphasizing which of the following?

all of the above (lower price than competition, product simplicity, non-traditional users characteristics)

Imperfect competition in international markets occurs in:

all of the above (oligopsony, monopoly, monopsony)

The following are examples of political risk actions:

all of the above (price and tax controls, import and labor restrictions, local-content laws and change controls)

Consumer expenditures are affected by ________.

all of the above (savings, debt, credit availability)

The main risks associated with establishing sales and production subsidiaries are:

all of the above (subsequent withdrawal from any foreign market can be extremely costly in terms of reputation in international markets.,subsequent withdrawal from any foreign market can be extremely costly in terms of reputation in the domestic market.,subsequent withdrawal from any foreign market can be extremely financially costly.)

The main differences between the gray and the black markets are:

all of the above (that black markets may be the subject of illegal product dealings, such as weapons and illegal drugs.,that black markets are the parts of an economic activity involving illegal deals while gray markets refer to the flow of goods through unauthorized distribution channels.,that gray market goods are not illegal while black market goods may be illegal.)

Among the main reasons why a firm would employ sales subsidiaries are:

all of the above (the desire to be closer to its customers as well as potential tax advantages, the possibilities to transfer greater responsibility to these subunits, the possibilities to transfer greater autonomy to these subunits)

Compared to North Americans and North Europeans who prefer short negotiations and to 'get down to business' as soon as possible, Japanese businessmen prefer:

all of the above (to feel that there is mutual trust and respect, to meet up several times, take their time)

Global branding is a branding alternative that bears great advantages such as:

all of the above (uniform world-wide image, elimination of brand confusion, easy identification and recognition, reduction of advertising costs)

Born globals share the following similarities:

all of the above(they have a string customer orientation, they possess unique assets, they focus on a narrow global market segment)

Traditionally, the scope of marketing research includes:

all of the above. (market, environmental and competitive studies)

Among the main reactive reasons for Haier's Group internationalization was (were):

all of the above. (need to dispose of excess capacity, saturation of Chinese home appliance market, special conditions offered by Chinese government to international players)

Which of the following represent major reactive motives for initiating export:

all of the above. (overproduction/excess capacity and unsolicited foreign orders., extended sales of seasonal products, competitive pressures.)

Transnational companies like Toyota and Honda have characteristic features including:

all of the above: being in both global markets and utilizing global supply chains, decisions made on basis of ongoing research, using both localized and standardized elements in marketing programs

Because they are in transition, the markets of Central and Eastern Europe present interesting opportunities and challenges which include:

all of the above: exporting as an entry mode, first mover advantage, new source of growth

The European Union is an example of:

an economic union

The efforts of global companies to reach low-income consumers in emerging markets highlight the importance of skillful global market segmentation and targeting. Market segmentation represents:

an effort to identify and categorize customers based on common characteristics

Your firm has just developed its first successful MIS. It interacts with information users to ________ information needs, develop needed information, distribute the marketing information, and help managers use it in their decision making.

assess

Psychographic segmentation involves grouping people in terms of their:

attitudes

The cultural environment of a country is best defined by which characteristic?

attitudes, beliefs, and values

Psychographic segmentation involves grouping people in terms of their

attitudes, values, and lifestyles

One of the basic elements of sociologist Everett Roger's Diffusion theory is the concept of an "adoption process." The first step in this adoption process is:

awareness

Which of the following show the correct order of the product adoption process?

awareness -> interest -> evaluation -> trial -> adoption

Which of the following shows the correct order of the product adoption process?

awareness->interest->evaluation->trial->adoption

An irrevocable letter of credit transfers the payment obligation for an export deal from the buyer to the buyer's _______:

bank

The most restrictive type of countertrade is:

barter

In communicating across cultural boundaries, it is important to understand that:

behaviour itself is a form of communication.

Procter & Gamble has identified a group of consumers in Europe who are willing to pay premium prices for pet food that will improve the health of their pets. This is an example of ________ segmentation: Benefit

benefit

Which set of documents generally represents the minimum documentation required to clear a shipment through customs:

bill of exchange, commercial invoice

Which of the following documents represents title to goods in an export business?

bill of lading

Nintendo attempts to create a ______________ by offering a unique gaming experience and keeping the cost of its system lower than Sony's and Microsoft's.

blue ocean

What metaphor is used to describe the competitive space where products are not yet well defined, competitors are not structured and the market is relatively unknown?

blue ocean

_______ represent(s) the cumulative added value of a company's investment in the marketing of a brand over time.

brand equity

Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction:

cash in advance

Which of the following arranges export financing payment methods in descending order starting with the most secure/reliable and ending with the least secure/reliable:

cash in advance—>documentary credit (L/C)—> documentary collection (draft)—>sales on open account

'Locked-up' channels occur for all the following reasons except:

channel members' ability to change allegiance without major negative consequences

Restrictive administrative and technical regulations can create barriers to trade which may take all of the following forms except:

common agricultural policies

England is relatively better at producing wheat than wine, so England is said to have an ______ advantage in the production of wheat.

comparative

According to Michael Porter, a global industry is one in which ______ can be achieved by integrating and leveraging operations on a worldwide scale.

competitive advantage

According to the ______________________, it can be concluded that firms have a competitive advantage in a market if they offer products of a higher perceived value to the customers and lower relative costs than competing firms.

competitive triangle

Organizations attempting to compete effectively in global markets are faced with the following main interrelated challenges:

complexity, change, competition and conscience.

Being focused in global marketing is equal to:

concentrating on core business and competence.

One of the following is not a form of letter of credit:

confirmed revocable L/C

A ______ style is the pattern of behaviour an individual develops in response to conflict with others, such as differences of opinion.

conflict management

The seven value types developed by Schwartz are:

conservatism, intellectual autonomy, affective autonomy, hierarchy, mastery, egalitarian commitment and harmony.

Companies that use "contract manufacturing" provide all of the following advantages except:

considerable commitment of management resources.

The fundamental basis of the relationship between the exporter and the intermediary is the:

contract

With the globalization of markets, the tastes and preferences of consumers world-wide are:

converging upon a global norm

The words that are the spoken or written communication elements in advertisements are known as:

copy

The value chain activities by which the firm is regarded as a better performer than any of its competitors are known as:

core competences

Porter's four generic strategies for achieving competitive advantage are:

cost leadership, product differentiation, cost focus, focused differentiation.

Marketers must weigh carefully the benefits resulting from additional information against the ________ of the additional information.

costs

Which of the following types of duties would be imposed on a company whose home country government provided export subsidies:

countervailing duty

The goals of international marketing are to:

create and retain customers in global markets

Being a global organization means:

creating both standardized and customized products

From the point of view of marketing, an organization that enjoys competitive advantage in an industry has done so by:

creating superior value for customers

The president of a Mexican company recently remarked, "Business in Mexico is done on a consensus basis, very genteel and sometimes slow by U.S. standards." A few months later, the Mexican company and its U.S. joint venture partner parted company. Judging by the president's remark, one important reason for the "divorce" was:

cultural differences

When Wal-Mart Stores first expanded into Mexico, management established a joint venture with the country's largest retailer. Judging by the approach Wal-Mart used, management must have viewed Mexico as:

culturally distant and difficult to enter.

Regarding culture:

culture is the sum of a group's learned behaviour patterns, attitudes, and material things.

A vice-president of an American software company introduced himself to a group of Korean partners and added "you may just call me John." Although this verbal cue shows underlying reality that Americans have a high value on informality and equality, it needs adaptation due to the reason that:

customs, hierarchies, and class structure of Korean culture has to be respected

The practice of registering a particular domain name for the express purpose of reselling it to the company that should rightfully use it is called:

cybersquatting

In developing countries, such as Ghana, the best way to communicate with market segments may be through:

dance, songs, and storytelling.

Anyone undertaking a market research project should understand that the first step is:

defining the problem

One of the following is not among the main internal factors affecting the choice for market entry mode:

demand uncertainty Main factors are firm size, product, and international experience

Income and population are two variables that can be used in _____ segmentation:

demographic

Income and population are two variables that can be used in _______________ segmentation:

demographic

To assess the potential of international markets, organisations generally compare nations with respect to:

demographics, GNP/capita' and 'consumer preferences'.

Psychic distance refers to factors such as:

differences in language, culture and political systems.

The Swatch Group markets watches in all price ranges, from the Swatch brand at the low end to luxury brands such as Longines, Blancpain, and Breguet. Which target market strategy does this illustrate?

differentiated global marketing

Which of the following does not represent a political risk in the internationalization process:

difficulties in obtaining export financing Political risks include complexity of trade documentation, lack of tax incentives, civil strive

When an organization's intermediary is located in the target foreign market, the international entry model is known as:

direct exporting

By definition, a ________ requires a large amount of learning on the part of users and typically creates new markets and consumption patterns.

discontinuous innovation

Which of the following methods of payment is also known as a "draft":

documentary collection

Strong exchange rates can:

drive imports to become cheaper.

The strategy consisting of adapting both product and promotion for each market is known as:

dual adaptation

If a company sells products in export markets at prices that are below fair market value and that can harm producers in the export market, that company may be accused of:

dumping

Tata Nano's expansion into Europe and North America is hindered by which two clear barriers?

emission standards and safety regulations

Which of the following is not an advantage of using sales promotions?

enables company to build its database

To speed adoption of a new product, the marketing team should:

ensure that features and benefits can be communicated or demonstrated

Inventory management is:

ensuring cost control.

A company that is ________ in its approach to public relations will extend home-country PR activities into host countries.

ethnocentric

Suppose a company selling in various country markets makes statements such as "we know what the customer wants, and he or she will have to pay for it." This is an indication of a(n) ________ approach to setting prices.

ethnocentric

When management believes or assumes that the home country is superior and the needs of the home country are most relevant in terms of doing business internationally, then management is thought to have a(n) _____________________ business orientation.

ethnocentric

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:

ethnocentric orientation.

Among the factors that affect the balance of trade figures are:

exchange rates, taxes, tariffs and trade measures.

Which type of sales person is best suited to selling technologically-sophisticated products in developed countries?

expatriates (person who doesn't live in their native country)

The foreign entry mode pertaining to the lowest levels of control and risk is the_______________ mode.

export

Which of the following acts as the export arm of one or more U.S. manufacturers and helps establish an overseas market for a company's products:

export management company

_____ is a/an independent marketing intermediate that acts as the export department for two or more manufacturers whose product lines do not compete with each other:

export management company

Which of the following, sometimes known as a 'jobber,' buys staples or unbranded products that are in demand in various parts of the world:

export merchant

For Starbucks and other companies whose business models include a service component, it is not recommended that they use one of the following methods for going global.

exporting

A ________ is unpredictable, short-lived, and without social, economic, ...

fad

Social classes show distinct product and brand preferences in all the following areas EXCEPT ________.

fast food

The term tiger has frequently been used to describe:

fast-growing economies in Asia

Compared to feminine cultures, in masculine cultures conflict is usually resolved through:

fighting

In today's dynamic global competitive environment, organisations need to develop new forms of:

flexibility, efficiency, and responsiveness.

Bajaj's international success was achieved by:

focusing on markets ignored by global leaders, among them: Sri Lanka, Bangladesh, Colombia, Peru and Egypt

Which of the following is sometimes referred to as a 'buyer for export' or an 'export commission house' and operates on behalf of a buyer from a foreign country:

foreign purchasing agent

Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter?

franchise

The specialty retailing industry, as well as the fast-food industry, favors ________ for global growth.

franchising

The export and import process can entail red tape and bureaucratic delays. In an effort to facilitate exports, countries are designating certain areas as:

free trade zones

_____ are licensed specialists in traffic operation, customs, clearance, and shipping tariffs and schedules. They can be considered as the travel agents for handling export goods

freight forwarders

Which of the following options contains the correct order from the lowest to highest level of economic integration:

from free trade area to customs union to common market to economic union.

According to Svend Hollensen, the simplest approach to global marketing organization is represented by:

functional

Global marketers should emphasize __________________ in countries ranking low in power distance.

functional product benefits

An MIS consists of people, equipment, and procedures to ________, sort, analyze, evaluate, and distribute information to marketing decision makers.

gather

Which term refers to the phenomenon in which the world's population shares commonly recognized cultural symbols?

global village

"Discussion and consensus must be the norms. Partners must be viewed as equals." When applied to global strategic partnerships, this statement indicates the importance of which factor?

governance

Direct representation as opposed to representation by independent intermediaries for exporting in the market country has several advantages which does not include:

helps selling products directly to the consumer in the market country

Zara's preferred entry mode is the _____________ mode, which it uses in most European countries.

hierarchical

Which of the following can negatively influence the rate of diffusion of an innovation?

high complexity

The belief that a very technically competent employee from a domestic market will perform just as well in any of the foreign countries where the organization operates is a(n) ______ approach to international HR staffing.

high risk

According to Porter's diamond, the characteristics of the ___________ play a central role in explaining the international competitiveness of the firm

home base

McDonalds is an example of a:

horizontally integrated multinational corporation

SMEs' choice for international market selection is often limited to:

immediate neighbours

According to Hofstede's typology, the degree to which societal institutions encourage individuals to integrate into groups within organizations and society is referred to as:

individualism versus collectivism

Solberg's framework (1997) is based on the following two dimensions: AKA 9 Strategic Windows

industry globalism and preparedness for internationalization

An increase in the general level of prices, as measured against some baseline of purchasing power is also known as ______.

inflation

The purpose of the global marketing plan is to create sustainable competitive advantages in the global marketplace. In SMEs, this process is likely to be:

informal

In Svend Hollensen's view, '______ are perhaps the most critical factor in the initiation of the internationalization process in the SME':

information and knowledge

In Chinese markets, Nike had a problem using the "Just Do It" attitude which was not found to be appropriate. Finally, Nike decided to use Chinese athletes in their promotion. This type of adaptation was needed due to:

ingrained Chinese values which respect authority.

The groups within a company such as top management, finance, and R&D are called the ________.

internal environment

One of the following is not a main external factor affecting the choice for market entry mode:

international experience Main factor are market size, intensity of competition, and demand uncertainty

The main stages of Vernon's Product Life Cycle are:

introduction, growth, maturity, decline.

A global market leader is an organization which:

is recognized as being ahead of the rest interns of market share

All of the listed advantages are for "Extension or Ethnocentric" pricing strategy except:

it does not respond to the competitive and market conditions of each national market.

The main benefit of planning an international centralized decision making structure is that:

it facilitates international coordination.

One of the main advantages of an ethnocentric staffing policy in international markets is:

it facilitates the transfer of core competencies to and among the firm's foreign subsidiaries.

What is the main benefit of having a good BATNA?

it increases negotiation power

As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances?

joint venture

One of the following does not represent a general market risk in the internationalization process:

lack of tax incentives for organizations that export.

Which of the following offers a company the best assurance of being paid for exported goods?

letter of credit

One of the advantages of licensing is:

licensees have considerable autonomy.

An appropriate entry strategy for a company seeking a limited form of participation in global markets is:

licensing

One of the international agreements by which an organization establishes local production in foreign countries without capital investment is:

licensing

________ represent(s) a market entry strategy whereby one company permits a foreign company to make use of its patents, know-how, technology, company name, or other intangible assets in return for a royalty payment.

licensing

Countries in which the retail systems are fragmented tend to have:

longer distribution channels

Which of the following is not identified by Porter as one of the possible types of barriers to entry in an industry?

loose bricks

The power distance dimension reflects the degree of trust among members of society. Thus, the higher the power distance (PDI), the

lower the level of trust

Which of the following categories best describes the approach of Britain's Marks & Spencer to global retailing?

many product categories, own-label focus

China is an example of a ______ system.

market socialism

Key controllable factors in global marketing are:

marketing activities and plans.

Which form of organisation design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge?

matrix structure

A characteristic of a low-context cure which is prevalent in United states, switzerland, and germany is:

messages are explicit and specific

Guinness is a stout market leader in which region(s)?

middle east and africa

________ -commerce is one of the significant marketing opportunities made possible by the digital revolution.

mobile

According to the incremental approach, firms typically begin their internationalization by going to those markets that they can:

most easily understand

The case of SMEs, increasing internationalization often results in:

multi-domestic strategies

All of the problems that a researcher faces in domestic marketing research tend to be ______ in global marketing research.

multiplied

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:

newcomers from emerging markets.

The formal difference between a joint venture and a strategic alliance is that the latter one is typically a(n):

non-equity alliance

Which type of barriers become much more prevalent in times of recession?

non-tariff barriers

What is one way that a social class is NOT measured?

number of children in the family

When a trained person is recoding the items in a grocery cart or basket, the research method is known as:

observation

American giants such as: IBM, Gillette, Dow Chemical, Hewlett-Packard and Xerox get the majority of their sales from:

outside the USA

eBay was a pioneer in a form of online marketing known as:

p-to-p.

Giving business cards with the left hand in Malaysia, showing soles of shoes to a host in Saudi Arabia, and winking one eye in India are all considered impolite interpersonal communication due to the fact that:

people pick up nonverbal cues and understand intuitively without being told

One of the following is not a determinant of the threat of new entrants in Porter's Five Forces Model:

perceived level of product differentiation.

The only marketing mix element that is applicable in export selling is:

place

A company adopting a(n) ________ approach to worldwide PR activities gives the host-country practitioner maximum leeway to incorporate local customs and practices into the PR effort.

polycentric

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:

polycentric orientation.

The "balance of payments" is a record of all economic transactions between the residents of a country and the rest of the world. It is divided into the current and capital accounts. Current accounts include all of the following except:

portfolio investments

A strategy of ______ pricing involves using price as a competitive weapon in order to push competitors out of a national market.

predatory

In an effort to attract assembly operations, Brazil allows certain product components to be imported at reduced tariff rates. This is an example of:

preferential tariffs

U.S. advertisements contain more ________ information, and are more likely to include comparative appeals than Arabic ads.

price

The world-wide sunglasses market is usually segmented by:

price and function

Marketing channels exist to create utility for customers. The major categories of channel utility include all of the following except:

price utility.

An organization competing internationally should be aware of _______ which are common in oligopolistic markets.

price wars

Tariff levels from country to country affect an organization's ______ strategies.

pricing

When the Coca-Cola company convened focus groups in Europe and Asia to assess potential market acceptance of a contoured aluminum soft drink can, it was attempting to collect _____ data

primary

In the broadest sense, global marketing research is responsible for:

producing strategic solutions for organizations.

Environmental issues and challenges faced by a company which is in the initial stages of implementing a personal selling strategy include all of the following except:

product innovation

One criticism of outsourcing is that:

product quality suffers.

The difference between management know-how and project know-how lies in that:

project know-how refers to project management, assembly and environmental know-how, while management know-how generally refers to tactical and operational management.

With the rapidly changing global picture, the firm must monitor six major forces. All of the following would be among those forces EXCEPT ________.

promotional -6 forces are PESTEL

The World Trade Organisation (WTO):

provides a dispute resolution mechanism

One task of the ________ department is to generate non-paid forms of communication to foster goodwill among customers and others.

public relations

Some marketers prefer more ________ methods for gauging consumer opinion because consumer actions do not always match their answers to survey questions.

qualitative

Which of the following is not a common form of tariff:

quotas Common forms are ad volarem, specific and discriminatory)

What is the main benefit of acquisitions over other hierarchical entry modes?

rapid entry

Export marketing requires all of the following except:

reaching retail customers.

In the process of developing a business relationship in international markets, SMEs are likely to be:

reactive

A company with headquarters in the United States and operational units in the Netherlands, France, Italy, and Spain would be well advised to consider establishing a(n):

regional management centre.

A defining characteristic of born globals is:

relatively unique products or process innovations.

British entrepreneur Richard Branson has built a global business empire by:

relying on brand extension.

After an individual's need for food, clothing and shelter is filled, he needs

safety (Maslow's hierarchy of needs)

Which of the following financing methods would be used by an exporter that enjoys good relations with a buyer in a well-established market:

sales on open account

Which is not considered a long term value?

search for truth

Kanter argues that organizations will have a better relationship with their business partners if they look for the following three key selection criteria:

self-analysis, chemistry, compatibility

A company with a polycentric orientation is likely to employ host-country nationals in all but which of the following selling situations?

selling high-tech products in developed countries

One of the main criticisms of the Uppsala model is that the internationalization model is not valid for:

service organizations

When meeting a devout Muslim businessman, one must not:

shake with the left hand as it is considered to be rude.

The ______ is based upon the identification of relative changes in international import shares among various countries.

shift-share approach

If the dollar, the yen, or the euro becomes seriously overvalued, a company with a production capacity in other locations can achieve competitive advantage by:

shifting production among different sites

When identifying global market segments, a fundamental guiding principle should be the need to determine:

similar needs and buying behavior

In international marketing research, clustering procedures are often applied to countries in an attempt to determine those that are:

similar to each other

Under the geographical and product division structures, for the company with French origins, France is:

simply another geographic market.

A firm globalizing within the international tourism industry must be aware of the fact that comparable international data is:

somewhat limited

The organizational decision to purchase production inputs, components, or finished goods from domestic or foreign producers is known as the ___________ decision:

sourcing

Compared to negotiators from low risk-avoidance countries, negotiators from high risk-avoidance countries are likely to seek:

specific commitments in terms of volume, timing and requirements,clearly defined structure and guidance

In international marketing it is much easier to:

standardize the core product benefits across markets rather than to standardize the support services.

The strategy involving the introduction of a standardized product with the same promotion strategy throughout the world market is known as:

straight extension

Philip Kotler distinguishes the following four types of marketing control, each involving different approaches, purposes and allocation of responsibilities:

strategic control, efficiency control, annual plan control and profit control

The correct components of the 7-S framework are:

structure, strategy, shared values, style staff, skills, and systems

In which of the following economies would we expect to find the fewest opportunities for marketers?

subsistence economies

The feasibility of targeting a particular market segment can be negatively impacted by various factors which does not include:

surplus demand -it includes time required to establish a business, cultural barriers, and lack of distribution systems

Which of the following is described as the three R's of global business: rules, rate schedules, and regulations:

tariffs

Which of the following is not an element of culture?

tax law

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 centralise all that knowledge at our headquarters, analyse 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:

that gains leverage through experience transfers.

If an English tourist in Tokyo pays more in British Pounds for the same amount of Yen that she bought last week, then:

the British Pound has depreciated relative to the Yen.

Islamic Law is a comprehensive code based in part on:

the Qur'an

Which of the following internationalization models is criticized for ignoring the internal transaction cost, assuming zero friction with a multinational firm?

the TCA model

One writer suggested that some themes are universal and could be used in advertising around the globe. Examples of this theme include all of the folioing except:

the desire to copy others

When an organization selling electric and electronic household goods evaluates international markets in view of entering them, a crucial factor taken into account is represented by:

the economic factors

The main motive for co-branding is:

the expectations for synergies that create value for both participants, above the value that they would expect to generate on their own.

Which of the following correctly states the role of banks in import/export transactions involving a letter of credit (L/C):

the exporter's bank is the advising and/or confirming bank; the importer's bank is the issuing bank.

Which of the following is not true about trade shows?

the federal government has exclusive rights to sponsor U.S. trade shows.

The main advantage of a differentiation strategy in international markets lies in that:

the focus is taken away from price.

Regionalism is:

the grouping of countries into regional clusters based on geographic proximity.

While some food preferences remain deeply embedded in culture, there is plenty of evidence that global dietary preferences are converging. Examples of such a change can be predicted from:

the growing number of McDonald's restaurants globally

You are directed to study the factors that are larger societal forces that...

the macroenvironment

A company's efforts to effectively communicate with customers is very important. All of the following are major difficulties which can compromise an organisation's attempt to communicate with customers except:

the message is only in one language.

SMEs most probably use:

the naive or pragmatic rule

The rule whereby the decision maker uses a workable entry mode for each foreign market, although this may not be the best entry mode, is also known as:

the pragmatic rule

The most common barrier encountered by exporting craft firms in foreign markets is:

the reliability of distributors

Piggybacking brings the following main disadvantage(s) to the carrier:

the rider may not maintain the quality of the products sold by another company.

'Cost and freight' is a popular term of sale which implies that:

the seller's liability ends when the goods are loaded on board a carrier or are in custody of the carrier at the export dock.

The rule whereby the decision maker systematically compares and evaluates all entry modes before any choice is made is also known as:

the strategy rule

During the past two decades, the world economic environment has become increasingly dynamic. To achieve success, executives and marketers must take into account all of the following realities except:

the struggle between capitalism and socialism continues -take into account: production has become uncoupled from employment, capital movements have replaces trade as the driving force of the world economy, the growth of e-commerce diminishes the importance of national barriers

One of the following is not a basic element of the buyer-seller interaction model:

the value chain The elements are: atmosphere, participants and process

According to the concept of the value chain, a firm is profitable if:

the value it commands exceeds the costs involved in creating the product

According to which approach have multinational companies stripped away features of new products or technologies, originally for advanced countries, in order to offer them at lower prices to people in developing countries?

the waterfall approach

International marketers must know that when contemplating offering gifts to their Chinese business counterparts or their families, clocks are inappropriate because:

they are associated with death.

One of the major reasons why some organizations are reluctant to engage in global marketing research is that:

they are not sensitive to cross-cultural customer tastes and preferences.

In spite of having about 45% of the world's known oil reserves, Saudi Arabia and other Middle Eastern countries post current-account deficits, largely because:

they must import most of the goods and services

The possible arrangements of the responsibilities for handling exports include all of the following except

through an export department of an embassy in foreign country

"Cost-based," "market-based," and "negotiated" are three approaches to:

transfer pricing.

The lesson that SRC (Self-Reference Criterion) teaches can be summarized as:

unbiased perception is a vital and critical skill in global marketing

The least demanding targeting strategy in international marketing is:

undifferentiated

Japanese businessmen typically do not believe in:

using first names unless in the very best interest of personal relationships

The essence of marketing worldwide is to surpass the competition in creating perceived value, which can be represented as:

value = benefits/price

The key international marketing principles are:

value, focus, and competitive advantage

According to the TCA model, firms integrate ______ in order to reduce transaction costs.

vertically

Product placement has reached the world of live theatre and opera. The difference between product placement and other forms of promotion is:

viewers are being marketed to subliminally without their consent.

____________ are vital in helping Ducati, the Italian motorcycle producer, explore new product concepts.

virtual communities

Governments commonly use activities to support and encourage firms that engage in exporting. Such activities include all of the following except:

voting rights

The physical storage of goods waiting to be passed on to the customers is known as:

warehousing

In which industries is global competition more common?

where upstream and support activities are crucial to competitive advantage