MAR 4156 Exam 2 Pt 2

Which automaker owns an equity stake in Japan's Nissan Motor? A) GM B) Volkswagen C) Ford D) DaimlerChrysler E) Renault

E) Renault

Which automaker currently has a joint venture with Hindustan Motors (India)? A) Volkswagen B) Ford C) GM D) Renault E) Mazda

C) GM

Comparing the traditional formulation of Maslow's hierarchy with the results of current research on the consumer needs and motivation in Asia, which of the following is correct? A) The lowest two levels of the hierarchy are the same in the traditional and Asian versions. B) The lowest three levels of the hierarchy are the same in the traditional and Asian versions. C) The lowest four levels of the hierarchy are the same in the traditional and Asian versions. D) The five levels in the traditional formulation apply equally in the West and in Asia. E) The highest levels of the hierarchy are the same in the traditional and Asian versions

A) The lowest two levels of the hierarchy are the same in the traditional and Asian versions.

Which of the following is true about Japanese keiretsu? A) Toyota is a vertical keiretsu, Mitsubishi is a horizontal keiretsu. B) Toyota is a horizontal keiretsu, Mitsubishi is a vertical keiretsu. C) Toyota and Mitsubishi are both horizontal keiretsu. D) Toyota and Mitsubishi are both vertical keiretsu.

A) Toyota is a vertical keiretsu, Mitsubishi is a horizontal keiretsu.

The international standard by which letters of credit (L/Cs) are interpreted is known as the ________ 500. A) UCP B) NTR C) FSC D) NTB E) HTS

A) UCP

Which of the following offers a company the best assurance of being paid for exported goods? A) a letter of credit B) a "piggyback" arrangement C) a swap D) an in-house export organization E) a certified check

A) a letter of credit

Maslow's hierarchy is applicable to global marketing because it can help explain how: A) basic human needs can drive the development of global products. B) "self-actualization" is the highest-order need in Japan as well as Western nations. C) status needs in different countries can only be fulfilled with localized products. D) "luxury badging" is irrelevant to companies marketing in Asia. E) Asians differ from Westerners in their basic physiological needs.

A) basic human needs can drive the development of global products.

Which of the following documents represents title to goods in an export transaction? A) bill of lading B) invoice C) packing list D) certificate of origin E) insurance certificates

A) bill of lading

Saab markets two luxury car models, both prized by drivers for their "quirkiness." About 30 percent of Saab's sales come from the USA, with most of the rest from Western Europe. Which strategy does Saab appear to be using? A) country concentration/market segment concentration B) country diversification/market segment concentration C) country concentration/market segment diversification D) country diversification/market segment diversification E) none of the above

A) country concentration/market segment concentration

Example of a "brand symbol" includes all of the following except: A) date of manufacture on Coca-Cola cans. B) the wave that appears on red Coke cans and bottle labels. C) non-word marks such as the Nike swoosh. D) three-pronged Mercedes star. E) McDonald's golden arches.

A) date of manufacture on Coca-Cola cans.

Which of the following can be referred to as a "buyer for export" or an "export commission house" and operates on behalf of a buyer from a foreign country? A) foreign purchasing agent B) export broker C) export merchant D) export management company E) freight forwarder

A) foreign purchasing agent

Ford and Mazda have market entry and expansion in a relationship known as: A) joint venture. B) licensorship. C) franchising. D) contract manufacturing. E) none of the above

A) joint venture.

"Successful GSPs create win-win situations, where participants pursue objectives on the basis of mutual advantage." When applied to global strategic partnerships, this statement indicates the importance of which factor? A) mission B) strategy C) governance D) culture E) organization

A) mission

Which of the following could hinder the success of products labeled "Made in Bangladesh" or "Made in Thailand" in export markets? A) negative country-of-origin bias B) no possible quality/price positioning C) low acceptance of private brands D) lack of promotion in global markets E) high product saturation levels in global markets

A) negative country-of-origin bias

According to a 1991 report by McKinsey & Co., problems of alliances between Western and Japanese firms were related to all of the following factors except: A) objective levels of performance. B) a feeling of mutual disillusionment. C) difference in expectations. D) balance between partners. E) frictional loss.

A) objective levels of performance.

British entrepreneur Richard Branson has built a global business empire by: A) relying on brand extension. B) being the first to use smart cards in major markets. C) developing local brands. D) avoiding consumer businesses with established leaders. E) restricting the "Virgin" name only to airlines

A) relying on brand extension.

The marketers of Corona beer achieved great success in the U.S. market by: A) retaining the bottle design originally used in Mexico. B) hiring Hispanic movie stars as endorsers. C) distributing Corona in returnable bottles. D) changing the brewing recipe to conform to American palates. E) having the label in Spanish.

A) retaining the bottle design originally used in Mexico.

Tata Motors (India) acquired the following auto company: A) Volkswagen AG (Germany). B) Volvo (Sweden). C) Jaguar (UK). D) Toyota (Japan). E) Hyundai (South Korea)

C) Jaguar (UK).

Coca-Cola's distinctive contour bottle, which is sold in many countries, illustrates the point that packaging: A) strategies can vary by country and region. B) helps in storing large sizes in refrigerators. C) strategies do not change by country and region. D) appeals only to Asian consumers. E) helps in brand identification

A) strategies can vary by country and region.

________ is sometimes called a mother hen, a piggyback exporter, or an export vendor A) Export broker B) Export merchant C) Cooperative exporter D) Export manager E) Manufacturer's agent

C) Cooperative exporter

In the post-September 11 business environment in the United States, imports have come under increased security. One of the initiatives taken in the interest of national security is: A) NAFTA. B) C-TPAT. C) WTO. D) NTB. E) FSC.

B) C-TPAT.

________ provides technical specifications to a subcontractor or local manufacturer, who then oversees production. A) A joint venture B) Contract manufacturing C) Licensing D) Exporting E) A Global strategic alliance

B) Contract manufacturing

The United States has given Normal Trade Relations (NTR) status to some 180 countries. In actuality only four countries are excluded from this status which includes all of the following countries except: A) North Korea. B) Iraq. C) Iran. D) Cuba. E) Libya

B) Iraq.

A global product meets the wants and needs of a global market, including the Triad which includes the following countries: A) Brazil, Russia, and China. B) Japan, Western Europe, and the United States. C) China, the United States, and Europe. D) China, India, and Brazil. E) Japan, China, and Western Europe.

B) Japan, Western Europe, and the United States.

Packaging aesthetics are particularly important to the ________ consumer. A) Indian B) Japanese C) French D) German E) American

B) Japanese

The Russian market for imported premium vehicles is exploding as the number of households that can afford luxury products exhibit rapid growth. The luxury cars include all of the following except: A) Porsche. B) Lexus. C) BMW. D) Rolls-Royce. E) Infiniti.

B) Lexus.

Packaging is an important consideration for products that are shipped to markets worldwide. Which of the following statements related to packaging is not true? A) Nestlé's worldwide network of packaging teams provide improvement suggestions on a quarterly basis. B) The Japanese prefer plain soft colors on their packages. C) The Aquafresh Ultimate tube was designed to stand vertically. D) Coca-Cola had contour bottles in both glass and plastic versions in many countries. E) Nestlé asked suppliers to find a glue to make the clicking sound louder when a tube of Smarties brand chocolate candies are unwrapped.

B) The Japanese prefer plain soft colors on their packages.

Which of the following correctly states the role of banks in import/export transactions involving a letter of credit (L/C)? A) The importer's bank is the advising and/or confirming bank; the exporter's bank is the issuing bank. Diego Fernandez B) The exporter's bank is the advising and/or confirming bank; the importer's bank is the issuing bank. C) The exporter's bank is the advising, confirming, and issuing bank. D) The importer's bank is the advising, confirming, and issuing bank. E) none of the above

B) The exporter's bank is the advising and/or confirming bank; the importer's bank is the issuing bank

Which of the following incorrectly states the role of banks in import/export transactions involving a letter of credit (L/C)? A) The exporter's bank is the advising and/or confirming bank. B) The importer's bank is the advising and/or confirming bank. C) The importer's bank is the advising, confirming, and issuing bank. D) The exporter's bank is the advising, confirming, and issuing bank. E) The importer's bank is neither advising nor confirming bank.

B) The importer's bank is the advising and/or confirming bank.

Which of the following currently owns a 70 percent stake in Skoda, the Czech automaker? A) GM B) Volkswagen C) Ford D) DaimlerChrysler E) Renault

B) Volkswagen

Officially, the EU tariffs on Chinese and Vietnamese shoe imports are known as: A) countervailing duties. B) antidumping duties. C) specific duties. D) ad valorem duties. E) temporary surcharges

B) antidumping duties.

An irrevocable letter of credit transfers the payment obligation for an export deal from the buyer to the buyer's: A) in-house export organization. B) bank. C) freight forwarder. D) credit union. E) checking account.

B) bank.

Which set of documents generally represents the minimum documentation required to clear a shipment through customs? A) packing list, commercial invoice B) bill of exchange, commercial invoice C) certificate of origin, bill of exchange D) packing list, insurance certificate E) letter of credit, commercial invoice

B) bill of exchange, commercial invoice

Many American car buyers perceive Korean cars as: A) durable. B) cheap. C) reliable. D) of high quality. E) good investment

B) cheap.

________ are variously referred to as buyer for export, export commission house, or export confirming house. A) Export brokers B) Export merchants C) Foreign purchasing agents D) Export managers E) Manufacturer's agents

C) Foreign purchasing agents

Around the world, various brands of personal computers are sold with Pentium processors. This fact is often used as a selling point, with advertising that proclaims "Intel Inside." Which branding concept does such advertising reflect? A) brand equity B) co-branding C) brand image D) brand extension E) tiered branding

B) co-branding

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: A) failure of one partner to live up to the terms of the contract. B) cultural differences. C) the cancellation of NAFTA. D) the U.S. government's insistence on quick negotiations. E) the language barrier.

B) cultural differences.

Which of the following receives a fee for bringing together an exporter and a buyer in another country? A) foreign purchasing agent B) export broker C) export merchant D) export management company E) freight forwarder

B) export broker

The agreements that allow McDonald's franchisees around the globe to use McDonald's trademarked name and menu items represent, in essence, which form of market entry? A) joint ventures B) franchising C) 100% ownership D) exporting E) acquisition

B) franchising

Governmental actions that discourage imports and block markets include all of the following except: A) tariffs. B) free trade zones C) subsidies. D) tax incentives. E) duties

B) free trade zones

In a joint venture with Russian manufacturer AvtoVAZ, GM executives were planning to have a stripped-down reengineered car based on its Opel model. However, the market research revealed that a "Made-in-Russia" car would only be acceptable if: A) it has a German name. B) it sported a very low sticker price. C) it has an American name. D) it has a very high sticker price. E) it has a Russian name.

B) it sported a very low sticker price.

Disadvantages of joint venturing can include all of the following except: A) joint venture partners must share rewards as well as risks. B) joint ventures allow partners to achieve synergy. C) joint ventures can have the potential for conflict between partners. D) a dynamic joint venture partner can evolve into a strong competitor. E) a company incurs very significant costs by joint venturing.

B) joint ventures allow partners to achieve synergy.

One of the advantages of licensing is: A) licensees have limited control. B) licensees have considerable autonomy. C) license agreements have short life. D) licensees can develop similar products. E) licensees have considerable leverage.

B) licensees have considerable autonomy.

For Walt Disney Company, the best mode for going global is by: A) joint ventures. B) licensing. C) 100-percent ownership. D) exporting. E) franchising.

B) licensing.

As outlined by branding expert Kevin Keller, the benefits of strong brand equity include all of the following except: A) greater loyalty. B) more vulnerability to marketing actions. C) less vulnerability to marketing crises. D) more inelastic consumer response to price increases. E) more elastic consumer response to price decreases.

B) more vulnerability to marketing actions.

In an effort to attract assembly operations, Brazil allows certain product components to be imported at reduced tariff rates. This is an example of: A) offsets. B) preferential tariffs. C) the effect of the Customs Valuation Code. D) an EMC. E) discriminatory procurement

B) preferential tariffs.

"Corporate amnesia" in global partnership is a term which refers to: A) achieving world leadership by differentiation. B) short-term goals with no memory on how to compete. C) a relationship which is short lived. D) discontinuation of a partnership due to personal chemistry. E) losing national identity and ideology.

B) short-term goals with no memory on how to compete.

Another perspective on the future of cooperative strategies envisions the emergence of: A) mergers and acquisition. B) virtual corporations. C) franchising. D) joint ventures. E) keiretsu.

B) virtual corporations.

In which of the following forms of export financing does a bank assume a financial obligation? A) with an L/C but not a documentary collection B) with a documentary collection but not an L/C C) neither an L/C nor a documentary collection requires a bank to assume financial obligation D) with either an L/C or a collection letter E) with both an L/C and a documentary collection

B) with a documentary collection but not an L/C

Boeing developed the wide-bodied aircraft, the 777, with about ________ of the work subcontracted out to Mitsubishi, Fuji, and Kawasaki. A) 50% B) 25% C) 20% D) 60% E) 75%

C) 20%

Which of the following statements is not an example of local products or brands? A) Coca-Cola developed several branded drink products for Japan. B) Coca-Cola markets Kinely brand bottled water in India. C) BMW uses "the ultimate driving machine" slogan in India. D) Diageo PLC markets Gordon's Edge, a gin-based ready-to-drink beverage in the United Kingdom. E) Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan.

C) BMW uses "the ultimate driving machine" slogan in India.

Generally speaking, which of the following statements is true concerning product attributes? A) Tangible product attributes are more important than intangible ones. B) Intangible product attributes are more important than tangible ones. C) Both tangible and intangible product attributes are important. D) Neither tangible nor intangible product attributes are important. E) A product has more attributes than tangible and intangible ones.

C) Both tangible and intangible product attributes are important.

Which of the following refers to a system of farm subsidies in Europe? A) CVD B) FSC C) CAP D) HTS E) NTR

C) CAP

The furniture industry has become one of the fastest-growing sectors of China's economy. Furniture imports are flooding into the United States from China. This can be attributed to: A) the quality of furniture is better than that made in Europe. B) American tastes in décor have changed. C) China's low labor rates translate into reasonable prices for consumers. D) China can survive tough competition. E) replacement parts are readily available from China.

C) China's low labor rates translate into reasonable prices for consumers.

________ represents 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. A) A joint venture B) One-hundred-percent ownership C) Licensing D) Exporting E) A Global strategic alliance

C) Licensing

GM executives are looking for a joint venture with AvtoVAZ, the largest carmaker in: A) Germany. B) Lithuania. C) Russia. D) Kazakhstan. E) Turkey.

C) Russia.

A number of factors combine to make Russia an excellent location for an alliance which do not include: A) a well-educated workforce. B) quality is important to Russian consumers. C) abundance of supplies. D) potential for economic growth. E) potential for growth in service sector

C) abundance of supplies.

The possible arrangements for handling exports include all of the following except: A) as a part-time activity performed by domestic employees. B) through an export partner affiliated with the domestic marketing structure that takes possession of the goods before they leave the country. C) as a low-cost arrangement requiring no additional personnel. D) through an export department within an international division. E) for multidivisional companies, each of the preceding options is available.

C) as a low-cost arrangement requiring no additional personnel.

Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction? A) documentary credit (letter of credit) B) documentary collection C) cash in advance D) sales on open account E) draft

C) cash in advance

"Intel inside" campaign promoting both the Intel Corporation and its Pentium-brand processors in conjunction with advertising for various brands of personal computers is an example of: A) brand equity. B) brand symbol. C) co-branding. D) brand extension. E) brand loyalty.

C) co-branding.

In order to prevent a licensor-competitor from gaining unilateral benefit, licensing agreements should provide for: A) contract manufacturing. B) franchising. C) cross licensing. D) strategic decision making. E) adaptation for local tastes

C) cross licensing.

Which of the following is not true of Japanese keiretsu? A) promotes risk sharing B) promotes long-term employment C) ensures low prices for Japanese consumers D) blocks foreign suppliers from the Japanese market E) relationships are cemented by bank ownership

C) ensures low prices for Japanese consumers

The specialty retailing industry, as well as the fast-food industry, favors ________ for global growth. A) licensing B) investment C) franchising D) joint ventures E) strategic alliances

C) franchising

"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? A) mission B) strategy C) governance D) culture E) organization

C) governance

Generally speaking, which of the following product categories represents the best potential for extension into international markets without adaptation? A) companion products B) food products C) industrial products D) intangible products E) non-alcoholic drinks

C) industrial products

An express warranty is a written guarantee that assures the buyer that he or she: A) is getting what he or she desired. B) will be able to get express response if any defects are found. C) is getting what he or she has paid for. D) will be able to contact the manufacturer whenever needed. E) has limited time for filling out information required by the manufacturer.

C) is getting what he or she has paid for.

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? A) acquisition B) licensing C) joint venture D) exporting E) franchising

C) joint venture

The benefits of strong brands include all of the following except: A) greater loyalty. B) less vulnerability to marketing actions. C) less inelastic consumer response to price increases. Diego Fernandez D) more elastic consumer response to price decreases. E) larger margins.

C) less inelastic consumer response to price increases.

Critics warn that employees of a company that become reliant on an outside supplier for critical components will: A) encourage outsourcing B) become used to value-added components C) lose expertise and engineering skills D) use time for developing other skills E) look for employment with competitors

C) lose expertise and engineering skills

An attribute which does not represent true global partnership is: A) achieving world leadership by differentiation. B) achieving a reciprocal relationship. C) relationship is organized vertical lines. D) continual transfer of resources. E) retaining national identities.

C) relationship is organized vertical lines.

The chief executives of Swiss Swatch Group and Japanese Canon would like to: A) outsource all of the manufacturing units overseas in order to save money. B) outsource a majority of the manufacturing functions overseas. C) retain a majority, if not all, of the manufacturing in their home country. D) establish "call centers" in developing countries in order to save labor costs. E) outsource a full line of new products only.

C) retain a majority, if not all, of the manufacturing in their home country.

Which of the following establishes classification numbers that must be used by importers and exporters? A) NTR B) CVD C) FSC D) NTB E) HTS

E) HTS

The strategy to use joint ventures has several advantages which do not include: A) risk sharing. B) reduced financial risk. C) reward sharing. D) achieve synergy. E) the only way to enter a country or region.

C) reward sharing.

Which of the following financing methods would be used by an exporter that enjoys good relations with a buyer in a well-established market? A) letter of credit B) cash in advance C) sales on open account D) barter E) arrival draft

C) sales on open account

Marketers in Gillette's Parker Pen subsidiary focused on upscale shoppers in Malaysia and Singapore. This is an example which coincides with the Maslow's hierarchy related to A) self-esteem B) physiological needs C) security D) self actualization E) social needs

C) security

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: A) buying different currencies before major fluctuations take place. B) conducting transactions in different currencies of the world. C) shifting production among different sites. D) cutting down production and waiting until the currency rate is reasonable. E) reducing production and labor force simultaneously.

C) shifting production among different sites.

When a corporate name such as Sony is combined with a product brand name such as Walkman, the brand category is referred to as: A) brand equity B) brand symbol C) tiered brand D) co-brand E) brand loyalty

C) tiered brand

Which of the following does not fit into the sequence of experiences Anheuser-Busch had in Japan? A) Anheuser-Busch first entered Japan by means of a licensing agreement with Suntory, the smallest brewery in Japan. B) Anheuser-Busch created a joint venture with Kirin Brewery, the market leader. C) Anheuser-Busch dissolved the joint venture with Kirin Brewery. D) Anheuser-Busch entered into a joint venture with Kirin Brewery. E) Anheuser-Busch reverted to a licensing agreement with Kirin Brewery

D) Anheuser-Busch entered into a joint venture with Kirin Brewery.

A logo can be all of the following except: A) Word Mark B) Non-word Mark C) Brand symbol D) Brand equity E) Trade Mark

D) Brand equity

________ can also be thought of as an asset representing the value created by the relationship between the brand and its customers over time. A) Brand extensions B) Co-branding C) Brand image D) Brand equity E) Brand loyalty

D) Brand equity

________ represents the cumulative added value of a company's investment in the marketing of a brand over time. A) A brand extension B) Co-branding C) Brand image D) Brand equity E) Brand loyalty

D) Brand equity

Would-be franchisors ask all of the following questions except one before expanding overseas: A) How tough is the local competition? B) Does the government respect trademark and copyrights? C) Can profits be easily repatriated? D) Can products be easily counterfeited? E) Is commercial space available?

D) Can products be easily counterfeited?

________ is an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other. A) Manufacturer's export agent B) Export commission representative C) Export merchant D) Export management company E) Cooperative exporter

D) Export management company

Which of the following is not in the top five of the world's most valuable brands according to 2012 rankings? A) Sony B) Microsoft C) Coca-Cola D) GE E) Nokia

E) Nokia

Honda has invested $550 million in building an assembly plant in Greensburg, Indiana; IKEA spent nearly $2 billion to open stores in Russia; and South Korea's LG Electronics purchased a 58% stake in Zenith Electronics. All of these are examples of: A) acquisition. B) licensing. C) franchising. D) FDI. E) exporting

D) FDI.

________ are licensed specialists in traffic operations, customs clearance, and shipping tariffs and schedules. They can be considered as the travel agents for handling export goods. A) Foreign purchasing agents B) Export brokers C) Export merchants D) Freight forwarders E) Cooperative exporters

D) Freight forwarders

Ford Motor Company (United States) has a 50-50 joint venture to build Ford Fiestas with: A) Toyota (Japan). B) Shanghai Automotive Industry (China). C) BMW (Germany). D) Mahindra & Mahindra (India). E) Mazda (Japan)

D) Mahindra & Mahindra (India).

Which of the following is not a characteristic of global strategic alliances? A) Participants maintain independence outside the framework of alliance. B) Participants share benefits as well as control. C) Participants make ongoing contributions in technology, products, and other areas. D) Participants focus on an individual country market. E) Participants share benefits of the alliance.

D) Participants focus on an individual country market.

Global marketers must understand the importance of visual aesthetics embodied in the color or shape of a product, label, or package. Which of the following statements is not true regarding the use of color in selected countries? A) The yellow color on Caterpillar's earthmoving equipment is acceptable worldwide. B) Packaging aesthetics are particularly important to the Japanese. C) The color white is associated with death and bad luck in some Asian countries. D) The red Marlboro color had to be changed in some Asian countries. E) The Chinese consider the color red to be lucky.

D) The red Marlboro color had to be changed in some Asian countries.

Toyota learned many things from its partnership with GM, however American managers involved in the venture complained that: A) Toyota learned many things about the U.S. supply system. B) Toyota learned about the U.S. transport system. C) Toyota learned about managing American workers. D) Toyota did not apply manufacturing expertise at GM plant. E) Toyota applied its expertise at its Camry plant.

D) Toyota did not apply manufacturing expertise at GM plant.

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? A) sales on open account→cash in advance→documentary credit (L/C)→documentary collection (draft) B) documentary credit (L/C)→sales on open account→documentary collection (draft)→cash in advance C) documentary collection (draft)→documentary credit (L/C)→cash in advance→sales on open account D) cash in advance→documentary credit (L/C)→documentary collection (draft)→sales on open account E) none of the above

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

Restrictive administrative and technical regulations can create barriers to trade which may take all of the following forms except: A) antidumping regulations. B) product size regulations. C) safety and health regulations. D) common agricultural policies. E) safety and pollution regulations.

D) common agricultural policies.

McDonald's success in franchising in global markets can be attributed to several factors which do not include: A) a well known global brand name. B) a business system that can be easily replicated. C) local market knowledge. D) cross licensing. E) granting franchisees leeway to tailor menu offerings to suit local tastes.

D) cross licensing.

Alfred Zeien, former chairman of Gillette, once noted that his company's Parker Pen unit does not have to develop a special model for Malaysia and Singapore because shoppers worldwide seek the same things when buying a gift that will serve the recipient as a status symbol. This insight relates to which level of Maslow's hierarchy of needs? A) physiological B) safety C) social D) esteem E) self-actualization

D) esteem

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. A) joint ventures B) licensing C) 100-percent ownership D) exporting E) franchising

D) exporting

Pollo Campero, a chicken restaurant chain based in Central America, is using the following method for expanding operations in the United States: A) joint ventures. B) licensing. C) exporting. D) franchising. E) acquisition.

D) franchising.

A competitive business environment is now characterized by all of the following characteristics except: A) unprecedented degrees of turbulence. B) dynamism. C) unpredictability. D) inadaptability. E) environmental responsiveness.

D) inadaptability.

The American Automobile Labeling Act clarifies all of the following except: A) country of origin. B) final assembly point. C) the percentages of the major sources of every car and truck. D) information about car dealer. E) aesthetic style

D) information about car dealer.

Strictly speaking, a (n) ________ is an entry strategy for a single target country in which the partners share ownership of a newly created business entity. A) acquisition B) licensing C) franchising D) joint venture E) exporting

D) joint venture

Which of the following methods of financing would be used if the exporting and importing parties had a strong, long-standing relationship? A) documentary credit (letter of credit) B) documentary collection C) cash in advance D) sales on open account E) bank draft

D) sales on open account

The organizational decision to purchase production inputs, components, or finished goods from domestic or foreign producers is known as the ________ decision. A) import/export B) NTB C) preferential D) sourcing E) security

D) sourcing

Which of the following is not a characteristic of global strategic partnership? A) Participants maintain independence outside the framework of alliance. B) Participants share benefits of the alliance. C) Participants share control over the performance of the assigned tasks. D) Participants make ongoing contributions in technology, products, and other areas. E) Participants agree not to compete in areas unrelated to the alliance.

E) Participants agree not to compete in areas unrelated to the alliance.

Regulators in different countries have proposed various regulations for product labeling. All of the following statements pertaining to such regulations are true except: A) mandatory health warnings on tobacco products are required in most countries. B) the American Automobile Labeling Act clarifies the country of origin as well as the final assembly point. C) in 2008, the United States enacted a country of origin labeling (COOL) law. D) the use of terms "light" and "natural" are allowed on labels only in the United States. E) McDonald's is posting nutrition information on all food packaging and wrappers in selected markets.

D) the use of terms "light" and "natural" are allowed on labels only in the United States.

________ is an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other. A) Export commission B) Manufacturer's export agent C) Cooperative exporter D) Freight forwarders E) Export Management Company

E) Export Management Company

The terminology used to describe the new forms of cooperation strategies varies widely and the phrases used include all of the following except: A) collaborative agreements. B) strategic alliances. C) global strategic partnerships. D) strategic international alliances. E) Greenfield operations.

E) Greenfield operations.

A number of explanations have been offered for the low level of U.S. exports relative to other countries. All of the following can be considered as reasons for low level of exports except: A) limited ambition by many American business owners. B) lack of knowledge of market opportunities abroad. C) perceived lack of necessary resources. D) marketing to home-country users is easier than exporting. E) a strong U.S. dollar translates into less affordable prices in export markets

E) a strong U.S. dollar translates into less affordable prices in export markets.

Avon Products uses ________ to enter developing markets. A) franchising and licensing B) joint venture and licensing C) acquisition and franchising D) licensing and franchising E) acquisition and joint ventures

E) acquisition and joint ventures

Licensing as a market entry mode has several disadvantages and opportunity costs, which does not include: A) limited market control. B) agreement may have short life. C) leveraging and exploiting by licensee. D) similar product or technology development by licensee. E) adaptations by licensee to fit local tastes.

E) adaptations by licensee to fit local tastes.

The success of CFM International (the strategic partnership between GE and Snecma) can be attributed to which of the following? A) compatibility of the partners B) capability of the partners C) commitment of the partners D) personal chemistry between executives E) all of the above

E) all of the above

The advantages of "contract manufacturing" include all of the following except: A) access to technical specifications by subcontractors. B) access to technical specifications by local manufacturers. C) a licensing firm can specialize in product marketing. D) limited commitment of financial resources. E) considerable commitment of management resources.

E) considerable commitment of management resources.

GSPs (Global Strategic Partnerships) are attractive for several reasons which do not include: A) sharing high product development costs. B) sharing technological developments. C) securing access to national and regional markets. D) continuous transfer of technology between partners. E) focus on a single national market or a specific problem

E) focus on a single national market or a specific problem.

Direct representation, as opposed to representation by independent intermediaries, for exporting by the market country, has several advantages which do not include: A) facilitates control and communications. B) allows decisions concerning program development and resource allocation. C) benefits when a product is not yet established in a market. D) ensures marketer's interest and special efforts. E) helps selling products directly to the consumer in the market country.

E) helps selling products directly to the consumer in the market country.

Having partners from another country can have advantages which include all of the following except: A) reducing product development costs. B) securing technology. C) access to capital. D) shared risks. E) increased competition.

E) increased competition.

Which of the following does not fit in with the factors that should be considered by companies forming GSPs? A) Partners are competitors to each other. B) Harmony is the most important measure of success. C) All employees and managers must understand where cooperation ends and competitive compromise begins. D) Learning from partners is critically important. E) none of the above

E) none of the above

Which of the following is not one of the levels in the Asian version of Maslow's hierarchy? A) physiological B) safety C) affiliation D) admiration E) self-actualization

E) self-actualization