INTL CONT. pt7

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Apple Computer had difficulties when it first entered the Japanese market with its Macintosh computers. Some of the computers were returned unused after customers found the wrapping on the instruction manual damaged. Though this would probably be no big deal in the U.S., it was certainly a cause for concern in quality-conscious Japan. To fix the problem, Apple needed to concentrate on which of the following components of the product component model?

Packaging component

converting measures to the metric system

"Making deals in pounds isn't easy when you're negotiating with someone who speaks in grams" is why many American firms are:

Question on Integrated Marketing communications

"except integrated pricing"

85. ____________________ leverages cross-border differences in needs and wants of the firm's target customers.

(Customization)

89. With respect to categories of consumers that adopt new products, the __________ category is eager to experiment with new ideas or products.

(Early adopters)

Tactical Planning

(Market planning) Pertains to specific actions and the allocation of resources used to implement strategic planning goals in specific markets

86. Five forces favor a globalized product strategy. These include: common customer needs, global customers, scale economies, time to market, and__________________.

(Regional market segments)

83. _________________ means offering a uniform product on a regional or worldwide basis.

(Standardization)

82. Differences in both the cultural and physical environment across countries call for a ________________________ strategy.

(dual adaptation)

76. Companies can pursue three global strategies to penetrate foreign markets. The strategies are: extension, adaptation, and___________________.

(invention)

(n) _____ is a domestic middleman set up in a foreign country or U.S. possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property. A. Webb-Pomerene export association B. manufacturer's export agent C. export management company D. complementary marketer E. foreign sales corporation

94. In the area of a global product launch strategy, two strategic options available are: waterfall strategy and _________________________.

(sprinkler model)

International Marketing

1) Information must be communicated across cultural boundaries 2) environments in within which the research tools are applied are often different in research markets

Two factors that account for greater market similarities among industrial goods customers than among consumer goods customers

1. Inherent nature of the product: industrial products & services are used in the process of creating other goods and services 2. Motive or intent of the users differ: industrial consumers seeking profit

Everett Rogers critical elements in the diffusion of new ideas are:

1. Innovation 2. Which is communicated through certain channels 3. Over time 4. Among the members of a social system

2 Characteristics of Consortia

1. Involve a large number of participants 2. Operate in a country/market in which none of the participants is currently active

What are the four characteristics of a joint venture?

1. JVs are established, separate, legal entities 2. They acknowledge intent by the partners to share in the management of JVs 3. They are partnerships between legally incorporated entities not individuals 4. Equity positions are held by each of the partners

A _____ agreement eliminates all tariffs and other restrictions on internal trade, adopts a set of common external tariffs, and removes all restrictions on the free flow of capital and labor among member nations. A. political union B. Paris C. regional cooperation for development (RCD) D. customs union E. free trade area (FTA)

A _____ involves complete political and economic integration, either voluntary or enforced. A. political union B. common market C. regional cooperation for development (RCD) D. customs union E. free trade area (FTA)

A _____ is an agreement between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries. A. political union B. common market C. regional cooperation for development (RCD) D. customs union E. free trade area (FTA)

A _____ is the intermediate step in the transition from a free trade area to a common market. A. political union B. cartel C. regional cooperation for development (RCD) D. customs union E. monopsony

A _____ of nations is a voluntary organization providing for the loosest possible relationship that can be classified as economic integration. A. conglomerate B. community C. commonwealth D. proprietary colony E. trade association

A _____ provides a selling service for a manufacturer, has a short-term relationship, and operates on a straight commission basis. A. manufacturers' retail store B. trading company C. global retailer D. manufacturer's export agent E. complementary marketer

Strategic International Alliance (SIA)

A business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective

A disadvantage when using home-country middlemen as intermediaries in the distribution process is: A. the large financial investment required. B. the limited control over the distribution process. C. the large managerial investments required. D. the limited number of retailers in the foreign country who can be reached. E. the large amount of commission.

A major disadvantage of _____ is that they can seldom afford to make the kind of market investment needed to establish deep distribution for products. A. export management companies B. trading companies C. import associations D. global retailers E. complementary marketers

A major trade-off when using home-country middlemen is: A. the large financial investment required. B. the limited control over the entire distribution process. C. the large managerial investments required. D. the limited number of retailers in the foreign country who can be reached through the home-country middlemen. E. the large amount of commission charged by the home-country middlemen.

blocked channel

A marketing channel has been closed to an international marketer by domestic marketer(s), trade association or cartel is a(n):

Licensing

A means of establishing a foothold in foreign markets without large capital outlays

What is a joint venture?

A partnership between two or more participating companies that have joined forces to create a separate legal entity

Franchising

A rapidly growing form of licensing Franchiser provides a standard package of products, systems, and management services Franchisee provides market knowledge, capital, and personal involvement in management

What is the most valuable resource a company has?

A successful brand

A survey of U.S. manufacturers shows that 95 percent of respondents with Indian operations plan on expanding, and none say they are leaving. Which of the following is primarily behind this new trend? A. Government machinery is one of the most efficient in the world. B. Living standards for expatriates are comparable to the world's best. C. Qualified labor is cheap, and the market potential is massive. D. Proximity to China makes sourcing of parts easier. E. There is a lack of competitiveness among local firms.

A(n) _____ is an individual agent middleman or an agent middleman firm providing a selling service for manufacturers that covers only one or two markets. A. complementary marketer B. export management company C. Webb-Pomerene export association D. global retailer E. manufacturer's export agent

foreign sales corporation

A(n)__________ is a sale corporation set up in a foreign country or U.S possession that can

ASEAN+3 is a forum for ASEAN ministers plus ministers from China, Japan, and _____. A. United States B. South Korea C. Russia D. Australia E. New Zealand

According to C. K. Prahalad, which of the following represents the misconception that leads international markets to ignore the bottom-of-the-pyramid markets? A. Products usually developed for more affluent consumers will not be appropriate for BOPMs. B. Most BOPMs are geographically isolated and thus difficult to access. C. Protective policies make BOPMs difficult to penetrate. D. Exchange-rate fluctuations make BOPMs very volatile. E. Language and cultural barriers make BOPMs unattractive and sometimes hostile.

1. Ikea, the Swedish furniture chain, insists that all its stores carry the basic product line with little room for adaptation to local tastes. If research of the U.S. market showed that Americans preferred larger beds than their Swedish counterparts, which of the following strategies would be advisable to Ikea? a. standardization. b. new product development. c. adaptation. d. withdraw from market. e. lower prices to encourage attitude change.

Adaptation

All of the following are specific objectives of sales promotion EXCEPT: A. immediate purchase. B. consumer introduction to the store. C. gaining retail point-of-purchase displays. D. building brand loyalty. E. encouraging stores to stock the product.

Importance of after-sale services

Almost always more profitable than actual sale of machinery/product. Builds strong customer loyalty

Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge "best." Which of the following would not fit in the "best" stereotype scheme?

American chocolate

An especially effective promotional tool when a product concept is new or has a very small market share is known as _____. A. sponsorship B. sweepstakes C. product sampling D. contests E. product tie-ins

the export management company can sell to all of the above

An export management company can sell to all the following members of an international distribution channel EXCEPT:

Price-quality relationship

An important factor in marketing in developing economies, especially those in the first three stages of economic development

Information Source

An international marketing executive with a product message to communicate

piggybacking

Another term that is commonly used to describe the activities of complementary marketing is

What is an innovation?

Any idea perceived as new by a group of people

Apex Corporation is a wholesaler for Global Electronics in the French market. Global Electronics discovered that Apex Corp. was diverting some of their goods to the English market. Apex Corp. could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. In the context of the above scenario, which of the following forms of business is Apex engaged in? A. Black marketing. B. Parallel importing. C. Backwashing. D. Industrial piracy. E. Smuggling.

__________________ (as a form of market-based pricing) basically dictates that the company charges the price that any buyer outside the company would pay (as if the transaction occurred between two unrelated entities).

Arm's length pricing

As George Platt examines markets that might match his company's investment requirements, he is particularly struck by the fact that the European Community has an extensive transportation network. This network seems to draw all the member nations closer together. Which of the following critical factors for ensuring an effective economic union is Mr. Platt most likely examining when reviewing transportation networks? A. Cultural factors B. Trade factors C. Political factors D. Geographic proximity E. Economic factors

Aside from the United States and Japan, _____ is the most important single national market. A. United Arab Emirates B. Union of Soviet Socialist Republics C. People's Republic of China D. Dominican Republic E. French Southern Territories

advertising

Aspects of integrated marketing communications work best when coordinated reinforced with a consistent ________ campaign

At the most general level, the _____ represents the most important and comprehensive trade agreement in history. A. NAFTA B. Amsterdam Treaty C. MERCOSUR D. WTO E. ASEAN

client following

Barnes and Filmore Advertising Agency has just acquired a significant piece of Oracle's multi-million dollar advertising business.....

In the area of transfer pricing, experts suggest to set transfer prices that are as close as possible to the _________________________________.

Basic Arm's Length Standard

Blogs, social networking, and video sharing are examples of media commonly known as _____. A. global media B. local media C. social media D. Texas Visual Imaging E. widespread media

Along with industrial goods, the most rapidly growing sector of U.S. international trade today consists of:

Business services

C. K. Prahalad and associates introduced the concept of a global market, not necessarily defined by national borders but rather by the pockets of poverty across countries, and consisting of 4 billion people across the globe with annual incomes of less than $1,200. They refer to these consumers, concentrated in the LDCs and LLDCs, as _____ markets. A. subsistence B. third-world C. underdeveloped D. bottom-of-the-pyramid E. peripheral

C. K. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets—bottom-of-the-pyramid markets (BOPMs)—consisting of the 4 billion people across the globe with annual incomes of less than _____. A. $400 B. $1,200 C. $ 2500 D. $ 3700 E. $ 4200

C. K. Prahalad has cited two primary misconceptions behind the international marketers ignoring the bottom-of-the-pyramid markets. One of the reasons is that the products and services developed for more affluent consumers are not appropriate for these markets. Which of the following is the other misconception? A. Unwillingness of consumers in the bottom-of-the-pyramid markets to buy international products. B. The lack of uniformity in bottom-of-the-pyramid markets. C. The heavy taxation system in bottom-of-the-pyramid markets allows little profit. D. Consumers in the bottom-of-the-pyramid markets lack both money and technology. E. Consumers in the bottom-of-the-pyramid markets are characterized by conservative traditions and culture.

56. Find the general statement about the country of origin (COO) effect listed below that is NOT true. a. COO effects are not flexible. b. consumers prefer domestic products over imports. c. the critical factor appears to be the place of manufacture rather than the location of the company's headquarters. d. COO effects do not change very much over time. e. demographics make a difference.

COO effects do not change very much over time

All of the following statements about the country of origin effect (COO) are true EXCEPT: a. COO effects are restricted to Europe. b. Asian consumers prefer domestic products over imports. c. the critical factor appears to be the place of manufacture rather than the location of the company's headquarters. d. COO effects do not change very much over time. e. psychographics make a difference.

COO effects do not change very much over time

Certain advertising media are forbidden by government edict to accept some advertising materials. Such restrictions are most prevalent in: A. the Internet and social networking forums. B. personal selling initiatives. C. radio and television broadcasting. D. trade shows and exhibitions. E. direct selling and sales promotions.

Examples of other business services

Client followers, mode of entry, protectionism, restrictions on cross-border data flows

S&F Advertising Agency has just acquired a significant piece of Miracle's multimillion-dollar advertising business. Miracle would particularly like S&F to come up with creative ideas for Miracle's recent expansion into South Asian markets of India and Indonesia. In order to accommodate Miracle, S&F has now opened offices in two Indian cities and one Indonesian city. What would be the proper term to use to describe what S&F is doing with its own expansion into the above Asian markets?

Client following

10. In 2008, which of the following brands was ranked the number one brand in the world? a. Disney b. Coca-Cola c. GE d. Nokia e. IBM

Coca-cola

5. Which of the following is NOT one of the strategic options available to the marketing planner, considering various product policies that could be devised for the international marketplace? a. product and communication extension--dual extension. b. communication extension--mono extension. c. product extension--communications adaptation. d. product adaptation--communications extension. e. product and communications adaptation--dual adaptation.

Communication extension--mono extension

Companies that rely on television infomercials and television shopping are restricted by the limitations placed on the _____ of television commercials permitted when their programs are classified as advertisements. A. length and number B. religious content C. subliminal messaging D. superlative description E. ethnic derision

Companies with marketing facilities in different countries with excess marketing capacity sometimes take on additional product lines for international distribution. The formal name for this type of marketing is: A. skimming. B. backhauling. C. complementary marketing. D. export marketing. E. demand shifting.

complementary marketing

Companies with marketing facilities or contacts in different countries with excess marketing capacity or a desire for a broader product line sometimes take on additional product lines for international distribution. The formal name for this type of marketing is:

Triangulation

Compares estimates produced by different sources (expert opinions)

Complementary marketing is commonly known as _____. A. backhauling B. demand shifting C. piggybacking D. shape shifting E. skimming

A company focusing its efforts on making its new innovation more user-friendly is working on the _____ of the product.

Complexity

Strategic Planning

Conducted at the highest levels of management and deals with products, capital, research, and the short/long term goals of the company

Receiver

Consumer action by those who receive the message and are the target for the thought transmitted

Maxcare, an insurance firm based in California had difficulties expanding their operations to Asian markets, as most of their target countries had strict regulations on transferring the details of the customers among the different branches of the firm. The company had to obtain an approval from its customers before sharing their personal information with their branches in other countries. Which of the following barriers is affecting the services of the insurance firm in the above scenario?

Controls on transborder data flows.

The success achieved by firms when they take their inventions to market is referred to as _____.

Conversion-ability

The product platform, design features, and functional features are all found in the _____ component of the product, according to the product component model.

Core

Product Component Model

Core Component: physical product Packaging Component: style features, labeling Support Services Component: External sources, repair and maintenance

If a company wished to alter a product's platform so that the product could be manufactured in a variety of forms, to meet local differences in five different foreign markets, the _____ of the product component model would be in consideration.

Core component

40. Product lines can be categorized as: a. Core product, niche items, seasonal products, and filler products b. Core product, niche items, seasonal products, and filter products c. Core product, niche items, seasonal products, and final products d. Core product, niche items, seasonal products, and flimsy products e. None of the above

Core product, niche items, seasonal products, and filler products

48. _______________________ are people who look beyond their immediate social surroundings and are not local in their opinions. a. Domestics b. Introverts c. Negotiators d. Cosmopolitans e. Regionalists

Cosmopolitans

___________________ simply adds a mark-up to the cost of the goods.

Cost-based pricing

___________________ is an umbrella term used to describe unconventional trade- financing transactions that involve some form of noncash compensation.

Countertrade

Creating good relationships with the popular press and other media to help companies communicate messages to their publics—customers, the general public, and governmental regulators—is the role of _____. A. trade shows B. direct selling C. public relations D. personal selling E. sales promotion

Cremics, a multinational drug manufacturing company, used a saffron trident in a promotional campaign for one of their drugs in India. The saffron trident, a religious symbol in India was meant to indicate the three levels of efficacy of the drug, but mistakenly conveyed a religious message to Indians. This miscommunication indicates a problem associated with which of the following steps of an international communications process? A. Encoding B. Decoding C. Media channel selection D. Message transmission E. Information source selection

The Red Lobster seafood restaurant is considering opening branch operations in China. However, the restaurant chain's labor union has already pointed out a potential problem with this expansion. In China, it is considered to be in bad taste to allow employees to collect tips for service. Since a great portion of a typical wait-staff person's compensation comes in the form of tips, the union would like to know how employees would be compensated for this loss. The above example illustrates which of the following barriers a consumer services marketer faces in a foreign market?

Cultural requirements for adaptation.

23. ____________________ is leveraging cross-border differences in needs and wants of the firm's target customers. a. Customization b. Standardization c. Proliferation d. Expansion e. Synthesizing

Customization

Secondary Data

Data collected by an independent agency or individual other than the firm conducting research; often useful in market research

Derived demand

Defined as demand dependent on another source. Minor changes in consumer demand mean major changes in related industrial demand

Most significant environmental factor affecting intl' market for industrial goods & services

Degree of industrialization

dependent on another source

Derived demand can be defined as demand

A Korean electronics company had to add detailed instructions regarding the repair and replacement of its product to make it easy for the local consumers to maintain it. Which of the following components of the product is being altered in the given scenario?

Design component

What is the different between direct and indirect exports?

Direct exporting is when the company sells to a customer in another country Indirect exporting is when the company sells to a buyer (importer/distributor) who then sells to a customer

Which way to enter a foreign market requires the highest risk of greatest capital?

Direct foreign investment

Direct mail is an unpopular medium in Chile because: A. the literacy level in Chile is extremely low. B. the letter carrier must collect additional postage for every item delivered. C. it uses paper and hence it is considered as a threat to the environment. D. its reach is extremely limited. E. it is subject to complicated government regulations.

14. A desire to reflect its American roots motivated Disney to change the name for its Paris theme park from Euro Disney to __________________. a. Disneyland Village b. Disneyland Park c. Disneyland Paris d. Disneyland Europe e. Disneyland France

Disneyland Paris

In the _____ stage of Rostow's five-stage model of economic development, an industrialized economy's focus is more on low-cost manufacturing of a variety of consumer and some industrial products; they buy from all categories of industrial products and services.

Drive to maturity

Which of the following stages of Rostow's five-stage model of economic growth do industrialized economies such as Korea and the Czech Republic fit into?

Drive to maturity

Due to differences in culture in different markets, standardized products that are marketed globally will require: A. a different advertising appeal. B. a different primary function. C. consistent promotional messages. D. a standardized marketing strategy. E. standardized secondary attributes.

______________ occurs when imports are being sold at an "unfair" price.

Dumping

During which step of the international communications process does the receiver of the message interpret symbolism transmitted from the information source? A. Selecting a message B. Encoding C. Selecting a message channel D. Decoding E. Identifying the sources of noise

E-commerce is more developed in _____ than the rest of the world, partly because of the lower cost of access to the Internet than found elsewhere. A. China B. Brazil C. Switzerland D. South Africa E. the United States

ECOWAS, SADC, and EAC are active regional cooperative groups in _____. A. North America B. Australia C. Africa D. Europe E. Asia

38. ___________________ are always eager to experiment with new ideas and products. a. Early adopters. b. Early majority. c. Late majority. d. Laggards.

Early adopters

Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward adopting aspects of _____. A. capitalism B. socialism C. federalism D. democracy E. a customs union

Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward establishing postcommunist market reforms. This implies that: A. the region is against establishing free markets. B. new business opportunities emerge in this region. C. all of the eastern European countries can be viewed as one entity. D. all of these countries have made the same progress. E. all of these countries have had the same success in economic reform and growth.

Essentially, a free trade area (FTA) provides its members with: A. political union B. a mass market without barriers among partner countries. C. a regional cooperation for social development. D. customs unionization. E. an international market place without customs duties.

Analogy/Analysis

Estimation technique that assumed that the demand for a product develops in much the same way in all countries, as comparable economic development occurs in each country

In Russia, products are divided into two categories— "ours" and "imported." This is an example of:

Ethnocentrism

Which of the following has been at the forefront of the "green movement"?

Europe

Every type of economic union shares the development and enlargement of market opportunities as a basic orientation. Which of the following best describes the primary way market opportunities are enlarged by economic unions? A. Preferential tariff treatment for participating members. B. A common economic defense force with costs shared by all members. C. Formulation of cartels. D. Seeking economic dominance through boycotts of rivals. E. Movement towards a common language as a means to overcoming economic hurdles.

___________________ reflect how much one currency is worth in terms of another currency.

Exchange rates

What trends are spurring demand for tech advanced products?

Expanding economic & industrial growth in Asia, disintegration of Soviet empire, privatization of gov-owned industries worldwide

Experienced exporters suggest that the only way to select a middleman is: A. to conduct a background check on all the distributors available in the target market. B. to issue a request-for-proposal to all distributors in the target market and evaluate their responses. C. consult other manufacturers of the similar products and select the distributor recommended by them. D. consult trade organizations and select the distributor recommended by them. E. to personally talk to ultimate consumers to find whom they consider to be the best distributors.

4. In the area of global product policy, companies can pursue three strategies to penetrate foreign markets. The strategies include: a. extension, adaptation, and invention. b. extension, adaptation, and prevention. c. extension, adaptation, and creation. d. extension, adaptation, and placement. e. extension, adaptation, and balancing.

Extension,adaptation, and invention

79. Because of their universally known products, the Wrigley chewing gum company can use product adaptation-communications extension strategies effectively.

False

80. Local market circumstances do not favor the case of product adaptation.

False

84. The goal of standardization is to minimize competition.

False

91. In marketing, new product ideas do not come from the company, customers, competition, and collaborators.

False

92. In these days, many MNCs create organizational structures to foster global product development.

False

95. The waterfall model is also called staggered roll-out.

False

_________________ costs do not vary with sales volume changes.

Fixed

For companies seeking entrance into the complicated Japanese distribution system, _____ offer one of the easiest routes to success because they virtually control distribution through all levels of channels in Japan. A. trade representatives B. trading companies C. brokers D. export management companies E. complementary marketers

derived

For managers selling capital equipment and big-ticket industrial services, understanding the concept of _________ demand is absolutely fundamental to their success.

Business SERVICES

For many industrial products, revenues from associates services exceed revenues from the products. Most prominent example is cell phones

For most companies, which of the following are the major components in the marketing communications mix? A. Public relations and advertising. B. Direct selling and trade shows. C. Advertising and personal selling. D. Public relations and sales promotions. E. Direct selling and sales promotions.

18. Mecca Cola is a new soft drink that was launched by a ____________________ entrepreneur to cash in on anti-America sentiments in Europe. a. Irish b. English c. Dutch d. German e. French

French

General Motors, _____, and DaimlerChrysler have created a single online site called Covisint for purchasing automotive parts from suppliers. A. Toyota Motor Corporation B. Honda Motor Company C. Ford Motor Company D. Nissan Motor Company E. Tata Motors

A name, term, sign, symbol, design, or combination used worldwide to identify goods or services of one seller and to differentiate them from those of competitors is called a(n) _____.

Global brand

The Norton group, a manufacturer of toiletries and cleaning products uses the name Cleanex, for most its products in all of their international markets. The name has created a universal appeal for their products as customers identify their products with the name. Hence, Cleanex can be regarded as a _____.

Global brand

Government bureaucracy, corruption, and organized crime are common problems found in _____. A. Latin America B. The United States C. China D. former Soviet Union E. Japan

Grameen Bank is a private commercial enterprise in _____. A. Bangladesh B. China C. Japan D. Sri Lanka E. South Korea

Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called: A. multilateral economic associations. B. cartels. C. multinational market regions. D. trade associations. E. political and cultural associations.

Half of Shanghai's GDP is derived from its _____. A. financial services industries B. steel industries C. electronic products D. shipping sector E. software industries

Adam, a hairstylist at a salon in Seattle, styles his customers in various ways. His work looks different on different people even though he has styled all of them. This unique character of a service that is unique for every customer as it is individually produced is referred to as ______.

Heterogeneity

Because a service is individually produced and is virtually unique, the service is said to have _____.

Heterogeneity

___________ inflation also mandates rapid inventory turnarounds.

High

Home-country middlemen are also known as _____ middlemen. A. area B. local C. merchant D. domestic E. regional

Important dimension of quality

How well product meets specific needs of the buyer

IBM entered into a venture with the Chinese Railways Ministry that allowed IBM to set up a national network of IBM service centers in railway stations that has enabled IBM to ship computer parts via the railroad around the country within 24 hours. This venture was dubbed the _____. A. Blue Connect B. China Express C. China Blue D. Blue Express E. China Connect

registration and certification of a manufacturer's quality system

ISO 9000 concerns the

What is green marketing?

Identifies concerns with the environmental consequences of a variety of marketing activities

Takeoff

If a country has reached an economic development level where there is a focus on manufacturing of both semidurable and nondurable consumer goods and goods demanded relate to equipment and supplies to support manufacturing, which of the following stages of Rostow's five-stage model of economic growth is the country in?

from other Stage 5 suppliers

If a country is in Stage 5 (the age of mass consumption) of Rostow's five-stage model of economic development, where does the country purchase most of its highest technology products and services?

sole agent

If a manufacturer's representative is responsible for an entire country, then this middleman is often referred to as

Immediately after World War II, a shattered Japanese nation arrived at a consensus goal for national recovery. That consensual goal provided the incentive for its spectacular progress, decade after decade. Then during the late 1980s, the Japanese people stepped back and looked around at their manifest achievement. It was easy to conclude they had reached their coveted goal. So the question for them became, "all right, what's next?" This theory tries to explain the Japanese crisis of the 1990s. Which of the following theory are we talking about? A. The Cultural Causation theory. B. The Power Shift theory. C. The Third Way theory. D. The Hybridity theory. E. The Cultural Capital theory.

Improving economic performance, deciding how to limit political aspects, and deciding about further enlargement are all the long-term challenges faced by the _____. A. UN B. WTO C. European Union D. OPEC E. SAHK

In Japan, under the Large-Scale Retail Store Law, all proposals for new "large" stores are first judged by the _____. A. Transport and Tourism Department B. Internal Affairs and Business Council C. Ministry of International Trade and Industry D. Health and Welfare Committee E. Local Retailers Union

In Spain, a new medium for advertising called Publicoche includes: A. lasers projected onto clouds. B. private cars that are painted with advertisements. C. buses fitted with television sets showing promotional messages. D. financing of popular sporting and entertainment events. E. hot air balloons printed with promotional messages.

Vietnam

In Stage 2 of Rostow's five-stage model of economic growth, manufacturing is beginning and primary needs are related to infrastructure development. Which of the following countries would be characterized as being in this stage of economic development?

In a _____ distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers. A. domestic B. traditional C. manufacturer-oriented D. service E. customer-oriented

In the 1970s, Frank Gibney had called Japan "The Fragile Superpower", which was confirmed with the crisis of the 1990s. In his new appraisal, Gibney writes that Japan has become the victim of: A. social loafing. B. compensating errors. C. being penny-wise and pound-foolish. D. herd behavior. E. one-party sickness.

stage 4 (drive to maturity)

In the communications process in advertising, during the _____ stage, a consumer takes certain actions to respond to a decoded message. A. feedback B. receiver C. message channel selection D. encoding E. source identification

In the context of controlling middlemen, parallel importing is also known as _____. A. secondary wholesaling B. black marketing C. backwashing D. industrial piracy E. smuggling

In the context of cultural reactions when engaging in e-commerce, the color red is associated with socialism in _____. A. the United States B. China C. Brazil D. Uruguay E. Spain

In the context of distribution patterns, the rate of change in retailing around the world appears to be directly related to the _____. A. literacy rate B. rate of inflation C. population growth D. speed of economic development E. currency exchange rate

In the context of factors affecting choice of channels, one of the key elements in distribution decisions includes _____. A. the selection of optimum container sizes B. volume discounts and rebates C. the functions performed by middlemen D. the local advertising modes E. the target market culture

In the context of integrated marketing communications, in many markets, the availability of appropriate _____ to customers can determine entry decisions. A. demonstrations B. cultural appeal C. technological aid D. services E. communication channels

In the context of international advertising, _____ is the neon capital of the world. A. Paris B. Honk Kong C. London D. Sydney E. Brasília

In the context of international advertising, companies are moving from the commission system to a _____ system. A. tactical B. standardized C. reward-by-results D. self-regulation E. business-to-business

In the context of international advertising, global mass media advertising is a powerful tool for _____. A. relationship orientation B. long-term performance C. product stability D. emotional appeal E. cultural change

In the context of international advertising, it has been observed that advertising expenditures are generally _____. A. linear B. supplemental C. mutually reinforcing D. cyclical E. constrained

In the context of media planning and analysis, billboards are especially useful in countries: A. with high income levels. B. where the laws governing the Internet are very complicated. C. with high illiteracy rates. D. where sales promotions are not efficacious. E. where people prefer buying in small quantities.

In the context of the Internet in international marketing channels, technically, e-commerce is a form of _____ selling. A. direct B. parallel C. dual D. mass E. targeted

In the context of the communications process in advertising, problems of literacy, media availability, and types of media create challenges in the communications process at the _____ step. A. feedback B. decoding C. message channel selection D. encoding E. message selection

In the context of the different types of middlemen, which of the following is an example of a manufacturer's retail store? A. Toys "R" Us B. Walmart C. Costco D. Benetton E. IKEA

In the context of types of domestic middlemen, the WTO in 2003 ruled _____ to be in violation of international trade rules, thus starting a major trade dispute with the European Union. A. foreign sales corporations B. direct marketing partnerships C. trading companies D. export promotion companies E. Webb-Pomerene export associations

In the international business arena, which of the following is considered to be one of Walmart's strengths? A. Clean business reputation. B. Internal Internet-based system. C. Ability to beat competitors. D. Outreach programs to placate small retailers. E. Ability to influence foreign governments.

In the international communications process, _____ is defined as the interpretation by the receiver of the symbolism transmitted from the information source. A. encoding B. message selection C. decoding D. message channel selection E. feedback evaluation

In the international communications process, an international marketing executive with a product message to communicate acts as a(n) _____. A. decoder B. information source C. receiver D. encoder E. noise source

In the international communications process, during _____, the message from the source is converted into effective symbolism for transmission to a receiver. A. transmitting B. scrambling C. standardizing D. decoding E. encoding

In the international communications process, the sales force of a company that conveys the encoded content to the intended receiver acts as a _____. A. decoder B. message source C. receiver D. message channel E. noise

In which of the following countries is the time spent on social media sites the highest? A. Britain B. United States C. Israel D. Spain E. Italy

In which of the following modes of distribution in the foreign market will a company have to make maximum financial investment? A. Export management companies. B. Trading companies. C. Export associations. D. Direct sales force. E. Complementary marketers.

In-store demonstrations, samples, coupons, contests, and sweepstakes are examples of _____ devices. A. personal selling B. sales promotions C. trade shows D. direct selling E. public relations

Which of the following statements regarding the industrial goods market is true?

Industrial goods are more standardized than consumer goods.

Feedback

Information about the effectiveness of the message that flows from the receiver (the intended target) back to the information source for evaluation of the effectiveness of the process

Which of the following is characteristic of Stage 2 of Rostow's five-stage model of economic growth?

Infrastructure development is a primary requirement in the economy.

From a sociological viewpoint, any idea perceived as new by a group of people is considered as a(n) _____.

Innovation

After-sale services

Installation, training, spare & replacement parts, service personnel

Insurance, dry cleaning, and hotel accommodations have intrinsic value resulting from a process, a performance, or an occurrence that only exists while it is being created. Which of the following characteristics of services best matches to the above?

Intangibility

Integrated marketing communications are composed of all of the following EXCEPT: A. advertising. B. sales promotions. C. trade shows. D. public relations. E. political rallying.

consistent advertising campaign

International public relations, sales promotion, and other IMC efforts work best when coordinated and reinforced with a

Which is the largest services export of the United States, ranking behind only capital goods and industrial supplies when all exports are counted?

International tourism

3. Even though other combination alternatives can be devised, companies generally can pursue three global product strategies to penetrate foreign markets. These strategies are to extend the home-grown product/communication strategies, adapt their strategy to the local marketplace, and: a. invent new products for foreign customers. b. concentrate on services. c. apply for permission to copy domestic products. d. concentrate on image adjustment. e. focus on secondary issues (such as warranties).

Invent new products for foreign customers

A product is said to be compatible if:

It complies with the accepted norms, values, and culture of the local market.

It was not until this single market was established that the United States, Japan, and other countries gave serious thought to creating other alliances. Which of the following is being referred to here? A. European Commission. B. The European Economic Community. C. The European Steel and Coal Community. D. The Asia-Pacific Economic Cooperation. E. The European Community.

James Barker is the marketing manager of a firm with small international sales volume. He is looking for a middleman who can take responsibility for promotion of the company's products, credit arrangements, physical handling, and market research. Also, the middleman must be able to provide information on financial, patent, and licensing matters. In addition, the middleman should agree to work under the name of the firm. Which of the following types of middlemen would be the best choice for Mr. Barker if he wants to meet his objectives? A. A manufacturer's export agent. B. An export merchant. C. A trade representative. D. An export management company. E. A complementary marketer.

Janet works for a media agency based in Japan. Janet is helping the IMC manager of Siljure, a French cosmetics company, with the design and language to be used in an upcoming promotional campaign in Japan. The IMC manager knows what to convey but wants to advertise it in a culturally relevant manner. Which step of the IMC process is Janet helping Siljure with? A. Encoding of the message. B. Choosing an appropriate channel for the message. C. Decoding of the message. D. Providing feedback from customers. E. Reducing noise from competing ad campaigns.

44. The adoption rate for a new product in countries with a homogeneous population is usually faster than in countries with a highly diverse culture. Which of the following countries would probably have the fastest adoption based on the information provided above? a. Ireland. b. United States. c. Japan. d. United Kingdom. e. France.

Japan

all of the above (loyalty, harmony, friendship)

Japanese distribution channels are characterized by which of the following emphasis areas?

One of the ways that a weakening of the U.S. dollar relative to the Japanese yen may not necessarily be a benefit to a U.S. firm is that:

Japanese parts might become more expensive and when imported for inclusion into an exported product, prices might actually rise.

Quality standards vary with what?

Level of country's industrialization

Liaoning province of Northeast China has the closest economic ties with _____. A. Japan B. South Korea C. Russia D. United Kingdom E. North Korea

What is the least profitable way of entering the foreign market?

Licensing

How do the vast majority of services enter a foreign market?

Licensing, franchising, or direct investment.

_____________________ is a special form of pricing where mark-ups are adjusted to stabilize prices in the buyer's currency. This method helps to create stability in the local currency.

Local-currency price stability (LCPS)

Contractual Agreements

Long-term, non-equity associations between a company and another in a foreign market Generally involves the transfer of technology, processes, trademarks, and human skills

Relationship marketing

Make the relationship an important attribute of the transaction. Differentiates oneself from competitors

Many international trade experts have marveled at how members of the European Union have overcome _____, _____, and _____ differences. A. marketing; management; promotional B. energy; political; geographical C. cultural; legal; social D. time zone; coastal; religious E. language; educational; technological

Manufacturers are requiring them to do so

Many suppliers are adopting ISO 9000 standards because

__________________ uses the market mechanism as a cue for setting transfer prices.

Market-based pricing

after-sales service

McDonald's Hamburger University is known for having one of the finest (and most famous) international customer training facilities in the world. This is the part of McDonald's _________ when dealing with international customers.

Meta Garbon, a manufacturer of sports bicycles, in a bid to tap the enormous market for bicycles in China promote their cycles as premium sporting and leisure bicycles. They use various cycling legends and sports celebrities as brand ambassadors, and use television, radio, and newspapers as media. Bicycles in China are used mainly by the working class for commutation, and the main users of bicycles did not relate to Meta Garbon's products and the promotional campaign was a failure. During which of the following steps of the IMC process did Meta Garbon go wrong? A. Information source selection. B. Selection of message channel. C. Encoding. D. Decoding. E. Noise cancellation.

12. In 2008, which of the following brands was ranked number one in the world among the high-tech companies? a. Microsoft. b. IBM. c. Intel. d. Hewlett Packard. e. Dell.

Microsoft

Parallel Translation

More than two translators at the same time are used, the most appropriate translation is selected

Most analysts predict that China would see an 8 to 10 percent average GNP growth in the next 10 to 15 years. All of this growth is primarily dependent on China's: A. ability to deregulate industry. B. ability to prevent the privatization of its state owned enterprises. C. preparedness to resist the capitalist wave. D. ability to put embargoes on foreign investment. E. ability to uphold its traditional legal system.

Most eastern European countries are privatizing state-owned enterprises, establishing free market pricing systems, and: A. permitting greater government control/intervention in foreign trade. B. increasing trade barriers. C. Africa. D. making import controls stringent. E. switching to a socialistic economy.

Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. This is an example of problems associated with which of the following six Cs of channel strategy? A. Character B. Continuity C. Control D. Cost E. Capital requirement

Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. This is an example of problems associated with which of the following six Cs of distribution channel strategy? A. Character B. Continuity C. Control D. Cost E. Capital requirement

Multinational market groups form: A. a large organization that promotes harmony by mutual agreement to a common peace treaty. B. large markets that provide potentially significant opportunities for international business. C. a conglomerate that seeks to undertake foreign trading ventures as one company. D. a non-profit entity that works together to help the development of under-developed countries. E. regional trading blocs without trade restrictions internally but with borders protected from outsiders.

Nations with complementary economic bases are least likely to: A. develop a distinctive monetary system. B. outweigh individual differences with the total benefit of economic integration. C. experience internal economic development. D. achieve enlargement of market opportunities through preferential tariff treatment. E. encounter frictions in the development and operation of a common market unit.

Negotiators from this region in China have been the closest to foreign influences, which has yielded their special forms of entrepreneurship and spontaneity. They are excellent traders and particularly interested in making short-term gains. Identify the region. A. Taiwan B. Yangtze River Delta C. Beijing D. Shanghai E. The Pearl River Delta

54. ______________ is part of a formal scoring model in screening new products. a. New Prod b. ExProd c. YProd d. ZProd e. none of the above

New Prod

A product's _____, refers to the ease with which its benefits can be communicated to the customers.

Observability

Ingrid is developing promotional materials and product demonstrations to easily communicate the benefits of her cleaning products. Ingrid is trying to enhance the _____ of her products.

Observability

Of all the elements of the marketing mix, decisions involving _____ are those most often affected by cultural differences among country markets. A. direct selling B. public relations C. trade shows D. advertising E. sales promotion

advertising

Of all the elements of the marketing mix, decisions involving _________ are those most often affected by cultural difference among country markets

Of all the elements of the marketing mix, decisions involving which of the following are those most often affected by cultural differences among country markets? A. Price of the product. B. Benefits offered by the product. C. Services offered along with the product. D. The place of offering the product. E. Advertisement of the product.

Of all the multinational market groups, none has been more secure in its cooperation or more important economically than the: A. Newly Independent States. B. Economic Community of West African States. C. United Nations. D. European Union. E. Trans-Pacific Union.

developing messages

Of the seven steps in development international advertising, almost always _________ represents the most daunting task

Of the seven steps involved in international advertising, _____ almost always represents the most daunting task for international marketing managers. A. developing messages B. selecting effective media C. executing the campaign D. composing and securing a budget E. specifying the goals of the communication

meets the specific need of the buyer

One important dimension of quality is how well the product

One of the challenges facing the European Union in the next 50 years is: A. deciding on how to limit the political aspects of union. B. diluting the value of the euro. C. strengthening ties with the United Nations. D. deciding on how to control the individualistic European population. E. how to control rapid expansion.

One of the drawbacks of satellites is: A. the cost of creating a high quality ad for satellite television. B. the limited market penetration of satellite television. C. the number of intermediaries required for satellite service transmission. D. the government regulations placed on satellite advertising. E. their ability to span a wide geographical region.

One of the first factors that gave the European Union an edge over others in the process of becoming a common market was: A. a similarity in agriculture and monetary policy. B. a similarity in political systems. C. a similarity in languages. D. a well-developed transportation network. E. a common currency.

One of the reasons for the notably low use of foreign national consumer magazines by international advertisers is that: A. consumers in most countries rarely read magazines. B. few magazines provide reliable circulation data. C. they publish content only in English. D. subscription to magazines has reduced as the Internet gains popularity. E. advertising in magazines is costly as compared to other advertising media.

One of the reasons that channels of distribution often pose longevity problems is that most middlemen _____. A. do not maintain sufficient inventory to serve customers B. lack product knowledge resulting in low sales volume C. have little loyalty to their vendors D. tend to slow down distribution to extract higher commissions E. do not have sufficient knowledge of the target market

One result of the Asian financial crisis of 1997 to 1998 was the creation of _____. A. SADC B. NAFTA C. ASEAN+3 D. CEFTA E. COMESA

If a country is in Stage 5 (the age of mass consumption) of Rostow's five-stage model of economic development, it purchases most of its highest-technology products and services from _____.

Other Stage 5 suppliers

If a company is altering the price of its product to compete with the local companies in the international market, it is focusing on the _____ component of the product, according to the product component model.

Packaging

Bagel's foods had to change the labeling on their products to meet the specifications regarding vegetarian and non-vegetarian foods, set by the government in the Japanese market. They also had to mention the ingredients in Japanese to make it clear for the local customers. The component of the product that is in focus in the above scenario is the _____.

Packaging component

Dr. Mark Townes is a dentist practicing in Denver. During a four-day stretch in March, it snowed so heavily that not a single patient was able to visit him. Since all the appointments were missed, he did not make any money for those four days, even though his normal expenses remained. Which of the following characteristics of services is affecting Dr. Townes' business?

Perishability

A characteristic of a service is that it is _____, since it cannot be stored and must be consumed simultaneously with its creation.

Perishable

6. If a company were to follow a strategy of product and communication extension (dual extension) in a foreign market, an example of a product category that would fit this strategy would be _________________________. a. personal care items b. motorscooters c. gasoline d. clothing e. hand-powered washing machines

Personal care items

Political explanations of Japan's crisis during the 1990s identified two villains. One of them was the powerful Japanese bureaucracy. Which of the following is the other one? A. Japan's trade policies with the United States. B. Japan's refusal to join Asian trade blocs. C. The powerful influence of the royalty in political issues. D. The long entrenched Liberal Democratic political party. E. The splintering of most of Japan's right-wing political parties.

________________ is the only marketing mix instrument that creates revenues.

Price

trade shows/fairs

Primary vehicle for business to business promotion and selling in foreign markets?

11. As a strategy, ____________________ will work when the company targets a "global" segment with similar needs. a. product and communication extension--dual extension b. product invention c. product extension--communications adaptation d. product adaptation--communications extension e. product and communications adaptation--dual adaptation

Product and communication extension--dual extension

2. In the Australian market, rather than manufacturing disposable diapers, Procter & Gamble decided to import them since the size of the market did not warrant local manufacturing according to P&G. Unfortunately, by using packaging designed for the Asian region with non-English labeling, P&G alienated its customers in Australia. This is an example of improper: a. global policy decisions. b. pricing decisions. c. brand policy decisions. d. product policy decisions. e. company policy decisions.

Product policy

Which of the following is a factor that exacerbates the volatility in demand in industrial markets?

Professional buyers in the market tend to act in concert.

75. To harvest the benefits of metanational innovators, a company must pursue three things: a. Prospecting, assessing, and mobilizing. b. Prospecting, assessing, and delivering. c. Prospecting, assessing, and running. d. Prospecting, assessing, and planning. e. none of the above.

Prospecting, assessing, and mobilizing

Marketers of consumer services face four kinds of barriers in the global marketplace. Which of the following of these barriers is in force when a foreign market requires that services (such as banking or insurance) originate within the country itself and not from outside sources?

Protectionism

What is the most serious threat to the continued expansion of international services trade?

Protectionism

Trade shows

Provide facilities for a manufacturer to exhibit and demonstrate products to potential users and to view competitors' products

all of the above (the general public, customers, governmental regulators)

Public relations efforts are generally directed toward which of the following?

buyer

Quality is defined by the

Best indicator of economic development is what?

Quality of education system

Which of the following can be used as a measure to manage volatility in industrial demand in the domestic market?

Reducing advertising expenditures during booms.

Which of the following is an additional reason for marketing industrial goods abroad that does NOT necessarily apply to consumer goods?

Reducing the volatility of demand.

Culture

Relationship marketing is particularly important in international markets where _______dictates strong ties between people and companies

What is a sample?

Representation of a population

Takeoff

Russia and Eastern European countries have been characterized as being in which of the following stages of Rostow's five-stage model of economic growth?

short term

Sales promotions are _______ efforts directed to the consumer or retailer to achieve such specific objective as consumer-product trail or immediate purchase

direct marketing (selling) ex. e-commerce

Selling directly to the customer through mail, telephone, or door-to-door. Cut the intermediary, no middleman

7. If a company were to follow a strategy of product adaptation-communications extension in a foreign market, an example of a product category that would fit this strategy would be __________________. a. soft drinks b. motorscooters c. shampoo d. clothing e. hand-powered washing machines

Shampoo

Similarity of cultures can make or break an economic union. Although there is great cultural diversity in the European Union, key members share _____ and are commonly aware of being European A. a common language B. a long-established Christian heritage C. a dislike for foreigners D. a tradition of monarchy and feudalism E. a democratic background and heritage

Sixty percent of the Japanese population lives in the _____ market area, which essentially functions as one massive city. A. Tokyo-Nagoya-Osaka B. Komaki-Tokoname-Kariya C. Nagoya-Handa-Seto D. Nishio-Okazaki-Inazawa E. Inuyama-Nisshin-Takahama

Social media such as blogs and social networking permits consumers to: A. obtain discounts on the brands they endorse on their blogs. B. obtain free Internet access that is supported by brand ads. C. create content about brands whether marketers like it or not. D. contact the manufacturer directly about warranty issues. E. become authorized virtual brand agents for the product manufacturers.

South Africa is most likely to experience rapid economic growth in as few as 10 years owing to: A. the beginning of apartheid. B. its recent consumerist trends. C. its industrial base. D. its outsourcing ability. E. the coupling of small African markets with it.

Stages of economic development

Stage 1: traditional society Stage 2: preconditions for takeoff Stage 3: take off Stage 4: drive to maturity Stage 5: age of mass consumption

20. __________________ means offering a uniform product on a regional or worldwide basis (only minor alterations are made to meet local standards). a. Customization b. Standardization c. Miniaturization d. Assimilation e. Marginalization

Standardization

According to textbook, ________________ by and large charges the same price worldwide.

Starbucks

According to the product component model, installation, repair and maintenance, deliveries, and warranties are all part of the _____ component of the product.

Support services

The washing machines marketed by Taichi failed in Asian markets as those countries lacked the skills necessary to repair and maintain their products. Also, the washing machines spares available in local markets were not compatible with these machines. This product failure was a result of lack of attention by the company to the _____ component of the product.

Support services

In some countries, maintenance of automobiles is not the norm. Cars are not repaired until they break down. Since the consumer is automatically angry with the manufacturer when something goes wrong with the car, repair and maintenance has become a concern of the various automobile manufacturers in this market. In which of the following components of the product component model would the management need to make improvements if problems such as the one above are to be solved?

Support services component

A country has reached a level of economic development where there is focus on manufacturing of both semidurable and nondurable consumer goods. Also, the goods demanded relate to equipment and supplies to support manufacturing. Which of the following stages of Rostow's five-stage model of economic growth is the country in?

Takeoff

Russia and Eastern European countries have been characterized as being in which of the following stages of Rostow's five-stage model of economic growth?

Takeoff

Companies with competitive edge will be those with products that are...

Technologically advanced, highest quality, accompanied by world-class service

The Commonwealth of Independent States is: A. a political alliance with a central government. B. an economic and political alliance with open borders and no central government. C. an economic and political alliance with closed borders and a federal government. D. a federation of many states. E. a supranational organization similar to the old European community.

The Czech Republic, Hungary, the Slovak Republic, and Poland have become members of the _____. A. UNDP B. OECD C. WTO D. LAIA E. APEC

The European Commission, the Council of Ministers, the European Parliament, and the Court of Justice are institutions of the _____. A. COMECON B. European Free Trade Area C. European Economic Area D. European Union E. Trans-Pacific Union

The European Community uses several forms of legal instruments. A. Regulations B. Decisions C. Codes D. Directives E. Specifications

The European Union is anxious to admit new members; however, there have been problems. Which of the following problems has been deemed to be the most significant regarding new member admission? A. The threat of nuclear war. B. The problem of multiple currencies. C. The rise of Asia in the world arena. D. The prospect of illegal immigrants from the former Soviet Union. E. The economic instability of prospective members.

The European Union was created when the 12 nations of the European Community ratified the _____ Treaty. A. Kent B. Paris C. Rome D. Cannes E. Maastricht

Which of the following is true of the ISO 9000 certification?

The ISO 9000 is generally voluntary except for certain regulated products.

Which of the following is true of the ISO 9000 certification?

The ISO 9000 standards are a certification of the quality control system that a company has in place.

The Treaty of _____ established the European Economic Community (EEC) in 1957 and called for common external tariffs and the gradual elimination of intramarket tariffs, quotas, and other trade barriers. A. Kent B. Paris C. Rome D. Cannes E. Hamburg

It would be too costly

The U.S Congress and businesses have been resisting conversion to the metric system fearing

Which of the following countries is not officially on the metric system?

The United States

The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export activities without being subject to which of the following acts? A. The Sherman Antitrust Act. B. The Federal Communications Act. C. The Trade Commission Act. D. The Food, Drug, and Cosmetics Act. E. The Robinson-Patman Act.

The World Trade Organization is wholly dedicated to ____. A. the expansion of capitalism B. the elimination of language barriers in trade C. free and open national borders D. the enforcement of international anti-bribery laws E. making trade among nations more efficient

The _____ has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group. A. political union B. common market C. regional cooperation for development (RCD) D. customs union E. free trade area (FTA)

The _____ increases the authority of the institutions of the European Union and is designed to accommodate the changes brought about by the monetary union and the admission of new members. A. Treaty of Rome B. Single European Act C. Maastricht Treaty D. Expansion Act E. Amsterdam Treaty

The _____ initiates policy and supervises its observance by member states, and it proposes and supervises execution of laws and policies. A. United Nations B. World Trade Organization C. European Commission D. Commonwealth of Independent States E. Council of Ministers

The _____ is the European Union's Supreme Court. A. International Court of Justice B. European Court of Justice C. International Criminal Court D. European Common Judicial Council E. European Security Council

The _____ is the decision-making body of the European Union and can enact into law all proposals by majority vote except for changes in tax rates on products and services, which require unanimous vote. A. United Nations B. World Trade Organization C. European Commission D. Commonwealth of Independent States E. Council of Ministers

The _____ originally had only a consultative role that passed on most European Union legislation but now has the power to amend and adopt legislation. A. Court of Justice B. European Parliament C. Council of Ministers D. European Commission E. Legislative Commission

manufacturer export agent**

The _______ is an individual agent middleman or agent middleman firm providing a selling service for manufacturers that normally covers only one or two markets and operates on straight commission basis

The adoption of the euro has facilitated which of the following? A. Increased complexity of online marketing. B. An increase in parallel imports. C. An increase in unhealthy and unfair competition. D. Easily recognizable price differentials. E. Increased business costs.

The assault on advertising of _____ is escalating internationally, as evidenced by the World Health Organization launching a global campaign against it. A. trans-fats B. alcohol C. tobacco D. pharmaceuticals E. animal derived products

Which of the following is probably the most significant factor affecting the international market for industrial goods and services?

The degree of industrialization.

Industrial goods differ from consumer goods in that:

The demand for industrial goods is largely derived demand.

Demand in industrial markets differs from demand in consumer markets in that:

The demand for industrial goods is more volatile than the demand for consumer goods.

The distribution channel process includes all activities, beginning with the manufacturer and ending with the _____. A. wholesaler B. agent middlemen C. merchant middlemen D. retailer E. final consumer

The emergence of pan-European communications media will most likely cause companies to: A. opt for localized promotional campaigns. B. opt for greater customization of promotional efforts. C. promote their products only in English. D. use only Internet as their message channel. E. choose more standardized promotional efforts.

The final step in the European Community's march to union was the ratification of the _____ Treaty (1992). A. Rome B. Berlin C. Maastricht D. Barcelona E. Athens

The first Soviet republics to declare independence from the Soviet Union were the _____. A. Russian SFSR B. Ukrainian SSR C. Baltic States D. Transcaucasian SFSR E. Byelorussian SSR

The first meeting of the members of the ASEAN+3 was devoted to devising a system whereby the member countries could: A. defend their currencies against future attack. B. improve the multilateral trade. C. keep inflation under check. D. acquire nuclear technology. E. improve agricultural production.

The formation of multinational market groups has resulted in: A. increased difficulties in trade. B. an increased regulation of business activities. C. business activities losing management control. D. an increase in tariffs. E. an increase in border controls.

Goals of the diffusion researcher

The goals of the diffusion researcher and the marketer are to shorten the time lag between introduction of an idea or product and its widespread adoption

Which of the following factors account for greater market similarities among industrial goods customers than among consumer goods customers?

The inherent nature of the product.

The institutions of the European Union form a _____ pattern. A. bilateral B. unitary C. federal D. provincial E. autonomous

What is the easiest way to enter the foreign market?

The internet

Decoding

The interpretation by the receiver of the symbolism transmitted from the information source

Encoding

The message from the source converted into effectively symbolism for transmission to a receiver

The most basic economic integration and cooperation is the: A. political union. B. common market. C. regional cooperation for development (RCD). D. customs union. E. free trade area (FTA).

The most fully integrated form of regional cooperation is called a: A. political union. B. common market. C. regional cooperation for development (RCD). D. customs union. E. free trade area (FTA).

The most important advantage of Northeast China that mainly contributed toward its being the industrial and technological center of the country in the 1970s and 1980s is: A. its juxtaposition with China's most important industrial neighbors. B. the lack of economic diversity in this area. C. the existence of oil fields these areas. D. that it contains Hong Kong, Macau, Guangzhou, and Shenzhen. E. that it has the authority to impose embargoes upon its trading partners.

The most rapidly growing economies in the Asia Pacific region during the 1980s and 1990s, Hong Kong, South Korea, Singapore, and Taiwan are often referred to as the _____. A. Four Lions B. Four Elephants C. Four Dragons D. Four Horses E. Four Swans

The national language of China is standard _____ but more than 56 dialects and other languages are spoken across the country. A. Wu B. Min C. Hakka D. Xiang E. Mandarin

The negotiators from the Shanghai area are famous for their: A. shrewdness. B. tendency to be closemouthed. C. low spending habits. D. lack of creativity. E. imperialist perspective.

The negotiators in the Pearl River Delta are reputed to be: A. much more calculating than traders in Shanghai. B. relatively honest and forthright. C. very poor traders. D. more interested in making long-term gains. E. cut-off from foreign influences.

The only way to avoid linguistic problems in advertising communication is by: A. creating an entirely new advertisement for the new market. B. using only English in all media promotions. C. developing a new version of the product for the new market. D. in-country testing with the target consumer group. E. using facial expressions and physical gestures in the advertisement.

The primary multinational trade group in Asia is _____. A. NAFTA B. COMESA C. CEFTA D. SADC E. ASEAN

Which of the following will expand demand, particularly for industrial goods and business services, in Latin America?

The privatization of state-owned enterprises

Which of the following is possibly the best indicator of a country's ability to use technology to leap several stages of economic development in a very short time?

The quality of the educational system.

a competitive advantage

The ready availability of parts and services provided by U.S marketers can give them __________ in international markets

public relations

The role of _______ is to create good relationships with the popular press and other media to help companies communicate message to their publics

The rural population, which accounts for almost three-fourths of the Chinese population, usually receives about _____ percent of the central government budget. A. 10 B. 25 C. 30 D. 45 E. 55

A Message Channel

The sales force and/or advertising media that convey the encoded message to the intended receiver

International Organization for Standardization

The term ISO stands for which of the following?

broker

The term _______ is a catchall for a variety of middlemen performing low-cost agent services

The three contiguous provinces in Northeast China _____, Jilin, and Heilongjiang have long represented a cohesive unit in terms of culture and the political economy and are referred to as "dongbei", meaning Northeast, or "dong sansheng", meaning Northeastern Three Provinces. A. Gansu B. Shanxi C. Henan D. Liaoning E. Sichuan

The ties that bind members of the Commonwealth of Independent States stem mainly from their: A. agreement to the European Trade Pact. B. former Soviet membership. C. UN membership. D. affiliation to the Eurasian Alliance. E. WTO membership.

Which of the following is the first stage of Rostow's five-stage model of economic development?

The traditional society.

Back Translation

The translator gets a message translated and then gets the translated message translated back to the original message (by a different translator) to be sure the original message is correct

The true consumer market in China is probably limited to no more than _____ percent of those who live in the more affluent cities. A. 9 B. 15 C. 25 D. 33 E. 48

What is a global brand?

The worldwide use of a name, term, sign, symbol, design, or combination thereof intended to identify goods or services of one seller and to differentiate them from those competitors

Goods are likely to be standardized if:

Their uses are the same across markets.

This region in China includes three cities of over 5 million inhabitants (Hong Kong, Guangzhou, and Shenzhen); five cities with more than 1 million inhabitants (Zhuhai, Huizhou, Foshan, Zhongshan, and Dongguan); and a number of cities that each contain approximately half a million inhabitants, such as Macau. Identify the region. A. Shanghai B. Northeast China C. Yangtze River Delta D. The Greater Pearl River area E. Taiwan

This region in China is the political and R&D center of China. The 75-mile corridor in this region hosts some 5,000 Chinese high-tech companies, and more than 1,000 international IT companies. Perhaps the key to this region is the quality of its higher education. Identify the region in discussion. A. The coastal Dalian city B. The Pearl River Delta C. The Yangtze River Delta D. Beijing-Tianjin E. Fujian

Though now disbanded, which of the following was considered to be the most notable enforced political union of the last forty years? A. NATO B. NAFTA C. MERCOSUR D. COMECON E. LAFTA

According to Everett Rogers, what is the element that differentiates diffusion from other types of communications research?

Time

28. _____________________ means shortening the time to bring new product projects to the market. a. Delivery-to-market b. Orientation-to-market c. Time-to-market d. Extension-to-market e. Perfection-to-market

Time-to-market

talking with the customer***

To be competitive in today's global markets, the concept of total quality management (TQM) must be part of all MNC's management strategy, and TQM starts with:

11. In 2008, which of the following auto brands was ranked number one in the global auto industry? a. BMW b. Mercedes c. GM d. Ford e. Toyota

Toyota

What has become primary and most important vehicle for doing business in many foreign countries?

Trade shows

_____ provide(s) the facilities for a manufacturer to exhibit and demonstrate products to potential users and to view competitors' products.

Trade shows

Fiona asked her product manager for samples to give to potential consumers in Madrid, her new European market. Fiona is trying to reduce the degree of economic and/or social risk, or _____ associated with product use.

Trialability

77. Early market entrants often choose dual extension (product and communication extension) as a strategy to enter markets with new products.

True

78. The biggest savings to the company when following a strategy of dual extension is in economies of scale.

True

81. Many companies add brands to their product portfolio via acquisitions of local brands.

True

87. Over standardization is a risk of the core-product approach to introducing new products in the world market.

True

88. In general, the adoption of new products is driven by individual differences, personal influences, and product characteristics.

True

90. The lead country is where the product is introduced first.

True

93. Conjoint analysis is also called tradeoff analysis.

True

96. A truly global innovators are called meta-national innovators.

True

Which of the following is true of commercial relationships in countries with collectivistic and high-context cultures?

Trust will be a crucial aspect of commercial relationships.

Two major events that occurred in 2000 had a profound effect on China's economy. One of these is the United States's granting normal trade relations (NTR) to China on a permanent basis (PNTR). Which of the following is the other one? A. Inclusion in the board of the World Bank. B. Admission to the World Trade Organization. C. Signing of the new ASEAN pact. D. The handover of Hong Kong by the British to China. E. Inclusion of Hong Kong as a special administrative region (SAR) of China.

Federal department dealing with Global Harmonization Task Force

US Department of Commerce

29. _________________ is a system where a single banner brand is used worldwide, often with a sub-brand name, for almost the entire product mix of the company. a. Domestic branding b. National branding c. Manufacturer's branding d. Store branding or private labeling e. Umbrella (corporate) branding

Umbrella (corporate) branding

Noise

Uncontrollable and unpredictable influences such as competitive activities and confusion that detract from the process and affect any or all of the other six steps.

Using newspapers or magazine ads as a channel of communication when the majority of the intended users are illiterate, is an example of ineffective _____ in the communications process. A. feedback B. media channel selection C. noise D. market selection E. message selection

______________ costs change with sales volume.

Variable

Which of the following countries would be characterized as being in Stage 2 of Rostow's five- stage model of economic growth?

Vietnam

Three factors that affect demand in industrial markets differently than consumer markets

Volatility of industrial demand, stages of economic development, technology & market demand

6. All of the following are questions that must be asked when building up and managing brand equity in a multinational setting EXCEPT: a. How do we strike a balance between a global brand that shuns cultural barriers and one that allows for local requirements? b. What aspects of service are too expensive to be included in the brand warranty? c. What aspects of brand policy can be adapted to global use? d. Which brands are destined to become "global" mega-brands? e. How do you execute the changeover from a local to a global brand?

What aspects of service are too expensive to be included in the brand warranty?

What is common among the Asian countries Hong Kong, South Korea, Singapore, and Taiwan? A. They were among the first countries in Asia to move from a status of developing countries to newly industrialized countries. B. They have a middle class numbering some 250 million, about the population of the United States. C. The exports in these countries are growing at a rate of 50 percent annually. D. They have faced a serious disadvantage in the information age due to their complex languages. E. They all have the custom of "baksheesh", a deeply ingrained system of bribery.

to service their clients abroad ***

What is the chief reason that most U.S business service companies enter the international market?

Global Harmonization Task Force

What is the name of the international organization that is attempting to harmonize standards for several international industrial sectors?

What is the tenet that China follows to ensure that Hong Kong's exuberant capitalism is retained despite the communist leanings of mainland China? A. Absolute plutocracy B. Sovereignty of the provinces C. Theocracy D. Noninterventionist approach E. One country, two systems

bundle of satisfaction they expect to receive

When consumers consider a market offering they think of

When the Soviet Union dissolved, the _____ emerged and had 12 members that agreed to a loose economic and political alliance with open borders but no central government. A. European Trade Pact B. Commonwealth of Independent States C. Eurasian Alliance D. Russian Confederation E. Post-Soviet Bloc

Which agency established the parameters for the creation of the common currency for the European Union? A. The Economic policy agency. B. The Optimal currency area—eurozone. C. The Economy of Europe. D. The European Currency Reserve. E. The Economic and Monetary Union.

Which is the trade group that is part of Europe and Asia and has emerged and persisted since the dissolution of the Soviet Union comprising of all the republics save the Baltic States? A. The European Union East. B. The Commonwealth of Independent States. C. The Eastern Bloc Economic Area. D. The European Free Trade Association. E. The Euro-Soviet Union.

Which of the following Asian countries was the first to move from a status of developing country to a newly industrialized country? A. Japan B. Thailand C. South Korea D. Malaysia E. Sri Lanka

Which of the following European Union institutions originally had only a consultative role, but can now amend and adopt legislation? A. The European Parliament. B. The Council of Ministers. C. The Court of Justice. D. The European Commission. E. European Central Bank.

Which of the following actions should be taken to begin with the search for prospective middlemen? A. Short listing the middlemen. B. Studying the target market. C. Evaluating the available financial resources. D. Designing the sales force required. E. Understanding the mission of the manufacturing firm.

Which of the following are considered to be major communications media in most countries due to their inherent entertainment value? A. Newspapers and magazines. B. Radio and television. C. Newspapers and the Internet. D. Billboards and television. E. Radio and newspapers.

Which of the following are especially vulnerable as EU member states decide which area of regulation should apply to these services? A. Newspaper advertising. B. Radio advertising. C. Outdoor services. D. Personal selling. E. Internet services.

Which of the following are frequently criticized for not representing the best interests of a manufacturer? A. Global wholesalers B. Trading companies C. Consumers D. Merchant middlemen E. Brokers

Which of the following are the two most important steps China has to take to ensure that the road to economic growth is smooth? A. Decreasing export barriers and promoting indigenous technology. B. Strengthening the hold of its communist party and promoting innovative thinking. C. Investing in more developing countries and changing its education system. D. Acquiring membership in more regional trade blocs and increasing embargoes. E. Improving human rights and reforming the legal system.

Which of the following arrangements are undertaken when a firm wants to keep its seasonal distribution channels functioning throughout the year? A. Price skimming. B. Using the services of a trading company. C. Establishing a retail store. D. Using the services of an export management company. E. Complementary marketing.

Which of the following characterizes the business philosophy of the Japanese distribution channels? A. Loyalty B. Direct sales C. Fast delivery D. Variety E. Price competition

Which of the following countries has the largest number of retailers? A. United States B. Argentina C. China D. South Africa E. Japan

Which of the following countries rejected the euro? A. Austria B. Greece C. Finland D. Denmark E. Spain

Which of the following distribution structures is also known as a traditional distribution structure? A. Export-oriented B. Import-oriented C. Manufacturer-oriented D. Service-oriented E. Customer-oriented

Which of the following drafted the Maastricht Treaty that was presented to the European Union member states for ratification? A. The United Nations. B. The World Trade Organization. C. The European Commission. D. The Commonwealth Delineation. E. The Council of Ministers.

Which of the following elements of integrated marketing communications is related to encouraging the press to cover positive stories about companies and managing unfavorable rumors, stories, and events? A. Public relations B. Direct selling C. Trade shows D. Personal selling E. Sales promotion

Which of the following elements of the international communications process comprises external influences, such as competitive advertising, other sales personnel, and confusion at the receiving end that can detract from the ultimate effectiveness of the communication? A. Selecting a message source B. Encoding C. Selecting a message channel D. Decoding E. Noise

Which of the following established the parameters of the creation of a common currency for the European Union? A. The Economic and Monetary Union of the European Union. B. The Single European Act of the Treaty of Rome. C. The European Commission of the European Union. D. The European Common Judicial Council. E. The European Economic Council.

agent middlemen

Which of the following external middlemen does not take title to the goods that they produce?

Which of the following factors affects the choice of distribution channels? A. Distance from manufacturer. B. Language spoken in the target market. C. Available distribution intermediaries. D. Consumer literacy levels. E. Country's per capita income.

trade shows ***

Which of the following has become the primary vehicle for business to business promotion and selling in many foreign countries?

Which of the following has proved to be an important way to break the trade barrier imposed by the Japanese distribution system? A. Direct sales through catalogs. B. Large wholesale stores. C. Street corner kiosks. D. Internet shopping. E. Television advertising.

sales promotion

Which of the following has the general marketing goal of stimulating consumer purchases, improving retailer or middlemen effectiveness and cooperation

foreign distributor

Which of the following international middlemen often has exclusive selling rights in a specific country and works in close cooperation with the manufacturer

Which of the following is a critical element associated with using a particular type of middleman? A. Knowledge of the culture of the target market. B. Number of employees. C. Mode of transportation for moving goods. D. Influence over the target market. E. Cash-flow patterns.

Which of the following is a cultural hurdle in the path of China becoming a vast market in the long run? A. Caste system B. Xenophobia C. Excessive focus on human rights D. Excessive bureaucracy E. Excessive spending

Which of the following is a provision of the commonwealth agreement? A. To reject the powers of the old regimes. B. To keep the ruble but allow new currencies. C. To create disjointed control of nuclear weapons. D. To invalidate all Soviet foreign treaties and debt obligations. E. To avoid creating a European Union-style free trade association.

Which of the following is a requisite for the survival of any economic union? A. Avoiding potentially significant opportunities for international business. B. Having agreements and mechanisms in place in order to settle economic disputes. C. Including, into the union, countries with diverse economies, distinctive monetary systems, developed agricultural bases, and different natural resources. D. Establishing of a comprehensive agriculture and economic policy. E. Ensuring biased treatment of goods produced within the union.

Which of the following is a type of domestic middleman? A. Sole proprietors. B. Export Management Companies. C. Foreign distributors. D. Lessors. E. Joint ventures.

Which of the following is an example of comparative advertising? A. An ad using a scantily clad model to promote a soft drink. B. An ad showing a celebrity smoking his preferred brand of cigarettes. C. An ad showing a dog choosing one brand of dog food over another. D. An ad showing the superiority of synthetic materials used in its products as compared to cotton. E. An ad using shocking or taboo material to promote a product.

Which of the following is an example of the primary attribute of a product? A. The ability of a camera to take a picture. B. The design and form factor of a phone. C. The color of a laptop. D. The prestige associated with driving a car. E. The eco-friendly functioning of a digital watch.

Which of the following is at present the center of trade links with north China and the Asian republics of the former Soviet Union? A. Japan B. South Korea C. Malaysia D. Singapore E. India

Which of the following is most closely associated with negotiators from the Beijing area? A. Traditional thought pattern B. Bureaucratic sloth C. Forthrightness D. Shrewdness E. Aggression

Which of the following is most likely to cause the biggest problems for television and radio advertisers in China? A. Low levels of television and radio penetration. B. The rigid theocratic rule. C. Lack of common language. D. The rigid adherence to traditional values. E. Lack of investment.

Which of the following is one of the bilateral free trade agreements that the United States has? A. CETA B. NAFTA C. NATO D. MERCOSUR E. LAFTA

Which of the following is one of the highest costs of doing business in China? A. Money required for the transportation of goods. B. Money required for obtaining appropriate permits. C. Cost of local advertising. D. Capital required to maintain effective distribution. E. Cost of customizing products for the Chinese market.

Which of the following is one of the important reasons behind the fact that there is no one-growth strategy for China? A. Inclusion of Hong Kong as a special administrative region of China. B. Each region in China being at a different stage economically. C. Inability to prevent the privatization of its state owned enterprises. D. Each region within China being completely isolated from other regions. E. Complete absence of autonomy in the various regions of China.

Which of the following is one of the major events that account for the vigorous economic growth of the ASEAN countries and their transformation from cheap-labor havens to industrialized nations? A. The decision to shift their economies from manufacturing based to commodity based. B. North Koreas' emergence as a major provider of technology and capital necessary to upgrade manufacturing capability. C. A bilateral trade agreement between the United States and Vietnam leading to the granting of NTR status to Vietnam. D. Hong Kong becoming a special administrative region (SAR) of the People's Republic of China. E. The ASEAN governments' commitment to deregulation, liberalization, and privatization of their economies.

Which of the following is one of the nations referred to as the Four Asian Tigers? A. India B. Thailand C. South Korea D. Malaysia E. Sri Lanka

Which of the following is one of the primary reasons behind the persistence of economic stagnation in Japan in the 1990s? A. The caste system B. Inept political apparatus C. Aggressive internal competition D. Theocratic rule E. Lack of natural resources

Which of the following is one of the primary targets of ASEAN Vision 2020? A. To implement fully and as rapidly as possible the ASEAN Free Trade Area. B. To form the ASEAN+3 to deal with trade and monetary issues facing Asia. C. To shift Asian economies from manufacturing based to commodity based. D. To aid Japan's emergence as the major provider of technology and capital necessary to develop new industries. E. To prevent the further privatization of state owned industries.

Which of the following is one of the reasons that has hampered the conferences held by the United Nations Economic Commission for Africa to bring about holistic integration? A. Governmental inexperience. B. Depletion of natural resources. C. Excessive influx of products. D. Lack of beneficial funds. E. Excess of cheap labor.

Which of the following is one of the six Cs of distribution channel strategy? A. Communication B. Continuity C. Capacity D. Commission E. Contribution

Which of the following is the basic requisite for the development of a supranational market arrangement? A. Political amenability among countries. B. Business strategy sharing. C. Adoption of common cultural prejudices. D. Protection of the market by exercising boycotts. E. Geographic and temporal proximity among countries.

Which of the following is the best way to stimulate economic development and growth from within developing countries? A. Imposing embargoes. B. Encouraging governmental regulations. C. Restricting immigration. D. Increasing tariffs on exports. E. Encouraging entrepreneurial activities that are networked.

Which of the following is the biggest threat to the fast pace of growth China is experiencing? A. Increased opening of the market to foreign investments. B. Trade isolation by other ASEAN countries. C. Losing the permanent normal trade relations (PNTR) status conferred by the United States. D. Reformation of the traditional legal system. E. Economic volatility that accompanies fast growth.

Which of the following is the primary reason behind the inaccessibility of most of the 1.3 billion potential consumers? A. Most of them have little disposable income. B. The distribution network is poor or absent. C. They are mostly Communist party members who avoid purchasing imported goods. D. They are restricted to settlement zones where marketing is prohibited. E. They are unfamiliar with the English language.

Which of the following is the reason for East Asia's economic success? A. The optimum usage of natural resources. B. The coupling of small markets into one viable market. C. The wealth of the general population. D. Its rich cultural heritage. E. The emphasis placed on education and healthcare.

Which of the following is the stereotype of businesspeople in the Northeast area of China? A. Loud and argumentative B. Cold and businesslike C. Aggression D. Dishonesty E. Forthrightness

Which of the following is the term used to refer to both the People's Republic of China (PRC) and the Republic of China (ROC) or Taiwan? A. Integrated China B. The Yellow Route C. Neo China D. Mainland China E. The Greater China

Which of the following is the weakest of political unions that is mostly based on economic history and a sense of tradition? A. A conglomerate B. A community C. A commonwealth D. A proprietary colony E. A trade association

Which of the following is true of a physical distribution system? A. It involves only the physical movement of goods. B. It is a total systems approach to the management of the distribution process. C. A decision involving an activity has no impact on the cost and efficiency of one or all others. D. It excludes the interdependence of the costs of each activity. E. It includes transportation mode, inventory quantities, and packing.

Which of the following is true of advertising agencies for international advertising? A. Cross-cultural communication between a foreign client and a local agency can be problematic. B. A multinational agency always has the best feel for a market. C. A multinational agency provides the best cultural interpretation in a situation in which local modification is required. D. A local domestic agency may provide a company with a high level of sophistication. E. Agency commission patterns are consistent throughout the world.

Which of the following is true of foreign sales corporations? A. They are commonly called piggybackers. B. They can only be related to a manufacturing parent and not an independent broker. C. They virtually control distribution through all levels of channels in Japan. D. They accumulate, transport, and distribute goods from many countries. E. They can function as a principal or a commissioned agent.

Which of the following is true of large multinational markets? A. They lead to negligible marketing efficiencies. B. They are incapable of achieving economies of scale. C. They are particularly important to businesses not accustomed to mass production. D. They result in decreased purchasing power. E. They employ coordinated programs to foster economic growth.

Which of the following is true of the APEC? A. Russia is not a member of this grouping. B. It is opposed to open trade. C. Its members meet once in six months. D. It promotes economic cooperation. E. It aims to increase barriers to investment.

Which of the following is true of the Maastricht Treaty? A. It allows for stabilizing currency exchange markets of the member nations. B. It allows each nation to have its own set of defense policies. C. It allows the formation of individual judicial systems of its members. D. The members are committed to a common justice system. E. It aims at economic consistency alone.

Which of the following is true of the Tianjin region in China? A. It is China's largest industrial city. B. It is China's fastest growing city. C. It has the closest economic ties with Japan. D. It is referred to as "Little Moscow." E. It harbors the world's largest and most modern port facilities.

Which of the following is true of the distribution process? A. It does not involve the physical handling and distribution of goods. B. It includes activities related to the promotion of goods and services. C. The ownership title remains with the distributor even on completion of the transaction. D. It includes buying and selling negotiations. E. The behavior of channel members is not affected by the cultural environment.

Which of the following is true of the marketing opportunities in Greater China? A. It has an efficient distribution and channel system and so companies can save on infrastructure building. B. There are extreme differences in economic well-being, cultures, and political structures. C. Unlike the United States, luxury cars sell better in rural areas of the west. D. The economic system of China is based entirely on capitalist principles. E. Selling consumer products in China requires little cultural nuance.

Which of the following is true of the standard of living of the eight most populous countries of the Asia/Pacific region? A. The Japanese rail system is the most underdeveloped in the world. B. In the Philippines, most people travel by train. C. As a result of communism, China and Vietnam place low emphasis on health. D. The Japanese healthcare system produces the longest lifespans in the world. E. Consumption patterns indicate that the Chinese place much lower emphasis on education, compared to Indians.

Which of the following is true regarding Hong Kong, post its turnover to the People's Republic of China? A. After becoming a special administrative region of the People's Republic of China, Hong Kong has lost its autonomy. B. The Hong Kong government negotiates bilateral agreements and makes major economic decisions on its own. C. The central government in Beijing has no jurisdiction over matters related to foreign affairs and defense of Hong Kong. D. The Hong Kong dollar has ceased to be freely convertible after its turnover to the People's Republic of China. E. The Hong Kong SAR government openly opposes economic policies that stresses the predominant role of the private sector.

Which of the following makes the South African market an important base for serving nearby African markets that are too small to be considered individually? A. The official start of apartheid. B. The South African market's developed infrastructure. C. The economic embargo imposed by the United Nations. D. The existence of inward-looking trade and investment policies. E. The South African government's nationalization initiative.

Which of the following modes of distribution affords the most control over the distribution channels but often at a cost that is not practical? A. Complementary marketers. B. Direct sales force. C. Export associations. D. Trading companies. E. Export management companies.

Which of the following most accurately represent the "three direct links" leading to the establishment of One China? A. Transportation, trade, and communications. B. Culture, language, and religion. C. History, language, and transportation. D. Federal bodies, education, and trade. E. Technology, natural resources, and people.

Which of the following organizations provides a formal structure for the major governments of the Asian-Pacific Rim, including the United States and Canada, to discuss their mutual interests in open trade and economic collaboration? A. NAFTA B. ASEAN C. ASEAN+3 D. SADC E. APEC

Which of the following provinces of China shares the closest economic ties with Russia? A. Liaoning B. Jilin C. Heilongjiang D. Guangdong E. Hainan

Which of the following provinces of China shares the closest economic ties with South Korea? A. Liaoning B. Jilin C. Heilongjiang D. Guangdong E. Hainan

Which of the following regions is considered as the information technology (IT) corridor in north China? A. Beijing-Tianjin B. Heilongjiang C. Liaoning D. The Jilin River Delta E. Fujian

Which of the following statements about advertising laws around the world is correct? A. Advertising of pharmaceuticals is unrestricted in most countries. B. Toy, tobacco, and liquor advertising is restricted in numerous countries. C. Advertising on television is unregulated in most countries. D. The Internet is the only medium where no restrictions exist in any country. E. Television ads are not taxed by most governments around the world.

Which of the following statements is true of a traditional distribution structure? A. The distribution system is national in scope. B. The relationship between the importer and any middleman is similar to that found in a mass-marketing system. C. The idea of a channel as a chain of intermediaries performing specific activities and each selling to a smaller unit beneath it until the chain reaches the ultimate consumer is common. D. Independent agencies providing functions such as advertising, marketing research, and financing are a part of this distribution structure. E. The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.

Which of the following statements is true of the Japanese market? A. The costs of Japanese consumer goods are among the lowest in the world. B. Manufacturers are independent of wholesalers for a multitude of services to other members of the distribution network. C. The Japanese distribution structure supports long-term dealer-supplier relationships. D. Japanese law favors the establishment of large retail stores. E. Japanese consumers favor price over personal service.

Which of the following statements is true regarding agent middlemen? A. They take title to the merchandise. B. They work on commission and arrange for sales in the foreign country. C. Manufacturers cannot control them as they control merchant middlemen. D. They do not represent the best interests of the manufacturer. E. They assume trading risks.

Which of the following statements is true regarding an export management company (EMC)? A. It acts as a middleman for firms with relatively large international sales volume. B. It operates under its own name while providing services to another firm. C. It does not have direct responsibility to the parent firm. D. It acts as a middleman for firms willing to involve their own personnel in international functions. E. It calls for a minimum investment from the parent firm to get into international markets.

Which of the following statements is true regarding an import-oriented distribution structure? A. The importer-wholesaler traditionally performs most of the marketing functions. B. The relationship between the importer and any middleman is similar to that found in a mass-marketing system. C. Several independent agencies providing functions such as advertising, marketing research, financing are a part of this distribution structure. D. The idea of a channel as a chain of intermediaries performing specific activities is common. E. This distribution system is national in scope.

Which of the following statements is true regarding merchant middlemen? A. They represent the best interests of a manufacturer. B. They can be controlled better than agent middlemen. C. They assume trading risks. D. They work on commission and arrange for sales in the foreign country. E. They do not take title to manufacturers' goods.

Which of the following steps of a communications process is important as a check on the effectiveness of the other steps? A. Selecting a proper message. B. Encoding the message. C. Selecting an appropriate channel of communication. D. Decoding the message. E. Feedback.

capital goods and industrial supplies

Which of the following two categories account for a combined 47 percent of all U.S. exports each year?

Which of the following was a customs union before becoming a common market? A. NAFTA B. OECD C. The European Steel and Coal Community D. The European Union E. The Council for Mutual Economic Assistance

Which of the following was a goal of the Export Trading Company Act? A. To allow U.S. companies to bypass tax laws with respect to international trading. B. To remove antitrust disincentives to export activities. C. To bypass trade barriers in foreign countries. D. To earn the highest possible profits in foreign countries. E. To combine export shipments within single containers.

Which of the following was designated as China's first Special Economic Zone? A. Shanghai B. Hong Kong C. Taiwan D. Beijing E. Shenzhen

Which of the following was primarily instrumental in decreasing the historical tension between People's Republic of China (PRC) and the Republic of China (ROC)? A. ROC acquiring U.N membership. B. Rise of communism. C. Increase in direct trade. D. American military involvement in peacekeeping. E. ASEAN mandates overruling former hostilities between member nations.

Which of the following was the greatest hindrance to the development of software innovations appropriate for world markets in Japan? A. The deeply-rooted bureaucratic structure. B. The rise in global oil prices. C. The complex Japanese language. D. The growing fiscal deficit. E. The burgeoning population.

Which of these is the most advanced and viable of Africa's regional organizations? A. Economic Community of West African States. B. African Development Bank. C. Southern African Development Community. D. Organization of African Unity. E. Economic Community of Central African States.

Which of these levels of economic integration lacks only political unity to become a political union? A. Common market B. Free trade area C. Regional cooperation group D. Customs union E. Trade friendly zone

Which part of China is considered, by other Chinese, to be the most conservative both in terms of behavior and language? A. Hong Kong B. Mainland China C. Beijing D. Shanghai E. Taiwan

While developing an international advertisement campaign, which of the following is the first step of the process? A. Compose and secure a budget based on what is required to meet goals. B. Specify the goals of the communication. C. Select effective media. D. Execute the campaign. E. Perform marketing research.

With reference to the communication process in advertising, using the Internet as a medium when only a small percentage of an intended market has access to it, is an example of an error related to: A. feedback. B. decoding. C. message channel selection. D. encoding. E. message selection.

With regard to consumer products, which of the following is the major limitation of the Internet? A. Knowledge of how to use the Internet. B. Coverage of the Internet. C. Government regulations on the use of the Internet. D. Difficulty in tracking the effectiveness of advertisements on the Internet. E. Cost of using the Internet.

With respect to advertising, _____ is especially important when a budget is small or where there are severe production limitations. A. class distinction B. politicization C. technology D. creativity E. following a formula

the important industrial demand is associated with natural resources extraction

With respect to industrial demand, which of the following best characterizes the "traditional society" described in Stage 1 of Rostow's five-stage model of economic development?

commodities ex. oil, wheat

With respect to international marketing, brokers typically specialize in

With respect to political factors that affect supranational markets, which of the following is one of the most cherished possessions of any nation? A. A two-party system. B. A three-party system. C. A high voting rate. D. State sovereignty. E. A benevolent upper class.

trading companies

With respect to the Japanese market, _________ often control many of the distributors and maintain broad distribution channels; therefore, they provide the best means for intensive distribution for this market

With the expansion of the European Union, existing members fear: A. retaliation against members by the Soviet Union. B. a flood of cheap labor into their countries. C. OPEC will cut off supplies to countries supporting the expansion of the European Union. D. new political leaders who will overwhelm the existing leadership. E. the dilution of the euro.

a long term relationship

Yesenia always lets her customers know when changes are being made and calls on her customers regularly. As part of relationship marketing, Yesenia is building __________ with customers

Yugoslavia has been facing internal strife due to: A. land issues. B. class war. C. high inflation. D. economic recession. E. ethnic divisions.

_____ a boomtown bordering Hong Kong and a fishing village just 20 years ago has replaced the provincial capital Guangzhou to lead the local economy. A. Dongguan B. Shenzhen C. Huizhou D. Foshan E. Zhongshan

_____ allows ESPN to fill visual real estate—blank walls, streets, stadium sidings—with computer-generated visuals that look like they belong in the scene. A. Self-extracting archive B. Princeton Video Imaging C. High Definition Television D. Word of Mouth E. Conditional Access System

_____ are considered to be the foundation of the Japanese distribution system. A. Consumers B. Brokers C. Manufacturers D. Small retailers E. Wholesalers

_____ are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. A. Sales promotion B. Advertising C. Trade shows D. Direct selling E. Public relations

_____ are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer product trial or immediate purchase. A. Sales promotion B. Advertising C. Trade shows D. Direct selling E. Public relations

_____ at the southern tip of the Liaodong Peninsula in China is the focus of bi-national relationships and has one of the world's largest and most modern port facilities. A. Dalian B. Jilin C. Heilongjiang D. Guangdong E. Hainan

_____ contains Hong Kong, Macau, Guangzhou, and Shenzhen and it is considered as the world's manufacturing base for the IT industry. A. Northeast China B. The Yellow River Delta C. The Yangtze River Delta D. The Pearl River Delta E. Southwest China

_____ has long been considered the most effective nontariff barrier to the Japanese market. A. The Japanese population B. The Japanese distribution structure C. Japanese culture D. The Japanese import and export procedure E. Intense competition in Japan

_____ has replaced Nanjing, to become Jiangsu province's number one economy and foreign trade center. A. Wuhan B. Chengdu C. Qingdao D. Tianjin E. Suzhou

_____ has the potential to become the newest big emerging market (BEM), but its development will depend on government action and external investment by other governments and multinational firms. A. South Africa B. South America C. East Asia D. West Asia E. South Asia

_____ in advertising is a thorny issue, because most member countries of the European Commission have different interpretations of what constitutes a misleading advertisement. A. Discrimination B. Endorsement C. Deception D. Plagiarism E. Fear mongering

_____ is China's third largest industrial city after Shanghai and Beijing. A. Wuhan B. Chengdu C. Qingdao D. Tianjin E. Kaohsiung

_____ is an area that should be on a checklist of criteria for evaluating middlemen servicing a market. A. Flexibility B. Hypersensitivity C. Cultural empathy D. Productivity E. Breadth of knowledge

_____ is known as China's Silicon Valley. A. Liaoning B. Zhongguancun C. Jilin D. Guangzhou E. Heilongjiang

_____ is now Japan's most important trading partner. A. Malaysia B. The United States C. Bangladesh D. Bahrain E. China

_____ is often the approach of choice in markets with insufficient or underdeveloped distribution systems. A. Direct marketing B. A big wholesale store C. Internet selling D. A discount house E. Television advertising

_____ is one of the major barriers to effective communication through advertising. A. Language B. Jingoism C. Technology D. Religion E. Power structure

_____ might be classified as an aspect of sales promotions or public relations, though their connections to advertising are also manifest. A. Trade shows B. Cent-offs C. Road shows D. Sweepstakes E. Corporate sponsorships

_____ suffer(s) from issues such as difficulty in assessing taxes, unfair competition, import duties, and privacy. A. The radio B. Direct mail C. Magazines D. Newspapers E. The Internet

_____ take title to manufacturers' goods and assume the trading risks. A. Merchant middlemen B. Brokers C. Buying offices D. Export agent E. Agent middlemen

________ in countries can distort media choice by changing the cost ratios of various media. A. Advertising taxation B. Political structure C. Power distance D. Cultural traits E. Technological development

import jobbers

__________ purchase good directly from foreign manufacturers and sell to whole-sellers and retailers and to industrial customers

merchant middlemen

__________ take title to the good and buy and sell on their own account

60. The need for direct customer interface in providing services means that service providers must often have ____________________. a. a warranty b. a command of the local language c. a local presence d. low profit expectation e. an inside government contact

a local presence

If a company that is threatened with price controls diversifies into product lines that are relatively free of price controls, the firm would be following which of the following strategies?

adapt the product line.

When the U.S. levied a 10 percent tax on plus-$30,000 luxury cars, Land Rover changed the weight of Range Rover models so they could be classed as a truck and thereby avoid the luxury status, the company was attempting to follow which of the price strategies listed below for lowering the price of an exported product?

adapt the product to escape tariffs or tax levies.

An example of nonprice competition that is faced in some markets is:

advertising

28. Global product line mix options could be: a. an extension of the home country product line b. a subset of the home country product line c. a mix of local and home country d. localized only e. all of the above

all of the above

35. Adoption rates of new products are affected by: a. population homogeneity b. proportion of women in the labor force c. cosmopolitanism d. mobility e. all of the above

all of the above

37. In general, the adoption of new products is driven by factors such as: a. individual differences. b. personal influences. c. product characteristics. d. all of the above. e. none of the above.

all of the above

The most important pricing objectives of companies doing business in the United States (including foreign-based firms) are(is) to:

all of the above.

35. When comparing the product mix in the company's host and home markets, all of the following are possible scenarios EXCEPT: a. an extension of the domestic line. b. an extension of a joint venture or strategic alliance. c. a subset of the home market's product line. d. a mixture of local and nonlocal product lines. e. a completely localized product line.

an extension of a joint venture or strategic alliance

36. Small firms with narrow product assortment will normally choose which of the following strategies when attempting to enter an international market? a. an extension of the domestic line. b. an extension of a joint venture or strategic alliance. c. a subset of the home market's product line. d. a mixture of local and nonlocal product lines. e. a completely localized product line.

an extension of the domestic line

37. Blistex, a tiny U.S. company that makes primarily lip-care products, has a very limited range of product lines that are marketed to foreign markets. Blistex would probably choose which of the following strategies for entering foreign markets? a. an extension of the domestic line. b. an extension of a joint venture or strategic alliance. c. a subset of the home market's product line. d. a mixture of local and nonlocal product lines. e. a completely localized product line.

an extension of the domestic line.

70. The waterfall strategy of sequential entry is preferable over the sprinkler model when all of the following conditions exist EXCEPT: a. the lifecycle of the product is relatively long. b. high costs of entry are present. c. very weak local competitors. d. anticipation of fast growth. e. no real competitors.

anticipation of fast growth

46. Brand piracy might cause which outcomes? a.revenue losses to the company b.price increases by the MNC to identify the goods as genuine c.better diffusion of the brand d.consumer danger from poor quality fakes e.both A and D

both A and D

65. A ______________ is a name, term, sign, symbol, or combination of them which is intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors.

brand

A ____________ is a name, term, sign, symbol, or combination of them which is intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors. a. trademark b. patent c. signature d. figure e. brand

brand

3. Linked to the brand name is a collection of assets and liabilities called ____________. a. the trademark b. the patent c. knowledge d. proprietary investments e. brand equity

brand equity

4. Brand-name awareness, perceived quality, and other associations invoked by the brand name in the customer's mind are all illustrations of the concept called _______________. a. brand color b. brand equity c. brand warranty d. local brand value e. brand mark

brand equity

5. "How do we strike a balance between a global brand that shuns cultural barriers and one that allows for local requirements" is an illustration of a question that needs to be asked when building up and managing _________________ in a multinational setting. a. proprietary investments b. brand equity c. brand warranty d. local brand name e. brand mark

brand equity

16. Brand equity for global brands varies greatly from country to country. All of the following factors contribute to the variation EXCEPT: a. history. b. competitive climate. c. marketing support. d. cultural receptivity to brands. e. brand equity scale.

brand equity scale

51. All of the following are steps in the new product development process EXCEPT: a. identification of new product ideas. b. budget development. c. screening. d. concept testing. e. test marketing.

budget development

parallel marketing or grey marketing

buy at different prices in different countries, arbitrage

Customers' _________________ is a key consideration in pricing decisions.

buying power

27. During the last decade, car buyers in the Triad markets (Japan, the United States, and Europe) have increasingly begun to have the same outlook and preferences in cars. Which of the following factors that favor globalization of product, would most accurately be associated with this trend? a. common customer needs. b. global customers. c. scale economies. d. time-to-market. e. Europe 1992 and other Regional Market Agreements.

common customer needs

53. When international marketers warn consumers about the ramifications of accepting or buying counterfeit merchandise, this would be an example of which of the following strategic options available to international marketers trying to stop product piracy? a. joint ventures. b. lobbying activities. c. legal action. d. product policy options. e. communication options.

communication options

When New Balance, the U.S.-based maker of high-tech running shoes, sells its shoes in France as haute couture items rather than simply athletic shoes, this is an example of:

company objectives.

52. Which of the following are among the best sources for finding new product ideas? a. company, customers, competition, and collaborators. b. trade magazines, television, and the internet. c. government statistics, demographic charts, and psychological profiles. d. reverse engineering, industrial spying, and out-of-date patents. e. rumors, stories, and intuition.

company, customers, competition, and collaborators

41. Is the product consistent with exiting values and attitudes of the individuals in the social system, would be a question that best fits with which of the following key product characteristics acceptance categories? a. observability. b. relative advantage. c. compatibility. d. complexity. e. trialability.

compatibility

69. The chief reason for a company choosing the sprinkler method of new product introduction is to off-set: a. rising costs. b. unstable labor. c. competitive preemption. d. government control. e. shoddy promotions.

competitive preemption

42. Is the product easy to understand or use, would be a question that best fits with which of the following key product characteristics acceptance categories? a. observability. b. relative advantage. c. compatibility. d. complexity. e. trialability.

complexity

All of the following are considered to be exporter strategies when the domestic currency is strong EXCEPT:

conduct conventional cash-for-goods trade.

Which of the following are considered to be exporter strategies when the domestic currency is weak?

conduct conventional cash-for-goods trade.

56. A sophisticated method (sometimes called trade-off analysis) for measuring consumer preferences for product concepts is called: a. chi-square. b. correlation analysis. c. focus groups. d. regression analysis. e. conjoint analysis.

conjoint analysis

57. The starting premise of _______________ is that people make trade-offs between the different product attributes when they evaluate alternatives (or brands) from which they pick a choice. a. chi-square b. correlation analysis c. focus groups d. regression analysis e. conjoint analysis

conjoint analysis

58. If a consumer considered four attributes to be important in the purchase of a TV, by using ________________ the researcher might be able to determine the trade-offs between the different product attributes (such as purchase price or number of channels that could be received) when the consumer evaluated the alternatives for eventual purchase. a. chi-square b. correlation analysis c. focus groups d. regression analysis e. conjoint analysis

conjoint analysis

All of the following are drivers that govern global pricing decisions EXCEPT:

controls

26. Many product categories show a gradual but steady ____________________ in consumer preferences. a. slowdown. b. difficulties c. convergence. d. divergence. e. rising strength of the Latin American markets.

convergence

42. With respect to product categories analyzed on the basis of sales turnover, a _____________ product is one where the item represents the bulk of the subsidiary's sales volume. a. core product b. cultural product c. niche item d. seasonal product e. filler product

core product

31. One attempt to combine the strengths of standardization and customization of products is to deal with both issues as functions of product design. The _______________ approach consists of developing a mostly uniform core- product/platform and then adding attachments that match local market needs. a. core-product b. uniform commercial code c. die-casting d. modular e. PRIZM

core-product

32. With respect to product design strategies, the ___________________ approach is very popular with the French carmaker Renault. They use common core-products but customize them in each market (such as making stronger heaters for the Nordic market). a. core-product b. uniform commercial code c. die-casting d. modular e. PRIZM

core-product

When making pricing decisions, ______________ set(s) the floor.

costs

The _____ effect refers to the possibility that the place of manufacture may affect product or brand image.

country-of-origin

A shoe manufacturer in Puerto Ria shipped his entire production to San Francisco and brought it back to his home country to market it as "Made in the U.S." He knew that people would prefer buying products made in the U.S. rather than those that are domestically produced. The factor that is influencing the perception of the customers in the above scenario is called _____.

country-of-origin effect

Differences in the competitive situation across countries will usually lead to:

cross-border price differentials.

A company's pricing policy is a highly ____________________ process based on inputs from various departments.

cross-functional

17. ____________________ often justify(ies) local branding instead of global branding. a. Domestic barriers b. Regulatory barriers c. Cultural barriers d. Social barriers e. Religious barriers

cultural barriers

64. To bridge cultural gaps between the home and host market, service companies often customize the product to the local market. This can be done by spotting _________________________. a. environmental opportunities b. funding opportunities c. regional opportunities d. cultural opportunities c. political opportunities

cultural opportunities

41. A good place to start is to analyze each individual country's product portfolio on the basis of a sales turnover basis. Product lines can be categorized by all the following ways EXCEPT: a. core products. b. cultural products. c. niche items. d. seasonal products. e. filler products.

cultural products

38. All of the following are drivers that impact the composition of a firm's international product line EXCEPT: a. customer service and warranty requirements. b. customer preferences. c. competitive climate. d. organizational structure. e. history.

customer service and warranty requirements

61. Regarding opportunities in the global service industries, some of the _________ rules have been extended to the international services trade under the new WTO regime. a. World Bank b. International Monetary Fund c. United Nations d. GATT (General Agreements on Tariffs and Trade) e. none of the above

d. GATT (General Agreements on Tariffs and Trade)

The perception of quality:

depends solely on the customer.

9. If a company were to follow a strategy of product and communications adaptation (dual adaptation) in a foreign market, an example of a product category that would fit this strategy would be __________________. a. soft drinks b. motorscooters c. gasoline d. diet aids e. hand-powered washing machines

diet aids

The ISO 9000 certification will allow a company to:

differentiate its product from its competitors.

One alternative for successful marketing to the price sensitive low per-capita income market is to produce a ________________ product or lower product quality.

downsized

According to a recent research, all of the following are examples of important pricing objectives EXCEPT:

drive competition out of business.

One of the risks of dynamic incremental pricing (in the case where the export list price is far below the domestic price) that ______________ can be triggered in the export market.

dumping charges or accusations

In the international marketplace, ________________ pricing arrives at a price after removing domestic fixed costs. Only variable export costs generated by the exporting effort and a portion of the overhead load should be recuperated by the pricing effort (according to this method).

dynamic incremental pricing

9. The most obvious reason for having a global brand would be to take advantage of: a. power promotions. b. a large labor and selling force. c. economies of scale. d. coordinated logistics. e. corporate vision.

economies of scale

50. A recent study examined the difference of six products in 31 developing and developed countries across the world. A key finding was that ___________________ tend to experience a far slower adoption rate than developed countries. a. European countries b. global countries c. advanced countries d. developed countries e. emerging market countries

emerging market countries

All of the following are exporter strategies when the domestic currency is weak EXCEPT:

engage in nonprice competition by improving quality, delivery, and aftersale service.

Which of the following are exporter strategies when the domestic currency is strong?

engage in nonprice competition by improving quality, delivery, and aftersale service.

All of the following are options that might be followed if the firm wished to lower its export price on a product EXCEPT:

expand the warranty categories to give incentive for higher quality.

In the international marketplace, _________________ pricing adds international costs and a mark-up to the domestic manufacturing cost.

export price

23. With respect to a brand name changeover strategy, the _________________ strategy ties the new global brand name to the existing local brand name. After a transition period, the old name is dropped. a. transparent forewarning b. summary axing c. fade-in/fade-out d. pyramid focusing e. parallel dimension

fade-in/fade-out

24. Euro Disney eventually becoming Disneyland is an example: a. transparent forewarning. b. summary axing. c. fade-in/fade-out. d. pyramid focusing. e. parallel dimension.

fade-in/fade-out

76. With respect to brand name changeover strategies, a ____________ strategy consists of somehow tying the global brand name to the local name. Eventually, the local brand is phased out.

fade-in/fade-out

73. The sprinkler strategy of one to two entries (globally) is preferable over the waterfall model when: a. the lifecycle of the product is relatively long. b. high costs of entry are present. c. very weak local competitors exist. d. fast growth is anticipated. e. no real competitors exist.

fast growth is anticipated

45. With respect to product categories analyzed on the basis of sales turnover, a _____________ product is one where the product is only a small portion of the subsidiary's overall sales. These even might be "dead-weight" items. a. core product b. cultural product c. niche item d. seasonal product e. filler product

filler product

20. In international marketing, a firm's global brand structure is shaped by the following three types of factors: a. firm-based drivers, product-market derivers, and the manufacturing dynamics. b. firm-based drivers, hi-tech derivers, and Web dynamics. c. firm-based drivers, product-market derivers, and market dynamics. d. firm-based drivers, product-market derivers, Internet dynamics. e. none of the above

firm-based drivers, product-market derivers, and market dynamics.

Countertrade transactions include the following options EXCEPT:

geo trading.

13. Marlboro quickly became the leading cigarette brand in Hong Kong when it positioned itself as being the leading brand in the United States. This strategy is attributed to Marlboro as being a: a. global brand. b. geo brand. c. regional brand. d. country brand. e. local brand.

global brand

7.A key strategic issue that appears on international marketers' agendas is whether there should be a ________________________. a. national brand b. country brand c. regional brand d. local brand e. global brand

global brand

8. A truly ________________ is one that has a consistent identity with consumers across the world. a. private brand b. public brand c. global brand d. local brand e. government brand

global brand

1.The German company Henkel is always customizing its brand portfolio, positioning, and product formulations. The two main challenges that the company faces are: a. global brand and beta line management. b. global brand and quality line management. c. global brand and modular line management. d. global brand and hybrid line management. e. global brand and product line management.

global brand and product line management.

62. A major strength of global service firms is that their _________________. a. local know-how b. global know-how c. regional know-how d. high-tech know-how e. political know-how

global know-how

In international marketing, purchasers often demand _____________________ from their suppliers.

global-pricing contracts

When considering the currency pass-through phenomenon, all of the following factors give an indication as to the appropriate action EXCEPT:

government actions.

In many countries, multinationals' pricing decisions are impacted by:

government policies

Sales tax rates, tariffs, and price controls are all examples of _______________ that can have a direct or indirect impact on the pricing policies of a firm in the international marketplace.

government policies

Wide gaps in the price sensitivity between countries for the same product may create conditions that promote _________________ markets.

gray

8. If a company were to follow a strategy of product extension-communications adaptation in a foreign market, an example of a product category that would fit this strategy would be __________________. a. soft drinks b. gum c. shampoo d. clothing e. hand-powered washing machines

gum

Firms faced with price controls can take any of the following strategies EXCEPT:

have the home government bring pressure on the host government.

43. The adoption rate for new products in countries with a ________________ population is usually faster than in countries with a highly diverse culture. a. heterogeneous b. complex c. diverse d. homogeneous e. polycentric

homogeneous

19. The following four branding strategies are available to markets EXCEPT: a. solo branding. b. hallmark branding. c. family(umbrella) branding. d. Extension branding. e. horizontal branding.

horizontal branding

Two major issues confronting international marketers result from currency movement. The first of these is in which currency do we quote our prices? The second is:

how much of the loss or gain (because of pass through) should be passed to consumers?

The lack of universal standards in the industrial goods market:

increases the cost of doing business.

Examples of exporting-related ____________________ include manufacturing costs, shipping expenses, insurance, and overseas promotional costs.

incremental costs

Huge government deficits are examples of a(n) ________________ impact on pricing decisions.

indirect

Inflation in an economy is an example of a(n) ________________ impact on pricing decisions

indirect

When McDonald's first opened their restaurants in Russia in 1990, the Big Mac meal cost 6 rubles. Three years later, the same meal cost 1,100 rubles. This would be an example of how:

inflation can damage a market.

In knowledge-based services such as consulting, engineering, education, and information technology, _____ is a key driver of success and failure.

intellectual property issues

According to Everett Rogers, the goals of the diffusion researcher and the marketer are to shorten the time lag between:

introduction of an idea or product and its widespread adoption.

The process of total quality management (TQM) starts with:

involving customers in the product development process.

12. The biggest advantage of a product and communication extension--dual extension policy is: a. it is easy for management to understand. b. it offers substantial savings because of economies of scale. c. it passes most legal tests. d. it is service oriented. e. it will usually not violate cultural taboos.

it offers substantial savings because of economies of scale

Country X is likely to be in the age of mass consumption according to Rostow's five-stage model of economic development if:

its a primarily a service economy

47. All of the following are strategic options available to international marketers to stop product piracy EXCEPT: a. joint ventures. b. lobbying activities. c. legal action. d. product policy options. e. communication options.

joint ventures

61. One alternative to the test market is the _____________________. a. thought panel b. laboratory test market c. internet exposure technique d. preferred patron experiment e. use of break-even analysis

laboratory test market

62. If prospective customers are contacted and shown commercials for the new product and existing brands (then asked to state attitudes and preferences of what they have seen), then the marketing research entity will probably have conducted a(n) __________________ instead of a full test market. a. thought panel b. laboratory test market c. internet exposure technique d. preferred patron experiment e. break-even analysis

laboratory test market

47. A _________________ country is where a product is entered after initial introduction has taken place. a. lag b. low-profile c. lead d. high-profile e. fast

lag

45. With respect to adoption rates in the international marketplace, it appears to be generally true that adoption rates are higher in ______________ countries than in ____________ countries. a. lead/lag b. lag/lead c. lead/middle adopters d. lag/middle adopters e. lead/opinion-lead

lag/lead

46. A _________________ country is where a product is first introduced. a. lag b. low-profile c. lead d. high-profile e. fast

lead

63. A common technique to avoid a global test market is to make global sales projections based on product performance in a ________________ market. a. lag b. middle adopter c. lead d. opinionated e. innovative

lead

The most drastic reaction to government-imposed price controls is to:

leave the country.

34. The ______________ of the product assortment refers to the number of items that the company sells within a given product line. a. length b. width c. horizontal scale d. vertical scale e. consistency

length

All of the alternatives listed below are ways to safeguard against inflation EXCEPT:

lengthen credit terms.

15. Brand equity for global brands varies greatly from country to country. All of the following factors contribute to the variation EXCEPT: a. competitive climate. b. marketing support. c. cultural receptivity to brands. d. literacy. e. product category penetration.

literacy

49. Trying to obtain sanctions against countries that tolerate product piracy would be an example of which of the following strategic options available to international marketers trying to stop product piracy? a. joint ventures. b. lobbying activities. c. legal action. d. product policy options. e. communication options.

lobbying activities

50. Intellectual property rights violations have been a major problem in China. Which of the following strategic options could be available to international marketers in the area of product piracy? a. customs. b. lobbying activities. c. legal action. d. product policy options. e. all of the above.

lobbying activities

39. Which of the following would NOT be one of the five key product characteristics that contribute to its acceptance? a. low service maintenance. b. relative advantage. c. compatibility. d. complexity. e. trialability.

low service maintenance

According to lessons learned in Brazil's hyperinflationary economy, McDonald's will deal with Russia's runaway inflation by using all of the following tools EXCEPT:

make loans to local franchise investors to bring them past hard times.

There are a series of key drivers behind transfer pricing decisions. The most important of these drivers is thought to be:

market conditions in the foreign country.

24. Customization of product has a ______________________ orientation (increase customer satisfaction by adapting products to the local needs). a. market-driven b. service-driven c. budget-driven d. promotion-driven e. product-driven

market-driven

An important dimension of quality is how well the product:

meets the specific need of the buyer

74. Truly global innovators are called: a. metanational innovators. b. delta innovators. c. beta innovators. d. gamma innovators. e. none of the above.

metanational innovators

21. The primary advantage to using a standardization approach to marketing a product in the international arena is: a. minimization of costs (which can be passed on to customers). b. more profit. c. less service complaints. d. less product returns. e. standard budgets.

minimization of costs (which can be passed on to customers)

29. One attempt to combine the strengths of standardization and customization of products is to deal with both issues as functions of product design. The _______________ approach consists of developing a range of product parts that can be used worldwide. The parts can be assembled into numerous product configurations. a. core-product b. uniform commercial code c. die-casting d. modular e. Nexus

modular

30. In a ______________________, scale economies flow from the mass production of more-or-less standard product components at a few manufacturing sites. a. convergence approach b. divergence c. linear approach d. forecasting approach e. modular approach

modular approach

To conduct ________________, conflicts between country affiliates are resolved through mutual discussion of the transfer pricing problems.

negotiated pricing

43. With respect to product categories analyzed on the basis of sales turnover, a _____________ product is one where the product appeals to a small segment of the population (which might grow in time). a. core product b. cultural product c. niche item d. seasonal product e. filler product

niche item

34. One of the pitfalls that a global marketer can run into is _____________. This would occur when too much adaptation to the local market occurs and the brand becomes vulnerable to losing its unique foreigness. a. overcustomization b. micro-managing c. technocracy d. group think e. overstandardization

overcustomization

33. One of the disadvantages that a global marketer may have is ___________________. This would occur when too much standardization stifles initiative and experimentation at the local level. a. overcustomization b. micro-managing c. technocracy d. group think e. overstandardization

overstandardization

Large cross-country price gaps open up arbitrage opportunities that lead to _________________ imports from low-price countries to high-price ones.

parallel

49. All of the following are factors that affect product penetration in the European market (according to a recent survey), EXCEPT: a. cosmopolitanism. b. number of locals in the market. c. mobility. d. percentage of children in the labor force. e. percentage of women in the labor force.

percentage of children in the labor force

22. According to Nestlé's Branding Tree, the company has four types of brands in its global operations EXCEPT: a. plain brands. b. local brands. c. regional brands. d. worldwide strategic brands. e. worldwide corporate brands.

plain brands

48. Pirated products tend to be of ______________ quality. a. good b. poor c. high d. special e. none of the above

poor

21. Brand architecture guides the dynamics of the firm's brand __________________: a. portfolio. b. color. c. basket. d. Web e. none of the above.

portfolio

There are two ways to deal with the price escalation phenomenon. One of these methods is to cut the export price. The other is to:

position the product as a (super) premium brand.

LEGO, the Danish toymaker, rather than worrying about finding ways to lower the price of its product in foreign markets has chosen (most LEGO sets are sold from $6-$223) to adopt a __________________ strategy position.

premium pricing

Once brand loyalty has been established, price will play less of a role as a purchase criterion, and the firm may be able to institute a ________________ strategy.

premium pricing

According to the text, once brand loyalty has been established, _____________ will play less of a role as a purchase criterion.

price

To combat hyperinflation, many governments occasionally impose ______________ controls.

price

To cover the incremental costs (such as shipping), the final foreign retail price will often be much higher than the domestic retail price. This phenomenon is known as ______________________.

price escalation.

Countries with low per-capita income are more __________________ than in developed countries.

price sensitive

When an exporter uses the _______________________ method, the effect can be negative. Frequent adjustments of prices in response to currency movements will distress local channels and customers.

pricing-to-market (PTM)

When exporters lower their mark-ups in a more price-conscious export market than in a price-sensitive market, with respect to exchange rate movements this is called ______________________.

pricing-to-market (PTM)

39. The __________________ procedure uses a product line as a listening post for the new foreign market to see what product items work best. a. drop/add matrix b. ship and shop approach c. probing and learning approach d. seal and deal approach e. push down approach

probing and learning approach

15. Many companies add brands to their portfolio via acquisitions of local companies. When the local brand is retained but incorporated into the existing communications strategy, the strategy can be described as being one of: a. product and communication extension--dual extension. b. product invention. c. product extension--communications adaptation. d. product adaptation--communications extension. e. product and communications adaptation--dual adaptation.

product adaptation--communications extension

10. If a company is an early entrant in the global arena and possesses little in the way of resources, they will probably chose _____________________ as a method of entry. a. product and communication extension--dual extension b. product invention c. product extension--communications adaptation d. product adaptation--communications extension e. product and communications adaptation--dual adaptation

product and communication extension--dual extension

16. Differences in both the cultural and physical environment across countries call for a _________________________ strategy. a. product and communication extension--dual extension b. product invention c. product extension--communications adaptation d. product adaptation--communications extension e. product and communications adaptation--dual adaptation

product and communications adaptation--dual adaptation

17. Because of differences in preferences in flavors and government regulations regarding the marketing of diet products, Slim-Fast normally uses which of the following strategies? a. product and communication extension--dual extension b. product invention c. product extension--communications adaptation d. product adaptation--communications extension e. product and communications adaptation--dual adaptation

product and communications adaptation--dual adaptation

36. In general, the rate of adoption of new products (in foreign markets) is driven by individual differences, personal influences, and: a. fashion. b. trends. c. cash on hand. d. product characteristics. e. promotion characteristics.

product characteristics

13. Due to differences in the cultural or competitive environment, a company may choose the _______________________ strategy if it wishes to keep its product economies scale intact but customize its communications. a. product and communication extension--dual extension b. product invention c. product extension--communications adaptation d. product adaptation--communications extension e. product and communications adaptation--dual adaptation

product extension--communications adaptation

14. When the Wrigley chewing gum company markets its basic products abroad, it keeps its well-known brands but customizes promotional approaches in individual countries. Which of the following strategies best describes the strategy that Wrigley is following? a. product and communication extension--dual extension b. product invention c. product extension--communications adaptation d. product adaptation--communications extension e. product and communications adaptation--dual adaptation

product extension--communications adaptation

is the term used to describe the changes mandated by local product and service standards.

product homologation

19. Black & Decker is a good example of a company that adopts the _______________ approach to global expansion. The company aims to bring out new products that cater to common needs and opportunities around the world. a. product and communication extension--dual extension b. product invention c. product extension--communications adaptation d. product adaptation--communications extension e. product and communications adaptation--dual adaptation

product invention

18. Genuinely global marketers try to figure out how to create products with a global scope rather than just for a single country. The mindset is to zero in on global opportunities. The strategy that best describes this approach is called: a. product and communication extension--dual extension. b. product invention. c. product extension--communications adaptation. d. product adaptation--communications extension. e. product and communications adaptation--dual adaptation.

product invention.

51. LVMH, the owner of wide variety of upscale liquor brands, redesigned its bottles to make it more difficult for copycatters to reuse LVMH bottles for their own brews. This would be an example of which of the following strategic options in product piracy: a. product policy options. b. lobbying activities. c. legal action. d. hybrid options. e. communication options.

product policy options

52. Yamaha decided to combat China's counterfeiters by launching new motorcycle models at a similar price as fake products. This would be an example of which of the following strategic options in product piracy: a. joint ventures. b. lobbying activities. c. legal action. d. product policy options. e. communication options.

product policy options

22. Standardization of product has a __________________ orientation (lower costs via mass production). a. market-driven b. service-driven c. budget-driven d. promotion-driven e. product-driven

product-driven

59. One of the major challenges faced by international marketers of services is: a. protectionism. b. high costs. c. patent infringement. d. piracy. e. low profits.

protectionism

If a firm decide to penetrate the Japanese consumer market through direct marketing (such as catalog or telemarketing sales). Which of the following strategies best describes this option for lowering the price of an exported product?

rearrange the distribution channel.

Which of the following would be a good option to follow if lowering the export price were the firm's objective?

rearrange the distribution channel.

When demand is highly price sensitive, the company needs to consider how it can _________________ from a global perspective.

reduce costs

40. To what extent does the new product offer more perceived value to potential adopters than exiting alternatives, would be a question that best fits with which of the following key product characteristics acceptance categories? a. observability. b. relative advantage. c. compatibility. d. complexity. e. trialability.

relative advantage

Restrictions on cross-border data flows are most damaging to industries that:

rely on information transfers across countries.

As compared to the ISO 9000 standards, the American Customer Satisfaction Index (ACSI) focusses on:

results, that is, quality as perceived by product and service users

25. All of the following are factors that favor a globalized product strategy EXCEPT: a. common customer needs. b. global customers. c. scale economies. d. time-to-market. e. rising strength of the Latin American markets.

rising strength of the Latin American markets

In the area of price coordination, the following considerations matter EXCEPT:

role of the World Bank.

63. Global service firms often benefits from: a. scale economies. b. weight economies. c. hybrid economies. d. perfect economies. e. visible economies.

scale economies

3. Once new product ideas have been identified, the next logical step is to have the ideas _______________. a. modeled b. budgeted c. screened d. concept tested e. test marketed

screened

44. With respect to product categories analyzed on the basis of sales turnover, a _____________ product is one where the product has most of its sales during limited times during the year. a. core product b. cultural product c. niche item d. seasonal product e. filler product

seasonal product

To reduce exposure and risk of antidumping actions, the exporter can follow any of the following marketing strategies EXCEPT:

service enhancement

When a manufacturer of breakfast cereals for humans shifts production to a chicken feed product to overcome the effects of price controls, the firm would be following which of the strategies outlined below?

shift target segments or market.

In a(n) _______________, no third party is involved to carry out the transaction.

simple barter

67. Timing is a very important element in any new product launch. One of the strategies is described as being the ________________ where there is a simultaneous introduction of products in other markets of the world. a. sprinkler method b. shotgun method c. rifle method d. dribble method e. waterfall method

sprinkler method

68. A phased rollout is less demanding on the company resources whereas ____________________ are not always acceptable. a. sprinkler rollouts b. shotgun rollouts c. staggered rollouts d. dribble rollouts e. waterfall rollouts

staggered rollouts

A strengthening of the U.S. dollar relative to the Japanese yen has the effect of:

strengthening the Japanese position in the United States.

A weakening of the U.S. dollar relative to the Japanese yen has the effect of:

strengthening the U.S. position in Japan.

27. With respect to a brand name changeover strategy, the __________________ strategy where the company simply drops the old brand name and immediately replaces it with the global name. a. transparent forewarning b. summary axing c. fade-in/fade-out d. pyramid focusing e. parallel dimension

summary axing

59. A(n) ________________ is essentially a field experiment where the new product is marketed in a select set of cities to assess its sales potential and scores of other performance measures. a. attitude screen b. product model c. product concept d. test market e. focus concept

test market

60. Testing objectives, testing marketing mixes, making projections of sales volume, and analyzing potential competitive marketing mixes are all reasons to conduct: a. attitude screens. b. product models. c. product concepts. d. test markets. e. focus concepts.

test markets

The U.S. Congress and businesses have been resisting conversion to the metric system because they fear:

that it will be too costly to implement.

Transfer pricing decisions in an international context need to balance off the interests of a broad range of stakeholders. All of the following would be examples of those stakeholders EXCEPT:

the competition.

54. Holding cultural stereotypes about countries as an important source in assessing the value of a product is an example of: a. the country of origin (COO) effect. b. nationalism. c. racial bias. d. social sensitivity. e. xenophobia.

the country of origin (COO) effect

55. The "Made In" label as an important source of assessing the value of a product is an example of: a. regionalism b. nationalism. c. materialism d. social sensitivity. e. the country of origin (COO) effect.

the country of origin (COO) effect

For most consumer services firms, the mode of entry into a foreign market is licensing, franchising, strategic alliances, or direct. This is usually done because:

the creation and consumption of services cannot be separated.

An important first step in adapting a product to a foreign market is to determine

the degree of newness as perceived by the intended market.

All of the following are reasons that competitive situations vary from country to country (with respect to the competitive environment) EXCEPT:

the presence of gray markets.

In the case of cellular phones, the physical product is practically given away to gain the phone services contract. This could be because:

the revenues from associated services exceed the revenues from the cellular phone.

30. All of the following are brand areas that might need protection EXCEPT: a. the name itself. b. the slogan. c. the jingle. d. visual imagery. e. the size of the logo.

the size of the logo

Many suppliers are adopting ISO 9000 standards because:

their buyers require them to be ISO 9000 registered.

With respect to currency quotation when preparing for buying and selling transactions, buyers and sellers generally prefer to quote in:

their own currency.

71. The waterfall strategy of sequential entry is preferable over the sprinkler model when: a. the lifecycle of the product is relatively short. b. there are low costs of entry into the market. c. there are many competitors. d. there are weak local competitors. e. fast growth is anticipated.

there are weak local competitors

66. The prime motive for the waterfall model (in introducing new products on a global scale) is that the customization of the product for the foreign market is: a. impractical. b. very expensive. c. time consuming. d. promotionally limited. e. not supported by top management.

time consuming

55. Conjoint analysis is also referred to as _____________________. a. geometric analysis b. trade-off analysis c. meta analysis d. longitudinal analysis e. metric analysis

trade-off analysis

What is marketing reseach

traditionally defined as the systematic gathering, recording, and analyzing of data to provide information useful to marketing decision making

When sales take place between related entities of the same company, ___________ is often used.

transfer pricing

25. With respect to a brand name changeover strategy, the _________________ strategy alerts customers about the brand name change (via communications such as in-store displays). a. transparent forewarning b. summary axing c. fade-in/fade-out d. pyramid focusing e. parallel dimension

transparent forewarning

26. When Mars candy company took over Raider candy products and used the theme line "Now Raider becomes Twix, for it is Twix everywhere in the world," the company used the ________________________ strategy for changing brand names. a. transparent forewarning b. summary axing c. fade-in/fade-out d. pyramid focusing e. parallel dimension

transparent forewarning

77. With respect to brand name changeover strategies, a ________________ strategy consists of alerting the consumer about an impending brand name change and then changing the brand name to the global brand name.

transparent forewarning

the inherent nature of the product

two basic factors account for the market similarities among industrial goods customers. One factor is the motive or intent of industrial customers is the same. The other factor accounting for the similarity among industrial goods customers is

72. The sprinkler strategy of one to two entries (globally) is preferable over the waterfall model when all of the following conditions exist EXCEPT: a. the lifecycle of the product is relatively short. b. there are low costs of entry into the market. c. there are many competitors. d. very weak local competitors. e. anticipation of fast growth.

very weak local competitors

31. McDonald's golden arches are part of the famous brand. Which of the following elements best describes that element of the brand that should be protected (according to the example provided)? a. the name itself. b. the slogan. c. the jingle. d. visual imagery. e. the size of the logo.

visual imagery

64. Timing is a very important element in any new product launch. One of the strategies is described as being the ________________ where there is a phased rollout. In this approach the product uses a trickle down approach. a. sprinkler method b. shotgun method c. rifle method d. dribble method e. waterfall method

waterfall method

65. Timing is a very important element in any new product launch. One of the strategies is described as being the ________________. This method often involves introducing the new product in the company's home market and then moving to other advanced markets. Finally, less advanced markets are exposed to the product. a. sprinkler method b. shotgun method c. rifle method d. dribble method e. waterfall method

waterfall method

a bundle of satisfaction that the buyer receives

what is a product

When developing a pricing strategy for its global markets, one of the first steps that a company must go through is to decide:

what it wants to accomplish with its strategy.

33. The ______________ of the product assortment refers to the collection of different product lines marketed by the firm. a. length b. width c. horizontal scale d. vertical scale e. consistency

width

32. Most companies sell a wide assortment of products. The assortment is usually described on the dimensions of ______________________ of the product mix. a. width and scale b. width and timing c. width and ingredients d. width and length e. scale and length

width and length

One of the main reasons for staying in a country that has government-imposed price controls to deal with hyperinflation is:

you gain experience for other markets with similar problems.

The _____ measures customers' satisfaction and perceptions of quality of a representative sample of America's goods and services.

American Customer Satisfaction Index (ACSI)

Which of the following statements is true?

Most business services companies enter international markets to service their local clients abroad.

A European chocolate manufacturer received several complaints from customers about the quality of its product when it began selling them in a tropical country. The firm had to re- package its chocolate bars in an extra plastic wrapper to protect it from the heat and dust. Which of the following factors in the local market dictated product adaptation in the current scenario?

Climatic requirements

Adore cosmetics had to increase the SPF value of their sunscreen lotions marketed in the Middle East to provide more protection against UV radiation. Which of the following factors is dictating product adaptation in the above scenario?

Climatic requirements

Carolyn is interested in marketing her company's diet products in Asia. She is studying the acceptable behavior, norms, and values in Asian markets. Carolyn is studying _____.

Compatibility

In general, the rate of diffusion can be postulated as negatively related to _____.

Complexity

Mark Harmon has found that using his new digital camera is a snap. He did not even have to read the instruction manual to determine how to turn the camera on, snap a digital picture, and export the picture to his computer. The signs (symbols) on the camera body made it very clear what he was to do to achieve digital photography success. Which of the following characteristics of Mark's "new product" made it easy for him to begin his digital experience?

Complexity

Which of the following is a physical attribute of a product that is essential for its primary function?

Components

As part of the "green movement", the European Commission has passed legislation to control all kinds of packaging waste throughout the European Union. Two critical issues that affect product development are the control of the packaging component of solid waste and _____.

Consumer demand for environmentally friendly products

Omega appliances, a Korean company that manufactures kitchen appliances had to alter the design of its chimneys to suit the needs of the consumers in its Japanese market. The Japanese preferred compact and efficient appliances to fit their small kitchens. The component of the product that had to be altered in the above scenario is the _____.

Core component

A clothing company in Singapore which specialized in women's clothing, had to modify its clothes before introducing them to Iranian markets, to suit the needs of women in that country. Women in Iran are expected to cover themselves completely. The company mostly used opaque material and provided accessories like scarves. Which of the following factors is dictating product adaptation in the above scenario?

Cultural requirements

_____ is/are rapidly becoming a major after-sales service when selling technical products in countries that demand the latest technology.

Customer training.

Some business services have intrinsic value that can be embodied in some tangible form; they can be produced in one country and exported to another. Which of the following is an example of this?

Data processing services.

Derived demand can be defined as demand that is:

Dependent on another source

For managers selling capital equipment and big-ticket industrial services, understanding the concept of _____ is absolutely fundamental to their success.

Derived demand

_____ is the process by which innovation spreads.

Diffusion

Booster bar is a popular brand of energy bars in Canada. The company sold these bars singly or in packs of two in the South Asian markets, instead of their regular multiple-item packaging containing 10 or 20 bars to make it more affordable for the consumers. Which of the following requirements of the local market is influencing product adaptation in the above scenario?

Economic requirements

Which of the following factors is mainly responsible for a perceptual bias when interpreting the characteristics of a product?

Market analyst's self-reference criterion.

What are the two dimensions that help in defining the quality of a product of quality?

Market-perceived quality and performance quality

Which of the following are driving a strong level of interest in the ISO 9000 certification?

Marketplace requirements

Which of the following factors spurs demand for technologically advanced products in the world?

Expanding economic and industrial growth in Asia.

Business-to-business marketers frequently misinterpret the concept of quality. Which of the following examples best illustrates this idea?

Farmers in developing countries often prefer less-efficient but easier-to-maintain products.

Simone Francis is a specialist in product design. She is responsible for a product's aesthetic as well as functional appearance. With respect to the product component model, in which of the following component categories would Simone's talents most likely be used?

Functional component

_____ is a term used to identify concern with the environmental consequences of a variety of marketing activities.

Green marketing

Vital Health Products found out that they had to reduce the length of the tread in their treadmills sold in China owing to the shorter legs of the average Chinese person. By doing this, Vital has achieved product _____.

Homologation

Which of the following is true regarding the impact of global competition on the business activities in the marketplace?

It has put more power in the hands of the customer

A wine company had to market its products with a different name in a foreign market as it was mandatory to translate the name in the local language. The factor that is influencing product adaptation in the above scenario is _____.

Legal requirements

Which of the following is the most important criterion for consumers while purchasing products?

Quality

Which of the following is considered to be an important competitive marketing tool in Europe?

The adoption of ISO 9000 by a company.

Which of the following stages of Rostow's five-stage model of economic growth do highly- industrialized countries like Japan and Germany fit into?

The age of mass consumption.

Which of the following statements is true of universal standards in the sale of international products?

The lack of universal standards limits the expansion of an industry.

Which of the following is considered to be one of the extraneous variables that affects the rate of diffusion of an object?

The method used to communicate the idea.

Which of the following is true of Stage 1 of Rostow's five-stage model of economic development?

The most important industrial demand relates to natural resources extraction.

Buyers in Country X preferred to use the older version of Firm A's product although it was bulkier and less user-friendly. Buyers in Country Y, however, preferred to use the newer, lightweight version for its new user interface. What can be inferred from this information?

The perception of quality can differ across countries.

Why are German and Japanese firms generally better at managing market volatility than American firms?

They value employees highly and eschew layoffs.

Which of the following has become the primary vehicle for business-to-business promotion and selling in many foreign countries?

Trade shows.

Firms that sell industrial goods in the international market should focus on after-sales services because these services:

are almost always more profitable than the actual sale of the good itself.

HT motors is introducing a new technology in its cars to improve the mileage of the cars as well as to reduce carbon emissions. The company is also taking measures to improve its production facilities in order to reduce its carbon footprint. These measures employed by HT motors to meet the guidelines issued by the government shows that the company is engaging in ________.

green marketing

Mary is a new international sales rep for an industrial supply company. She will learn that the inherent nature of industrial goods creates a market where:

product and marketing mix standardization are commonplace.

The ISO 9000 standards concerns the:

registration and certification of a manufacturer's quality system.

Martin is comparing the characteristics of his company's water filters with those that are already being marketed in the local market. He realizes that there is lot of scope for his filters as they are functionally more advanced, have longer life, and also can be marketed at a competitive price in these markets. The characteristic of his product that will help in wide acceptance of his product is its _____.

relative advantage

The Global Harmonization Task Force is an international effort that is attempting to:

synchronize standards for several international industrial sectors.

Nuan, a television manufacturer in Korea, had to modify its televisions before introducing it to the Zimbabwean markets, as the country did not have the skills to repair the product in case of a malfunction. The local salesforce too, did not have the sufficient knowledge regarding the installation of the product. The factor that is influencing product adaptation in the above scenario is ________.

INTL CONT. pt7

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