FINAL EXAM INTERNATIONAL MARKETING
In today's dynamic global competitive environment, organizations need to develop new forms of:
flexibility, efficiency, and responsiveness.
An Internet site's address on the World Wide Web is
HTTP.
Joseph Tripodi is Chief Marketing and Commercial Officer of: A) Gap (United States). B) Levi's (United States). C) L'Oreal (France). D) Coca-Cola (United States). E) SAP AG (Germany).
d
For the past 40 years Bhutan, a kingdom of 700,000 people in the Himalaya mountains, has relied on the following measure: A) GNI. B) GDP. C) GNH. D) GNP. E) GTE.
C) GNH
The best country using mobile advertising is:
India
One of the problems with Web site sales is credit card fraud. All of the following countries are those where fraud is rampant except:
Japan
It is advisable to start a double-ACSII platform when designing a Web site's architecture since:
Japanese and Chinese languages require a database which supports such platform
Which global marketing expert recommends an organization design based on a "global superstructure" that views the world in terms of 30 regions?
Kenichi Ohmae
Nike came under fire from critics who alleged poor working conditions in the factories that make the company's athletic shoes. This is an example of the demand for:
corporate social responsibility.
Concepts such as "assembler value chains" and "downstream value chains" are associated with:
lean production.
Which of the following is not identified by Porter as one of the possible types of barriers to entry in an industry?
loose bricks
The organization design in which an employee reports to both a country manager and a functional manager is a(n):
matrix structure
Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. The app displays a bar code that the barista can scan. This is an example of: A) Market Penetration. B) Market Development. C) Market Diversification. D) Product Development. E) Global Marketing.
A) Market Penetration
Which of the following most accurately describes the state of global public relations (PR) today? A) Expenditures on PR are dropping. B) Expenditures on PR are increasing. C) PR practices are standardized worldwide. D) PR is not important in emerging markets like India. E) Foreign investments are increasing.
B) expenditures on PR are increasing
Hershey rolled out a new line of condensed-milk candies, named Yo-man, specifically targeting the premium candy segment in
China
Building layers of advantage is one of the elements of Hamel and Prahalad's framework for
Competitive innovation
Facebook, Google, Pinterest, Twitter, and Wikipedia represent which element of the marketing mix?
Product
The country which boasts the world's fastest average Internet speed is:
South Korea
The automobile industry has become fiercely competitive on a global basis. The initial success of foreign automakers in the United States was due to all of the following reasons except:
U.S. manufacturers did not realize drivers' preferences
Which of the following does not describe the Toyota Production System (TPS)?
fixed setup time
According to David Whitwam, former CEO of Whirlpool, one must create an organization whose people are:
adept at exchanging ideas, processes, and symptoms.
Smartphones that are equipped with a global positioning system can determine the users' exact geographic position. This capability has created new opportunity for marketers by using all of the following innovative means except:
obtaining demographic information about the smartphone users
A nontariff barrier (NTB) includes all of the following except: A) quota. B) discriminatory procurement policies. C) restrictive administrative policies. D) restrictive technical regulations. E) ad valorem duty.
E) ad valorem duty
The differences between lean producers and U.S. mass producers is in the way they deal with all of the following groups except:
Managers
The domain name for Amazon.com for Germany is:
amazon.de.
Indra K. Nooyi is chief executive of: A) Nissan Motor (Japan). B) PepsiCo (USA). C) Ford Motor Company (USA). D) Pharmacia Corporation (USA). E) Atlas Copco AB (Sweden).
b
Management experts often use terms like ________ to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence.
chimneys
The issue of sustainability is central to this strategy concept:
cost focus
Although it is certainly possible for European consumers to browse Amazon.com's U.S. site, they prefer a direct link to a site with a local domain name. All of the following are possible reasons for such behavior except:
due to price fluctuations the preference will be for the Web site that quotes prices in U.S. dollars.
A nation's banking system, health care system, transportation system, and communications system, as well as the availability and cost of using these systems are considered as ________ resources available for competitive advantage of a business.
infrastructure
Which of the following could hinder the success of products labeled "Made in Bangladesh" or "Made in Thailand" in export markets? A) negative country-of-origin bias B) no possible quality/price positioning C) low acceptance of private brands D) lack of promotion in global markets E) high product saturation levels in global markets
A) negative country-of-origin bias
According to Michael Porter's research on the competitive advantage of nations, human, physical, knowledge, capital, and infrastructure resources are all components of a country's: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) global conditions.
A) factor conditions.
When the Coca-Cola Company convened focus groups in Europe and Asia to assess potential market acceptance of a contoured aluminum soft drink can, it was attempting to collect ________ data. A) primary B) secondary C) incipient D) quantitative E) MIS
A) primary
Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Walmart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Walmart deems it offensive. Considering the elements of the five forces model this is an example of: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.
A) buyer power.
Which of the following is not identified by Porter as one of the possible types of barriers to entry in an industry? A) loose bricks B) switching costs C) economies of scale D) product differentiation E) access to distribution channels
A) loose bricks
The company receiving the most U.S. patents in 2009 was: A) Samsung Electronics. B) IBM. C) Microsoft. D) Canon. E) Panasonic.
B) IBM
The Russian market for imported premium vehicles is exploding as the number of households that can afford luxury products exhibit rapid growth. The luxury cars include all of the following except: A) Porsche. B) Lexus. C) BMW. D) Rolls-Royce. E) Infiniti.
B) Lexus
An important new tool for inventory management is: A) ODW. B) RFID. C) LEGO. D) VUCA. E) EPOS.
B) RFID
Suicides by employees at Chinese supplier Foxconn Technologies caused negative publicity affecting: A) Sony. B) Apple. C) Google. D) Toyota. E) Nike.
B) apple
Other international personal selling approaches that fall somewhere between sales agents and full-time employee teams include all of the following except: A) exclusive license arrangements. B) contract manufacturing or production. C) management-only agreements. D) franchising. E) joint ventures.
B) contract manufacturing or production
Categories of political risk listed by EIU (Economist Intelligence Unit) include all of the following except: A) war. B) political turmoil. C) bureaucracy. D) corruption. E) crime.
B) political turmoil
Another perspective on the future of cooperative strategies envisions the emergence of: A) mergers and acquisition. B) virtual corporations. C) franchising. D) joint ventures. E) keiretsu.
B) virtual corporations
Measured by national income, the United States represents the world's largest single market for goods and services. Roughly what percentage of world income is found outside the United States? A) 25% B) 50% C) 75% D) 95% E) 35%
C) 75%
Intel inside campaign promoting both the Intel Corporation and its Pentium-brand processors in conjunction with advertising for various brands of personal computers is an example of: A) brand equity. B) brand symbol. C) co-branding. D) brand extension. E) brand loyalty.
C) co-branding
Export marketing requires all of the following except: A) an understanding of the target market environment. B) the use of marketing research. C) identification of market potential. D) decisions concerning product design. E) reaching retail customers.
E) reaching retail customers
59) In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has: A) attribute diversity. B) marketing breadth. C) comparative advantage. D) layers of advantage. E) a "double diamond."
D) layers of advantage.
55) Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of the competitive advantage framework developed by: A) W.E. Deming. B) Hamel and Prahalad. C) Porter. D) Drucker. E) D'Aveni.
B) Hamel and Prahalad.
An irrevocable letter of credit transfers the payment obligation for an export deal from the buyer to the buyer's: A) in-house export organization. B) bank. C) freight forwarder. D) credit union. E) checking account.
B) bank
Mexican customers generally carry small coins. To keep prices of shampoo and detergent below 11 or 12 pesos, Procter & Gamble is using which method of pricing? A) price bundling B) target costing C) cost-plus approach D) export price costing E) cost-based pricing
B) target costing
Agricultural subsidies are particularly controversial because, although they protect the interests of farmers in some countries, they work to the detriment of farmers in countries such as: A) Singapore. B) the United States. C) India. D) Switzerland. E) Japan.
C) India
It was found that Malaysians hesitate to use coupons due to the: A) lower power distance. B) higher uncertainty avoidance. C) fear of public embarrassment. D) impact of religion. E) general dislike for coupons.
C) fear of public embarrassment
Tobacco companies in Central Europe face the prospect of tougher marketing and advertisement regulations due to: A) the growing concern about health hazards associated with smoking. B) a dislike of global brands crowding out local brands. C) a desire to return to communist-era policies. D) a desire to comply with EU entry requirements. E) the pressure from neighboring countries.
D) a desire to comply with EU entry requirements
Peppers and Rogers described different steps that are involved in one-to-one marketing. These steps include all of the following except: A) identify. B) differentiate. C) interact. D) evaluate. E) customize.
D) evaluate
36) New entrants to an industry bring all of the following except: A) new capacity. B) desire to gain market share. C) desire to gain market position. D) new approaches to customer needs. E) decline in per-unit product costs.
E. decline in per-unit product costs.
The top global merchandise exporter is: A) China. B) Germany. C) the United States. D) Japan. E) Korea.
A) China
Which one of the ASEAN members has the World's second-largest container port? A) Singapore B) Thailand C) India D) Philippines E) Brunei
A) Singapore
The sale of merchandise in export markets at unfair prices is known as: A) dumping. B) countervailing. C) tariff. D) ad valorem. E) transaction.
A) dumping.
In response to increasing worldwide concerns about obesity, diabetes, and other food-related health issues, some of the world's largest food companies are developing new products. Nestlé and Groupe Danone SA have developed several health-foods which include all of the following except: A) Souvenaid. B) Activa. C) NutriChoice. D) Nutraceuticals. E) Medical Foods.
B) Activa
Which of the following is not characteristic of mass marketing? A) Product benefits do not typically include home delivery. B) Advertising is used to generate an immediate inquiry or purchase. C) Repetition of ads is the key to awareness and remembering. D) The customer perceives relatively little risk. E) Purchase action is deferred.
B) Advertising is used to generate an immediate inquiry or purchase.
After the aftermath of the tragedy involving fire in garment factories in Bangladesh, it was found that the buildings were inspected by: A) Dhaka's building-safety authority. B) Business Social Compliance Initiative (BSCI). C) Walmart's approved contractors. D) Worker Rights Consortium. E) Interfaith Center for Corporate Responsibility.
B) Business Social Compliance Initiative (BSCI)
The country that withdrew from the original members of the Andean Community is: A) Bolivia. B) Chile. C) Ecuador. D) Peru. E) Venezuela.
B) Chile
According to percent market share of the top ten apparel exporting countries to the United States, which country ranked as number one in 2011? A) Taiwan B) China C) Mexico D) India E) Honduras
B) China
Social couponing is one of the hottest sales promotion trends today. This refers to: A) sampling. B) Groupons. C) sweepstakes. D) freestanding inserts. E) personal selling.
B) Groupons
Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of the competitive advantage framework developed by: A) W.E. Deming. B) Hamel and Prahalad. C) Porter. D) Drucker. E) D'Aveni.
B) Hamel and Prahalad
The United States have given Normal Trade Relations (NTR) status to some 180 countries. In actuality only four countries are excluded from this status which includes all of the following countries except: A) North Korea. B) Iraq. C) Iran. D) Cuba. E) Libya.
B) Iraq
Examples of effective global marketing by McDonald's include both standardized and localized marketing mix elements. Which of the following does not represent a localized element? A) It serves McAloo tikki potato burger in India. B) It uses the advertising slogan "I'm lovin' it." C) It operates themed dining cars on the Swiss national rail system. D) It has home delivery service in India. E) It has slang nicknames such as MakDo in Philippines and McDo in France.
B) It uses the advertising slogan "I'm loving' it"
The "Common Market of the South" in Latin America is used to describe: A) SICA. B) Mercosur. C) Andean Community. D) CARICOM. E) FTAA.
B) Mercosur
China's ongoing trade-related friction with the United States highlights the need for: A) a better distribution system. B) a better PR effort. C) sales promotion. D) a better transportation system. E) pattern advertising.
B) a better PR effort.
Which of the following correctly characterizes the retailing strategy shared by Toys "R" Us and Virgin Megastores? A) few product categories, own-label focus B) few product categories, manufacturer brand focus C) many product categories, own-label focus D) many product categories, manufacturer brand focus E) none of the above
B) few product categories, manufacturer brand focus
The agreements that allow McDonald's franchisees around the globe to use McDonald's trademarked name and menu items represent, in essence, which form of market entry? A) joint ventures B) franchising C) 100% ownership D) exporting E) acquisition
B) franchising
Developed under the auspices of the Custom Cooperation Council (now the World Customs Organization) the system which took effect is referred to as: A) preferential tariffs. B) Harmonized tariff. C) BTN duty. D) Specialized tariff. E) antidumping duty.
B) harmonized tariff
According to Porter, the nature of the interaction between potential industry entrants, buyers, substitute products, suppliers, and rival firms determines: A) whether or not the government will launch an antitrust investigation. B) the industry's profit potential in terms of long-run return on invested capital. C) whether a country can generate a balance of payments surplus. D) whether a country can create a comparative advantage in the production of differentiated products. E) whether a country can generate income by innovation.
B) the industry's profit potential in terms of long-run return on invested capital
Which of the following is not identified by Porter as one of the five forces that explains competition in an industry?
Bargaining power of competitors
Which personal computer company began life as a b-to-b marketer and then began marketing direct to the home PC market? A) Hewlett-Packard B) Compaq C) Dell D) Acer E) Sony
C) Dell
The challenges in bringing the Smart across Atlantic include all of the following except: A) the euro's strength relative to dollar. B) DaimlerChrysler merger ended. C) Smart was under the ownership of DaimlerChrysler. D) Smart was under the ownership of Daimler AG. E) distribution and promotion critical to a successful U.S. launch.
C) Smart was under the ownership of DaimlerChrysler
The cultural environment of a country is best defined by which characteristics? A) standard of living and stage of economic development B) production process and standards of measurement C) attitudes, beliefs, and values D) degree of nationalism and economic community membership E) fast food culture and slow food culture
C) attitudes, beliefs, and values
Which of the following actions were approved both by the Antitrust Review in the EU as well as in the United States? A) acquisition of Honeywell (U.S.) by GE (U.S.) B) joint venture between music businesses of EMI group (Great Britain) and Time Warner (U.S.) C) merger of Sony Music (Japan) and BMG (Germany) D) merger of WorldCom (U.S.) and MCI (U.S.) E) British Airways (U.K.) and American Airlines (U.S.)
C) merger of Sony Music (Japan) and BMG (Germany)
The retail environment in developing countries presents challenges for marketing nonperishable items. In Mexico, Proctor & Gamble, Unilever, Colgate-Palmolive, and other global consumer product companies use ________ for their products. A) door-to-door selling B) buy-in-bulk selling C) mom-and-pop stores D) franchised stores E) manufacturer-owned stores
C) mom-and-pop stores
Environmental issues and challenges faced by a company which is in the initial stages of implementing a personal selling strategy include all of the following except: A) political risks. B) regulatory hurdles. C) product innovation. D) currency fluctuations. E) market unknowns.
C) product innovation
Which promotional mix element is most closely associated with activities designed to foster goodwill and understanding with various constituents both inside and outside the company? A) personal selling B) advertising C) public relations D) sales promotion E) publicity
C) public relations
Research has shown that exporting is essentially a developmental process that proceeds in different stages. Before a firm reaches stage 4, it must do one of the following activities: A) explore the feasibility of exporting. B) commit resources for exporting. C) receive unsolicited export orders. D) believe in attractiveness of exporting. E) build confidence in firm's ability for exporting.
C) receive unsolicited export orders
Which of the following financing methods would be used by an exporter that enjoys good relations with a buyer in a well-established market? A) letter of credit B) cash in advance C) sales on open account D) barter E) arrival draft
C) sales on open account
The enlargement of the EU has impacted marketing strategies in the Eurozone countries by: A) making it difficult to export food products from one country to another. B) increasing the cost of production since the euro replaced local currency. C) shifting products from one market to another in the event of shortages. D) reduced tariffs and quotas for products imported from non-EU members. E) having less flexibility in the placement of factories.
C) shifting products from one market to another in the event of shortages
The English-speaking CARICOM members in the eastern Caribbean are concerned with defending their privileged trading position with: A) Russia. B) China. C) the United States. D) the United Kingdom. E) Australia.
C) the United States
Which of the following is true about proper use of the term "countertrade"? A) The term "countertrade" is interchangeable with "offsets." B) The term "countertrade" is interchangeable with "barter." C) The term "countertrade" is interchangeable with "counterpurchase." D) "Countertrade" is a blanket term that refers to several different types of business transactions. E) The term "countertrade" is interchangeable with "dumping."
D) "Countertrade" is a blanket term that refers to several different tropes of business transactions
The law of disproportionality suggests that ________ percent of the company's menu or profits are accounted for the 20% of a firm's products or customers. A) 50 B) 60 C) 70 D) 80 E) 90
D) 80
Even though Germany is the largest single-country market in Europe, what percent of the world market potential for German companies is outside Germany? A) 40% B) 55% C) 74% D) 94% E) 85%
D) 94%
Which of the following would constitute a copyright violation? A) manufacturing and selling illegal videocassette copies of "Spiderman 2" B) manufacturing and selling illegal copies of Levi "501" jeans C) printing and selling illegal copies of Harry Potter books D) A, B, and C are copyright violations. E) A and B are copyright violations.
D) A, B, and C are copyright violations
Which of the following does not fit into the sequence of experiences Anheuser-Busch had in Japan? A) Anheuser-Busch first entered Japan by means of a licensing agreement with Suntory, the smallest brewery in Japan. B) Anheuser-Busch created a joint venture with Kirin Brewery, the market leader. C) Anheuser-Busch dissolved the joint venture with Kirin Brewery. D) Anheuser-Busch entered into a joint venture with Kirin Brewery. E) Anheuser-Busch reverted to a licensing agreement with Kirin Brewery.
D) Anheuser-Busch entered into a joint venture with Kirin Brewery
________ is an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other. A) Manufacturer's export agent B) Export commission representative C) Export merchant D) Export management company E) Cooperative exporter
D) Export management company
Nutraceuticals are health food products which are manufactured by: A) Kraft foods. B) General Mills C) Campbell's soups. D) Nestlé foods. E) Gerber foods.
D) Nestle Foods
Which of the following is not one of the steps in the Strategic/Consultative Selling Model? A) develop personal selling philosophy B) develop relationship strategy C) develop product strategy D) develop ethnocentric policy E) develop customer strategy
D) develop ethnocentric strategy
Germany's Mittelstand companies have been extremely successful pursuing: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) cost differentiation.
D) focused differentiation
Fires and collapsed buildings at garment factories in Bangladesh revived concerns about the global supply chain and the human cost of low-priced goods. This caused ________ for Walmart Corporation in the United States. A) pricing problems B) distribution problems C) sales promotion problems D) public relations problems E) advertising problems
D) public relations problems
Several factors can create intense rivalry among firms. These factors include all of the following factors except: A) firms focus on market share at the expense of others. B) firms feel pressure due to fixed costs and produce at full capacity. C) lack of differentiation in products and services. D) upward pressure on prices and profitability. E) absence of switching costs for customers.
D) upward pressure on prices and profitability.
Avon Products uses ________ to enter developing markets. A) franchising and licensing B) joint venture and licensing C) acquisition and franchising D) licensing and franchising E) acquisition and joint ventures
E) acquisition and joint ventures
A nontariff barrier (NTB) includes all of the following except: A) quota. B) discriminatory procurement policies. C) restrictive administrative policies. D) restrictive technical regulations. E) ad valorem duty.
E) ad valorem duty.
Nestlé, Unilever, GlaxoSmithKline, and Royal Philips Electronics can be considered transnational companies on the basis of: A) sales outside the home country to total sales. B) assets outside the home country to total assets. C) employees outside the home country to total employees. D) headquartered in a relatively small home-country market. E) all of the above
E) all of the above
Transnational companies, such as Toyota and Honda, have characteristic features that include: A) being in both global markets and utilizing global supply chains. B) characterized by a mind-set of being "stateless." C) using both localized and standardized elements in marketing programs. D) decisions made on the basis of ongoing research. E) all of the above
E) all of the above
Which of the following criteria should marketers use when assessing opportunity in global target markets? A) current size of the segment B) anticipated growth potential C) competition D) compatibility with company's overall objectives E) all of the above
E) all of the above
Which of the following is not recommended by expert David Arnold for companies engaged in global market research? A) use multiple indicators B) develop customized measures specific to an industry or product C) conduct comparative assessments in neighboring countries D) observation should be weighted more heavily than statements of purchase intention E) assess a particular market in isolation
E) assess a particular market in isolation
One of the basic elements of sociologist Everett Roger's Diffusion theory is the concept of an "adoption process." The first step in this adoption process is: A) interest. B) evaluation. C) trial. D) adoption. E) awareness.
E) awareness
78) Which of the following is not one of the four arenas in which dynamic strategic interactions are played out in hypercompetitive industries? A) cost/quality B) timing and know-how C) entry barriers D) deep pockets E) buyer and supplier power
E) buyer and supplier power
The unit of analysis can be a single country or region; however, for all market-entry decisions ________ data are not required. A) specific city B) statewide C) provincial D) district wise E) country wide
E) country wide
In developing countries, such as Ghana, the best way to communicate with market segments may be through: A) mass media. B) written word. C) magazine ads. D) TV ads. E) dance, songs, and storytelling.
E) dance, songs, and storytelling
In developing countries, such as Ghana, the best way to communicate with market segments may be through: A) mass media. B) written word. C) magazine ads. D) TV ads. E) dance, songs, and storytelling.
E) dance, songs, and storytelling.
According to David Arnold, there are four possible approaches to forecasting by analogy, which does not include which of the following? A) Data is available on a comparable product in the same country. B) Data is available on the same product in a comparable country. C) Data is available on the same product from a dependent distributor in a neighboring country. D) Data is available about a comparable company in the same country. E) Data is available on the same product in every country.
E) data is available on the same product in every country
GSPs (Global Strategic Partnerships) are attractive for several reasons which do not include: A) sharing high product development costs. B) sharing technological developments. C) securing access to national and regional markets. D) continuous transfer of technology between partners. E) focus on a single national market or a specific problem.
E) focus on a single national market or a specific problem
52) Which of the following is not an element of Rugman and D'Cruz's flagship model? A) key suppliers B) key customers C) key consumers D) selected competitors E) focused differentiation
E) focused differentiation
In selecting an advertising agency, all but one of the following issues should be taken into consideration: A) company organization. B) national responsiveness. C) area coverage. D) buyer perception. E) franchise or company owned status.
E) franchise or company owned status
Even in the face of such tough and growing competition, Adidas still enjoys high brand loyalty among older Europeans. The company recruits young people and pays them to wear Adidas shoes in public. This is an example of: A) local advertising. B) pattern advertising. C) global advertising. D) advocacy advertising. E) image advertising.
E) image advertising
Even in the face of such tough and growing competition, Adidas still enjoys high brand loyalty among older Europeans. The company recruits young people and pays them to wear Adidas shoes in public. This is an example of: A) local advertising. B) pattern advertising. C) global advertising. D) advocacy advertising. E) image advertising.
E) image advertising.
The European Commission has jurisdiction over European-based companies as well as non-European ones that generate significant revenues in Europe. If Microsoft applies in Europe, the Commission has a right to all of the following except: A) it can block a proposed merger. B) it can block a proposed joint venture. C) it can approve with minor modifications. D) it can demand substantial concessions before granting approval. E) it can refer serious matters to the UN Security Council.
E) it can refer serious matters to the UN security council
The general characteristics shared by low-income countries do not include: A) high birth rates. B) low literacy rates. C) concentration in Africa south of the Sahara. D) heavy reliance on foreign aid. E) lack of genuine market opportunities.
E) lack of genuine market opportunities
According to Geert Hofstede, which of the following is a key cultural dimension that helps account for rapid economic growth in Asia? A) power distance B) individualist/collectivist C) feminine/masculine D) uncertainty avoidance E) long-term orientation
E) long-term orientation
60) Caterpillar's attention was focused elsewhere when Komatsu made its first international entry into the Eastern European Market. Based on the strategic intent framework, this is an example of: A) changing the rules. B) collaborating. C) comparative advantage. D) layers of advantage. E) loose bricks.
E) loose bricks.
Caterpillar's attention was focused elsewhere when Komatsu made its first international entry into the Eastern European Market. Based on the strategic intent framework, this is an example of: A) changing the rules. B) collaborating. C) comparative advantage. D) layers of advantage. E) loose bricks.
E) loose bricks.
Guidelines which can assist managers in their effort to establish global brand leadership include all of the following except: A) create a compelling value proposition for customers. B) before taking brand overseas, select name, marks and symbols. C) make a process template available to all managers. D) assign specific responsibility for managing branding issues. E) make a process template for international consumers.
E) make a process template for international consumers
The flagship model is evident in the strategies of all but one of the following businesses: A) Ford. B) Volkswagen. C) IKEA. D) Benetton. E) Microsoft.
E) microsoft
Which of the following is not a characteristic of global strategic alliances? A) Participants maintain independence outside the framework of alliance. B) Participants share benefits of the alliance. C) Participants share control over the performance of the assigned tasks. D) Participants make ongoing contributions in technology, products, and other areas. E) Participants agree not to compete in areas unrelated to the alliance.
E) participants agree not to compete in areas unrelated to the alliance
Although environmental scanning is a vital source of information, research has shown that headquarters executives of global companies obtain as much as two-thirds of the information they need from: A) government publications. B) professional publications. C) trade publications. D) census data. E) personal sources.
E) personal resources
Coffee bearing the Fairtrade label signifies that the coffee is: A) sponsored by an organization that supports price decisions. B) pure and free of contamination and grown organically. C) purchased with no taxes and duties paid to exporters. D) donated by a Catholic organization to its members. E) purchased with farmers getting a fair share based on the quality.
E) purchased with farmers getting a fair share based on the quality
Export marketing requires all of the following except: A) an understanding of the target market environment. B) the use of marketing research. C) identification of market potential. D) decisions concerning product design. E) reaching retail customers.
E) reaching retail customers.
Germany's Mittelstand companies have been extremely successful pursuing:
focused differentiation
In every industry, companies are embedded in a(n) ________, which has a cost structure associated with it that dictates the margins needed to achieve profitability.
Value network
Which of the following digital revolution pioneers created a "network of networks" that is now known as the Internet?
Vint Serf and Bob Kahn
Concepts such as "assembler value chains" and "downstream value chains" are associated with: A) lean production. B) the matrix structure. C) polycentric organizational designs. D) the global marketing audit. E) traditional assembly designs.
a
The practice of registering a particular domain name for the express purpose of reselling it to the company that should rightfully use it is called:
cybersquatting.
In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has:
layers of advantage
Caterpillar's attention was focused elsewhere when Komatsu made its first entry into the Eastern Europe and gained grounds. This is an example of:
loose bricks
Taiwan's Acer prospered by following founder Stan Shih's strategy of approaching the world computer market from the periphery. By the time Acer was ready to target the United States in earnest, it was already the number one PC brand in key countries in Latin America, Southeast Asia, and the Middle East. This is an example of which component of competitive innovation?
loose bricks
Primary stakeholders include all of the following except:
media.
Chinese direct-response television has learned that there are many obstacles that still need to be overcome, which include all of the following except: A) consumers' savings rate is very low. B) limited number of private telephones. C) low penetration of credit cards. D) delivery logistics in Beijing. E) delivery logistics in Shanghai.
A) consumers' savings rate is very low.
34) Which of the following is not identified by Porter as one of the possible types of barriers to entry in an industry? A) loose bricks B) switching costs C) economies of scale D) product differentiation E) access to distribution channels
A) loose bricks
Based on the size of the market in U.S. dollars, the second highest consumer products are: A) luxury goods. B) cell phones. C) cigarettes. D) bottled water. E) recorded music.
A) luxury goods
According to data published by Advertising Age (2012), which of the following is the largest global advertising organization based on worldwide revenues? A) WPP Group B) Interpublic Group C) Omnicom Group D) Dentsu Inc. E) Havas
A) WPP Group
45) Francisco Martínez is CFO of Comercial Mexicana SA, a retail chain in Mexico. Commenting on Walmart's entry into Mexico, Mr. Martínez notes, "I buy 20,000 plastic toys, and Walmart buys 20 million. Who do you think gets them cheaper?" Which strategic principles are evident in this comment? A) Walmart's buyer power and cost leadership B) Walmart's barriers to entry and differentiation C) Walmart's loose bricks and switching costs D) Walmart's focused differentiation and supplier power E) Walmart's discount policies for customers
A) Walmart's buyer power and cost leadership
Suppose Apple has collected extensive survey data about its new iPhone, and respondents have rated it on twenty different features and benefits. Now researchers want to reduce the amount of data to a few underlying dimensions. Which data analysis technique should the researchers use? A) analogy B) conjoint analysis C) factor analysis D) multidimensional scaling E) cluster analysis
C) factor analysis
It was found that Malaysians hesitate to use coupons due to the: A) lower power distance. B) higher uncertainty avoidance. C) fear of public embarrassment. D) impact of religion. E) general dislike for coupons.
C) fear of public embarrassment.
________ is an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other. A) Manufacturer's export agent B) Export commission representative C) Export merchant D) Export management company E) Cooperative exporter
D) export management
In Hong Kong and Singapore, Western catalogers are finding it easy to market because of all of the following reasons except: A) efficient postal services. B) highly educated populations. C) wide use of credit cards. D) few mail-order companies. E) high per capita income.
D) few mail-order companies
In Hong Kong and Singapore, Western catalogers are finding it easy to market because of all of the following reasons except: A) efficient postal services. B) highly educated populations. C) wide use of credit cards. D) few mail-order companies. E) high per capita income.
D) few mail-order companies.
The significance of tobacco advertising is highlighted by the fact that ________ million people die each year as a direct result of consuming tobacco products. A) two B) three C) four D) five E) six
D) five
Which set of documents generally represents the minimum documentation required to clear a shipment through customs? A) packing list, commercial invoice B) bill of exchange, commercial invoice C) certificate of origin, bill of exchange D) packing list, insurance certificate E) letter of credit, commercial invoice
B) bill of exchange, commercial invoice
Which of the following does not contribute to price escalation in global marketing? A) shipping and insurance charges B) value added taxes (VAT) C) different Incoterms as incentives D) duties and tariffs E) fluctuating exchange rates
C) different Incoterms as incentives
The Swatch Group markets watches in all price ranges, from the Swatch brand at the low end to luxury brands such as Longines, Blancpain, and Breguet. Which target market strategy does this illustrate? A) standardized global marketing B) concentrated global marketing C) differentiated global marketing D) psychographic global marketing E) none of the above
C) differentiated global marketing
Positioning refers to the act of: A) determining on what points on the globe to target. B) ensuring a choice retail shelf location. C) differentiating a brand in customer's mind. D) formulating a private label strategy. E) formulating a companion product.
C) differentiating a brand in customer's mind
If a commodity raw material comes from Africa, gets refined in Asia, then shipped to South America for finishing, and finally transported to the Middle East and then sold around the world—this represents a similar process used for products marketed by: A) Exxon. B) McDonald's. C) Caterpillar. D) IKEA. E) Sears.
D) IKEA
Which of the following is not an advantage of using sales promotions? A) provides a tangible incentive to buyers B) provides accountability to marketing managers C) enables company to build its database D) builds long-term brand awareness E) develops relationship with customers
C) enables company to build its database
A company in which an ethnocentric orientation prevails is likely to utilize primarily ________ in its sales force. A) host-country nationals B) third-country nationals C) expatriates D) agents of any nationality E) agents of host country
C) expatriates
In the study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?" the researchers identified four lifestyle groups. The group that represents mainstream European consumers was labeled as: A) Successful Idealists. B) Affluent Materialists. C) Young Professionals. D) Trendy Teens. E) Disaffected Survivors.
E) disaffected survivors
Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the high-end audiophile segment of the consumer electronics industry. If analyzed in terms of Porter's generic strategies framework, such companies might be said to be pursuing competitive advantage via:
focused differentiation
Which of the following generic strategies best captures the way Harley-Davidson has achieved competitive advantage in the global motorcycle industry?
focused differentiation
Which of the following is not an element of Rugman and D'Cruz's flagship model?
focused differentiation
Which of the following is not the way U.S. auto mass producers operate?
lack of employee teamwork
Each network has its own "metrics of value." For laptop computers this value would include all of the following except:
memory capacity
Inge G. Thulin is chief executive of:
3M (USA).
The United States have given Normal Trade Relations (NTR) status to some 180 countries. In actuality only four countries are excluded from this status which includes all of the following countries except: A) North Korea. B) Iraq. C) Iran. D) Cuba. E) Libya.
B) Iraq.
The success of the Stratos project helps the Red Bull by: A) having their logo on NASCAR cars. B) using You Tube as an effective marketing tool. C) standing out from a crowded field of competitors. D) utilizing free-standing inserts. E) personal selling.
C) standing out from a crowded field of competitors
In today's dynamic global competitive environment, organizations need to develop new forms of: A) ethnocentrism and myopia. B) flexibility, efficiency, and responsiveness. C) export department structure. D) self-reference criterion. E) geographic structure.
b
One of the potential drawbacks of a regional management center is that: A) pan-regional coordination efforts can suffer. B) the cost can be prohibitive. C) the company may lose its "insider" advantage. D) regional management may take a one-sided approach when implementing corporate objectives. E) there is a lack of coordinated decision making.
b
Secondary stakeholders include all of the following except: A) media. B) employees. C) local community groups. D) nongovernmental organizations. E) general business community.
b
Which automaker currently has a joint venture with Hindustan Motors (India)? A) Volkswagen B) Ford C) GM D) Renault E) Mazda
C) GM
Which of the following transportation modes ranks lowest in capability? A) truck B) railroad C) Internet D) air E) water
D) air
Interactive television (ITV) allows viewers to see the ad in its entirety by pressing a remote button; to order products from home-shopping channels; or choose different camera angles, such as in sports events. Comments by James Pennefather, brand manager for Smirnoff, UK, based on comparison of traditional TV ads to ITV features included all of the following except: A) "it allows viewers to interact with programming." B) "it is a lot more unproven." C) "it needs further testing." D) "it is a calculated risk." E) "it may or may not succeed."
A) "it allows viewers to interact with programming"
Some of the world's most memorable advertising campaigns have achieved success because they originate from an idea that is so big that the campaign offers opportunities for a seemingly unlimited number of new executions. Such a campaign is said to have: A) "life." B) "legs." C) "love." D) "fun." E) "toes."
B) "legs."
Which of the following is an IT tool designed specifically to help retailers work more closely with vendors on stock replenishment? A) BOLD B) ECR C) data warehouse D) projection E) EDI
B) ECR
What do value added taxes (VAT) encourage in countries such as China? A) They make trademarks and copyrights more valuable. B) They result in cross-border shopping and smuggling. C) They make it harder to bribe officials. D) They protect companies from antitrust scrutiny. E) Global companies refrain from offering bribes.
B) They result in cross-border shopping and smuggling
Traditional support media include: A) indoor posters. B) billboards. C) newspapers. D) magazines. E) catalogs.
B) billboards.
Mitsubishi Heavy Industries Ltd. and other Japanese companies manufacture airplanes under license to U.S. firms and also work as subcontractors for aircraft parts and systems. This type of effort is known as: A) searching for loose bricks. B) collaborating. C) building of layers of advantage. D) changing the rules of engagement. E) innovating.
B) collaborating
Which of the following types of duties would be imposed on a company whose home-country government provided export subsidies? A) ad valorem duty B) countervailing duty C) antidumping duty D) specific duty E) customs duty
B) countervailing duty
The president of a Mexican company recently remarked, "Business in Mexico is done on a consensus basis, very genteel and sometimes slow by U.S. standards." A few months later, the Mexican company and its U.S. joint venture partner parted company. Judging by the president's remark, one important reason for the "divorce" was: A) failure of one partner to live up to the terms of the contract. B) cultural differences. C) the cancellation of NAFTA. D) the U.S. government's insistence on quick negotiations. E) the language barrier.
B) cultural differences
Research in Motion (RIM), a Canadian company which markets BlackBerry Messenger, is very popular with politicians and business people because it offers advance encryption that provides data security. This can be a disadvantage for some countries because: A) it is too complex to understand. B) governments use strict control for security reasons. C) the software can be easily downloaded. D) the accessibility is very poor. E) there is competition from local manufacturers.
B) governments use strict control for security reasons
Anheuser-Busch and Miller Brewing both experienced market failures in the United Kingdom when they used the phrase "light beer" which was misinterpreted as: A) being low in calories. B) having reduced alcohol levels. C) having light color. D) having less quality. E) having less quantity.
B) having reduced alcohol levels
According to the hypercompetition model of competitive advantage, which of the following allows the firm to create an entirely new product or market? A) know-how advantage B) timing advantage C) outflanking D) switching costs E) countermoves
B) timing advantage
Harley-Davidson has applied for federal protection of an unusual form of intellectual property; the "soul-pleasing rumble" produced by its motorcycles. What type of protection is Harley-Davidson seeking? A) copyright B) trademark C) license D) patent E) trade dress
B) trademark
Bluetooth mobile communication technology has all of the following advantages over Wi-Fi except one:
Bluetooth works over shorter distances than Wi-Fi.
In the United States, some people believe that globalization has depressed the wages of American workers and resulted in the loss of both blue-collar and white-collar jobs. This is an example of: A) discrimination. B) domination. C) globaphobia. D) management myopia. E) economic crisis.
C) globaphobia
Rugman and D'Cruz have developed an alternative framework to Porter's five forces model. The framework, based on business networks, is called: A) the differentiation model. B) strategic intent. C) the flagship model. D) the hypercompetition model. E) the Rugman & D'Cruz model.
C) the flagship model
Negotiation requires both customer and the salesperson: A) to be persistent in their point of view. B) to be subjected to arm-twisting. C) to agree to disagree. D) come away as winners. E) come away as losers.
C) to agree to disagree
Implementation of the Central American Free Trade Agreement with the United States created a free trade area known as DR-CAFTA that includes all SICA members except: A) Honduras. B) Guatemala. C) Nicaragua. D) Panama. E) Costa Rica.
D) Panama
The only marketing mix element that is applicable in the export selling is: A) price. B) product. C) promotion. D) place. E) process.
D) Place
Suppose that World Corp. signs a contract to build a lumber processing plant in Siberia. If World Corp. signs a second contract agreeing to take partial payment for the plant in the form of lumber products produced at the plant, it is engaging in: A) barter. B) switch trading. C) offset. D) compensation trading. E) a hybrid countertrade arrangement.
D) compensation trading
Which of the following is not one of the steps in the Strategic/Consultative Selling Model? A) develop personal selling philosophy B) develop relationship strategy C) develop product strategy D) develop ethnocentric policy E) develop customer strategy
D) develop ethnocentric policy
Coupons are not a favorite promotion tool for use in: A) the United Kingdom. B) Belgium. C) the United States. D) Italy. E) Malaysia.
E) Malaysia
70) The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all the players to undertake all of the following except: A) develop new products. B) improve existing products. C) lower costs and prices. D) develop new technologies. E) change the rules of engagement.
E) change the rules of engagement.
________-commerce is one of the significant marketing opportunities made possible by the digital revolution.
Mobile
Organizations vary in terms of the size and potential of targeted global markets and local management competence in different country markets. Considering different factors and facts related to the constellation of pressures, which of the following statements is not accurate?
No two organizations arrive at precisely the same organizational pattern.
The ability to speak foreign languages is one difference between managers born and raised in the United States and those born and raised elsewhere. Which of the following is true and reflects this statement? A) There are 200 million Chinese children studying English. B) There are 24 million American children studying Chinese. C) There are 200 million Indian children studying Chinese. D) Chinese managers study English as much as Chinese. E) There are equal numbers of American and Chinese children studying English.
a
The organization design in which an employee reports to both a country manager and a functional manager is a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.
a
Chance events play a role in shaping the competitive environment. Chance events are occurrences which include all of the following except:
annual business meeting.
) Lessons that are learned from Starbucks' company's cooperation with NGOs include all of the following except:
appreciate the value of the NGOs dependence.
Secondary stakeholders include all of the following except:
employees.
The Web site's architecture should be flexible enough to allow all of the following except:
local culture.
Which of the following assumptions does not belong in a list of characteristics of lean production?
maximize backwards integration
A company with headquarters in Europe and operational units in Canada, the United States, and Mexico would be well advised to consider establishing a(n):
regional management center
Broadband offers companies the telecommunication capability to do all of the following except:
streaming sales.
Which country has the biggest market for Tupperware? A) Romania B) Indonesia C) China D) Russia E) India
B) Indonesia
In developing countries, globalization's opponents accuse companies of:
) all of the above
Inge G. Thulin is chief executive of: A) Nissan Motor (Japan). B) 3M (USA). C) Ford Motor Company (USA). D) Pharmacia Corporation (USA). E) Atlas Copco AB (Sweden).
b
Which global marketing expert recommends an organization design based on a "global superstructure" that views the world in terms of 30 regions? A) Paul Krugman B) Kenichi Ohmae C) Tom Peters D) Michael Porter E) Kazuo Inamori
b
The key to successful matrix management is ensuring that managers are able to: A) adopt a matrix design. B) adhere to matrix structure. C) maintain technical systems. D) resolve conflicts and achieve integration. E) preserve existing organizational culture.
d
In an effort to attract assembly operations, Brazil allows certain product components to be imported at reduced tariff rates. This is an example of: A) offsets. B) preferential tariffs. C) the effect of the Customs Valuation Code. D) an EMC. E) discriminatory procurement.
B) preferential tariffs.
Marketing channels exist to create utility for customers. The major categories of channel utility include all of the following except: A) place utility. B) price utility. C) information utility. D) form utility. E) time utility.
B) price utility
Internet penetration is less than 10 percent in:
Burundi.
Agricultural subsidies are particularly controversial because, although they protect the interests of farmers in some countries, they work to the detriment of farmers in countries such as: A) Singapore. B) the United States. C) India. D) Switzerland. E) Japan.
C) India.
Channel decisions are important because: A) commitments are flexible. B) relationships change with time. C) it is expensive to terminate. D) issues can be solved by arbitration. E) local laws do not protect agreements.
C) it is expensive to terminate
The Washington, D.C.-based Heritage Foundation survey consists of over 175 countries ranked by degree of economic freedom. The key economic variables considered for this ranking includes all of the following except: A) taxation policy. B) government consumption of economic output. C) percent foreign ownership. D) banking policy. E) wage and price control.
C) percent foreign ownership
Sony's U.S. Consumer segments included all of the following except: A) Affluent. B) Zoomers. C) SoHo. D) Gen Y. E) Fashionists.
E) Fashionists
Which automaker owns an equity stake in Japan's Nissan Motor? A) GM B) Volkswagen C) Ford D) DaimlerChrysler E) Renault
E) Renault
The term "Expanded Triad" includes all of the following countries or regions except: A) Japan. B) United States. C) Canada. D) Mexico. E) Russia.
E) Russia
In addition to "selling" their vision, top management at both Whirlpool and GE face the formidable task of building:
a cadre of globally oriented managers
Tata Motors (India) acquired the following auto company: A) Volkswagen AG (Germany). B) Volvo (Sweden). C) Jaguar (UK). D) Toyota (Japan). E) Hyundai (South Korea).
C) Jaguar (UK)
Which of the following generic strategies best captures the way Harley-Davidson has achieved competitive advantage in the global motorcycle industry? A) cost leadership B) differentiation C) cost focus D) focused differentiation E) cost differentiation
D) focused differentiation
New entrants to an industry bring all of the following except:
decline in per-unit product costs.
Which of the following is not the way U.S. auto mass producers operate? A) greater labor content B) less mechanization C) less flexible mechanization D) divide employees in discrete specialties E) lack of employee teamwork
e
The integrated circuit and the concept of binary code permitted the development of the:
personal computer
Intel achieved success by using the "Intel Inside" advertising campaign and logo that appears on many brands of PCs. This is an example of a barrier to entry classified as:
product differentiaion
Boeing has reorganized its commercial transport design and manufacturing engineers from functional lines into a matrix organization. This new design is expected to have all of the following benefits except:
provide customer contacts
Based on the total annual units sold in the worldwide market, the leading product category is: A) flat-panel TV sets. B) cigarettes. C) cell phone handsets. D) cars and light trucks. E) HDTV sets.
B) cigarettes
Licensing as a market entry mode has several disadvantages and opportunity costs, which do not include: A) limited market control. B) agreement may have short life. C) leveraging and exploiting by licensee. D) similar product or technology development by licensee. E) adaptations by licensee to fit local tastes.
E) adaptations by licensee to fit local tastes
In accordance with GATT, new U.S. patents are granted for a period of ________ years from the filing date. A) 10 B) 17 C) 20 D) 27 E) 30
C) 20
Which of the following refers to a system of farm subsidies in Europe? A) CVD B) FSC C) CAP D) HTS E) NTR
C) CAP
Which of the following statements is not correct? A) Walmart pulled out of Germany and South Korea. B) Best Buy closed several stores in China. C) Home Depot pulled out of China. D) Mattel closed its flagship Barbie store in Shanghai. E) Tesco shout down Fresh & Easy stores in the United States.
C) Home Depot pulled out of China
Political and social instability in the Middle Eastern region can primarily be attributed to: A) desert conditions and lack of agricultural land. B) cultural differences among nations. C) a wide gap between rich and poor nations due to oil revenues. D) lack of water purification facilities. E) the "Arab Spring."
C) a wide gap between rich and poor nations due to oil revenues
56) Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of Hamel and Prahalad's framework for: A) quality advantage. B) positioning. C) competitive innovation. D) marketing management. E) innovation leadership.
C) competitive innovation.
Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of Hamel and Prahalad's framework for: A) quality advantage. B) positioning. C) competitive innovation. D) marketing management. E) innovation leadership.
C) competitive innovation.
To motivate shopkeepers to stock more of P & G's products, the company launched a: A) door-to-door program. B) retail store program. C) golden store program. D) hypermarket program. E) sole distributor program.
C) golden store program
Breaking all the conventional norms, Selfridge opened his department store just off Oxford Street. The changes incorporated include all of the following except one: A) perfume and fragrance were moved to the front in order to avoid any horse dung odors. B) goods were put within reach of the customers. C) goods were kept behind counters and were available by asking store clerks. D) customers always came first. E) early bird specials were offered.
C) goods were kept behind counters and were available by asking store clerks
Some wine importers insist on shipping their wines in refrigerated containers to protect the wines from being damaged by high temperatures. Such importers are creating which kind of utility? A) place utility B) time utility C) form utility D) information utility E) worker utility
C) form utility
Industry observers expect the popularity of home shopping to increase during the next few years due to: A) the formation of European Union. B) the economic development in India. C) the introduction of interactive television. D) the introduction of iPhone. E) the introduction of TV shops.
C) the introduction of interactive television.
The choice between demonstration, slice-of-life, straight sell, and other advertising forms is a matter of: A) the creative strategy. B) the advertising appeal. C) the selling proposition. D) the creative execution. E) the big idea.
D) the creation execution
Brazilian Carlos Ghosn is chief executive of: A) Nissan Motor (Japan). B) Pearson PLC (Great Britain). C) Ford Motor Company (USA). D) Pharmacia Corporation (USA). E) Atlas Copco AB (Sweden).
a
Together, innovators and early adopters make up about ________ of the potential market for a new product. A) 16.0% B) 26.0% C) 34.0% D) 46.0% E) 13.5%
A) 16.0%
A French winery packs its wine in a 40-foot container that is trucked to a port and then loaded onto an ocean-going vessel. This is an example of: A) intermodal transportation. B) inventory control. C) hypermarketing. D) "cherry picking" a product. E) containerization.
A) intermodal transportation
Which global company has dissolved its matrix structure in order to achieve "greater speed and efficiency by further focusing and flattening the organization"?
ABB
A duty that represents a certain percentage of the value of a particular product is a(n): A) specific duty. B) ad valorem duty. C) BTN duty. D) "schedule B" duty. E) antidumping duty.
B) ad valorem duty.
Suicides by employees at Chinese supplier Foxconn Technologies caused negative publicity affecting: A) Sony. B) Apple. C) Google. D) Toyota. E) Nike.
B) Apple.
Argentina provides a good example of how a country can emerge from an economic crisis as a stronger global competitor as per the following statement: A) Argentina reduced the duties on consumer goods. B) Argentina devalued its currency for exports and capital transactions. C) Argentina added tariffs on imported wines. D) Argentina adopted the U.S. dollar as official currency. E) Argentina added tariffs on wine produced within the country.
B) Argentina devalued its currency for exports and capital transactions
The United States has more lawyers than any other country in the world and is arguably the most litigious nation on earth. This is a reflection of: A) the lack of class action lawsuits. B) the low-context nature of the American culture. C) the lack of spirit of confrontational competitiveness. D) the fact that lawyers cannot undertake cases on contingency fee basis. E) the fact that conflicts arise more in the United States.
B) the low-context nature of the American culture
The automobile industry has become fiercely competitive on a global basis. The initial success of foreign automakers in the United States was due to all of the following reasons except: A) reluctance of U.S. manufacturers to design high-quality cars. B) inability of U.S. manufacturers to manufacture high-quality cars. C) reluctance of U.S. manufacturers to make inexpensive small cars. D) bigger cars meant bigger profits for U.S. manufacturers. E) U.S. manufacturers did not realize drivers' preferences.
E) U.S. manufacturers did not realize drivers' preferences
In the tech world, about 90% of the world's nearly one billion PCs use Microsoft's operating systems and 80% use Intel's microprocessors. This represents which aspect of the Porter's five forces model?
bargaining power of suppliers
Organizations, in order to be globally successful, must be viewed as portfolio of:
competencies.
Having established that the matrix organizational structure is appropriate, management can expect to integrate the following competency on a worldwide basis:
product knowledge and know-how.
A company with headquarters in the United States and operational units in the Netherlands, France, Italy, and Spain would be well advised to consider establishing a(n):
regional management center
The key to successful matrix management is ensuring that managers are able to:
resolve conflicts and achieve integration.
Which of the following is not a critical issue for a company whose management intends to engage in e-commerce?
the availability of hot spots for Wi-Fi
Rugman and D'Cruz have developed an alternative framework to Porter's five forces model. The framework, based on business networks, is called:
the flagship model
Which of the following is true about Japanese keiretsu? A) Toyota is a vertical keiretsu, Mitsubishi is a horizontal keiretsu. B) Toyota is a horizontal keiretsu, Mitsubishi is a vertical keiretsu. C) Toyota and Mitsubishi are both horizontal keiretsu. D) Toyota and Mitsubishi are both vertical keiretsu. E) none of the above
A) Toyota is a vertical keiretsu, Mitsubishi is a horizontal keiretsu
The words that are the spoken or written communication elements in advertisements are known as: A) copy. B) manuscript. C) idea. D) script. E) writings.
A) copy
A company with a polycentric orientation is likely to employ host-country nationals in all but which of the following selling situations? A) selling high-tech products in developed countries B) selling high-tech products in less-developed countries C) selling low-tech products in developed countries D) selling low-tech products in less-developed countries E) none of the above
A) selling high-tech products in developed countries
Maytag has been called "the Rolls-Royce of washers and dryers." Maytag markets Neptune, a high-tech machine, at a substantially higher than regular washer price. This is an example of: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer focus.
B) differentiation
The Advanced Photo System (APS) created by Kodak and its partners combines traditional chemical photo processing with digital technology. One benefit of the system is that shutterbugs can choose 3 different print sizes. The APS would best be described as a: A) continuous innovation. B) dynamically continuous innovation. C) discontinuous innovation. D) platform-based innovation. E) new and improved innovation.
B) dynamically continuous innovation
In high-context cultures, time is: A) monochronic. B) polychronic. C) linear. D) short. E) common.
B) polychronic
The unauthorized distribution of trademarked goods to exploit price differentials in world markets is known as: A) market skimming. B) black marketing. C) gray marketing. D) dumping. E) licensing.
C) gray marketing
Which of the following can negatively influence the rate of diffusion of an innovation? A) substantial relative advantage B) high compatibility C) high complexity D) divisibility E) high level of communicability
C) high complexity
One of the dimensions of global marketing strategy which pertains to marketing management is: A) concentration of market penetration. B) coordination of market diversification. C) integration of competitive moves. D) coordination of product development. E) product standardization.
C) integration of competitive moves
The majority of the world's population is included in the following economic category: A) high-income countries. B) upper-middle-income countries. C) lower-middle-income countries. D) low-income countries. E) lower-upper-income countries.
C) lower-middle-income countries
SRI International developed Values and Lifestyles (VALS). Such a consumer profile would be helpful for which type of segmentation? A) demographic B) occupational C) psychographic D) behavioral E) gender
C) psychographic
Which of the following is not a common-law country? A) India B) Pakistan C) Malaysia D) Korea E) Singapore
D) Korea
Which of the following consumer products companies experienced a major product failure in Europe due to inadequate test marketing? A) Procter & Gamble B) Colgate C) Kao D) Unilever E) Seagram
D) Unilever
In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has: A) attribute diversity. B) marketing breadth. C) comparative advantage. D) layers of advantage. E) a "double diamond."
D) layers of advantage
Before an agreement can be reached between the United States and European Union, major differences will have to be worked out. These differences include aspects related to all of the following except: A) agriculture. B) genetically modified crops. C) tariff reduction. D) cross-border investment. E) job creation.
E) job creation
Emerging markets present a number of challenges to anyone conducting market research, which includes all of the following except: A) underdeveloped technology infrastructure. B) geographic issues. C) data-gathering methodologies. D) privacy issues. E) lack of field teams.
E) lack of field teams
The unauthorized publication or reproduction of copyrighted work is referred to as: A) associative counterfeit. B) imitation. C) mistake. D) trade secrets. E) piracy.
E) piracy
To fight counterfeiting, the "Disney Magical Journey" promotion was keyed to mail-in hologram stickers on genuine Disney products. Participants could win Disney DVDs, TV sets, and trips to Hong Kong Disneyland. This is an example of: A) promotion of different types for marketing. B) promotion of Disney Magical Journey. C) people in many countries prefer mail-in hologram. D) "Disney Magical Journey" is popular worldwide. E) sales promotion by global marketer.
E) sales promotion by global marketer
In a contest of 45 different languages covering 60 countries, marketers for Axe Apollo invited consumers to fill out an "astronaut profile." This is an example of: A) promotion of different types for marketing. B) promotion of interest in space exploration. C) people in different countries prefer different topics. D) astronaut profile varies from country to country. E) sales promotion by global marketer.
E) sales promotion by global marketer.
BMW and Porsche have developed Apple Watch apps that enable drivers to remotely check many items within their cars which includes all of the following except:
help recharging the car's batteries.
Del Vecchio, the Italian entrepreneur's business principles include all but one of the following
hiring qualified personnel
Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company. His reasons for this action included all of the following statements except:
impede information sharing
As a company's initial international business involvement becomes too much for a single manager or export department to handle, the next step is typically to establish a(n):
international division structure
According to Prahalad and Hamel, a core competence has all of the following characteristics except:
it is easy for competitors to imitate.
An approach to competitive advantage that exploits weaknesses in competitors' narrow-focus strategies is called a ________ strategy.
loose bricks
A key word(s) in conducting business in the Middle East is: A) Arab Spring. B) Connection. C) Discrimination. D) Male dominance. E) haggling.
B) connection
The international standard by which letters of credit (L/Cs) are interpreted is known as the ________ 500. A) UCP B) NTR C) FSC D) NTB E) HTS
A) UCP
Today Microsoft lags behind new industry entrants in high-growth, consumer-oriented areas such as search and social networking. Which of the principles of disruptive innovation does this fact pertain to?
A company's capabilities define its disabilities.
African companies will find it easier to gain access to financing from the U.S. Export-Import Bank due to: A) AGOA. B) GATT. C) SADC. D) TDCA. E) SACU.
A) AGOA
The sale of merchandise in export markets at unfair prices is known as: A) dumping. B) countervailing. C) tariff. D) ad valorem. E) transaction.
A) dumping
"Organized retail" is a term used to describe: A) modern chain stores. B) grocery stores. C) local retail chains. D) supermarkets. E) hypermarkets.
A) modern chain stores
In order to form a free trade area, South Africa has signed a Trade, Development, and Cooperation Agreement (TDCA) with: A) Swaziland. B) EU. C) Namibia. D) Angola. E) Japan.
B) EU
Intel achieved success by using "Intel Inside" advertising campaign and logo that appears on many brands of PCs. This is an example of barrier to entry classified as: A) new capacity. B) product differentiation. C) competitor response. D) new approaches to customer needs. E) distribution channels.
B) product differentiation.
GM executives are looking for a joint venture with AvtoVAZ, the largest carmaker in: A) Germany. B) Lithuania. C) Russia. D) Kazakhstan. E) Turkey.
C) Russia
Several years ago, the DMBB agency created a single-country psychographic profile that includes segment labels such as "Cossacks" and "Kuptsy." What country does the survey cover? A) India B) Japan C) Russia D) China E) Vietnam
C) Russia
Trade ministers representing the WTO member nations meet ________ to work on improving world trade. A) weekly B) monthly C) annually D) biannually E) fortnightly
C) annually
Generally speaking, which of the following product categories represents the best potential for extension into international markets without adaptation? A) companion products B) food products C) industrial products D) intangible products E) non-alcoholic drinks
C) industrial products
Promotions designed to increase product availability in distribution channels are known as: A) sales promotions. B) price promotions. C) trade sales promotions. D) consumer sales promotions. E) nonprice promotions.
C) trade sales promotions.
Sweden applies a system to certain categories of imported agricultural products which is referred to as: A) temporary surcharges. B) ad valorem duty. C) variable import levies. D) specific duty. E) countervailing duty.
C) variable import levies
In recent years, the economy of selected countries in ECOWAS has improved except in: A) Ivory Coast. B) Ghana. C) Benin. D) Sierra Leone. E) Nigeria.
D) Sierra Leone
________ can also be thought of as an asset representing the value created by the relationship between the brand and its customers over time. A) Brand extensions B) Co-branding C) Brand image D) Brand equity E) Brand loyalty
D) brand equity
For Starbucks and other companies whose business models include a service component, it is not recommended that they use one of the following methods for going global. A) joint ventures B) licensing C) 100-percent ownership D) exporting E) franchising
D) exporting
Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the high-end audiophile segment of the consumer electronics industry. If analyzed in terms of Porter's generic strategies framework, such companies might be said to be pursuing competitive advantage via: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer differentiation.
D) focused differentiation
48) Germany's Mittelstand companies have been extremely successful pursuing: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) cost differentiation.
D) focused differentiation.
Germany's Mittelstand companies have been extremely successful pursuing: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) cost differentiation.
D) focused differentiation.
A manufacturer attempting to set prices for its products in export markets must realize that CIF, VAT, and distributor markup all lead to: A) currency devaluations. B) dumping charges. C) market skimming. D) price escalation. E) market penetration.
D) price escalation
Because advertising is often designed to add ________ value to product or brand, it plays a more important communications role in marketing consumer products than in marketing industrial products. A) social B) monetary C) cultural D) psychological E) emotional
D) psychological
The United States' growing trade deficit reflects a number of factors which exclude: A) increased imports from China. B) a seemingly insatiable consumer demand for imported goods. C) the enormous cost of military operations in the Middle East. D) the services trade surplus. E) record goods sales to developing countries.
D) the services trade surplus
In exchange for a pledge to carry at least 40 different Procter & Gamble products, participating stores receive regular visits from P & G representatives who tidy and arrange display areas. This motivational program is referred to as: A) "buy-in-bulk" store program. B) "high-frequency" store program. C) "mom-and-pop" store program. D) "shop operators" program. E) "golden store" program.
E) "golden store" program
The Organization for Economic Cooperation and Development (OECD) is comprised of: A) the 34 high-income countries. B) countries that believe in market-allocation economic systems. C) pluralistic democracies. D) countries that demonstrate progress toward economic reform. E) All of the above statements are applicable.
E) All of the above statements are applicable
Japan is Coach's second largest market, representing about 20% of global sales. All of the following statements are true regarding the market for Coach's products compared to that in America except: A) Japanese consumers are enormously brand-centric. B) Japanese consumers are not as brand loyal as American consumers. C) American women tend to carry two or three brands while their Japanese counterparts tend to carry as many as five. D) The company's $500 handbags are especially popular with young women. E) Coach has to work on improving its brand image in Japan.
E) Coach has to work on improving its brand image in Japan
Landor Associates, a company specializing in brand identity and design, recently determined that ________ has the number one brand-awareness and esteem position in the United States, number two in Japan, and number six in Europe. A) McDonald's B) Toyota C) Sony D) Pepsi E) Coke
E) Coke
In the summer of 2006, it was announced that the company's Smart car would be offered for sale in the United States. Which global company was responsible for bringing the Smart car to market? A) Swatch B) Volkswagen C) Nissan D) Ford E) DaimlerChrysler
E) DaimlerChrysler
The terminology used to describe the new forms of cooperation strategies varies widely and the phrases used include all of the following except: A) collaborative agreements. B) strategic alliances. C) global strategic partnerships. D) strategic international alliances. E) Greenfield operations.
E) Greenfield operations
All of the following correctly states McDonald's approach to standardization and adaptation of the marketing mix except: A) McDonald's standardizes some product elements and adapts others. B) McDonald's standardizes some place elements and adapts others. C) McDonald's standardizes some promotion elements and adapts others. D) McDonald's standardizes some price elements and adapts others. E) McDonald's standardizes all product elements.
E) McDonald's standardizes all product elements
53) The flagship model is evident in the strategies of all but one of the following businesses: A) Ford. B) Volkswagen. C) IKEA. D) Benetton. E) Microsoft.
E) Microsoft.
The flagship model is evident in the strategies of all but one of the following businesses: A) Ford. B) Volkswagen. C) IKEA. D) Benetton. E) Microsoft.
E) Microsoft.
Which of the following is not true about a personal visit to size up the market firsthand and begin the development of an actual export-marketing program? A) Confirm assumptions regarding market potential. B) Contradict assumptions regarding market potential. C) Gather additional data to help make decisions. D) Develop a marketing plan in cooperation with local agents. E) To have a face-to-face meeting and avoid going to trade shows.
E) To have a face-to-face meeting and avoid going to trade shows.
Which of the following is not true about a personal visit to size up the market firsthand and begin the development of an actual export-marketing program? A) Confirm assumptions regarding market potential. B) Contradict assumptions regarding market potential. C) Gather additional data to help make decisions. D) Develop a marketing plan in cooperation with local agents. E) To have a face-to-face meeting and avoid going to trade shows.
E) To have face-to-face meeting and avoid going to trade shows
64) The automobile industry has become fiercely competitive on a global basis. The initial success of foreign automakers in the United States was due to all of the following reasons except: A) reluctance of U.S. manufacturers to design high-quality cars. B) inability of U.S. manufacturers to manufacture high-quality cars. C) reluctance of U.S. manufacturers to make inexpensive small cars. D) bigger cars meant bigger profits for U.S. manufacturers. E) U.S. manufacturers did not realize drivers' preferences.
E) U.S. manufacturers did not realize drivers' preferences.
The automobile industry has become fiercely competitive on a global basis. The initial success of foreign automakers in the United States was due to all of the following reasons except: A) reluctance of U.S. manufacturers to design high-quality cars. B) inability of U.S. manufacturers to manufacture high-quality cars. C) reluctance of U.S. manufacturers to make inexpensive small cars. D) bigger cars meant bigger profits for U.S. manufacturers. E) U.S. manufacturers did not realize drivers' preferences.
E) U.S. manufacturers did not realize drivers' preferences.
The five original members of the Central American Integration System did not include: A) El Salvador. B) Honduras. C) Guatemala. D) Nicaragua. E) Venezuela.
E) Venezuela
A number of multilateral trade agreements have accelerated the pace of global integration which include: A) NAFTA. B) GATT. C) WTO. D) EU. E) all of the above
E) all of the above
Because they are in transition, the markets of Central and Eastern Europe present interesting opportunities and challenges which include: A) new source of growth. B) first mover advantage. C) exporting as an entry mode. D) lower wage rate. E) all of the above
E) all of the above
For consumer products, qualitative research is especially well suited to: A) get close to the consumer. B) describe the cultural context of consumer behavior. C) identify core brand equity. D) identify what people really feel. E) all of the above
E) all of the above
If a distributor's margins are based on the "landed" price of an import shipment, they will be based on: A) ex-works price. B) transportation costs. C) insurance costs. D) VAT. E) all of the above
E) all of the above
In spite of Walmart's potential to transform India's retail sector for the better, Indian activists and policy makers are worried because: A) Western-style, big-box retailing is anathema. B) millions of shopkeepers will be out of business. C) policy makers are suspicious of the company's motives. D) attitude that can be traced back to the British East India company of the colonial era. E) all of the above
E) all of the above
The success of CFM International (the strategic partnership between GE and Snecma) can be attributed to which of the following? A) compatibility of the partners B) capability of the partners C) commitment of the partners D) personal chemistry between executives E) all of the above
E) all of the above
Tools that can be used for collecting primary data include: A) survey research and interviews. B) consumer panels and observation. C) focus groups and survey research. D) interviews and observation. E) all of the above
E) all of the above
Brazilian Carlos Ghosn is chief executive of:
Nissan Motor (Japan).
Dell's factories can assemble a complete PC in three minutes. With a build-to-order strategy at the heart of its business model, Dell's sales staff maintains close ties with customers. This approach represents which aspect of the Porter's five forces model?
Rivalry among competitors
Robert Noyce and Jack Kilby are pioneers in the digital revolution. What contribution did they make?
They invented the silicon chip
Which of the following pioneers of the digital revolution developed URL, http, and HTML, thus paving the way for the World Wide Web?
Tim Berners-Lee
In addition to "selling" their vision, top management at both Whirlpool and GE face the formidable task of building: A) their company stature. B) physical layout and design. C) a cadre of globally oriented managers. D) a cadre of loyal customers. E) access to distribution channels.
c
Mitsubishi Heavy Industries Ltd. and other Japanese companies manufacture airplanes under license to U.S. firms, and also work as subcontractors for aircraft parts and systems. This type of effort is known as:
collaborating
Boeing has reorganized its commercial transport design and manufacturing engineers from functional lines into a matrix organization. This new design is expected to have all of the following benefits except: A) lower costs and quick updates. B) facilitate problem solving. C) unite engineering and manufacturing processes. D) provide customer contacts. E) enhance product consistency.
d
Howard Stringer, a native of the United Kingdom, is Chairman of: A) Nissan Motor (Japan). B) Pearson PLC (Great Britain). C) Ford Motor Company (USA). D) Sony (Japan). E) Atlas Copco AB (Sweden).
d
In a socially responsible firm, employees perform all of the following except:
develop their own core ideologies.
Maytag has been called "the Rolls-Royce of washers and dryers." Maytag markets Neptune, a high-tech machine, at a substantially higher than regular washer price. This is an example of:
differentiation
Wi-Fi, or wireless fidelity, permits laptop and PDA users to establish high-speed wireless connections to the Internet via:
hot spots
) The universal concerns for global companies established by the United Nations Global Compact consist of the following three dimensions:
human rights, labor, and the environment.
Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge?
matrix structure
An important leadership task involves articulating all of the following points except:
status
The characteristics of home demand for a firm's products or services include all of the following except:
the size of the competitors share of the home demand.
In the fast changing, competitive environment, new global realities are emerging, which include all of the following needs except:
to deliver success.
79) According to the hypercompetition model of competitive advantage, which of the following allows the firm to create an entirely new product or market? A) know-how advantage B) timing advantage C) outflanking D) switching costs E) countermoves
B) timing advantage
The basis for global marketing expert David Arnold's framework for screening intercountry comparisons include: A) demographic data. B) "top-down" segmentation analysis. C) "bottom-up" segmentation analysis. D) income level. E) population data.
C) "bottom-up" segmentation analysis
The furniture industry has become one of the fastest-growing sectors of China's economy. Furniture imports are flooding into the United States from China. This can be attributed to: A) the quality of furniture is better than that made in Europe. B) American tastes in décor have changed. C) China's low labor rates translate into reasonable prices for consumers. D) China can survive tough competition. E) replacement parts are readily available from China.
C) China's low labor rates translate into reasonable prices for consumers
Worldwide spending on outdoor advertising amounts to about ________ of total ad spending. A) 1% B) 2% C) 4% D) 6% E) 10%
D) 6%
While South Korea is considered as "ready for tomorrow" in terms of Internet speed, countries which are "below today's applications threshold" include all of the following except:
India
Indra K. Nooyi is chief executive of:
PepsiCo (USA)
Which of the following is the best organization structure for global marketing?
There is no single "best" structure.
According to percent market share of the top ten apparel exporting countries to the United States, which country ranked as number one in 2011? A) Taiwan B) China C) Mexico D) India E) Honduras
b) China
Which of the following correctly states the role of banks in import/export transactions involving a letter of credit (L/C)? A) The importer's bank is the advising and/or confirming bank; the exporter's bank is the issuing bank. B) The exporter's bank is the advising and/or confirming bank; the importer's bank is the issuing bank. C) The exporter's bank is the advising, confirming, and issuing bank. D) The importer's bank is the advising, confirming, and issuing bank. E) none of the above
B) the exporter's bank is the advising and/or confirming bank; the importer's bank is the issuing bank
________ is the term that refers to the merging of different industries such as computers, photography, and motion pictures.
Convergence
"Usage rates" and "user status" are important criteria for which segmentation variable? A) demographic B) occupational C) psychographic D) behavioral E) benefit
D) behavioral
Which of the following is not one of Clayton Christensen's principles of disruptive innovation?
E-commerce activities can be divided into three categories.
Konbini refers to convenience stores where consumers can pay for online purchases in
Japan
Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge? A) matrix structure B) international division structure C) geographic structure D) worldwide product division structure E) regional management center
a
Sony's Blu-ray DVD format has gained widespread acceptance. Sony, Sharp, Panasonic, and other Japanese manufacturers are all experiencing ________ sales of traditional electronics products. A) increasing B) declining C) improving D) horizontal E) vertical
b
Under the geographical and product division structures, for the company with French origins, France is:
simply another geographic market.
Which of the following nations fall in the lower-middle-income category? A) Burundi B) Bangladesh C) Egypt D) Venezuela E) none of the above
C) Egypt
Managers must decide how well a company's product fits the country market by asking the following questions except: A) Will adaptation be required? B) Will import restriction drive up the product price? C) Is it advisable to source locally? D) Will strong home currency have an adverse impact on product price? E) Will it be possible to neglect home-country regulations?
E) will it be possible to neglect home-country regulations
Which of the following does not contribute to the establishment of an international division?
A lack of desire by management to scan the globe for opportunities and threats.
________ is the phrase global marketers use to describe ads with common design elements into which localized elements are inserted for individual country markets. A) "Pattern advertising" B) "Template advertising" C) "Cookie-cutter advertising" D) "Model advertising" E) "Stereotype advertising"
A) "pattern advertising"
Suppose you have a friend from India who is a lifelong vegetarian and who does not like McDonald's because the company sells hamburgers in many countries. Which of the following describes your friend? A) "vegetarianism" represents a value, "dislike McDonald's" represents an attitude B) "vegetarianism" represents an attitude, "dislike McDonald's" represents a value C) "vegetarianism" and "dislike McDonald's" both represent an attitude D) "vegetarianism" represents a value, "dislike McDonald's" represents a belief E) "vegetarianism" and "dislike McDonald's" both represent values
A) "vegetarianism" represents a value, "dislike McDonald's" represents an attitude
Which of the following is not characteristic of direct marketing? A) A marketer relinquishes control of product when it is turned over to channel intermediaries. B) Advertising serves to generate an immediate inquiry or purchase. C) Repetition is used in individual advertisements. D) The customer experiences high perceived risk. E) Direct response advertising is used.
A) A marketer relinquishes control of product when it is turned over to channel intermediaries.
In West Africa, Burkina Faso, the Ivory Coast and Senegal are former French colonies, while Nigeria, Sierra Leone, and Ghana are former British colonies. Based on this information, which of the following would be correct? A) Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria, Sierra Leone, and Ghana are common-law countries. B) Burkina Faso, the Ivory Coast and Senegal are common-law countries, while Nigeria, Sierra Leone, and Ghana are civil-code countries. C) In West Africa, Ivory Coast and Senegal are the only common-law countries. D) All the West African nations mentioned above are likely to be civil-code countries. E) All the West African nations mentioned above are likely to be common-law countries.
A) Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria, Sierra Leone, and Ghana are common-law countries
A proposed merger between two Swiss-based global pharmaceutical companies, Ciba-Geigy AG and Sandoz AG, would be subject to review by regulators from which of the following? A) European Commission B) UN Conference on International Trade Law C) International Chamber of Commerce D) International Court of Justice E) none of the above
A) European Commission
Upper-middle-income countries are also known as: A) Industrializing countries. B) BRIC countries. C) Stabilized countries. D) Manufacturing countries. E) Agricultural countries.
A) Industrializing countries
In a recent case, Revlon sued United Overseas Limited (UOL) in the U.S. District Court for the Southern District of New York for breach of contract. UOL countered by asking the court to dismiss the claim since they are not operating in that area. Revlon cited the presence of a UOL sign above the entrance to the offices of a New York company in which UOL had a 50-percent ownership. The court dismissed UOL's claim. This is an issue related with: A) jurisdiction. B) antitrust. C) dilution of equity. D) bribery and corruption. E) intellectual property.
A) Jurisdiction
The U.S. government's most comprehensive source of world trade data is: A) National Trade Data Base (NTDB). B) Census Bureau. C) Bureau of Economic Analysis. D) Eurostat. E) Gross Domestic Product (GDP).
A) National Trade Data Base (NTDB)
Engineers at a company in a developing country study an American computer chip design, copy it, and produce identical chips that are then sold to local computer makers. What form of intellectual property has been wrongly appropriated? A) patent B) copyright C) trademark D) trade secrets E) technological
A) Patent
Which of the following does not qualify as a "category killer?" A) Victoria's Secret B) IKEA C) Home Depot D) Circuit City E) Toys "R" Us
A) Victoria's Secret
Francisco Martínez is CFO of Comercial Mexicana SA, a retail chain in Mexico. Commenting on Walmart's entry into Mexico, Mr. Martínez notes, "I buy 20,000 plastic toys, and Walmart buys 20 million. Who do you think gets them cheaper?" Which strategic principles are evident in this comment? A) Walmart's buyer power and cost leadership B) Walmart's barriers to entry and differentiation C) Walmart's loose bricks and switching costs D) Walmart's focused differentiation and supplier power E) Walmart's discount policies for customers
A) Walmart's buyer power and cost leadership
Procter & Gamble recently introduced Pampers Rash Guard. Rash Guard does not represent a new product per se; rather, the diapers are being marketed as an alternative to regular Pampers. What type of innovation do Pampers Rash Guard diapers represent? A) a continuous innovation B) a dynamically continuous innovation C) a discontinuous innovation D) a platform-based innovation E) none of the above
A) a continuous innovation
To the extent that a country sells more goods and services abroad than it buys, there will be: A) a greater demand for its currency. B) a surplus production of goods and services. C) a scarcity of goods and services within the country. D) a need for revaluation of its currency. E) time for fluctuating its currency.
A) a greater demand for its currency
Which of the following is not characteristic of direct marketing? A) A marketer relinquishes control of product when it is turned over to channel intermediaries. B) Advertising serves to generate an immediate inquiry or purchase. C) Repetition is used in individual advertisements. D) The customer experiences high perceived risk. E) Direct response advertising is used.
A) a marketer relinquishes control of product when it is turned over to channel intermediaries
In advertising, a(n) ________ is an agent who chooses graphics, pictures, type styles, and other visual elements and has general responsibility for the overall look of an advertisement. A) art director B) copywriter C) IMC manager D) PR practitioner E) stylist
A) art director
Italy recently introduced the Reguzzoni-Versace Law which is intended to regulate trade in textiles, leather, and footwear. All of the following statements pertaining to the law are correct except: A) at least four stages of production should occur in Italy for the product to be labeled as "Made in Italy." B) the countries in which the remaining production stages took place must be identified. C) Brussels objected on grounds that the law conflicts with restrictions provided by the European Union. D) EU regulators view the law as "protectionist." E) the law is more stringent than the existing laws where only one production stage has to occur in the country of origin.
A) at least four stages of production should occur in Italy for the product to be labeled as "Made in Italy"
38) In the tech world, about 90% of the world's nearly one billion PCs run on Microsoft's operating systems and 80% use Intel's microprocessors. This represents which aspect of the Porter's five forces model? A) bargaining power of suppliers B) bargaining power of buyers C) threat of substitute products D) rivalry among competitors E) threat of new entrants
A) bargaining power of suppliers
In the tech world, about 90% of the world's nearly one billion PCs run on Microsoft's operating systems and 80% use Intel's microprocessors. This represents which aspect of the Porter's five forces model? A) bargaining power of suppliers B) bargaining power of buyers C) threat of substitute products D) rivalry among competitors E) threat of new entrants
A) bargaining power of suppliers
43) Suppose you are a sales representative for Advanced Micro Devices (AMD) in Japan. You are trying to convince Toshiba to buy your company's superfast Opteron microprocessor for its new laptop computer. Toshiba's representative seems interested, but finally does not place an order. Confidentially, the representative tells you that he is afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD. Thinking about Intel's role in this scenario, which of the following elements of the five forces model is evident here? A) barriers to entry B) bargaining power of suppliers C) bargaining power of buyers D) threat of substitute products E) threat of new entrants
A) barriers to entry
Suppose you are a sales representative for Advanced Micro Devices (AMD) in Japan. You are trying to convince Toshiba to buy your company's superfast Opteron microprocessor for its new laptop computer. Toshiba's representative seems interested, but finally does not place an order. Confidentially, the representative tells you that he is afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD. Thinking about Intel's role in this scenario, which of the following elements of the five forces model is evident here? A) barriers to entry B) bargaining power of suppliers C) bargaining power of buyers D) threat of substitute products E) threat of new entrants
A) barriers to entry
The direct exchange of goods or services between parties in lieu of monetary payment is known as: A) barter. B) switch trading. C) offset. D) compensation trading. E) counterpurchase.
A) barter
Which of the following forms of countertrade does not require use of money or credit between parties? A) barter B) switch trading C) offset D) compensation trading E) none of the above
A) barter
Maslow's hierarchy is applicable to global marketing because it can help explain how: A) basic human needs can drive the development of global products. B) "self-actualization" is the highest-order need in Japan as well as Western nations. C) status needs in different countries can only be fulfilled with localized products. D) "luxury badging" is irrelevant to companies marketing in Asia. E) Asians differ from Westerners in their basic physiological needs.
A) basic human needs can drive the development of global products
The key to maintaining competitive advantage, according to Dr. W.E. Deming as well as your textbook authors, is: A) being committed to constant improvement. B) being first to market with all products. C) outsourcing key components. D) challenging all market leaders. E) stressing low-price advantage in all areas.
A) being committed to constant improvement
54) The key to maintaining competitive advantage, according to Dr. W.E. Deming as well as your textbook authors, is: A) being committed to constant improvement. B) being first to market with all products. C) outsourcing key components. D) challenging all market leaders. E) stressing low-price advantage in all areas.
A) being committed to constant improvement.
The key to maintaining competitive advantage, according to Dr. W.E. Deming as well as your textbook authors, is: A) being committed to constant improvement. B) being first to market with all products. C) outsourcing key components. D) challenging all market leaders. E) stressing low-price advantage in all areas.
A) being committed to constant improvement.
Volkswagen strategy to become the world's number one automaker by 2018 included all of the following except: A) build a U.S. plant, in Westmoreland, Pennsylvania. B) assemble cars at the plant in Chattanooga, Tennessee. C) increase production of Passat sedans in the United States. D) overtake Toyota to become the number one automaker. E) overtake GM to become the number one automaker.
A) build a U.S. plant, in Westmoreland, Pennsylvania
31) Volkswagen strategy to become the world's number one automaker by 2018 included all of the following except: A) build a U.S. plant, in Westmoreland, Pennsylvania. B) assemble cars at the plant in Chattanooga, Tennessee. C) increase production of Passat sedans in the United States. D) overtake Toyota to become the number one automaker. E) overtake GM to become the number one automaker.
A) build a U.S. plant, in Westmoreland, Pennsylvania.
Volkswagen strategy to become the world's number one automaker by 2018 included all of the following except: A) build a U.S. plant, in Westmoreland, Pennsylvania. B) assemble cars at the plant in Chattanooga, Tennessee. C) increase production of Passat sedans in the United States. D) overtake Toyota to become the number one automaker. E) overtake GM to become the number one automaker.
A) build a U.S. plant, in Westmoreland, Pennsylvania.
Jaguar produced so few cars that it couldn't get volume discounts from components suppliers. Jaguar managers sometimes could not even determine the "fair" price for a particular part. In terms of Porter's competitive forces framework, Jaguar's strategic disadvantage stemmed from low: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.
A) buyer power
Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Walmart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Walmart deems it offensive. Considering the elements of the five forces model this is an example of: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.
A) buyer power
) Jaguar produced so few cars that it couldn't get volume discounts from components suppliers. Jaguar managers sometimes could not even determine the "fair" price for a particular part. In terms of Porter's competitive forces framework, Jaguar's strategic disadvantage stemmed from low: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.
A) buyer power.
35) Jaguar produced so few cars that it couldn't get volume discounts from components suppliers. Jaguar managers sometimes could not even determine the "fair" price for a particular part. In terms of Porter's competitive forces framework, Jaguar's strategic disadvantage stemmed from low: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.
A) buyer power.
41) Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Walmart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Walmart deems it offensive. Considering the elements of the five forces model this is an example of: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.
A) buyer power.
67) In the 1950s, Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios. Which strategy was Sony using to gain competitive advantage? A) collaboration B) layers of advantage C) changing the rules D) loose bricks E) engagement
A) collaboration
In the 1950s, Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios. Which strategy was Sony using to gain competitive advantage? A) collaboration B) layers of advantage C) changing the rules D) loose bricks E) engagement
A) collaboration
Some of Body Shop's recent advertising has emphasized the difference between the company's principles and those of "mainstream" cosmetics companies on such issues as animal testing. As described here, Body Shop's ads illustrate positioning by: A) competition. B) niche. C) quality/price. D) attribute/benefit. E) culture.
A) competition
Building a prospect base is typically part of which step of the strategic/consultative selling model? A) development of a customer strategy B) development of a personal selling philosophy C) development of a product strategy D) development of a relationship strategy E) development of a presentation strategy
A) development of a customer strategy
In China, Dell had to find a meaningful interpretation of "direct sales." A literal translation results in zhi xiao which is the Chinese term for "illegal pyramid marketing schemes." To counteract the negative connotation, Dell's sales representatives began using the phrase zhi xiao ding gou, which translates as: A) direct orders. B) direct marketing. C) pyramid orders. D) pyramid scheme. E) direct shipping.
A) direct orders
What type of international disputes would be taken before the International Court of Justice? A) disputes between two nations B) disputes between two companies C) disputes between a company and a nation D) disputes between a citizen of one country and a company from a different country E) disputes between profit and non-profit organizations
A) disputes between two nations
Long-term values include all of the following except: A) dynamism. B) persistence. C) sense of shame. D) thrift. E) ordering relationships.
A) dynamism
The introduction of the euro by EU resulted in multifaceted advantages which include: A) elimination of costs associated with currency conversion. B) fixed exchange rate worldwide. C) elimination of paper currency and coins. D) withdrawal of French Francs from circulation. E) a choice for using local or European currency.
A) elimination of costs associated with currency conversion
Consumers shopping for high-touch products, such as fine perfume, are generally energized by ________ motives. A) emotional B) rational C) both emotional and rational D) neither emotional nor rational E) high-tech
A) emotional
A recent global campaign for IKEA, the Swedish home furnishings retailer, positioned houses as homes as a place for love, memories, and laughter. This is a classic example of: A) emotional appeal. B) rational appeal. C) selling proposition. D) advertising appeal. E) creative appeal.
A) emotional appeal
A recent global campaign for IKEA, the Swedish home furnishings retailer, positioned houses as homes as a place for love, memories, and laughter. This is a classic example of: A) emotional appeal. B) rational appeal. C) selling proposition. D) advertising appeal. E) creative appeal.
A) emotional appeal.
To speed adoption of a new product, the marketing team should: A) ensure that features and benefits can be communicated or demonstrated. B) design the maximum amount of complexity into the product. C) discourage limited use on a "trial" basis. D) attempt to make a clean break with existing customer values. E) rely heavily on word-of-mouth marketing.
A) ensure that features and benefits can be communicated or demonstrated
If company managers decide to set the export price for a particular product at an amount equivalent to the home-country price, they would be using which approach to pricing? A) ethnocentric B) polycentric C) regiocentric D) geocentric E) extension pricing
A) ethnocentric
Suppose a company selling in various country markets makes statements such as "we know what the customer wants, and he or she will have to pay for it." This is an indication of a(n) ________ approach to setting prices. A) ethnocentric B) polycentric C) regiocentric D) geocentric E) adaptation
A) ethnocentric
The decision by Toyota executives to introduce the Sienna minivan in the U.S. market was based on their study of a(n) ________ market. A) existing B) latent C) parallel D) incipient E) global
A) existing
When a company must decide on the composition of its foreign sales force, which alternative is generally the most expensive? A) expatriates B) third-country nationals C) host-country nationals D) agents of any nationality E) agents of host country
A) expatriates
Which type of sales person is best suited to selling technologically-sophisticated products in developed countries? A) expatriates B) third-country nationals C) host-country nationals D) agents of any nationality E) none of the above
A) expatriates
According to Michael Porter's research on the competitive advantage of nations, human, physical, knowledge, capital, and infrastructure resources are all components of a country's: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) global conditions.
A) factor conditions
68) According to Michael Porter's research on the competitive advantage of nations, human, physical, knowledge, capital, and infrastructure resources are all components of a country's: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) global conditions.
A) factor conditions.
Which of the following correctly characterizes the retailing strategy of Benetton, IKEA, and Gap? A) few product categories, own-label focus B) few product categories, manufacturer brand focus C) many product categories, own-label focus D) many product categories, manufacturer brand focus E) none of the above
A) few product categories, own label focus
Which of the following is arranged starting with the highest level of environmental sensitivity and ending with the lowest level? A) food→computers→integrated circuits B) integrated circuits→food→computers C) integrated circuits→computers→food D) computers→food→integrated circuits E) none of the above
A) food→computers→integrated circuits
As a result of CFTA, the U.S. automakers participate in the Canadian auto market, thereby benefiting due to: A) greater economies of scale. B) decreased production costs. C) reduced competition. D) ease of exporting automobiles. E) creating a continental demand
A) greater economies of scales
The ________ the level of environmental sensitivity for a given product, the ________ the need for managers to address country-specific economic, regulatory, technological, social and cultural environmental conditions. A) greater; greater B) lower; greater C) greater; lower D) lower; lower E) stronger; greater
A) greater; greater
Low-income countries have a GNI per capita of $1,025 or less. The general characteristics shared by countries at this income level include all of the following except: A) high literacy rates. B) high birth rates. C) heavy reliance on foreign aid. D) political unrest. E) high agricultural population.
A) high literacy rates
After much trial and error in creating sales forces, most companies today attempt to establish a: A) hybrid sales force composed of expatriates and in-country nationals. B) sales force composed of a majority of expatriates. C) hybrid sales force composed of expatriates and third country nationals. D) sales force composed of third country nationals. E) sales force consisting of all in-country nationals.
A) hybrid sales force composed of expatriates and in-country nationals
After much trial and error in creating sales forces, most companies today attempt to establish a: A) hybrid sales force composed of expatriates and in-country nationals. B) sales force composed of a majority of expatriates. C) hybrid sales force composed of expatriates and third country nationals. D) sales force composed of third country nationals. E) sales force consisting of all in-country nationals.
A) hybrid sales force composed of expatriates and in-country nationals.
Market capitalism is an economic system in which: A) individuals and firms allocate resources and production resources that are privately owned. B) the state has broad powers to serve the public interest as it sees fit. C) market resource allocation is commanded by both private and state ownership. D) there is no correlation between economic freedom and a nation's economy. E) market-oriented economies function in an identical manner.
A) individuals and firms allocate resources and production resources that are privately owned
One challenge of using CRM is: A) integrating data into customer relationship. B) knowing amount paid by consumers in different countries. C) understanding which customers are most valuable. D) assessing the use of credit cards for payment. E) knowing the use of laptop computers by customers.
A) integrating data into customer relationship
A freighter loaded with 40-foot shipping containers leaves a port in Europe and sails to New York, where the containers are transferred to railroad cars and transported to the West coast. At the port of San Francisco, the containers are loaded onto another freighter bound for Japan. The term that best describes this situation is: A) intermodal transportation. B) inventory management. C) greenfield investment. D) hypermarketing. E) containerization.
A) intermodal transportation
All of the listed advantages are for "Extension or Ethnocentric" pricing strategy except: A) it does not respond to the competitive and market conditions of each national market. B) it calls for the per-unit price of an item to be the same all over the world. C) it is extremely simple since it does not require information on market condition. D) it does not require competitive conditions for implementation. E) the importer must absorb freight and import duties.
A) it does not respond to the competitive and market conditions of each national market
Intel's loose brick was: A) it's narrow focus on complex microprocessors for PCs. B) demand for non-PC products. C) getting into the Smartphone market. D) unbeatable in computer market. E) developing new chips incorporating 3D technology.
A) it's narrow focus on complex microprocessors for PCs
58) Intel's loose brick was: A) it's narrow focus on complex microprocessors for PCs. B) demand for non-PC products. C) getting into the Smartphone market. D) unbeatable in computer market. E) developing new chips incorporating 3D technology.
A) it's narrow focus on complex microprocessors for PCs.
Ford and Mazda have market entry and expansion in a relationship known as: A) joint venture. B) licensorship. C) franchising. D) contract manufacturing. E) none of the above
A) joint venture
Factors which determine suppliers' ability to gain leverage over industry firms include all of the following except: A) large numbers and relatively few in number. B) suppliers' products or services are important to user firms. C) suppliers' products or services are highly differentiated. D) alternative products do not threaten suppliers' business. E) buyers preferences are highly differentiated.
A) large numbers and relatively few in number
40) Factors which determine suppliers' ability to gain leverage over industry firms include all of the following except: A) large numbers and relatively few in number. B) suppliers' products or services are important to user firms. C) suppliers' products or services are highly differentiated. D) alternative products do not threaten suppliers' business. E) buyers preferences are highly differentiated.
A) large numbers and relatively few in number.
Factors which determine suppliers' ability to gain leverage over industry firms include all of the following except: A) large numbers and relatively few in number. B) suppliers' products or services are important to user firms. C) suppliers' products or services are highly differentiated. D) alternative products do not threaten suppliers' business. E) buyers preferences are highly differentiated.
A) large numbers and relatively few in number.
Saks Fifth Avenue has ________ stores in the Middle East. A) licensed B) organic C) franchise D) joint venture E) own-label focus
A) licensed
62) An approach to competitive advantage that exploits weaknesses in competitors' narrow-focus strategies is called a ________ strategy. A) loose bricks B) collaboration C) layers of advantage D) supplier power E) generic
A) loose bricks
An approach to competitive advantage that exploits weaknesses in competitors' narrow-focus strategies is called a ________ strategy. A) loose bricks B) collaboration C) layers of advantage D) supplier power E) generic
A) loose bricks
Measuring elevator populations in countries measured as units installed per thousand people gives an estimate of the market for elevators. That China has about one half an elevator per thousand people is indicative of: A) low product saturation level. B) high product saturation level. C) high population level. D) high technological level. E) low technological level.
A) low product saturation level
Insisting on competitive bidding can cause complications in: A) low-context cultures B) high-context cultures. C) low and high context cultures. D) Korean cultures. E) Japanese cultures.
A) low-context cultures
Lawyers are more important in: A) low-context cultures. B) high-context cultures. C) Indian cultures. D) Korean cultures. E) Japanese cultures.
A) low-context cultures
"Successful GSPs create win-win situations, where participants pursue objectives on the basis of mutual advantage." When applied to global strategic partnerships, this statement indicates the importance of which factor? A) mission B) strategy C) governance D) culture E) organization
A) mission
Custom unions or a common market does not create a free trade area as compared to NAFTA due to: A) no common external tariffs. B) decreased production costs. C) reduced competition. D) ease of exporting commodities. E) creation of a continental demand.
A) no common external tariffs
According to a 1991 report by McKinsey & Co., problems of alliances between Western and Japanese firms were related to all of the following factors except: A) objective levels of performance. B) a feeling of mutual disillusionment. C) difference in expectations. D) balance between partners. E) frictional loss.
A) objective levels of performance
When a trained person is recording the items selected in a grocery cart or basket, the research method is known as: A) observation. B) survey research. C) focus study. D) secondary data collection. E) personal interviews.
A) observation
A formal legal document that gives an inventor the exclusive right to make, use, and sell an invention for a specified period of time is known as: A) patent. B) copyright. C) trademark. D) trade secret. E) trade dress.
A) patent
A global segment is referred to as "global teens" which includes: A) people between the ages of 12 and 19. B) affluent, well-traveled persons. C) young global travelers. D) technology professionals. E) persons having power.
A) people between the ages of 12 and 19
A global segment is referred to as "global teens" which includes: A) people with shared interest in fashions. B) affluent, well-traveled persons. C) movie stars. D) technology professionals. E) persons having power.
A) people with shared interest in fashions
Coca-Cola Company's global marketing leadership position is based in part on its ability to put Coke "within an arm's reach of desire"; in other words, it is the ability to create: A) place utility. B) time utility. C) form utility. D) information utility. E) all of the above
A) place utility
Any company doing business outside the home country should first carefully study the ________ in the target country. A) political culture B) nationalization C) political risk D) jurisdiction E) sovereignty
A) political culture
A true economic union requires: A) political unity. B) social services. C) welfare. D) regional development. E) taxation.
A) political unity
In Mexico City, only 55-60% of the population owns a telephone. The number drops to less than 50% in Guadalajara and Monterey, and 35% or lower in other cities. This will complicate the task of market researchers hoping to use a telephone survey to obtain a ________ of the Mexican population. A) probability sample B) convenience sample C) secondary sample D) focus group sample E) quota sample
A) probability sample
In the axis which differentiates between retailers, IKEA falls in: A) quadrant A. B) quadrant B. C) quadrant C. D) quadrant D. E) quadrant E.
A) quadrant A
In July 2001, the euro's value relative to the dollar was about €1.00 = $0.85. By November 2009, the euro had strengthened to €1.00 = $1.48. In February 2012, one euro was equal to $1.33. All other things being equal, if a European-based global company wants to preserve margins for goods exported to the U.S. market, the company should: A) raise prices in dollars. B) switch to cost-based pricing. C) adopt a policy of market penetration pricing. D) reduce prices in dollars. E) use skimming pricing.
A) raise prices in dollars
British entrepreneur Richard Branson has built a global business empire by: A) relying on brand extension. B) being the first to use smart cards in major markets. C) developing local brands. D) avoiding consumer businesses with established leaders. E) restricting the "Virgin" name only to airlines.
A) relying on brand extension
The marketers of Corona beer achieved great success in the U.S. market by: A) retaining the bottle design originally used in Mexico. B) hiring Hispanic movie stars as endorsers. C) distributing Corona in returnable bottles. D) changing the brewing recipe to conform to American palates. E) having the label in Spanish language.
A) retaining the bottle design originally used in Mexico
39) Dell's factories can assemble a complete PC in 3 minutes. With a build-to-order strategy at the heart of its business model, Dell's sales staff maintains close ties with customers. This approach represents which aspect of the Porter's five forces model? A) rivalry among competitors B) bargaining power of buyers C) threat of substitute products D) threat of new entrants E) bargaining power of suppliers
A) rivalry among competitors
Dell's factories can assemble a complete PC in 3 minutes. With a build-to-order strategy at the heart of its business model, Dell's sales staff maintains close ties with customers. This approach represents which aspect of the Porter's five forces model? A) rivalry among competitors B) bargaining power of buyers C) threat of substitute products D) threat of new entrants E) bargaining power of suppliers
A) rivalry among competitors
Which promotional technique is best suited to a situation in which a company wants consumers to actually try its product or service at no cost? A) sampling B) sweepstakes C) couponing D) free-standing inserts E) personal selling
A) sampling
OPEC can be considered as a "cartel" which is a group of separate companies that collectively: A) sets prices, controls output, or takes other actions to maximize profits. B) dictates how other countries should use their products. C) produces more products in order to beat the competition. D) conducts activities that are considered illegal in the United States. E) works on forming a union against management of other companies.
A) sets prices, controls output, or takes other actions to maximize profits
When Sony introduced the first consumer VCRs in the 1970s, the retail price exceeded $1,000. Within a few years the price dropped well below $500. This is an example of: A) skimming strategy. B) penetration strategy. C) cost-based strategy. D) price ceiling strategy. E) transfer pricing strategy.
A) skimming strategy
When one of the parties to a barter transaction is not willing to accept the goods included in the transaction, that party is likely to utilize the services of a: A) switch trader. B) Foreign Trade Organization. C) Foreign Sales Corporation. D) Mittelstand owner. E) broker.
A) switch trader
Which of the following statements is correct? A) The Paris Convention protects patents, the Berne Convention protects copyrights. B) The Paris Convention protects copyrights, the Berne Convention protects patents. C) The Berne Convention and Paris Convention are different names for the same thing. D) Neither the Berne Convention nor the Paris Convention is concerned with intellectual property. E) The International Union for the Protection of Literary and Artistic Property is different from the Berne Convention.
A) the Paris Convention protects patents, the Berne Convention protects copyrights
Which country or region offers direct marketers the advantage of a well-developed mailing list industry? A) the United States B) Japan C) Western Europe D) Latin America E) South Korea
A) the United States
When introduced in the late 1970s, the VCR created new patterns of consumer behavior. For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time. DVD, a playback only video system, was introduced in the late 1990s. DVD discs contain full-length movies with digital sound in a format that resembles conventional music compact discs. Which of the following most accurately describes the respective degree of newness of these two global products? A) The VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation. B) The VCR is a dynamically continuous innovation; the DVD is a discontinuous innovation. C) The VCR and DVD are both dynamically continuous innovations. D) The VCR and DVD are both discontinuous innovations. E) The VCR and DVD are both continuous innovations.
A) the VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation
Coca-Cola's distinctive contour bottle, which is sold in many countries, illustrates the point that: A) the packaging strategies can vary by country and region. B) the packaging helps in storing large sizes in refrigerators. C) the packaging strategies do not change by country and region. D) the packaging appeals only to Asian consumers. E) the packaging helps in brand identification.
A) the packaging strategies can very by country and region
Global marketing authority, Theodore Levitt, has noted that many ethnic and regional foods—sushi, for example—are enjoying popularity in many countries of the world. This observation is known as: A) the pluralization of consumption. B) the ethnicitization of consumption. C) the democratization of consumption. D) the sophistication of consumption. E) the domestication of consumption.
A) the pluralization of consumption
Considering the progress, attempts to achieve integration in Central America has been described as: A) uncoordinated. B) coordinated. C) efficient. D) costly. E) productive.
A) uncoordinated
As cultural differences become less relevant and disposable incomes become high, a trend towards greater consumption of the following type of foods is predicted. A) French artistic foods B) American fast foods C) Chinese retail foods D) Indian spicy foods E) Mexican spicy foods
B) American fast foods
Officially, the EU tariffs on Chinese and Vietnamese shoe imports are known as: A) Countervailing duties. B) Antidumping duties. C) Specific duties. D) Ad valorem duties. E) Temporary surcharges.
B) Antidumping duties.
Which of the following companies would be most likely to use some form of countertrade when selling its products in developing countries? A) Procter & Gamble B) Bell Helicopter Textron C) Nokia D) Mercedes-Benz E) Coca-Cola
B) Bell Helicopter Textron
After the aftermath of the tragedy involving fire in garment factories in Bangladesh, it was found that the buildings were inspected by: A) Dhaka's building-safety authority. B) Business Social Compliance Initiative (BSCI). C) Walmart's approved contractors. D) Worker Rights Consortium. E) Interfaith Center for Corporate Responsibility.
B) Business Social Compliance Initiative (BSCI).
In the post-September 11 business environment in the United States, imports have come under increased security. One of the initiatives taken in the interest of national security is: A) NAFTA. B) C-TPAT. C) WTO. D) NTB. E) FSC.
B) C-TPAT
The new country joining the EU at the beginning of 2014 is: A) Slovakia. B) Estonia. C) Latvia. D) Slovenia. E) Cyprus.
B) Estonia
Social couponing is one of the hottest sales promotion trends today. This refers to: A) sampling. B) Groupons. C) sweepstakes. D) freestanding inserts. E) personal selling.
B) Groupons.
Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of the competitive advantage framework developed by: A) W.E. Deming. B) Hamel and Prahalad. C) Porter. D) Drucker. E) D'Aveni.
B) Hamel and Prahalad.
Developed under the auspices of the Custom Cooperation Council (now the World Customs Organization) the system which took effect is referred to as: A) preferential tariffs. B) Harmonized tariff. C) BTN duty. D) Specialized tariff. E) antidumping duty.
B) Harmonized tariff.
Which of the following is true about efforts by automakers to target the Hispanic segment in the United States? A) Honda, Toyota, Ford, and GM all began targeting the segment years ago. B) Honda and Toyota began targeting the segment years ago; Ford and GM launched their efforts more recently. C) Ford and GM began targeting the segment years ago; Honda and Toyota launched their efforts more recently. D) Only Ford and GM are targeting the Hispanic segment. E) none of the above
B) Honda and Toyota began targeting the segment years ago; Ford and GM launched their efforts more recently
A global product meets the wants and needs of a global market, including the Triad which includes the following countries: A) Brazil, Russia, and China. B) Japan, Western Europe, and the United States. C) China, the United States, and Europe. D) China, India and Brazil. E) Japan, China, and Western Europe.
B) Japan, Western Europe, and the United States
Packaging is an important consideration for products that are shipped to markets worldwide. Which of the following statements related to packaging is not true? A) Nestlé's worldwide network of packaging teams gives improvement suggestions on a quarterly basis. B) Japanese prefer plain soft colors on their packages. C) The Aquafresh Ultimate tube was designed to stand vertically. D) Coca-Cola had contour bottles in both glass and plastic versions in many countries. E) Nestlé asked suppliers to find a glue to make the clicking sound louder when a tube of Smarties brand chocolate candies are unwrapped.
B) Japanese prefer plain soft colors on their packages
When consumers have difficulty in verbalizing their perceptions, and there are different alternative brands of toothpaste, what is the best method of judging them in terms of similarity? A) cluster analysis B) MDS C) dependence techniques D) factor loading E) focus group
B) MDS
The "balance of payments" is a record of all economic transactions between the residents of a country and the rest of the world. It is divided into the current and capital accounts. Current accounts include all of the following except: A) balance on goods. B) portfolio investments. C) balance on services. D) goods imports. E) goods exports.
B) Portfolio investments
Advertising, public relations, and other forms of communication are critical tools in the marketing program and reflect the ________ P of the marketing mix. A) Product B) Promotion C) Price D) Place E) Process
B) Promotion
Which country was upgraded from "emerging" to "developed" status by the Financial Times Stock Exchange (FTSE) in 2009? A) United States B) South Korea C) Britain D) Italy E) Malaysia
B) South Korea
Departmentalized, single-story retail establishments that offer food and nonfood items, mostly on a self-service basis are called: A) Specialty retailers. B) Supermarkets. C) Convenience stores. D) Discount retailers. E) Hyper markets.
B) Supermarkets
If an American tourist in Tokyo pays more in dollars for the same amount of yen that she bought last week, then: A) a Japanese tourist in San Francisco pays more in yen for the same amount of dollars that she bought the week before. B) the dollar has depreciated relative to the yen. C) the yen has depreciated relative to the dollar. D) the dollar has appreciated relative to the yen. E) the dollar and yen both remained same in value.
B) The dollar has depreciated relative to the yen
Prahalad and Hammond have identified several assumptions and misconceptions about the "bottom of the pyramid" (BOP) that need to be corrected. All of the following mistaken assumptions are correct except: A) The poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods. B) The goods sold in developing markets are so expensive that there is no room for a new market entrant to make a profit. C) The poor have no money. D) People in BOP markets cannot use advanced technology. E) Global companies that target BOP markets will be criticized for exploiting the poor.
B) The goods sold in developing markets are so expensive that there is no room for a new market entrant to make a profit
Which of the following best sums up the experience of Walt Disney Company executives when creating Disney's theme park in Paris? A) They were guided by the "think global, act local" principle. B) They fell victim to the self-reference criterion. C) They exhibited a geocentric management orientation. D) They miscalculated the rate of diffusion of innovations in Europe. E) They had an unbiased perception of existing culture in Europe.
B) They fell victim to self-reference criterion
Which of the following is true about the Triad? A) Triad countries account for approximately one-third of world income and one- third of world population. B) Triad countries account for approximately 75% of world income as measured by GNP. C) Triad countries are those in which consumer products, industrial products, and the services sector each contribute one-third to GDP. D) Triad countries account for approximately 25% of world income as measured by GNP. E) Triad countries account for approximately 50% of world income as measured by the World Bank.
B) Triad countries account for approximately 75% of world income as measured by GNP
Which of the following currently owns a 70% stake in Skoda, the Czech automaker? A) GM B) Volkswagen C) Ford D) DaimlerChrysler E) Renault
B) Volkswagen
China's ongoing trade-related friction with the United States highlights the need for: A) a better distribution system. B) a better PR effort. C) sales promotion. D) a better transportation system. E) pattern advertising.
B) a better PR effort
Motorola's failed Iridium venture was a global satellite telephone network designed to allow users to make or receive calls anywhere on the globe using handsets that are somewhat bigger than typical cellular phones. What type of innovation did Iridium represent? A) a continuous innovation B) a dynamically continuous innovation C) a discontinuous innovation D) a platform-based innovation E) none of the above
B) a dynamically continuous innovation
A duty that represents a certain percentage of the value of a particular product is a(n): A) specific duty. B) ad valorem duty. C) BTN duty. D) "schedule B" duty. E) antidumping duty.
B) ad valorem duty
Which of the following is not characteristic of mass marketing? A) Product benefits do not typically include home delivery. B) Advertising is used to generate an immediate inquiry or purchase. C) Repetition of ads is the key to awareness and remembering. D) The customer perceives relatively little risk. E) Purchase action is deferred.
B) advertising is used to generate an immediate inquiry or purchase
A global segment is referred to as "global elite" which includes: A) people between the ages of 12 and 19. B) affluent, well-traveled persons. C) graying population. D) technology professionals. E) persons having power.
B) affluent, well-traveled persons
Which of the following is true about etic and emic approaches to country analysis? A) The etic and emic approaches are identical. B) An emic approach studies a culture from within; etic analysis is "from the outside." C) An emic approach studies a culture "from the outside"; etic analysis studies a culture from within. D) The emic/etic distinction is not useful in cultural studies. E) The emic/etic approaches cannot be applied to Asian countries.
B) an emic approach studies a culture from within; etic analysis is "from the outside"
If a company's home currency strengthens, it is: A) a favorable turn of events for the typical exporter. B) an unfavorable turn of events for the typical exporter. C) a favorable turn of events since the revenues increase in home currency. D) an unfavorable turn of events for exporter's home country. E) neither favorable nor unfavorable turn of events for the typical exporter.
B) an unfavorable turn of events for the typical exporter
Officially, the EU tariffs on Chinese and Vietnamese shoe imports are known as: A) Countervailing duties. B) Antidumping duties. C) Specific duties. D) Ad valorem duties. E) Temporary surcharges.
B) antidumping duties
As part of their alliance relationship, Northwest Airlines and KLM Royal Dutch set air fare prices jointly and coordinate flight schedules. Normally, such behavior would be considered harmful to competition, but the U.S. government has granted the two airlines special exemptions from laws concerning: A) intellectual property. B) antitrust. C) jurisdiction. D) licensing. E) arbitration.
B) antitrust
For years, ads for Volvo automobiles stressed safety features and protection in the event of a crash. Thus, Volvo automobiles developed a reputation based on which positioning strategy? A) use/user B) attribute/benefit C) competition D) high touch E) quality/price
B) attribute/benefit
One of the highest profile companies, PepsiCo, which has done business in the Soviet and post-Soviet market for decades, has used this form of countertrade: A) switch trading. B) barter. C) offset. D) compensation trading. E) counterpurchase.
B) barter
Diageo PLC, V&S Vin & Spirit AB, and Seagram and other marketers know that Russians consume a great deal of vodka. This type of market segmentation can be classified as: A) demographic. B) behavioral. C) psychographic. D) occupational. E) benefit.
B) behavioral
Traditional support media include: A) indoor posters. B) billboards. C) newspapers. D) magazines. E) catalogs.
B) billboards
The kind of brand awareness a company wants to project is identified by: A) area coverage. B) buyer perception. C) company organization. D) national responsiveness. E) in-house marketing.
B) buyer perception
The kind of brand awareness a company wants to project is identified by: A) area coverage. B) buyer perception. C) company organization. D) national responsiveness. E) in-house marketing.
B) buyer perception.
NAFTA creates a free trade area in North America. However, Mexican avocado growers: A) cannot hire illegal immigrants. B) can only ship avocados to the United States in winter months. C) have no quotas for the quantity of avocados shipped to the United States. D) cannot impose tariffs of their own. E) None of the above
B) can only ship avocados to the United States in winter months
When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage, it might be said to be: A) searching for loose bricks. B) changing the rules of engagement. C) collaborating. D) building layers of advantage. E) innovating.
B) changing the rules of engagement
63) When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage, it might be said to be: A) searching for loose bricks. B) changing the rules of engagement. C) collaborating. D) building layers of advantage. E) innovating.
B) changing the rules of engagement.
When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage, it might be said to be: A) searching for loose bricks. B) changing the rules of engagement. C) collaborating. D) building layers of advantage. E) innovating.
B) changing the rules of engagement.
Many American car buyers perceived Korean cars as: A) durable. B) cheap. C) reliable. D) of high quality. E) good investment.
B) cheap
Around the world, various brands of personal computers are sold with Pentium processors. This fact is often used as a selling point, with advertising that proclaims "Intel Inside." Which branding concept does such advertising reflect? A) brand equity B) co-branding C) brand image D) brand extension E) tiered branding
B) co-branding
66) Mitsubishi Heavy Industries Ltd. and other Japanese companies manufacture airplanes under license to U.S. firms and also work as subcontractors for aircraft parts and systems. This type of effort is known as: A) searching for loose bricks. B) collaborating. C) building of layers of advantage. D) changing the rules of engagement. E) innovating.
B) collaborating.
Mitsubishi Heavy Industries Ltd. and other Japanese companies manufacture airplanes under license to U.S. firms and also work as subcontractors for aircraft parts and systems. This type of effort is known as: A) searching for loose bricks. B) collaborating. C) building of layers of advantage. D) changing the rules of engagement. E) innovating.
B) collaborating.
After Fidel Castro took power in Cuba in 1959, his government seized control of American property without paying compensation. Coca-Cola, DuPont, Texaco, and dozens of other American companies have filed claims against Cuba seeking financial settlements. Which of the following terms most specifically describes the action Castro took against these companies? A) nationalization B) confiscation C) expropriation D) internationalization E) deportation
B) confiscation
The allure of the Latin American market has been its: A) lack of inflation. B) considerable size. C) rapid economic growth. D) low foreign debts. E) protectionism.
B) considerable size
Other international personal selling approaches that fall somewhere between sales agents and full-time employee teams include all of the following except: A) exclusive license arrangements. B) contract manufacturing or production. C) management-only agreements. D) franchising. E) joint ventures.
B) contract manufacturing or production.
In many parts of the world, sales of unauthorized videos of Hollywood movies cost the movie studios billions of dollars. When illegal copies of movies are made, what form of intellectual property has been wrongly appropriated? A) patent B) copyright C) trademark D) trade secrets E) down loading
B) copyright
Despite the high expenses associated with operating elegant stores and purchasing advertising space in upscale magazines, the premium retail prices that luxury goods like Louis Vuitton command translate into handsome profits. The Louis Vuitton brand alone accounts for 60% of LVMH's operating profit. On the other hand, Louis Vuitton spends $10 million annually battling: A) EU regulations. B) counterfeiters in countries such as Turkey, South Korea, & Italy. C) competitors in European countries. D) suppliers of needed materials. E) export freight and taxes.
B) counterfeiters in countries such as Turkey, South Korea, and Italy
46) Gillette markets its flagship MACH3 razor in more than 100 countries around the world. The MACH3 is available virtually everywhere that consumers shop for personal-care products; because of its advanced 3-blade design, the MACH3 typically costs more than other wet-shaving systems. Which generic strategy is evident in Gillette's global marketing effort of MACH3? A) cost leadership B) differentiation C) cost focus D) focused differentiation E) consumer focus
B) differentiation
Gillette markets its flagship MACH3 razor in more than 100 countries around the world. The MACH3 is available virtually everywhere that consumers shop for personal-care products; because of its advanced 3-blade design, the MACH3 typically costs more than other wet-shaving systems. Which generic strategy is evident in Gillette's global marketing effort of MACH3? A) cost leadership B) differentiation C) cost focus D) focused differentiation E) consumer focus
B) differentiation
47) Maytag has been called "the Rolls-Royce of washers and dryers." Maytag markets Neptune, a high-tech machine, at a substantially higher than regular washer price. This is an example of: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer focus.
B) differentiation.
Maytag has been called "the Rolls-Royce of washers and dryers." Maytag markets Neptune, a high-tech machine, at a substantially higher than regular washer price. This is an example of: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer focus.
B) differentiation.
Peer-to-peer (p-to-p) marketing uses distribution channels through: A) business-to-consumers. B) electronic commerce. C) business-to-business. D) door-to-door. E) manufacturer-to-wholesalers.
B) electronic commerce
Ads that tickle the funny bone of the intended audience and evoke response that will direct purchase behavior are based on: A) rational appeals. B) emotional appeals. C) SRC appeals. D) melodramatic appeals. E) localized appeal.
B) emotional appeals
In many parts of the world, McDonald's utilizes TV advertising that shows parents interacting with their happy children. Such advertising utilizes: A) rational appeals. B) emotional appeals. C) SRC appeals. D) melodramatic appeals. E) localized appeal.
B) emotional appeals
Ads that tickle the funny bone of the intended audience and evoke response that will direct purchase behavior are based on: A) rational appeals. B) emotional appeals. C) SRC appeals. D) melodramatic appeals. E) localized appeal.
B) emotional appeals.
In many parts of the world, McDonald's utilizes TV advertising that shows parents interacting with their happy children. Such advertising utilizes: A) rational appeals. B) emotional appeals. C) SRC appeals. D) melodramatic appeals. E) localized appeal.
B) emotional appeals.
Governmental actions that discourage imports and block market include all of the following except: A) tariffs. B) free trade zones. C) subsidies. D) tax incentives. E) duties.
B) free trade zones
Governmental actions that discourage imports and block market include all of the following except: A) tariffs. B) free trade zones. C) subsidies. D) tax incentives. E) duties.
B) free trade zones.
The strategy that identifies a brand as a symbol of a particular global segment is known as: A) foreign consumer culture positioning. B) global consumer culture positioning. C) local consumer culture positioning. D) global market positioning. E) demographic market positioning.
B) global consumer culture positioning
Comparing and contrasting the diffusion of innovations in Western countries and in Asia, one can say that: A) the process occurs in an identical manner in both regions. B) in Asia, the adoption process begins more slowly but ramps up more rapidly than it does in Western countries. C) in Western countries, the adoption process begins more slowly but ramps up more rapidly than it does in Asia. D) the diffusion of innovation framework is applicable in the West but not in Asia. E) the diffusion of innovation framework is applicable in Asia but not in the West.
B) in Asia, the adoption process begins more slowly but ramps up more rapidly than it does in Western countries
The international marketing manager of an office furniture company ordered a research report on global telecommunications equipment sales. The report noted that, in the early 1990s, AT&T was awarded a $4 billion contract to provide communication network products and services in Saudi Arabia. The manager took this as a cue to put Saudi Arabia on her information agenda, reasoning that office furniture sales would increase as the country's telephone system was improved. As described here, the marketing manager is viewing Saudi Arabia as a(n): A) latent market. B) incipient market. C) cluster market. D) existing market. E) primary market.
B) incipient market
As companies recognize and embrace new concepts such as the globalization of coffee culture, the potential for effective global advertising: A) decreases. B) increases. C) remains the same. D) becomes evident. E) is ignored.
B) increases
As companies recognize and embrace new concepts such as the globalization of coffee culture, the potential for effective global advertising: A) decreases. B) increases. C) remains the same. D) becomes evident. E) is ignored.
B) increases.
Thomas Burke, an executive at Saatchi & Saatchi, is quoted as saying ________ are "the most powerful form of advertising ever created." A) corporate advocacy ads B) infomercials C) banner ads on the Internet D) direct mail campaigns E) catalog sales
B) infomercials
The first step in formulating and conducting research is: A) to define the problem. B) information requirement. C) choosing unit of analysis. D) examine data availability. E) research design.
B) information requirements
In Chinese markets, Nike had a problem using the "Just Do It" attitude which was not found to be appropriate. Finally, Nike decided to use Chinese athletes in their promotion. This type of adaptation was needed due to: A) Chinese do not wear running shoes. B) ingrained Chinese values which respect authority. C) Chinese athletes use Nike shoes. D) "Just do it" in Chinese has a negative connotation. E) parents do not want their children to see such ads.
B) ingrained Chinese values which respect authority
Adopter categories are classifications of individuals within a market on the basis of their innovativeness. Recently Apple introduced the iPhone for which people waited in long lines before the doors opened. According to experts these 2.5% of people who bought the iPhone are categorized as: A) early adopters. B) innovators. C) early majority. D) late majority. E) laggards.
B) innovators
Order processing, warehousing, and inventory management are all functions pertaining to: A) a polycentric orientation. B) physical distribution and logistics. C) sales promotion. D) personal selling. E) chain acquisition.
B) physical distribution and logistics
Despite the positive publicity, the phrases used to describe the arbitrary exercise of state power in Russia include all of the following except: A) state capitalism. B) political culture. C) renationalization. D) kleptocracy. E) managed democracy.
B) political culture
Parallel importing occurs when companies employ a(n) ________ multinational pricing policy that calls for setting different prices in different country markets. A) ethnocentric B) polycentric C) regiocentric D) geocentric E) extension
B) polycentric
Unilever, the Anglo-Dutch consumer products company, at one time had 30 different package designs and 48 different formulations for its Rexona deodorant brand. This is an example of: A) ethnocentric orientation. B) polycentric orientation. C) regiocentric orientation. D) geocentric orientation. E) transnational orientation.
B) polycentric orientation
According to a recent study of European industrial exporters, companies that utilized independent distributors would be most likely to utilize: A) ethnocentric pricing. B) polycentric pricing. C) regiocentric pricing. D) geocentric pricing. E) extension pricing.
B) polycentric pricing
The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers. All of the following are variables that are commonly used except: A) demographics. B) polycentrics. C) behavioral characteristics. D) benefits sought. E) psychographics.
B) polycentrics
In an effort to attract assembly operations, Brazil allows certain product components to be imported at reduced tariff rates. This is an example of: A) offsets. B) preferential tariffs. C) the effect of the Customs Valuation Code. D) an EMC. E) discriminatory procurement.
B) preferential tariffs
In their book, Daniel Yergin and Joseph Stanislaw wrote "It is the greatest sale in the history of the world. Governments are getting out of businesses by disposing of what amounts to trillions of dollars of assets. Everything is going—from steel plants and phone companies . . . to hotels, restaurants, and nightclubs." This is an indication of: A) the fact that governments can make more money by selling assets. B) privatization is becoming a driving force for global marketing. C) these businesses are considered as closed markets. D) foreign companies are competing with governments. E) there is less demand for these type of companies.
B) privatization is becoming a driving force for global marketing
Intel achieved success by using "Intel Inside" advertising campaign and logo that appears on many brands of PCs. This is an example of barrier to entry classified as: A) new capacity. B) product differentiation. C) competitor response. D) new approaches to customer needs. E) distribution channels.
B) product differentiation
37) Intel achieved success by using "Intel Inside" advertising campaign and logo that appears on many brands of PCs. This is an example of barrier to entry classified as: A) new capacity. B) product differentiation. C) competitor response. D) new approaches to customer needs. E) distribution channels.
B) product differentiation.
Before Ben & Jerry's launched their ice cream in the United Kingdom, the company conducted extensive research to determine whether the package design was appropriate. The research indicated that British consumers perceived the colors differently than U.S. consumers. The package design was changed accordingly. This type of strategy can be defined as: A) product-communications extension. B) product extension-communications adaptation. C) product adaptation-communications extension. D) product-communication adaptation. E) product invention.
B) product extension-communications adaptation
Dry soup mixes that have long been popular in Europe are marketed as sauces or dips in the United States. This is an example of the ________ strategy. A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention
B) product extension-communications adaptation
Targeting the 300 million farmers in India who still use plows harnessed to oxen, John Deere engineers created a line of relatively inexpensive, no-frills tractors. The Deere team then realized that the same equipment could be marketed to hobby farmers and acreage owners in the United States, a segment that they had previously overlooked. This is an example of ________ strategy. A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention
B) product extension-communications adaptation
To promote its Centrino wireless chip, Intel launched a global ad campaign that features different combinations of celebrities. These celebrities were chosen because they are widely recognized in the key world markets. This type of strategy is referred to as: A) product-communications extension. B) product extension-communications adaptation. C) product adaptation-communications extension. D) product-communication adaptation. E) product invention.
B) product extension-communications adaptation
Advertising, public relations, and other forms of communication are critical tools in the marketing program and reflect the ________ P of the marketing mix. A) Product B) Promotion C) Price D) Place E) Process
B) promotion
In less-developed countries the most important channel of distribution is: A) door to door. B) public marketplaces. C) wholesale marketplaces. D) pyramid schemes. E) retail stores.
B) public marketplaces
That floppy disks are being dumped in favor of USB mass storage devices can be attributed to which characteristics of innovation? A) compatibility B) relative advantage C) divisibility D) communicability E) complexity
B) relative advantage
American Nancy McKinstry recently became the new CEO at Dutch publisher Wolters Kluwer. As Ms. McKinstry noted, she had to drop the word "aggressive" in describing her strategic plan to company managers. She said, "I learned that the word has a negative connotation to a lot of Europeans. I was coming across too hard, too much of a results-driven American to the people. I needed to get on board so I started describing our strategy as 'decisive' and that made all the difference." Which of the following grammar topics is the critical element in this passage? A) syntax B) semantics C) morphology D) phonology E) semiotics
B) semantics
"Corporate amnesia" in global partnership is a term which refers to: A) achieving world leadership by differentiation. B) short-term goals with no memory on how to compete. C) relationship which is short lived. D) discontinuation of partnership due to personal chemistry. E) losing national identity and ideology.
B) short-term goals with no memory on how to compete
For years, Mercedes-Benz utilized a ________ pricing strategy; however, this created an opportunity for Toyota to introduce its luxury Lexus line and undercut Mercedes. A) gray market B) skimming C) penetration D) market holding E) cost-based
B) skimming
If the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as "innovators" and "early adopters" with relatively inelastic demand curves, the company should use the ________ pricing strategy. A) gray market B) skimming C) penetration D) market holding E) cost-based
B) skimming
By definition, ________ feature a narrow but deep merchandise mix and high levels of service. A) department stores B) specialty retailers C) supermarkets D) convenience stores E) discount stores
B) specialty retailers
Marketing that involves creating the same marketing mix for a broad mass market of potential buyers is referred to as: A) differentiated target marketing. B) standardized global marketing. C) concentrated global marketing. D) competitive global marketing. E) target benefit marketing.
B) standardized global marketing
About 70% of Ecuador's flower harvest is exported to: A) Bolivia. B) the United States. C) Colombia. D) Peru. E) Venezuela.
B) the United States
The country with the highest number of companies with Global Competitive Advantage is: A) the United Kingdom. B) the United States. C) Japan. D) France. E) Germany.
B) the United States
77) The country with the highest number of companies with Global Competitive Advantage is: A) the United Kingdom. B) the United States. C) Japan. D) France. E) Germany.
B) the United States.
The country with the highest number of companies with Global Competitive Advantage is: A) the United Kingdom. B) the United States. C) Japan. D) France. E) Germany.
B) the United States.
Harley-Davidson celebrates its 110th anniversary in 2013. The company has grown impressively during its century of operations. All of the following mentioned facts regarding the company are true except: A) the company's international success came after years of neglecting overseas markets. B) the company reacted swiftly to a growing threat from Japanese manufacturers. C) early on, the company used an export-selling approach. D) early on, it had an underdeveloped dealer network. E) after the 1980s, they recruited dealers in the important Japanese markets.
B) the company reacted swiftly to a growing threat from Japanese manufacturers
The Maastricht Treaty called for: A) the creation of an Asia Free Trade Area (AFTA). B) the creation of an economic and monetary union in Europe. C) Chile's acceptance into Mercosur. D) the purchase of CDs and tapes from distributors in Europe. E) the creation of the seven-nation European Free Trade Association (EFTA).
B) the creation of an economic and monetary union in Europe
Which of the following incorrectly states the role of banks in import/export transactions involving a letter of credit (L/C)? A) The exporter's bank is the advising and/or confirming bank. B) The importer's bank is the advising and/or confirming bank. C) The importer's bank is the advising, confirming, and issuing bank. D) The exporter's bank is the advising, confirming, and issuing bank. E) The importer's bank is neither advising nor confirming bank.
B) the importer's bank is the advising and/or confirming bank
According to Porter, the nature of the interaction between potential industry entrants, buyers, substitute products, suppliers, and rival firms determines: A) whether or not the government will launch an antitrust investigation. B) the industry's profit potential in terms of long-run return on invested capital. C) whether a country can generate a balance of payments surplus. D) whether a country can create a comparative advantage in the production of differentiated products. E) whether a country can generate income by innovation.
B) the industry's profit potential in terms of long-run return on invested capital.
Danes generally are not afraid of taking chances; they are comfortable doing things that are not carefully thought out or planned. Denmark's "flexicurity" policy combines free labor markets with adjustable welfare benefits. This is an example of the application of Hofstede's typology under the values which highlight: A) Future Orientation. B) Uncertainty Avoidance. C) Gender Differentiation. D) Power Distance. E) Individualism/Collectivism.
B) uncertainty avoidance
When a company uses intermodal or multimodal transportation, it is: A) using multiple channels. B) using land and water shipping. C) shipping via more than one railroad line. D) using the services of both UPS and FedEx. E) using different size containers for shipment.
B) using land and water shipping
Product placement has reached the world of live theater and opera. The difference between product placement and other forms of promotion is: A) ethical concerns are not taken into account. B) viewers are being marketed to subliminally without their consent. C) products are focused showing different angles. D) prominent personalities add a message about the product. E) sponsors are recognized for their contribution.
B) viewers are being marketed to subliminally without their consent
Product placement has reached the world of live theater and opera. The difference between product placement and other forms of promotion is: A) ethical concerns are not taken into account. B) viewers are being marketed to subliminally without their consent. C) products are focused showing different angles. D) prominent personalities add a message about the product. E) sponsors are recognized for their contribution.
B) viewers are being marketed to subliminally without their consent.
Boeing developed the wide-bodied aircraft, the 777, with about ________ of the work subcontracted out to Mitsubishi, Fuji, and Kawasaki. A) 50% B) 25% C) 20% D) 60% E) 75%
C) 20%
Which of the following statements is not an example of local products or brands? A) Coca-Cola developed several branded drink products for Japan. B) Coca-Cola markets Kinely brand bottled water in India. C) BMW uses "the ultimate driving machine" slogan in India. D) Diageo PLC markets Gordon's Edge, a gin-based ready-to-drink beverage in the United Kingdom. E) Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan.
C) BMW uses "the ultimate driving machine" slogan in India
What do Unilever and Procter & Gamble have in common? A) Revenues at both companies have been hurt by regulations concerning tobacco advertising and promotion. B) Both companies utilize extension approaches to advertising. C) Both companies rank high in terms of non-U.S. ad spending. D) Both companies use a great deal of corporate advertising. E) Both companies use the same advertising agency.
C) Both companies rank high in terms of non-U.S. ad spending.
Demographic segmentation is based on measurable characteristics of populations which includes all of the following examples except: A) Asia is home to 500 million consumers aged 16 and younger. B) India has more than half of the population younger than 25. C) Consumers buying Porsche would like to be noticed. D) The United States is home to 28.4 million foreign-born residents with combined income of $ 233 billion. E) In EU, the number of consumers aged 16 and under is rapidly approaching consumers aged 60.
C) Consumers buying Porsche would like to be noticed
Luxury good marketers found a new way to combat gray market imports into the United States. In March 1995, the U.S. Supreme Court let stand an appeals court ruling prohibiting a discount drugstore chain from selling Givenchy perfume without permission. The distinctive packaging of the perfume is also protected by the U.S. Copyright law. The ruling implies that: A) Givenchy can only be sold in copyrighted packages. B) Costco and Walmart will no longer be able to sell Givenchy. C) Costco and Walmart will be able to sell Givenchy with authorization. D) gray marketers will be able to market with authorization. E) discount drugstores cannot market a product resembling Givenchy's perfumes.
C) Costco and Walmart will be able to sell Givenchy without authorization
The only two countries where Coca-Cola is not available through authorized channels are: A) India and China. B) North Korea and South Korea. C) Cuba and North Korea. D) Cuba and Venezuela. E) Singapore and Indonesia.
C) Cuba and North Korea
Bureaucracy is listed as a political risk category by: A) BERI (Business Environment Risk Intelligence). B) PRS Group. C) EIU (Economist Intelligence Unit). D) WTO (World Trade Organization). E) OPIC (Overseas Private Investment Corporation).
C) EIU (Economist Intelligence Unit)
The DMBB agency created a psychographic profile of the Russian market. The categories include all of the following except: A) Kuptsy. B) Cossacks. C) Elites. D) Students. E) Business Executives.
C) Elites
The specialty retailing industry, as well as the fast-food industry, favors ________ for global growth. A) licensing B) investment C) franchising D) joint ventures E) strategic alliances
C) Franchising
Which of the following statements most accurately describes the extent to which GM and Toyota outsource components? A) GM and Toyota each outsource approximately 50% of their components. B) Toyota outsources about 50% of its components; GM outsources about 75%. C) GM outsources about 50% of its components; Toyota outsources about 75%. D) Neither GM nor Toyota outsources a significant proportion of its components. E) GM and Toyota each outsource approximately 25% of their components.
C) GM outsources about 50% of its components; Toyota outsources about 75%
There are barriers in Japan for global marketers in terms of attitudes as well as laws. Barriers include all of the following except: A) any organization wishing to compete in Japan must be committed to providing top-quality products and services. B) repeat visits and extended socialization with distributors. C) goods marketed should have a semblance of western products and services. D) marketers must master the keiretsu system of tightly knit corporate alliances. E) trust has to be built before conducting successful business.
C) Goods marketed should have semblance of western products and services
Two countries that score high in uncertainty avoidance are: A) Austria and Belgium. B) Japan and Hong Kong. C) Greece and Portugal. D) Denmark and Finland. E) Ireland and Italy.
C) Greece and Portugal
Which member of the Central American Integration System has both the largest economy and the largest population? A) El Salvador B) Honduras C) Guatemala D) Nicaragua E) Costa Rica
C) Guatemala
The Secretariat for Central American Integration is headquartered in: A) El Salvador. B) Honduras. C) Guatemala City. D) Nicaragua. E) Costa Rica.
C) Guatemala City
When Walmart entered the German market, ________ were already entrenched. A) Specialty retailers B) Discount retailers C) Hard discounters D) Hypermarkets E) Supermarkets
C) Hard discounters
Which of the following is true of advertising for the Heineken and Foster's brands in the United States? A) Both Heineken and Foster's utilize the GCCP strategy. B) Both Heineken and Foster's utilize the FCCP strategy. C) Heineken utilizes the GCCP strategy; Foster's utilizes the FCCP strategy. D) Heineken utilizes the FCCP strategy; Foster's utilizes the GCCP strategy. E) Heineken utilizes the LCCP strategy; Foster's utilizes the GCCP strategy.
C) Heineken utilizes the GCCP strategy; Foster's utilizes the FCCP strategy
The company receiving the most U.S. patents for the year 2009 is: A) Microsoft. B) Panasonic. C) IBM. D) Toshiba. E) Intel.
C) IBM
All of the following stores are categorized as "superstores" except: A) Toys "R" Us. B) Home Depot. C) IKEA. D) Babies "R" Us. E) The Body Shop.
C) IKEA
The original six members of the ASEAN (Association of Southeast Asian Nations) included all of the following countries except: A) Singapore. B) Thailand. C) India. D) Philippines. E) Brunei.
C) India
Any Western country doing business in Malaysia or the Middle East should have an understanding of: A) the French Civil Code. B) Anglo-Saxon common law. C) Islamic law. D) the Uniform Commercial Code. E) Roman law and the Napoleonic Code.
C) Islamic law
Cultural influences are also quite apparent in food preparation and consumption patterns and habits. Domino's Pizza, the world's largest pizza-delivery company, pulled out of Italy because: A) tomato sauce was too bold and competed with Italian products. B) people did not like to eat at home. C) Italians perceived its products to be "too American." D) Italians wanted more toppings on thick crust. E) Italians did not like anyone else to use the name pizza.
C) Italians perceived its products to be "too American"
Packaging aesthetics are particularly important to the: A) Indian. B) Chinese. C) Japanese. D) American. E) Russian.
C) Japanese
One of the distinguishing features of a Centrally Planned Capitalism economic system is: A) all production resources are privately owned. B) the state has broad powers to serve the public interest as it sees fit. C) command resource allocation is utilized extensively in a private resource ownership environment. D) market allocation policies are permitted within an environment of state ownership. E) none of the above
C) command resource allocation is utilized extensively in a private resource ownership environment
When a marketer understands that a product satisfies a buyer's rational criteria while also evoking an emotional response, the marketer should: A) only target consumers in high-income countries. B) utilize a multi-tiered targeting strategy rather than a concentrated strategy. C) commission psychographic segmentation studies to augment demographic data. D) create advertising that reflects a bipolar, high-tech and high-touch approach. E) follow normal targeting strategy.
C) commission psychographic segmentation studies to augment demographic data
The demise of communism as an economic and political system can be explained by all of the following facts except: A) communism is not an effective economic system. B) relatively superior performance of the world's market economies. C) communism works when the currency exchange rate is weak. D) difficult to manage national economies with a single central plan. E) increased public participation in matters of state.
C) communism works when the currency exchange rate is weak
In the 1990s, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette player. DCC allowed users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. This latter feature reflects which of the following characteristics of innovations? A) relative advantage B) communicability C) compatibility D) complexity E) divisibility
C) compatibility
Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of Hamel and Prahalad's framework for: A) quality advantage. B) positioning. C) competitive innovation. D) marketing management. E) innovation leadership.
C) competitive innovation
A vice-president of a shoe company was in India to assess the market. He found that many people in the southern part of India were walking bare footed. This can be indicative of either the fact that there is a potential market for shoes or there is no market for shoes in that part of the world. To formally confirm one instinct or the other the vice-president should: A) establish an office to start manufacturing shoes in India. B) give free shoe samples to a selected group of customers. C) conduct research to find the potential and actual customers. D) find out if that is true for other Asian countries. E) give up the idea of doing business in India.
C) conduct research to find the potential and actual customers
The form of economic cooperation that calls for countries to eliminate all internal barriers to trade among themselves even while maintaining independent trade policies vis-à-vis third countries is known as a(n): A) Economic union. B) Customs union. C) Free trade area. D) Common market. E) None of the above
C) free trade area
Which of the following is not an appropriate guideline for companies selecting independent distributors in international markets? A) Select distributors; don't let them select you. B) Look for distributors capable of developing markets. C) Give local distributors control over marketing strategy. D) Treat local distributors as long-term partners. E) All of the above are appropriate guidelines.
C) give local distributors control over marketing strategy
A ________ company possesses a critical marketing advantage with respect to marketing communications. A) domestic B) local C) global D) glocal E) multinational
C) global
"Discussion and consensus must be the norms. Partners must be viewed as equals." When applied to global strategic partnerships, this statement indicates the importance of which factor? A) mission B) strategy C) governance D) culture E) organization
C) governance
Givenchy and Christian Dior's Dune fragrance are two of the luxury perfume brands that are sometimes diverted from authorized channels for sale at mass-retail outlets. This practice is referred to as: A) barter. B) switch trading. C) gray market. D) offset. E) dumping.
C) gray market
An ________ is a company's private data network, accessible only by authorized persons inside the organization. A) EDI B) Internet C) intranet D) EPOS E) ECR
C) intranet
Direct sensory perception provides a vital background for the information that comes from human and documentary sources since: A) it provides secondhand information. B) it is easy and the most economical way of collecting data. C) it means firsthand seeing, feeling, hearing, smelling, and tasting. D) it involves reading and reviewing documents. E) top executives are involved in getting firsthand information.
C) it means firsthand seeing, feeling, hearing, smelling, and tasting
Which of the following is generally true about the marketing of high-touch products such as fine china and crystal? A) It relies equally on specialized information and image. B) It relies less on image and more on specialized information. C) It relies less on specialized information and more on image. D) Neither image nor specialized information is relevant to the marketing of high-touch products. E) It relies partially on specialized information and partially on image
C) it relies less on specialized information and more on image
As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances? A) acquisition B) licensing C) joint venture D) exporting E) franchising
C) joint venture
The concentration of income in the high-income and large-population countries means that a company can be "global" by targeting buyers in: A) just 50 countries. B) just 20 countries. C) just 10 or fewer countries. D) just 30 countries. E) none of the above
C) just 10 or fewer countries
Potential markets can be subdivided into: A) latent and parallel markets. B) existing and incipient markets. C) latent and incipient markets. D) existing and latent markets. E) incipient and existing markets.
C) latent and incipient markets
The benefits of strong brands include all of the following except: A) greater loyalty. B) less vulnerability to marketing actions. C) less inelastic consumer response to price increases. D) more elastic consumer response to price decreases. E) larger margins.
C) less inelastic consumer response to price increases
PepsiCo experienced great success in Latin America with its Numeromania contest, which lured consumers by promise of big cash prizes. They used the same contest in Poland successfully. This shows that: A) Numeromania can be used in different languages. B) Numeromania can be used in cash starved countries. C) leverage experience gained in one country can be used in another country. D) economically squeezed consumers love Pepsi. E) Numeromania helped in developing a taste for Pepsi in both countries.
C) leverage experience gained in one country can be used in another country
PepsiCo experienced great success in Latin America with its Numeromania contest, which lured consumers by promise of big cash prizes. They used the same contest in Poland successfully. This shows that: A) Numeromania can be used in different languages. B) Numeromania can be used in cash starved countries. C) leverage experience gained in one country can be used in another country. D) economically squeezed consumers love Pepsi. E) Numeromania helped in developing a taste for Pepsi in both countries.
C) leverage experience gained in one country can be used in another country.
________ represent(s) a market entry strategy whereby one company permits a foreign company to make use of its patents, know-how, technology, company name, or other intangible assets in return for a royalty payment. A) Joint ventures B) One-hundred-percent ownership C) Licensing D) Exporting E) Global strategic alliances
C) licensing
65) Taiwan's Acer prospered by following founder Stan Shih's strategy of approaching the world computer market from the periphery. By the time Acer was ready to target the United States in earnest, it was already the number one PC brand in key countries in Latin America, Southeast Asia, and the Middle East. This is an example of which component of competitive innovation? A) collaboration B) layers of advantage C) loose bricks D) generic E) supplier power
C) loose bricks
Taiwan's Acer prospered by following founder Stan Shih's strategy of approaching the world computer market from the periphery. By the time Acer was ready to target the United States in earnest, it was already the number one PC brand in key countries in Latin America, Southeast Asia, and the Middle East. This is an example of which component of competitive innovation? A) collaboration B) layers of advantage C) loose bricks D) generic E) supplier power
C) loose bricks
When countries or regions experience currency and/or economic stress, all of the following events can take place except: A) increased exposure to certain risks. B) new profit opportunities. C) lower local currency financing costs. D) bad debts occur. E) cancellation of aircraft equipment sales.
C) lower local currency financing costs
With a 2011 GNI per capital of $1,410, India has transitioned out from the former category and now is classified as a(n): A) low-income country. B) upper-middle-income country. C) lower-middle-income country. D) upper-income country. E) lower-upper-income country.
C) lower-middle-income country
Which of the following categories best describes the approach of Britain's Marks & Spencer to global retailing? A) few product categories, own-label focus B) few product categories, manufacturer brand focus C) many product categories, own-label focus D) many product categories, manufacturer brand focus E) none of the above
C) many product categories, own-label focus
In 2005, representatives from several wine regions in the United States and the EU signed a Joint Declaration to Protect Wine Place & Origin. In addition, a Wine Accord signed by the United States and EU bans the: A) use of alcohol in public places. B) purchase of wine from country of origin. C) misuse of place names by marketers of wine products that do not originate in those places. D) misuse of labels which does not include the origin of ingredients. E) use of word "champagne" on wine made in the United States.
C) misuse of place names by marketers of wine products that do not originate in those places
Linguists have divided the study of languages into four main areas. The system of word formation is referred to as: A) syntax. B) phonology. C) morphology. D) semantics. E) semiotics.
C) morphology
If a marketing manager plans to enter the newly industrializing countries (NICs) or other Asia markets with a product that has proved to be successful in the home market, the product's diffusion processes are likely to be: A) negligible since consumers will take time to assess the relative advantage. B) much slower than in the home market. C) much faster than in the home market. D) similar to that in the home market. E) less compatible in the Asian market.
C) much faster than in the home market
Which type of countertrade arrangement is required by governments seeking to reduce the budgetary impact of expenditures for defense or telecommunications? A) barter B) switch trading C) offset D) compensation trading E) none of the above
C) offset
eBay was a pioneer in a form of online marketing known as: A) b-to-c. B) b-to-b. C) p-to-p. D) d-to-d. E) c-to-b.
C) p-to-p
When the subheads and body copy of an advertisement are localized, not simply translated, is an example of: A) local advertising. B) global advertising. C) pattern advertising. D) advocacy advertising. E) stereotype advertising.
C) pattern advertising
When the subheads and body copy of an advertisement are localized, not simply translated, is an example of: A) local advertising. B) global advertising. C) pattern advertising. D) advocacy advertising. E) stereotype advertising.
C) pattern advertising.
A market ________ pricing strategy calls for setting price levels that are low enough to quickly build market share. A) gray B) skimming C) penetration D) holding E) cost-based
C) penetration
What do Ford Motor Company, Coca-Cola, Nike, and McDonald's all have in common? A) They are all consumer packaged-goods companies. B) They all have foreign CEOs. C) They have all received a great deal of negative publicity in recent years. D) They all rely exclusively on TV advertising. E) They spend more in advertising in foreign markets than home markets.
C) they have all received a great deal of negative publicity in recent years
According to data published by Advertising Age (2012), which of the following is the largest global advertising agency network based on worldwide revenues? A) WPP Group B) Interpublic Group C) Omnicom Group D) Dentsu Inc. E) Havas
D) Dentsu Inc.
An ________ system allows a company's business units to submit orders, issue invoices, and conduct business electronically with other company units as well as outside companies. A) Internet B) intranet C) ECR D) EDI E) EPOS
D) EDI
Giving business cards with the left hand in Malaysia, showing soles of shoes to a host in Saudi Arabia, and winking one eye in India are all considered impolite interpersonal communication due to the fact that: A) in Middle Eastern countries it is customary to take off shoes at the door. B) it is difficult to notice when one winks eyes since there are many people in India. C) people pick up nonverbal cues and understand intuitively without being told. D) these actions distract people from hearing at meetings. E) people are not aware of Western ways of doing business.
C) people pick up nonverbal cues and understand intuitively without being told
When the Coca-Cola Company was developing its new Dasani bottled water brand, linguists helped guide the naming process. For example, the recurring "a" was chosen because it has a soothing sound. In linguistics, issues pertaining to letters and sounds are a matter of: A) syntax. B) synonym. C) phonology. D) semiotics. E) semantics.
C) phonology
Unilever hired a promotional marketing firm to pass out Lever 2000 hand wipes in food courts and petting zoos. This is an example of: A) point-of-use sampling. B) point-of-sale sampling. C) point-of-dirt sampling. D) point-of-event sampling. E) point-of-work sampling.
C) point-of-dirt sampling.
Unilever hired a promotional marketing firm to pass out Lever 2000 hand wipes in food courts and petting zoos. This is an example of: A) point-of-use sampling. B) point-of-sale sampling. C) point-of-dirt sampling. D) point-of-event sampling. E) point-of-work sampling.
C) point-of-dirt-sampling
U.S. advertisements contain more ________ information, and are more likely to include comparative appeals than Arabic ads. A) people B) process C) price D) sex E) context
C) price
Environmental issues and challenges faced by a company which is in the initial stages of implementing a personal selling strategy include all of the following except: A) political risks. B) regulatory hurdles. C) product innovation. D) currency fluctuations. E) market unknowns.
C) product innovation.
In fall 2002, a new Broadway production of Puccini's La Boheme was set in Paris circa 1957. The stage set included billboards for luxury pen maker Montblanc and Piper-Heidsieck champagne. This is an example of: A) consumer sales promotion. B) sampling. C) product placement. D) trade sales promotion. E) global awareness.
C) product placement
In fall 2002, a new Broadway production of Puccini's La Boheme was set in Paris circa 1957. The stage set included billboards for luxury pen maker Montblanc and Piper-Heidsieck champagne. This is an example of: A) consumer sales promotion. B) sampling. C) product placement. D) trade sales promotion. E) global awareness.
C) product placement.
Manufacturers of Splenda, a low-calorie sugar, wanted to arrange a focus group to find out its use in different markets. Open-ended questions were used in order to secure the unconscious attitudes and biases held by the subjects. This type of technique is known as: A) scaling technique. B) qualitative technique. C) projective technique. D) reactivity technique. E) MDS technique.
C) projective technique
Porsche AG uses the label "Top Guns" to describe one segment of its customers, namely those who care about power and control and who expect to be noticed. Such a profile would be based on which type of segmentation? A) demographic B) occupational C) psychographic D) behavioral E) gender
C) psychographic
Research has shown that exporting is essentially a developmental process that proceeds in different stages. Before a firm reaches stage 4, it must do one of the following activities: A) explore the feasibility of exporting. B) commit resources for exporting. C) receive unsolicited export orders. D) believe in attractiveness of exporting. E) build confidence in firm's ability for exporting.
C) receive unsolicited export orders.
An attribute which does not represent true global partnership is: A) achieving world leadership by differentiation. B) achieving a reciprocal relationship. C) relationship is organized vertical lines. D) continual transfer of resources. E) retaining national identities.
C) relationship is organized vertical lines
The chief executives of Swiss Swatch Group and Japanese Canon would like to: A) outsource all of the manufacturing units overseas in order to save money. B) outsource a majority of the manufacturing functions overseas. C) retain a majority, if not all, of the manufacturing in their home country. D) establish "call centers" in developing countries in order to save labor costs. E) outsource a full line of new products only.
C) retain a majority, if not all, of the manufacturing in their home country
The chief executives of Swiss Swatch Group and Japanese Canon would like to: A) outsource all of the manufacturing units overseas in order to save money. B) outsource a majority of the manufacturing functions overseas. C) retain a majority, if not all, of the manufacturing in their home country. D) establish "call centers" in developing countries in order to save labor costs. E) outsource a full line of new products only.
C) retain a majority, if not all, of the manufacturing in their home country.
The strategy to use joint ventures has several advantages which do not include: A) risk sharing. B) reduced financial risk. C) reward sharing. D) achieve synergy. E) only way to enter a country or region
C) reward sharing
Coca-Cola billboards were recently put up near the Piazza San Marco in Venice, which has numerous historical landmarks. The major reason for allowing the billboards at a prominent historical site is: A) Coke is a very popular drink in Italy. B) to introduce an American product in an emerging market. C) severe lack of funds for historic renovation. D) aesthetic. E) global marketing.
C) severe lack of funds for historic
If the dollar, the yen, or the euro becomes seriously overvalued, a company with a production capacity in other locations can achieve competitive advantage by: A) buying different currencies before major fluctuations take place. B) conducting transactions in different currencies of the world. C) shifting production among different sites. D) cutting down production and waiting until the currency rate is reasonable. E) reducing production and labor force simultaneously.
C) shifting production among different sites
Spoexa, a food-marketing company was hired by French Ministry of Agriculture to organize cocktail parties in 19 countries in order to: A) promote French wines. B) promote French cheese. C) show that French cuisine is laid back. D) show that French wines are superior. E) show how to use French cuisine.
C) show that French cuisine is laid back.
Spoexa, a food-marketing company was hired by French Ministry of Agriculture to organize cocktail parties in 19 countries in order to: A) promote French wines. B) promote French cheese. C) show that French cuisine is laid back. D) show that French wines are superior. E) show how to use French cuisine.
C) show that french cuisine is laid back
When identifying global market segments, a fundamental guiding principle should be the need to determine: A) shared demographic characteristics. B) similar languages. C) similar needs and buying behavior. D) similar ethnic backgrounds. E) similar geographic regions.
C) similar needs and buying behavior
The success of the Stratos project helps the Red Bull by: A) having their logo on NASCAR cars. B) using You Tube as an effective marketing tool. C) standing out from a crowded field of competitors. D) utilizing free-standing inserts. E) personal selling.
C) standing out from a crowded field of competitors.
An express warranty is a written guarantee that assures the buyer: A) that he or she is getting what he or she desired. B) that he or she will be able to get express response if any defects are found. C) that he or she is getting what he or she has paid for. D) that he or she will be able to contact the manufacturer whenever needed. E) that he or she has limited time for filling out information required by the manufacturer.
C) that he or she is getting what he or she has paid for
The reason why Greece, Ireland, Portugal, and Spain sometimes are referred to as the eurozone's "peripheral countries" is: A) that all have tourist attractions. B) that they are situated in the peripheral parts of Europe. C) that they all rank lower than their EU neighbors in terms of infrastructure. D) that they are riding on the way of technology boom. E) that they are all marred by sex scandals.
C) that they all rank lower than their EU neighbors in terms of infrastructure
Three Mexican retailers Famso, Grupo Gigant SA, and Grupo Commercial Chedraui SA have opened stores in the United States. This is an indication of: A) U.S. retailers were lagging behind in collecting demographic information. B) the Mexican retailers provide better products than American stores. C) the Hispanic American segments represent a great opportunity for marketers. D) American businesses cannot compete with Mexican retailers. E) the Mexican retailers would like to compete with businesses like Best Buy and Circuit City.
C) the Hispanic American segments represent a great opportunity for marketers
A company stands a better chance of having an international arbitration award upheld if its home-country government has signed: A) the Paris Convention. B) the Prague Convention. C) the New York Convention. D) the Vienna Convention. E) the Geneva Convention.
C) the New York Convention
When Mattel first introduced Barbie in Japan, managers assumed that Japanese girls would find the doll's design just as appealing as American girls did. This may be due to: A) Barbie's physical features such as long legs and blonde hair. B) Barbie being a symbol of American lifestyle. C) the SRC tendency on the part of American managers. D) the SRC tendency on the part of Japanese consumers. E) the limited competition for dolls in Japan.
C) the SRC tendency on the part of American managers
Dietrich Mateschitz, Red Bull's creator, stated "When we first started, we said that there is not an existing market for Red Bull." The reasons behind Red Bull's success include all of the following except: A) a market was created for Red Bull. B) a market segment was found with unmet needs. C) the blue-and-silver color on cans helped in Red Bull's popularity. D) orthodox advertising strategies were used with tactics. E) The Red Bulletin magazine helped in Red Bull's popularity.
C) the blue-and-silver color on cans helped in Red Bull's advertising strategies
Dietrich Mateschitz, Red Bull's creator, stated "When we first started, we said that there is not an existing market for Red Bull." The reasons behind Red Bull's success include all of the following except: A) a market was created for Red Bull. B) a market segment was found with unmet needs. C) the blue-and-silver color on cans helped in Red Bull's popularity. D) orthodox advertising strategies were used with tactics. E) The Red Bulletin magazine helped in Red Bull's popularity.
C) the blue-and-silver color on cans helped in Red Bull's popularity.
51) Rugman and D'Cruz have developed an alternative framework to Porter's five forces model. The framework, based on business networks, is called: A) the differentiation model. B) strategic intent. C) the flagship model. D) the hypercompetition model. E) the Rugman & D'Cruz model.
C) the flagship model.
Rugman and D'Cruz have developed an alternative framework to Porter's five forces model. The framework, based on business networks, is called: A) the differentiation model. B) strategic intent. C) the flagship model. D) the hypercompetition model. E) the Rugman & D'Cruz model.
C) the flagship model.
While some food preferences remain deeply embedded in culture, there is plenty of evidence that global dietary preferences are converging. Examples of such a change can be predicted from: A) the popularity of Domino's Pizza in Italy. B) the preference for local hamburgers from a local chain, Jollibee's, in the Philippines. C) the growing number of McDonald's restaurants globally. D) the increased sales of soups and noodles in Thailand. E) popularity of Chinese foods in Taiwan.
C) the growing number of McDonald's restaurants globally
One of the reasons why the initial enthusiasm for OLPC [one laptop per child] did not translate into firm commitments for orders was: A) the computer XO was not rugged enough to handle heavy use and abuse. B) the computer XO was not dust and water proof, dust being a major problem in many countries. C) the higher price of computer XO. D) the images were bright even in sunlight. E) the computer XO did not have Wi-Fi community.
C) the higher price of computer XO
Industry observers expect the popularity of home shopping to increase during the next few years due to: A) the formation of European Union. B) the economic development in India. C) the introduction of interactive television. D) the introduction of iPhone. E) the introduction of TV shops.
C) the introduction of interactive television
A characteristic of a low-context culture which is prevalent in the United States, Switzerland, and Germany is that: A) less information is contained in verbal communication. B) major emphasis on a person's values and position in society. C) the messages are explicit and specific. D) a person's word is his or her bond. E) the negotiations are long and protracted.
C) the messages are explicit and specific
The advertising promise that captures the reason that people buy products is known as: A) creative strategy. B) the advertising appeal. C) the selling proposition. D) the creative execution. E) the big idea.
C) the selling proposition
The advertising promise that captures the reason that people buy products is known as: A) creative strategy. B) the advertising appeal. C) the selling proposition. D) the creative execution. E) the big idea.
C) the selling proposition.
) Counterfeiting is: A) the use of a formal legal document for illegal purposes. B) the ownership of a written, recorded, performed or filmed creative work. C) the unauthorized copying or production of a product. D) the use of a product name that has different meaning than the original brand. E) the use of a distinctive mark of a brand that is no longer producing the original brand.
C) the unauthorized copying or production of a product
In Southern China, McDonald's is careful not to advertise prices with multiple occurrences of the number four because: A) prices ending in odd numbers are preferred in China. B) there is no number four in the Chinese language. C) the word four is pronounced similar to the word death in Cantonese. D) multiple occurrences are considered as unlucky in China. E) prices are not included on menus in China.
C) the word four is pronounced similar to the word death in Cantonese.
In Southern China, McDonald's is careful not to advertise prices with multiple occurrences of the number four because: A) prices ending in odd numbers are preferred in China. B) there is no number four in the Chinese language. C) the word four is pronounced similar to the word death in Cantonese. D) multiple occurrences are considered as unlucky in China. E) prices are not included on menus in China.
C) the word four is pronounces similar to the word death in Cantonese
One Friday a few years ago, the Big Mac Index suggested that the yen was overvalued relative to the dollar by 70%. When currency markets opened on the following Monday, anyone using the Big Mac Index would conclude that the yen was only 20% overvalued relative to the dollar. What is the most likely explanation for this? A) Japan's Central Bank acted to prop up the yen. B) Inflation in Japan suddenly spiked upward. C) McDonald's headquarters stopped hedging. D) McDonald's Japan reduced the yen price of a Big Mac. E) McDonald's Japan increased the yen price of a Big Mac.
D) McDonald's Japan reduced the yen price of a Big Mac
Which automaker was described as using an ethnocentric approach to setting prices in the United States? A) Toyota B) Nissan C) Volkswagen D) Mercedes E) Lexus
D) Mercedes
Upper-middle-income countries that achieve the highest rates of economic growth are sometimes referred to collectively as: A) LDCs. B) BEMs. C) BRICs. D) NIEs. E) BOPs.
D) NIEs
Which of the following is true about revised U.S. patent laws? A) Patents are valid for 17 years after the patent is granted. B) Patents are valid for 17 years after the patent is filed. C) Patents are valid for 20 years after the patent is granted. D) Patents are valid for 20 years after the filing date of the application. E) Patents are valid as long as the product is manufactured.
D) Patents are valid for 20 years after the filing date of the application
Which company ranks number one in terms of worldwide ad spending for the year 2011? A) General Motors B) Philip Morris C) Unilever D) Procter & Gamble E) Coca-Cola
D) Procter & Gamble
There is nothing inherently "good" or "bad" about any color of the spectrum and all associations and perceptions regarding color arise from culture. Which of the following statements is not true? A) Red is a popular color in most parts of the world. B) Red color is associated with "active," "vibrant," and "emotional." C) Red color is preferred in many countries since it is the color of blood. D) Red color is highly preferred in some African countries. E) Red color is tied to the traditions of viticulture and winemaking.
D) Red color is highly preferred in some African countries
Devaluation can result from government action or an economic crisis. In August 1998, the Russian economy imploded. As a result, all of the following listed events happened except: A) the ruble plunged in value. B) the government defaulted on its foreign debt obligation. C) many Russians faced wage cuts and layoffs. D) Russia's economy did not recover from the impact. E) savings were wiped out as banks collapsed.
D) Russia's economy did not recover from the impact
The German civil-law tradition prevails in all of the following countries except: A) Poland. B) Hungary. C) Czech Republic. D) Scandinavia. E) Germany.
D) Scandanavia
Toyota learned many things from its partnership with GM, however American Managers involved in the venture complained that: A) Toyota learned many things about U.S. supply system. B) Toyota learned about U.S. transport system. C) Toyota learned about managing American workers. D) Toyota did not apply manufacturing expertise at GM plant. E) Toyota applied expertise at its Camry plant.
D) Toyota did not apply
The non-EU member which uses the euro as its currency is: A) Estonia. B) Kosovo. C) Montenegro. D) Vatican City. E) San Marino.
D) Vatican City
Tobacco companies in Central Europe face the prospect of tougher marketing and advertisement regulations due to: A) the growing concern about health hazards associated with smoking. B) a dislike of global brands crowding out local brands. C) a desire to return to communist-era policies. D) a desire to comply with EU entry requirements. E) the pressure from neighboring countries.
D) a desire to comply with EU entry requirements.
A ban on billboards in Brazil meant they have to come down, and in addition, transit ads on buses and taxis were not allowed. Denied access to traditional outdoor advertising, companies devised a number of alternative ways to communicate with prospective customers. These ways included all of the following except: A) Citibank used the color blue in much of its advertising. B) ads were placed indoors in elevators. C) ads were placed in rest rooms and other indoor traffic areas. D) ads were placed on buses. E) ads were placed using social media or online channels.
D) ads were placed on buses
A ban on billboards in Brazil meant they have to come down, and in addition, transit ads on buses and taxis were not allowed. Denied access to traditional outdoor advertising, companies devised a number of alternative ways to communicate with prospective customers. These ways included all of the following except: A) Citibank used the color blue in much of its advertising. B) ads were placed indoors in elevators. C) ads were placed in rest rooms and other indoor traffic areas. D) ads were placed on buses. E) ads were placed using social media or online channels.
D) ads were placed on buses.
Japan's Fuji Photo Film asked its advertising agency to develop an advocacy campaign for the United States targeted to appeal both to Walmart and to its customers. This is an example of: A) local advertising. B) pattern advertising. C) global advertising. D) advocacy advertising. E) image advertising.
D) advocacy advertising
Japan's Fuji Photo Film asked its advertising agency to develop an advocacy campaign for the United States targeted to appeal both to Walmart and to its customers. This is an example of: A) local advertising. B) pattern advertising. C) global advertising. D) advocacy advertising. E) image advertising.
D) advocacy advertising.
Benefits for using sales agents include all of the following except: A) agents work under contract rather than as full-time employees. B) agents are less expensive than full-time, in-country national sales representatives. C) agents possess the same market knowledge as in-country nationals. D) agents can eventually replace manufacturer's sales agents. E) agents possess the same cultural knowledge as in-country nationals.
D) agents can eventually replace manufacturer's sales agents
Benefits for using sales agents include all of the following except: A) agents work under contract rather than as full-time employees. B) agents are less expensive than full-time, in-country national sales representatives. C) agents possess the same market knowledge as in-country nationals. D) agents can eventually replace manufacturer's sales agents. E) agents possess the same cultural knowledge as in-country nationals.
D) agents can eventually replace manufacturer's sales agents.
For consumer products, qualitative research is especially well suited to accomplish all of the following tasks except: A) provide consumer understanding. B) describe the social and cultural context of consumer behavior. C) identify core brand equity and brands. D) assess consumer spending trends. E) what consumers really feel.
D) assess consumer spending trends
Which of the following shows the correct order of the product adoption process? A) evaluation→trial→awareness→interest→adoption B) trial→interest→evaluation→awareness→adoption C) interest→awareness→adoption→trial→evaluation D) awareness→interest→evaluation→trial→adoption E) adoption→evaluation→trial→interest→awareness
D) awareness→interest→evaluation→trial→adoption
33) Which of the following is not identified by Porter as one of the five forces that explains competition in an industry? A) threat of new entrants B) threat of substitute products or services C) bargaining power of suppliers D) bargaining power of competitors E) the competitive rivalry among current members
D) bargaining power of competitors
Which of the following is not identified by Porter as one of the five forces that explains competition in an industry? A) threat of new entrants B) threat of substitute products or services C) bargaining power of suppliers D) bargaining power of competitors E) the competitive rivalry among current members
D) bargaining power of competitors
Campbell's Soup is making significant inroads into Japan's $500 million soup market as time-pressed homemakers place a premium on convenience. This type of consumer segmentation by Campbell's Soup is referred to as: A) demographic. B) occupational. C) psychographic. D) benefit. E) behavioral.
D) benefit
The effective integration of products and brands with entertainment can be seen on the TV hit American Idol. This type of trend is referred to as: A) advertising age. B) traditional advertising. C) global advertising. D) branded entertainment. E) image entertainment.
D) branded entertainment
The effective integration of products and brands with entertainment can be seen on the TV hit American Idol. This type of trend is referred to as: A) advertising age. B) traditional advertising. C) global advertising. D) branded entertainment. E) image entertainment.
D) branded entertainment.
Would-be franchisors ask all of the following questions except one before expanding overseas: A) How tough is the local competition? B) Does the government respect trademark and copyrights? C) Can profits be easily repatriated? D) Can products be easily counterfeited? E) Is commercial space available?
D) can products be easily counterfeited?
When companies adopt "indirect involvement" channel they have all of the following activities except: A) utilize independent agents. B) use distributors. C) utilize retailers. D) establish their own sales force. E) utilize those who have network of stores.
D) establish their own sales force
Alfred Zeien, former chairman of Gillette, once noted that his company's Parker Pen unit does not have to develop a special model for Malaysia and Singapore because shoppers worldwide seek the same things when buying a gift that will serve the recipient as a status symbol. This insight relates to which level of Maslow's hierarchy of needs? A) physiological B) safety C) social D) esteem E) self-actualization
D) esteem
Peppers and Rogers described different steps that are involved in one-to-one marketing. These steps include all of the following except: A) identify. B) differentiate. C) interact. D) evaluate. E) customize.
D) evaluate.
Critical marketing tool for global companies such as Red Bull is: A) sampling. B) sweepstakes. C) couponing. D) event marketing. E) personal selling.
D) event marketing
Critical marketing tool for global companies such as Red Bull is: A) sampling. B) sweepstakes. C) couponing. D) event marketing. E) personal selling.
D) event marketing.
In Singapore, Coca-Cola wanted to develop an advertisement program. They selected a group of teenagers in a room, and a trained moderator facilitated discussion asking questions on brand's image, advertisement, social trends, TV watching habits, and snack usage. This type of research is called: A) survey research. B) observational studies. C) comparison studies. D) focus group research. E) experimental research.
D) focus group research
49) Which of the following generic strategies best captures the way Harley-Davidson has achieved competitive advantage in the global motorcycle industry? A) cost leadership B) differentiation C) cost focus D) focused differentiation E) cost differentiation
D) focused differentiation
50) Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the high-end audiophile segment of the consumer electronics industry. If analyzed in terms of Porter's generic strategies framework, such companies might be said to be pursuing competitive advantage via: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer differentiation.
D) focused differentiation.
Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the high-end audiophile segment of the consumer electronics industry. If analyzed in terms of Porter's generic strategies framework, such companies might be said to be pursuing competitive advantage via: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer differentiation.
D) focused differentiation.
Pollo Campero, a chicken restaurant chain based in Central America, is using the following method for expanding operations in the United States: A) joint ventures. B) licensing. C) exporting. D) franchising. E) acquisition.
D) franchising
Arrange the following in order from lowest to highest level of economic integration. A) customs union→economic union→free trade area→common market B) economic union→customs union→common market→free trade area C) common market→free trade area→economic union→customs union D) free trade area→customs union→common market→economic union E) common market→economic union→customs union→free trade area
D) free trade area→customs union→common market→economic union
The export and import process can entail red tape and bureaucratic delays. In an effort to facilitate exports, countries are designating certain areas as: A) import control zones. B) special tariff zones. C) global business zones. D) free trade zones. E) duty free zones.
D) free trade zones
The export and import process can entail red tape and bureaucratic delays. In an effort to facilitate exports, countries are designating certain areas as: A) import control zones. B) special tariff zones. C) global business zones. D) free trade zones. E) duty free zones.
D) free trade zones.
________ are licensed specialists in traffic operations, customs clearance, and shipping tariffs and schedules. They can be considered as the travel agents for handling export goods. A) Foreign purchasing agents B) Export brokers C) Export merchants D) Freight forwarders E) Cooperative exporters
D) freight forwarders
Competitive advertising may impair the effectiveness of the message due to the fact that it may: A) not reach the intended recipient. B) reach the intended recipient but is misunderstood. C) reach the intended recipient and is understood, but the recipient may fail to take action. D) get distorted by noise. E) only be in one language.
D) get distorted by noise.
When Tag Heuer, a marketer of luxury watches, takes out newspaper ads urging consumers to purchase Tag Heuer products from authorized dealers only, the company is most likely attempting to combat the ________ problem. A) countertrade B) market holding C) price escalation D) gray market E) market skimming
D) gray market
Walmart's exit from the German market was due, in part, to the fact that German shoppers could find lower prices at stores known as: A) All-in-one stores. B) Dollar stores. C) Discount sores. D) Hard discounters. E) Fresh & Easy stores.
D) hard discounters
Pursuing alternative sources of energy, such as wind and solar power, is important due to the fact that: A) people in developing countries are more conscious about the environment. B) global marketers are more interested in publicizing environmental issues. C) it is easy to develop solar power in many parts of the world. D) heavy reliance on fossil fuels contributes to global warming. E) people worldwide can afford to buy power generated from wind and solar.
D) heavy reliance on fossil fuels contributes to global warming
Del Vecchio, the Italian entrepreneur's business principles include all but one of the following: A) "Made in Italy" is important. B) Must cut costs to keep production at home. C) Invest in automation. D) Hire qualified personnel. E) Invest in Robots, not workers.
D) hire qualified personnel
73) The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces. A) five forces model B) generic strategies C) strategic intent D) hypercompetition E) factor conditions
D) hypercompetition
The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces. A) five forces model B) generic strategies C) strategic intent D) hypercompetition E) factor conditions
D) hypercompetition
Competitive business environment is now characterized by all of the following except: A) unprecedented degrees of turbulence. B) dynamism. C) unpredictibility. D) inadaptability. E) environmental responsiveness.
D) inadaptability
Predicting economic and income growth rates is particularly important when researching which type of market? A) existing markets B) latent markets C) parallel markets D) incipient markets E) local markets
D) incipient markets
The Gross Domestic Product (GDP), a measure of a nation's economic activity, is calculated by all of the following factors except: A) consumer spending. B) investment spending. C) government purchases D) industry purchases. E) net exports.
D) industry purchases
The American Automobile Labeling Act clarifies all of the following except: A) country of foreign. B) final assembly point. C) the percentages of the major sources of every car and truck. D) information about car dealer. E) aesthetic style.
D) information about car dealer
Other than tariffs, there are certain problems that restrict free trade between the European Union and the United States which includes all of the following except: A) use of genetically modified agricultural products. B) product labeling. C) Hollywood movie domination. D) Internet usage. E) cultural diversity.
D) internet usage
When managers at Matsushita realized that cost advantages in TV production were often fleeting, they added quality and reliability advantages, thus establishing: A) loose bricks. B) a "double diamond." C) attribute diversity. D) layers of advantage. E) buyer power.
D) layers of advantage
61) When managers at Matsushita realized that cost advantages in TV production were often fleeting, they added quality and reliability advantages, thus establishing: A) loose bricks. B) a "double diamond." C) attribute diversity. D) layers of advantage. E) buyer power.
D) layers of advantage.
In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has: A) attribute diversity. B) marketing breadth. C) comparative advantage. D) layers of advantage. E) a "double diamond."
D) layers of advantage.
When managers at Matsushita realized that cost advantages in TV production were often fleeting, they added quality and reliability advantages, thus establishing: A) loose bricks. B) a "double diamond." C) attribute diversity. D) layers of advantage. E) buyer power.
D) layers of advantage.
In India, only about 10% of men who shave use Gillette razors. Worldwide, 50% of male shavers use Gillette products. To achieve greater penetration in India, Gillette rolled out a no-frills brand that costs 15 rupees—about 34 cents. The Gillette Guard has a lighter handle that is cheaper to produce. It also lacks the lubrication strip found in Gillette's more expensive razors, and replacement blades cost only 5 rupees (11 cents). This use of data and process are described as: A) demand pattern analysis. B) income elastic analysis. C) factor analysis. D) market estimation by analogy. E) multidimensional scaling.
D) market estimation by analogy
To win a contract to supply the United Kingdom with AWACS military aircraft, Boeing agreed to purchase products from the United Kingdom whose value was equivalent to 130% of the contract. This type of pricing arrangement, which is common when the customer is a foreign government and the product has military applications, is known as: A) barter. B) switch trading. C) compensation trading. D) offset. E) dumping.
D) offset
Which of the following is not a characteristic of global strategic alliances? A) Participants maintain independence outside the framework of alliance. B) Participants share benefits as well as control. C) Participants make ongoing contributions in technology, products, and other areas. D) Participants focus on an individual country market. E) Participants share benefits of the alliance.
D) participants focus on an individual country market
The only marketing mix element that is applicable in the export selling is: A) price. B) product. C) promotion. D) place. E) process.
D) place.
A company adopting a(n) ________ approach to worldwide PR activities gives the host-country practitioner maximum leeway to incorporate local customs and practices into the PR effort. A) ethnocentric B) regiocentric C) local D) polycentric E) publicity
D) polycentric
A massive effort dubbed as "Moses Project" is underway in Venice in order to: A) promote passive tourism. B) reduce the number of billboards on historic sites. C) provide biblical information to tourists. D) prevent flooding. E) modernize accommodations.
D) prevent flooding
Germany's Bayer Group was fined millions of dollars to settle a lawsuit alleging it had conspired with Archer Daniels Midland and other global companies to set prices for an enzyme used in animal feeds. What was the issue in this lawsuit? A) price skimming B) market penetration C) price bundling D) price fixing E) dumping
D) price fixing
Nintendo was fined nearly $150 million after it was determined that the video game company had colluded with European distributors. The distributors in countries with lower retail prices had agreed not to sell to retailers in countries with high prices. This is a classic example of: A) price skimming. B) market penetration. C) price bundling. D) price fixing. E) transfer pricing.
D) price fixing
Celeste Atkinson is a lifestyle and entertainment manager for Audi, and her job is to create buzz by ensuring that vehicles such as the Audi A8L and the S8 sports sedan figure in paparazzi photos. This is referred to as: A) lifestyle placement. B) blockbuster placement. C) promotion placement. D) product placement. E) photo placement.
D) product placement
Celeste Atkinson is a lifestyle and entertainment manager for Audi, and her job is to create buzz by ensuring that vehicles such as the Audi A8L and the S8 sports sedan figure in paparazzi photos. This is referred to as: A) lifestyle placement. B) blockbuster placement. C) promotion placement. D) product placement. E) photo placement.
D) product placement.
Campbell's has been marketing soup in Japan for more than 40 years. Early on, Japanese consumers were not receptive to ads featuring the Campbell Kids and the "M'm M'm Good" slogan. This compelled Campbell's to develop ads featuring a talking soup can known as "Mr. Campbell." Campbell's also developed soup varieties for Japan with fish as the main protein source and spices that reflect local preferences. As described here, which of the following strategies has Campbell's used in Japan? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) product-communication adaptation E) product invention
D) product-communication adaptation
Prior to 2004, Nokia launched different cell phone products in different countries at different times. Nokia also used different advertising images and messages in different countries. Which approach to the world marketplace was Nokia using? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) product-communication adaptation E) product invention
D) product-communication adaptation
One task of the ________ department is to generate nonpaid forms of communication to foster goodwill among customers and others. A) sales promotion B) global marketing C) headquarters D) public relations E) advertising
D) public relations
Fires caused by faulty lithium-ion batteries on the new 787 Dreamliner resulted in all aircraft being grounded until the problem could be resolved caused ________ for Boeing Corporation in the United States. A) pricing problems B) distribution problems C) sales promotion problems D) public relations problems E) advertising problems
D) public relations problems
In India, consumers do not like to be locked in to long-term contracts, and Apple distributes its iPhone exclusively through stores operated by Airtel, an Indian carrier, and Vodaphone. This pricing is an example of: A) gray market. B) price bundling. C) market skimming. D) razors and blades. E) cost-based.
D) razors and blades
According to Michael Porter's research on the competitive advantage of nations, Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) formation of the European Union.
D) related and supporting industries
69) According to Michael Porter's research on the competitive advantage of nations, Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) formation of the European Union.
D) related and supporting industries.
According to Michael Porter's research on the competitive advantage of nations, Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) formation of the European Union.
D) related and supporting industries.
Procter & Gamble's introduction of All-Temperature Cheer laundry detergent in Japan was a flop at first. The problem was that Japanese women wash clothes in cold water—either tap water or leftover bath water—so they don't care about all-temperature washing (which is a big selling point in the United States). Also, Cheer was first introduced in Japan at a time when the market for fabric softeners in Japan was rapidly expanding. However, when Japanese housewives added lots of fabric softener to the water, Cheer didn't produce many suds (Americans don't use as much fabric softener). P&G reformulated the product so it wouldn't be affected by fabric softeners, and ads for Cheer in Japan pledged superior cleaning in cold water, not all temperatures. Which of the following might have helped P&G avoid the initial problems with Cheer? A) Maslow's hierarchy B) high vs. low context culture C) diffusion of innovation D) self-reference criterion E) polycentric orientation
D) self-reference criterion
An intern from the United Kingdom was working in an American software company during summers. One day her boss gave her a memo asking her to post it, with the intention of having it put on the bulletin board. To her boss's surprise the letter was mailed by the intern since the word "post" means "mail" in British English. In communication terms this error can be attributed due to: A) syntax. B) phonology. C) morphology. D) semantics. E) semiotics.
D) semantics
Which of the following would not be used by an exporter with a weak home-country currency? A) Expand product line and add more costly features. B) Speed repatriation of foreign-earned income. C) Buy advertising, insurance, and other services in home-country market. D) Shift sourcing outside home-country market. E) Exploit marketing opportunities in all markets.
D) shift sourcing outside home-country market
The organizational decision to purchase production inputs, components, or finished goods from domestic or foreign producers is known as the ________ decision. A) import/export B) NTB C) preferential D) sourcing E) security
D) sourcing
The Big Mac Index shows that the price of the Big Mac in China converted from the local currency, yuan, to be $2.18, whereas its price in the United States is $3.73. This shows that: A) the Big Mac is more popular in China than in the United States. B) the Big Mac is less expensive in the United States than in China. C) the Chinese yuan is overvalued when compared to US $. D) the Chinese yuan is undervalued against the US $. E) beef is less expensive in China than in the United States.
D) the Chinese yuan is undervalued against the US $
Islamic law is a comprehensive code based in part on: A) Anglo-Saxon common law. B) Roman law and the Napoleonic Code. C) the Uniform Commercial Code. D) the Koran. E) the French Civil Code.
D) the Koran
The choice between demonstration, slice-of-life, straight sell, and other advertising forms is a matter of: A) the creative strategy. B) the advertising appeal. C) the selling proposition. D) the creative execution. E) the big idea.
D) the creative execution.
The U.S. Justice Department objected to a recent patent license agreement between S.C. Johnson & Sons and Bayer AG. The antitrust unit at the Justice department objected to: A) the duration of the license. B) the amount of royalties Johnson agreed to pay. C) Bayer's attempts to circumvent FDA policies. D) the exclusive nature of the license agreement. E) the hostile arrangement between Bayer and Johnson.
D) the exclusive nature of the license agreement
Global marketers must understand the importance of visual aesthetics embodied in the color or shape of a product, label, or package. Which of the following statements is not true regarding the use of color in selected countries? A) Yellow color on Caterpillar's earthmoving equipment is acceptable worldwide. B) Packaging aesthetics are particularly important to the Japanese. C) White color is associated with death and bad luck in some Asian countries. D) The red Marlboro color had to be changed in some Asian countries. E) Chinese consider the red color to be lucky.
D) the red Marlboro color had to be changed in some Asian countries
During the past two decades, the world economic environment has become increasingly dynamic. To achieve success, executives and marketers must take into account all of the following realities except: A) capital movements have replaced trade as the driving force of the world economy. B) production has become "uncoupled" from employment. C) the world economy dominates the scene. D) the struggle between capitalism and socialism continues. E) the growth of e-commerce diminishes the importance of national barriers.
D) the struggle between capitalism and socialism continues
Regulators in different countries have proposed various regulations for product labeling. All of the following statements pertaining to such regulations are true except: A) mandatory health warnings on tobacco products are required in most countries. B) the American Automobile Labeling Act clarifies the country of origin as well as the final assembly point. C) in 2008, the United States enacted a country of origin labeling (COOL) law. D) the use of terms "light" and "natural" are allowed on labels only in the United States. E) McDonald's is posting nutrition information on all food packaging and wrappers in selected markets.
D) the use of terms "light" and "natural" are allowed on labels only in the United States
When companies operate abroad in the absence of home-country legal constraints, the best choice for ethical conduct would be: A) to ignore bribery and act as if it does not exist. B) to maintain home-country ethics worldwide with no adaptations. C) to abandon any attempt to maintain company ethics. D) to have a product that is clearly superior to that of the competition. E) to adapt in varying degrees to local customs and practices.
D) to have a product that is clearly superior to that of the competition
The corporate development team at Virgin evaluates more than a dozen proposals each day from outside and within the company. When assessing new-product ideas, they look for all of the following except: A) synergy with existing Virgin products. B) pricing and return on investment. C) marketing opportunities. D) if the idea "uses or abuses" the Virgin brand. E) aesthetic attributes of competitors products.
E) aesthetic attributes of competitors products
A firm without much export experience uses the rigid cost-based pricing method. Which of the following considerations is the exporter ignoring? A) Is the price competitive in view of local market conditions? B) Does the price reflect the product's quality? C) Will authorities in export markets view the price as reasonable or exploitative? D) Does the price take antidumping laws into consideration? E) all of the above
E) all of the above
Japan's giant Matsushita Electric Company achieved scale economies by exporting VCRs, televisions, and other consumer electronics products throughout the world from world-scale factories in Japan. This is an example of the fact that: A) scale economies were a cornerstone of Japanese success in the 1970s and 1980s. B) leverage from scale economies is not limited to manufacturing. C) a global company can achieve the same economies on a global scale. D) the larger scale of the global company also creates opportunities to improve corporate staff competence and quality. E) all of the above
E) all of the above
Management strategic options pertaining to products that are facilitated by a single European market include: A) standardized packaging and labeling. B) consolidated production. C) shift from brand to benefit segmentation. D) seeking marketing economies. E) all of the above
E) all of the above
Recently, the Organization for Economic Cooperation and Development (OECD) has become more focused on global issues, social policy, and labor market regulations as seen by: A) addressing the vexing problem of bribery. B) requiring members to cooperate when pursuing bribery allegations. C) helping members candidly assess their own economic policies. D) member nations working together in committees to review social policies. E) all of the above
E) all of the above
The fastest-growing sector of world trade includes: A) travel and entertainment. B) accounting and legal services. C) royalties and license fees. D) engineering services. E) all of the above
E) all of the above
Which of the following correctly reflects marketing expert David Arnold's recommendations for companies engaged in global market research? A) use multiple indicators B) develop customized measures specific to an industry or product C) conduct comparative assessments in neighboring countries D) observation should be weighted more heavily than statements of purchase intention E) all of the above
E) all of the above
Which of the following environmental characteristics affects use of direct marketing in Europe? A) the European Commission's concern about privacy B) high postal rates in several European countries C) industries in Europe are still developing complete mailing lists D) linguistic, cultural, and regional diversity E) all of the above
E) all of the above
Which of the following environmental factors may require marketers to adjust their approach to conducting international as opposed to domestic marketing research? A) Researchers must be prepared for new parameters of doing business. B) Company personnel must come to grips with a new set of culture-based assumptions about conducting business. C) Research may help reduce psychological overload. D) Researchers may have to broaden the definition of competitors to include competitive pressures not present in the domestic market. E) all of the above
E) all of the above
Which of the following is true of the arbitration framework created by the New York Convention? A) Signatory countries can require parties to an arbitration agreement to actually use arbitration. B) Signatory countries recognize and can enforce arbitration judgments. C) There are limited grounds for appealing arbitration decisions. D) The grounds that are recognized are different than the typical appeals that are permitted in a court of law. E) all of the above
E) all of the above
Which of the following is an appropriate guideline for companies selecting independent distributors in international markets? A) Select distributors; don't let them select you. B) Look for distributors capable of developing markets. C) Treat local distributors as long-term partners. D) Maintain control over marketing strategy from day one. E) All of the above are appropriate guidelines.
E) all of the above are appropriate guidelines
Marketers must be aware of the impact of SRC and other cultural assumptions since: A) it can have several positive effects on market planning. B) it enhances management's willingness to pursue market research. C) it can help ensure that the research effort is designed with minimal home-country bias. D) it can help ensure that the research effort is designed with minimal second-country bias. E) All of the above are correct.
E) all of the above are correct
Which of the following is true about the innovation diffusion process in Asia? A) Japan has a high-context culture with a relatively homogeneous population. B) Because risk avoidance is a cultural value, there are fewer innovators in Asia than in the United States. C) Once innovators in Asia have tried a product, early adopters and the early majority quickly follow suit. D) After a new product has achieved success in one Asian market, it is likely to be adopted in other Asian markets at an even faster rate. E) All of the above are true.
E) all of the above are true
The efforts of global companies to reach low-income consumers in emerging markets highlight the importance of skillful global market segmentation and targeting. Market segmentation represents: A) targeting prospective customers. B) finding customers who can respond to advertisement. C) promoting products and services internationally. D) identifying customers who can help in promoting products. E) an effort to identify and categorize customers based on common characteristics.
E) an effort to identify and categorize customers based on common characteristics
Chance events play a role in shaping the competitive environment. Chance events are occurrences which include all but one of the following: A) major technological breakthroughs. B) wars and their aftermath. C) oil crisis. D) currency fluctuations. E) annual business meeting.
E) annual business meeting
71) Chance events play a role in shaping the competitive environment. Chance events are occurrences which include all but one of the following: A) major technological breakthroughs. B) wars and their aftermath. C) oil crisis. D) currency fluctuations. E) annual business meeting.
E) annual business meeting.
Chance events play a role in shaping the competitive environment. Chance events are occurrences which include all but one of the following: A) major technological breakthroughs. B) wars and their aftermath. C) oil crisis. D) currency fluctuations. E) annual business meeting.
E) annual business meeting.
In the six-step presentation plan, the first and last steps are respectively: A) presentation; demonstration. B) approach; close. C) presentation; negotiation. D) approach; presentation. E) approach; servicing the sale.
E) approach; servicing the sale
) In the six-step presentation plan, the first and last steps are respectively: A) presentation; demonstration. B) approach; close. C) presentation; negotiation. D) approach; presentation. E) approach; servicing the sale.
E) approach; servicing the sale.
When a survey questionnaire in English is translated into Korean for use in South Korea and then translated back into English to check its accuracy, it is described as: A) incipient translation. B) comparative translation. C) native translation. D) parallel translation. E) back translation.
E) back translation
Procter & Gamble has identified a group of consumers in Europe who are willing to pay premium prices for pet food that will improve the health of their pets. This is an example of ________ segmentation. A) demographic B) psychographic C) ethnic D) behavioral E) benefit
E) benefit
Which of the following is not one of the four arenas in which dynamic strategic interactions are played out in hypercompetitive industries? A) cost/quality B) timing and know-how C) entry barriers D) deep pockets E) buyer and supplier power
E) buyer and supplier power
Traditionally economists identified main types of economic systems, which include all of the following except: A) market capitalism. B) market socialism. C) centrally planned socialism. D) centrally planned capitalism. E) centrally planned nationalism.
E) centrally planned nationalism
The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all the players to undertake all of the following except: A) develop new products. B) improve existing products. C) lower costs and prices. D) develop new technologies. E) change the rules of engagement.
E) change the rules of engagement
The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all the players to undertake all of the following except: A) develop new products. B) improve existing products. C) lower costs and prices. D) develop new technologies. E) change the rules of engagement.
E) change the rules of engagement.
One study of adult involvement in household tasks revealed greater similarities between the United Kingdom and the United States compared with France, Belgium, and French Canada. Thus, the United States and United Kingdom were "twins" based on common language. This study is an example of: A) market latency. B) conjoint analysis. C) factor analysis. D) multidimensional scaling. E) cluster analysis.
E) cluster analysis
Campbell is the world's largest soup company, commanding about 80% of the U.S. canned soup market. However, the company has a presence in only 6% of the world's soup markets. Russians eat 32 billion servings of soup each year, and the Chinese consume 300 billion! By contrast, Americans eat 15 billion servings each year. Sensing a huge opportunity, Campbell has dispatched teams to observe Russian and Chines habits. This type of interpretation and decision is based on: A) demand pattern analysis. B) income elastic analysis. C) time series displacement. D) polycentrism. E) comparative analysis.
E) comparative analysis
Companies that use "contract manufacturing" provide all of the following advantages except: A) technical specifications to subcontractors. B) technical specifications to local manufacturers. C) licensing firm can specialize in product marketing. D) limited commitment of financial resources. E) considerable commitment of management resources.
E) considerable commitment of management resources
The visionary strategy of the Chief Executive Officer of Volkswagen which included switching the German plants entirely to the new model, failed due to all but one of the following reasons: A) resistance on the part of German unions. B) confusion among American dealers about where it was made. C) investment of billions of dollars in Skoda autoworks in Czechoslovakia. D) investment in SEAT in Spain. E) continued demand for Beetle model in the United States.
E) continued demand for Beetle model in the United States
80) The visionary strategy of the Chief Executive Officer of Volkswagen which included switching the German plants entirely to the new model, failed due to all but one of the following reasons: A) resistance on the part of German unions. B) confusion among American dealers about where it was made. C) investment of billions of dollars in Skoda autoworks in Czechoslovakia. D) investment in SEAT in Spain. E) continued demand for Beetle model in the United States.
E) continued demand for Beetle model in the United States.
The visionary strategy of the Chief Executive Officer of Volkswagen which included switching the German plants entirely to the new model, failed due to all but one of the following reasons: A) resistance on the part of German unions. B) confusion among American dealers about where it was made. C) investment of billions of dollars in Skoda autoworks in Czechoslovakia. D) investment in SEAT in Spain. E) continued demand for Beetle model in the United States.
E) continued demand for Beetle model in the United States.
Which pricing strategy has the advantage of being simple to calculate but has the disadvantage of ignoring demand and competitive conditions? A) gray marketing B) skimming C) penetration D) market holding E) cost-based
E) cost based
New entrants to an industry bring all of the following except: A) new capacity. B) desire to gain market share. C) desire to gain market position. D) new approaches to customer needs. E) decline in per-unit product costs.
E) decline in per-unit product costs
New entrants to an industry bring all of the following except: A) new capacity. B) desire to gain market share. C) desire to gain market position. D) new approaches to customer needs. E) decline in per-unit product costs.
E) decline in per-unit product costs.
Physical distribution and logistics are concerned with all but one of the following: A) order processing. B) warehousing. C) inventory management. D) transportation. E) designing in-store displays.
E) designing in-store displays
Anyone undertaking a market research project should understand that the first step is: A) setting the budget. B) determining the methodology to use. C) deciding who will see the final report. D) defining the problem. E) determining the information requirement.
E) determining the information requirement
Venezuelan President Hugo Chavez believed in all of the following aspects except: A) nationalization of international companies. B) imposition of currency controls. C) free-market economic policies. D) capitalism is a structural crisis. E) energy pact known as Petrocribe.
E) energy pact known as Petrocribe
Inventory management is: A) determining what type of warehouse to manage. B) establishing an inventory channel. C) managing physical distribution of products. D) purchasing products. E) ensuring cost control.
E) ensuring cost control
In 2011, the ten most populous countries in the world accounted for just over ________ percent of the world income. A) ten B) twenty C) thirty D) forty E) fifty
E) fifty
Which of the following is not a useful guideline for U.S.-based direct marketers wishing to reach global customers? A) Do not treat prospects as though they are Americans. B) Do not automatically assume that a direct-mail campaign that works in one country will work in another country. C) Do not assume that all Europeans are similar in their tastes and wants. D) Customers should be able to return products to an address in their local country market. E) Focus on all countries included in the European Union.
E) focus on all countries included in european union
Which of the following is not an element of Rugman and D'Cruz's flagship model? A) key suppliers B) key customers C) key consumers D) selected competitors E) focused differentiation
E) focused differentiation
) In selecting an advertising agency, all but one of the following issues should be taken into consideration: A) company organization. B) national responsiveness. C) area coverage. D) buyer perception. E) franchise or company owned status.
E) franchise or company owned status.
As a starting point, firms that comply with Western cost-accounting principles typically use the pricing method known as: A) price bundling. B) target costing. C) cost-plus pricing. D) export price costing. E) full absorption cost.
E) full absorption cost
Direct representation, as opposed to representation by independent intermediaries for exporting in the market country, has several advantages which do not include: A) facilitates control and communications. B) allows decisions concerning program development and resource allocation. C) benefits when a product is not yet established in a market. D) ensures marketer's interest and special efforts. E) helps selling products directly to the consumer in the market country.
E) helps selling products directly to the consumer in the market country
Having partners from another country can have advantages which include all of the following except: A) reducing product development costs. B) securing technology. C) access to capital. D) shared risks. E) increased competition.
E) increased competition
Caterpillar's attention was focused elsewhere when Komatsu made its first international entry into the Eastern European Market. Based on the strategic intent framework, this is an example of: A) changing the rules. B) collaborating. C) comparative advantage. D) layers of advantage. E) loose bricks.
E) loose bricks
Which of the following is a disadvantage of using an expatriate sales force? A) superior product and company knowledge B) capability to institute the acceptable practices C) follow policies of the home office D) enhanced promotion prospects E) maintaining is very expensive
E) maintaining is very expensive
Among the upper-middle-income countries, also known as industrializing or developing countries, the following aspects are observed except: A) the CNI per capita ranges from $4,036 to $12,475. B) the percentage of the population engaged in agriculture drops sharply. C) people move to the industrial sector. D) the degree of urbanization increases. E) None of the above
E) none of the above
Which of the following does not fit in with the factors that should be considered by companies forming GSPs? A) Partners are competitors to each other. B) Harmony is not the most important measure of success. C) All employees and managers must understand where cooperation ends and competitive compromise begins. D) Learning from partners is critically important. E) none of the above
E) none of the above
Which of the following would not be taken into account by a company using an ethnocentric approach to pricing decisions? A) the possibility of implementing a penetration strategy B) profitable price points that could be tied to local sourcing as opposed to home-country sourcing C) integration of price with other marketing mix elements D) factors unique to individual country markets E) None of the above would be taken into account by a company using ethnocentric pricing.
E) none of the above would be taken into account by a company using ethnocentric pricing
A marketer of breakfast cereals might send researchers to preselected households at 6 A.M. to watch families go about their morning routines. The client could also assign a researcher to accompany family members to the grocery store to record their behavior under actual shopping conditions. This type of research method is considered as: A) focus group. B) invasion of privacy. C) consumer panel study. D) factor analysis. E) observation.
E) observation
Competitive advertising may impair the effectiveness of the message due to the fact that it may: A) not reach the intended recipient. B) reach the intended recipient but is misunderstood. C) reach the intended recipient and is understood, but the recipient may fail to take action. D) get distorted by noise. E) only be in one language.
E) only be in one language
Product problems initially made headlines in 2008 regarding a turbine blade manufactured by Suzlon and financed by John Deere. All of the following problems were encountered by Suzlon except: A) wind energy cracked a turbine blade and broke off a tower in Illinois. B) cracks were found on more than 60 blades on turbines run by Deere. C) Suzlon was battling product reliability and durability problems. D) Suzlon faced a cash crunch. E) policymakers in many parts of the world supported Suzlon.
E) policymakers in many parts of the world supported Suzlon
Colgate's Total is a new toothpaste brand whose formulation, imagery, and consumer appeal were designed from the beginning to translate across national boundaries. Which strategy did Colgate use with Total? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product innovation
E) product innovation
Hindustan Lever recently developed a hard candy flavored with natural fruit juice that it sells profitably in India for the equivalent of 1 cent per piece. This is Hindustan Lever's first-ever candy product. What strategy is evident here? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention
E) product invention
The following activities must be performed when goods cross international boundaries except: A) obtaining currency permit. B) packing goods for export. C) transporting the goods. D) preparing a land bill of lading. E) receiving payments.
E) receiving payments
In a contest of 45 different languages covering 60 countries, marketers for Axe Apollo invited consumers to fill out an "astronaut profile." This is an example of: A) promotion of different types for marketing. B) promotion of interest in space exploration. C) people in different countries prefer different topics. D) astronaut profile varies from country to country. E) sales promotion by global marketer.
E) sales promotion by global marketer
To fight counterfeiting, the "Disney Magical Journey" promotion was keyed to mail-in hologram stickers on genuine Disney products. Participants could win Disney DVDs, TV sets, and trips to Hong Kong Disneyland. This is an example of: A) promotion of different types for marketing. B) promotion of Disney Magical Journey. C) people in many countries prefer mail-in hologram. D) "Disney Magical Journey" is popular worldwide. E) sales promotion by global marketer.
E) sales promotion by global marketer.
Which is not considered as a long-term value? A) persistence B) sense of shame C) thrift D) ordering relationships E) search for truth
E) search for truth
Basic criteria that marketers should keep in mind while assessing opportunities in global markets include all of the following except: A) current size of the market segment. B) anticipated growth potential of the market. C) compatibility with company's overall objectives. D) competition in the market. E) securing first mover advantage.
E) securing first mover advantage
Which of the following is not one of the levels in the Asian version of Maslow's hierarchy? A) physiological B) safety C) affiliation D) admiration E) self-actualization
E) self-actualization
Standardized print campaigns can be used in all of the following except: A) visual appeal. B) industrial products. C) high-tech consumer products. D) voiceovers TV commercials. E) stereotype advertising.
E) stereotype advertising
Standardized print campaigns can be used in all of the following except: A) visual appeal. B) industrial products. C) high-tech consumer products. D) voiceovers TV commercials. E) stereotype advertising.
E) stereotype advertising.
Companies like Coca-Cola had the first-mover advantage since they were the first company to enter a global market. However, there are also first-mover disadvantages which include: A) best chance of becoming world leader. B) advantage in adapting to the local culture. C) lead in advertising and promotion exposure. D) gain business experience. E) substantial investments in marketing.
E) substantial investments in marketing
The feasibility of targeting a particular market segment can be negatively impacted by various factors which does not include: A) regulatory hurdles. B) cultural barriers. C) lack of distribution system. D) time required to establish business. E) surplus demand.
E) surplus demand
A company's efforts to effectively communicate with customers is very important. All of the following are major difficulties which can compromise an organization's attempt to communicate with customers except: A) the message does not reach the intended recipient. B) the message reaches the intended recipient but is misunderstood. C) the message reaches the intended recipient and is understood, but the recipient may fail to take action. D) the message is distorted by noise. E) the message is only in one language.
E) the message is only in one language
A company's efforts to effectively communicate with customers is very important. All of the following are major difficulties which can compromise an organization's attempt to communicate with customers except: A) the message does not reach the intended recipient. B) the message reaches the intended recipient but is misunderstood. C) the message reaches the intended recipient and is understood, but the recipient may fail to take action. D) the message is distorted by noise. E) the message is only in one language.
E) the message is only in one language.
What happens if a nation has allowed a case against it to be brought before the ICJ (International Court of Justice) and then refuses to accept a judgment against it? A) American Arbitration Association can be sought for justice. B) UN Conference on International Trade Law can be approached. C) International Chamber of Commerce will be another source for seeking justice. D) European Court of Justice can be approached if the country is in the European Union. E) The plaintiff nation can seek recourse through the UN Security Council.
E) the plaintiff nation can seek recourse through the UN Security Council
The characteristics of home demand for a firm's products or services include all but one of the following: A) the composition of home demand. B) the size of the home demand. C) pattern of the growth of the home demand. D) means by which the home demand pushes or pulls foreign markets. E) the size of the competitors share of the home demand.
E) the size of the competitors share of the home demand
74) The characteristics of home demand for a firm's products or services include all but one of the following: A) the composition of home demand. B) the size of the home demand. C) pattern of the growth of the home demand. D) means by which the home demand pushes or pulls foreign markets. E) the size of the competitors share of the home demand.
E) the size of the competitors share of the home demand.
The characteristics of home demand for a firm's products or services include all but one of the following: A) the composition of home demand. B) the size of the home demand. C) pattern of the growth of the home demand. D) means by which the home demand pushes or pulls foreign markets. E) the size of the competitors share of the home demand.
E) the size of the competitors share of the home demand.
Governments commonly use activities to support and encourage firms that engage in exporting. Such activities include all of the following except: A) tax incentives. B) subsidies. C) export assistance. D) free trade zones. E) voting rights.
E) voting rights
Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of the competitive advantage framework developed by:
Hamel and Prahalad
The top Digital Agency Network by 2014 Interactive Marketing Revenue is:
IBM Interactive Experience.
Policy makers in some countries are concerned about U.S. control of the Internet. Positions taken by countries such as ________ state that Internet is global and no single country should be in control.
India and Brazil
Which of the following principles of disruptive innovation pertains to the notion of agnostic marketing?
Markets that don't exist can't be analyzed.
The Rugman and D'Cruz's flagship model is evident in the strategies of all but one of the following businesses:
Microsoft
A key player in the cell phone business who could have been first to market with a cell phone camera is:
Motorola
Which of the following has an American woman as the chief executive?
PepsiCo (USA)
In the 1950s, which company used transistor technology licensed from Bell Labs to develop the transistor radio?
Sony
Howard Stringer, a native of the United Kingdom, is Chairman of:
Sony (Japan).
The ability to speak foreign languages is one difference between managers born and raised in the United States and those born and raised elsewhere. Which of the following is true and reflects this statement?
There are 200 million Chinese children studying English.
________ are online retail operations that allow customers to purchase goods and services
Transaction sites
Francisco Martínez is CFO of Comercial Mexicana SA, a retail chain in Mexico. Commenting on Walmart's entry into Mexico, Mr. Martínez notes, "I buy 20,000 plastic toys, and Walmart buys 20 million. Who do you think gets them cheaper?" Which strategic principles are evident in this comment?
Walmart's buyer power and cost leadership
According to David Whitwam, former CEO of Whirlpool, one must create an organization whose people are: A) adept at exchanging ideas, processes, and symptoms. B) absolutely free of the "not-invented here" syndrome. C) constantly working together to identify best global opportunities. D) working together to solve the biggest global problems. E) able to adapt to systems across borders.
a
A broadband communication system is one that has sufficient capacity to carry simultaneously which of the following?
all of the above
As a company's initial international business involvement becomes too much for a single manager or export department to handle, the next step is typically to establish a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.
b
Having established that the matrix organizational structure is appropriate, management can expect to integrate the following competency on a worldwide basis: A) geographic knowledge. B) product knowledge and know-how. C) functional competence in finance, production and marketing. D) knowledge of customer or industry and its needs. E) All of the above are competencies.
b
Under the geographical and product division structures, for the company with French origins, France is: A) the headquarter country market. B) simply another geographic market. C) a special unit of the European market. D) a divisional market in Europe. E) a product market in European Union.
b
When an organization assigns regional or worldwide product responsibility to its product divisions, there are several advantages except: A) manufacturing standardization can occur. B) products can be tailored to local market needs. C) can result in significant economies. D) can result in saving development costs. E) can help in integrating operations.
b
Which of the following has an American woman as the chief executive? A) Nissan Motor (Japan) B) PepsiCo (USA) C) Ford Motor Company (USA) D) Pharmacia Corporation (USA) E) Atlas Copco AB (Sweden)
b
Suppose you are a sales representative for Advanced Micro Devices (AMD) in Japan. You are trying to convince Toshiba to buy your company's superfast Opteron microprocessor for its new laptop computer. Toshiba's representative seems interested, but eventually does not actually place an order. Confidentially, the representative tells you that he is afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD. Thinking about Intel's role in this scenario, which of the following elements of the five forces model is evident here?
barriers to entry
The key to maintaining competitive advantage, according to Dr. W.E. Deming is:
being committed to constant improvement
Which of the following is not one of the four arenas in which dynamic strategic interactions are played out in hypercompetitive industries?
buyer and supplier power
Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company. His reasons for this action included all of the following statements except: A) the need to have seamless communication. B) not to depend on a small group of people. C) impede information sharing. D) facilitate decision making. E) utilizing everybody's wisdom.
c
The term "m-commerce" is used to describe the use of:
cell phones in commerce.
The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all the players to undertake all of the following except:
change the rules of engagement.
Canon introduced the first full-color copiers and the first copiers with "connectivity"-the ability to print images from such sources as video camcorders and computers. This Canon example shows how an innovative marketing strategy-with fresh approaches to the product, pricing, distribution, and selling leads to overall competitive advantage in the marketplace. This strategy can be classified under:
changing the rules
When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage, it might be said to be:
changing the rules of engagement
In the 1950s, Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios. Which strategy was Sony using to gain competitive advantage?
collaboration
Many firms have gained competitive advantage by disadvantaging rivals through:
competitive innovation
The advantages that a regional management center can offer include all of the following except:
considerable cost saving.
Web sites that provide news and entertainment and support a company's PR efforts are known as:
content sites.
The visionary strategy of the Chief Executive Officer of Volkswagen which included switching the German plants entirely to the new model, failed due to all of the following reasons except:
continued demand for Beetle model in the United States.
According to Carly Fiorina, former CEO of Hewlett-Packard, leadership is about:
coonecting
In the shipbuilding industry, Polish and Chinese shipyards offer simple, standard vessel types at low prices that reflect low production costs. This represents generic strategy related to:
cost focus
According to strategy expert Richard D'Aveni, the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena?
cost/quality
In the global watch industry, the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland. In the strategic framework known as hypercompetition, Swatch's success is an example of interactions in which arena?
cost/quality
According to Carly Fiorina, former CEO of Hewlett-Packard, leadership is about: A) hierarchy. B) title. C) status. D) connecting. E) bragging.
d
Employee ability is emphasized in a lean production environment. Before being hired, people seeking jobs with Toyota participate in the Day of Work, an assessment test to determine who has the right mix of qualities. These qualities include all of the following except: A) dexterity. B) team attitude. C) problem solving. D) decision making. E) team work.
d
The universal concerns for global companies established by the United Nations Global Compact consist of the following three dimensions: A) factor conditions, demand conditions, industry conditions. B) human rights, animal rights, and the environment. C) content domain, human conditions and animal rights. D) human rights, labor, and the environment. E) content domains, animal rights, and labor.
d
Which of the following does not belong in a list of mass production in an automobile company such as Ford? A) changing value chains B) use of the moving assembly line C) organized production machinery D) outsourcing from supplier specialists E) making each worker productive
d
Which of the following does not contribute to the establishment of an international division? A) An organizational unit should be headed by a committed senior manager. B) Complexity of international operations to make its own decisions. C) Recognition of the need for internal specialists. D) A lack of desire by management to scan the globe for opportunities and threats. E) Assembling a staff that will take the responsibility to coordinate.
d
All of the following statements regarding Starbucks are true except: A) Starbucks offers health benefits to company employees. B) Starbucks partners can take part in Starbucks' stock option plan. C) Starbucks has the opportunity to be a different global company. D) Starbucks is a profitable company. E) Shareholders consider Starbucks' stock to be risky investment.
e
Nike came under fire from critics who alleged poor working conditions in the factories that make the company's athletic shoes. This is an example of the demand for: A) labor unions. B) equal opportunity employment. C) higher wages. D) standards for working conditions. E) corporate social responsibility.
e
In contrast to the lean producers, U.S. mass producers typically maintain operations that involve all of the following except:
employee teamwork.
The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces.
hypercompetition
Claude Shannon's technical report led to his pioneer work for which he is regarded as the inventor of the:
information theory.
Factors which determine suppliers' ability to gain leverage over industry firms include all of the following except:
large numbers and relatively few in number.
When managers at Matsushita realized that cost advantages in TV production were often fleeting, they added quality and reliability advantages, thus establishing
layers of advantage
Alcatel-Lucent, the French telecommunications equipment manufacturer, has launched a service that sends tailored text messages when smartphone users are near a specific location, such as a store, hotel, or restaurant. This capability can help in all of the following ways except:
obtaining demographic information about the smartphone users
When an organization assigns regional or worldwide product responsibility to its product divisions, there are several advantages except:
products can be tailored to local market needs
Some global marketers make the strategic decision to establish a presence on the Web without offering transaction opportunities even though the product could be sold that way. Such sites are known as:
promotion sites.
Web sites can be classified by purpose as represented by the term:
promotion sites.
According to Michael Porter's research on the competitive advantage of nations, Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of:
related and supporting industries.
According to Christensen's five principles of disruptive innovations, the following statement is not true:
small markets solve the growth needs of large companies.
When Brazilian Carlos Ghosn was installed as chief executive, he introduced two new words into Nissan's lexicon:
speed and commitment
Streaming media represents a huge market opportunity for all of the following except:
telematics.
The country with the highest number of companies with Global Competitive Advantage is:
the United States
According to Porter, the nature of the interaction between potential industry entrants, buyers, substitute products, suppliers, and rival firms determines:
the industry's profit potential in terms of long-run return on invested capital
"Small markets don't solve the growth needs of large companies" and "markets that don't exist can't be analyzed" are two principles of disruptive innovation. These principles are integral to:
the innovators dilemma
Cloud-based music services are expected to have a major impact on the mobile music business. The reason for their popularity includes all of the following except:
the pricing schemes for various services are simple.
According to the hypercompetition model of competitive advantage, which of the following allows the firm to create an entirely new product or market?
timing advantage
According to the innovator's dilemma:
well-managed companies that listen and respond to needs of established customers may miss opportunities to innovate.
Bluetooth is gaining popularity in Europe compared to Wi-Fi due to all but one of the following advantages:
works over shorter distances.
________ is the phrase global marketers use to describe ads with common design elements into which localized elements are inserted for individual country markets. A) "Pattern advertising" B) "Template advertising" C) "Cookie-cutter advertising" D) "Model advertising" E) "Stereotype advertising"
A) "Pattern advertising"
Only Sony can use the "Walkman" name on its line of personal stereos. This is because: A) Sony has a patent on the Walkman. B) "Walkman" is a registered Sony trademark. C) Sony has copyrighted the Walkman name. D) Sony's trade secrets are protected by international law. E) Sony has an international business license.
B) "Walkman" is a registered Sony trademark
Some of the world's most memorable advertising campaigns have achieved success because they originate from an idea that is so big that the campaign offers opportunities for a seemingly unlimited number of new executions. Such a campaign is said to have: A) "life." B) "legs." C) "love." D) "fun." E) "toes."
B) "legs"
Upper-middle-income countries, also known as industrializing or developing countries are those with GNI per capita ranging from: A) $996 to $3,945. B) $4,036 to $12,475. C) $12,475 or higher. D) less than $995. E) None of the above
B) $4,036 to $12,475
Which of the following is true about "coffee culture" in England? A) Starbucks has been unsuccessful in its attempt to change the Brits' preference for tea. B) American entrepreneurs found success in England with the Seattle Coffee Company which Starbucks later acquired. C) Starbucks succeeded in England only after changing the company's name to Seattle Coffee Company. D) Starbucks-style coffee shops have been a flop because tea culture is too deeply engrained. E) Starbucks has been successful in England since it started selling beer.
B) American entrepreneurs found success in England with the Seattle Coffee Company which Starbucks later acquired
) All of the following statements regarding Starbucks are true except:
Shareholders consider Starbucks' stock to be risky investment.
As a result of the digital revolution, a variety of companies in all parts of the world are developing a new generation of products, services, and technologies; which include all of the following except:
landline connectivity
One of the potential drawbacks of a regional management center is that:
the cost can be prohibitive.
Interactive television (ITV) allows viewers to see the ad in its entirety by pressing a remote button; to order products from home-shopping channels; or choose different camera angles, such as in sports events. Comments by James Pennefather, brand manager for Smirnoff, UK, based on comparison of traditional TV ads to ITV features included all of the following except: A) "it allows viewers to interact with programming." B) "it is a lot more unproven." C) "it needs further testing." D) "it is a calculated risk." E) "it may or may not succeed."
A) "it allows viewers to interact with programming."
Comparing the traditional formulation of Maslow's hierarchy with the results of current research on the consumer needs and motivation in Asia, which of the following is correct? A) The lowest 2 levels of the hierarchy are the same in the traditional and Asian versions. B) The lowest 3 levels of the hierarchy are the same in the traditional and Asian versions. C) The lowest 4 levels of the hierarchy are the same in the traditional and Asian versions. D) The five levels in the traditional formulation apply equally in the West and in Asia. E) The highest levels of the hierarchy are the same in the traditional and Asian versions.
A) the lowest 2 levels of the hierarchy are the same in the traditional and Asian versions
In spite of having about 45% of the world's known oil reserves, Saudi Arabia and other Middle Eastern countries post current-account deficits, largely because: A) of poor accounting practices. B) of vast economic diversification. C) they must import most of the goods and services. D) most of the oil is exported. E) new businesses are being developed.
C) they must import most of the goods and services
Promotions designed to increase product availability in distribution channels are known as: A) sales promotions. B) price promotions. C) trade sales promotions. D) consumer sales promotions. E) nonprice promotions.
C) trade sales promotion
Honda has invested $550 million in building an assembly plant in Greensburg, Indiana; IKEA spent nearly $2 billion to open stores in Russia; and South Korea's LG Electronics purchased a 58% stake in Zenith Electronics. All of these are examples of: A) acquisition. B) licensing. C) franchising. D) FDI. E) exporting.
D) FDI
________ are licensed specialists in traffic operations, customs clearance, and shipping tariffs and schedules. They can be considered as the travel agents for handling export goods. A) Foreign purchasing agents B) Export brokers C) Export merchants D) Freight forwarders E) Cooperative exporters
D) Freight forwarders
72) Del Vecchio, the Italian entrepreneur's business principles include all but one of the following: A) "Made in Italy" is important. B) Must cut costs to keep production at home. C) Invest in automation. D) Hire qualified personnel. E) Invest in Robots, not workers.
D) Hire qualified personnel.
Del Vecchio, the Italian entrepreneur's business principles include all but one of the following: A) "Made in Italy" is important. B) Must cut costs to keep production at home. C) Invest in automation. D) Hire qualified personnel. E) Invest in Robots, not workers.
D) Hire qualified personnel.
McDonald's operates in over 118 countries; however, 80% of its restaurants are located in nine countries which does not include the following country market: A) Australia. B) Brazil. C) Germany. D) India. E) Japan.
D) India
Jaguar produced so few cars that it couldn't get volume discounts from components suppliers. Jaguar managers sometimes could not even determine the "fair" price for a particular part. In terms of Porter's competitive forces framework, Jaguar's strategic disadvantage stemmed from low:
buyer power
Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Walmart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Walmart deems it offensive. Considering the elements of the five forces model this is an example of:
buyer power
According to Prahalad and Hamel, a core competence has all of the following characteristics except: A) potential access to a wide variety of markets. B) a significant contribution to perceived customer benefits. C) it is easy for competitors to imitate. D) benefits to customers. E) it is difficult for competitors to imitate.
c
An important leadership task involves articulating all of the following points except: A) beliefs. B) values. C) status. D) policies. E) activities.
c
Management experts often use terms like ________ to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence. A) sprinklers B) fountains C) chimneys D) skyscrapers E) towers
c
Organizations vary in terms of the size and potential of targeted global markets and local management competence in different country markets. Considering different factors and facts related to the constellation of pressures, which of the following statements is not accurate? A) Conflicting pressures may arise from the need for product and technology. B) No two organizations pass through similar stages. C) No two organizations arrive at precisely the same organizational pattern. D) Some patterns are common among different organizations. E) Conflicting pressures may arise from the need for better organization.
c
Organizations, in order to be globally successful, must be viewed as portfolio of: A) activities. B) businesses. C) competencies. D) products. E) policies.
c
Primary stakeholders include all of the following except: A) top management. B) employees. C) media. D) suppliers. E) customers.
c
The advantages that a regional management center can offer include all of the following except: A) pan-regional decision making. B) coordinated regional planning. C) considerable cost saving. D) coordinated control. E) coordinated decision making.
c
When Brazilian Carlos Ghosn was installed as chief executive, he introduced two new words into Nissan's lexicon: A) beliefs and values. B) values and activities. C) speed and commitment. D) policies and speed. E) activities and commitment.
c
Lessons that are learned from Starbucks' company's cooperation with NGOs include all of the following except: A) don't wait for a crisis to collaborate. B) recognize that collaboration involves some compromise. C) think strategically about relationships with NGOs. D) appreciate the value of the NGOs dependence. E) understand that building relationships with NGOs takes time.
d
Which global company has dissolved its matrix structure in order to achieve "greater speed and efficiency by further focusing and flattening the organization"? A) Whirlpool B) Levi Strauss C) Pearson PLC D) ABB E) Gillette
d
Which of the following assumptions does not belong in a list of characteristics of lean production? A) labor is more costly than machines B) set up time can be reduced C) minimize inventory to cut costs and wastage D) maximize backwards integration E) inspection to prevent defective production
d
The differences between lean producers and U.S. mass producers is in the way they deal with all of the following groups except: A) dealers. B) distributors. C) customers. D) suppliers. E) managers.
e
Which of the following is the best organization structure for global marketing? A) international division structure B) matrix C) geographic structure D) worldwide product division structure E) There is no single "best" structure.
e
Employee ability is emphasized in a lean production environment. Before being hired, people seeking jobs with Toyota participate in the Day of Work, an assessment test to determine who has the right mix of qualities. These qualities include all of the following except:
decision making.
Sony's Blu-ray DVD format has gained widespread acceptance. Sony, Sharp, Panasonic, and other Japanese manufacturers are all experiencing ________ sales of traditional electronics products.
declining
Gillette markets its flagship MACH3 razor in more than 100 countries around the world. The MACH3 is available virtually everywhere that consumers shop for personal-care products; because of its advanced 3-blade design, the MACH3 typically costs more than other wet-shaving systems. Which generic strategy is evident in Gillette's global marketing effort of MACH3?
differentiation
A company with headquarters in Europe and operational units in Canada, the United States, and Mexico would be well advised to consider establishing a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.
e
A company with headquarters in the United States and operational units in the Netherlands, France, Italy, and Spain would be well advised to consider establishing a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.
e
According to Michael Porter's research on the competitive advantage of nations, human, physical, knowledge, capital, and infrastructure resources are all components of a country's:
factor conditions
"Cloud computing" is different from currently available technologies in all of the following aspects except:
it is installed in the computer's hard drive
Intel's loose brick was:
it's narrow focus on complex microprocessors for PCs
Wunderman and Epsilon are:
leading digital agencies.
Caterpillar's attention was focused elsewhere when Komatsu made its first international entry into the Eastern European Market. Based on the strategic intent framework, this is an example of:
loose bricks
Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of:
loose bricks
Until recently, visitors to Web sites for most luxury goods purveyors were not given the opportunity to buy. The reason behind this was:
luxury goods purveyors strive to create a shopping experience
The town of Impruneta in the Italian province of Florence, is a source of high-quality terracotta; the high iron content of the area's clay means that the finished pieces can withstand temperatures as low as ‒20 degrees Fahrenheit. Many artisan pieces are rolled by hand, including those imported in the United States by Seibert & Rice. This is an example of ________ resources available for competitive advantage of a business.
physical
Amazon.com, the leading Internet bookseller, allows users to purchase books, CDs, and other products online. Amazon.com is primarily a(n) ________ site
transaction
Ideally, each country-specific site should reflect all of the following except:
universal shopping cart icon.
Several factors can create intense rivalry among firms. These factors include all of the following factors except
upward pressure on prices and profitability
When you call United Airlines for a reservation on a toll-free number and get a response from an operator in Mumbai, this is an example of: A) anti-globalization. B) global marketplace. C) multilingual expression. D) discrimination. E) E-ticketing.
B) Global Marketplace
In the post-September 11 business environment in the United States, imports have come under increased security. One of the initiatives taken in the interest of national security is: A) NAFTA. B) C-TPAT. C) WTO. D) NTB. E) FSC.
B) C-TPAT.
Which of the following can be defined as a business philosophy that values two-way communication between a company and individual customers? A) ECR B) CRM C) EDI D) EPOS E) BOLD
B) CRM
According to Michael Porter, a global industry is one in which ________ can be achieved by integrating and leveraging operations on a worldwide scale. A) marketing mix B) competitive advantage C) cross border infiltration D) ration analysis E) production capability
B) Competitive advantage
Which two companies are sourcing product components from small-scale enterprises, which in turn are helping preserve old-growth forests as well as economic opportunities in Brazil? A) Ford Motor Company and Armani B) Daimler AG and Hermes C) General Motors and Hugo Boss D) Volkswagen and Coach E) Coca-Cola and Nestlé
B) Daimler AG and Hermes
Which of the following most accurately describes the state of global public relations (PR) today? A) Expenditures on PR are dropping. B) Expenditures on PR are increasing. C) PR practices are standardized worldwide. D) PR is not important in emerging markets like India. E) Foreign investments are increasing.
B) Expenditures on PR are increasing.
The World Trade Organization, which came into existence on January 1, 1995, is the successor of another organization with the abbreviation: A) DSB. B) GATT. C) FTAA. D) NAFTA. E) ASEAN.
B) GATT
The Gulf Cooperation Council (GCC) includes all of the following countries except: A) Kuwait. B) Saudi Arabia. C) Iraq. D) Bahrain. E) Oman.
C) Iraq
NAFTA creates a free trade area, as opposed to a customs union or a common market, due to the fact that: A) the agreement does not leave the door open for discretionary protectionism. B) the governments of all three nations decided to eliminate tariffs. C) the issue of illegal immigration from Mexico to the United States is resolved. D) restrictions are imposed on the use of goods, services, and investments. E) restrictions are imposed on labor movements among members.
B) the governments of all three nations decided to eliminate tariffs
32) According to Porter, the nature of the interaction between potential industry entrants, buyers, substitute products, suppliers, and rival firms determines: A) whether or not the government will launch an antitrust investigation. B) the industry's profit potential in terms of long-run return on invested capital. C) whether a country can generate a balance of payments surplus. D) whether a country can create a comparative advantage in the production of differentiated products. E) whether a country can generate income by innovation.
B) the industry's profit potential in terms of long-run return on invested capital.
What do Unilever and Procter & Gamble have in common? A) Revenues at both companies have been hurt by regulations concerning tobacco advertising and promotion. B) Both companies utilize extension approaches to advertising. C) Both companies rank high in terms of non-U.S. ad spending. D) Both companies use a great deal of corporate advertising. E) Both companies use the same advertising agency.
C) Both companies rank high in terms of non-U.S. ad spending
Excluding China, which does not allow Google to publish figures regarding its requests for information, the government with the largest number of requests for information is:
Brazil
The Uniform Commercial Code (UCC) is fully adopted by all U.S. states except: A) Virginia. B) North Dakota. C) Wisconsin. D) Louisiana. E) Montana.
D) Louisiana
Ford Motor Company (United States) has a 50-50 joint venture to build Ford Fiestas with: A) Toyota (Japan). B) Shanghai Automotive Industry (China). C) BMW (Germany). D) Mahindra & Mahindra (India). E) Mazda (Japan).
D) Mahindra & Mahindra (India)
) The Walt Disney Company's decision to build a theme park in France provides an excellent vehicle to understanding SRC (Self-Reference Criterion). All of the statements listed below portray this meaning except: A) Disney executives believed there is virtually unlimited demand for American cultural exports. B) French are sensitive about American cultural imperialism. C) Consuming wine with the midday meal is a long-established custom which was not realized by Disney executives. D) Disney executives were blinded by their prior success and ethnocentrism. E) The SRC can be a powerful negative force in global business.
D) Disney executives were blinded by their prior success and ethnocentrism
The United States and ________ are the two top-ranked countries in terms of ad spending across all measured media in 2012. A) the United Kingdom B) France C) Canada D) Japan E) Germany
D) Japan
Global automakers are targeting the U.S. market with SUVs. All of the following SUVs are assembled or manufactured in the listed country except: A) Porsche in Germany. B) Honda in Japan. C) Volkswagen in Slovakia. D) Kia in India. E) Mercedes-Benz in the United States.
D) Kia in India
European consumers have faced a number of food-related issues, including an outbreak of hoof-and-mouth disease and continuing concerns over mad cow disease. As a result, many are skeptical about GMOs (genetically-modified organisms) and the benefits of eating food products that incorporate genetically-engineered ingredients. As one French citizen noted recently, "We have a very risk-averse society that has been completely traumatized by food scares." Thinking about this situation in terms of Hofstede's cultural values framework, one might reasonably interpret this remark to indicate that France ranks relatively high in: A) Power Distance. B) Short-term Orientation. C) Masculinity. D) Uncertainty Avoidance. E) Individualism.
D) uncertainty avoidance
Several factors can create intense rivalry among firms. These factors include all of the following factors except: A) firms focus on market share at the expense of others. B) firms feel pressure due to fixed costs and produce at full capacity. C) lack of differentiation in products and services. D) upward pressure on prices and profitability. E) absence of switching costs for customers.
D) upward pressure on prices and profitability
42) Several factors can create intense rivalry among firms. These factors include all of the following factors except: A) firms focus on market share at the expense of others. B) firms feel pressure due to fixed costs and produce at full capacity. C) lack of differentiation in products and services. D) upward pressure on prices and profitability. E) absence of switching costs for customers.
D) upward pressure on prices and profitability.
In the language of global marketing, ________ is the phrase used to describe advertising that represents a middle ground between 100% standardization and 100% localization. A) "stereotype advertising" B) "template advertising" C) "cookie-cutter advertising" D) "compromise advertising" E) "pattern advertising"
E) "pattern advertising"
The most general term for the global phenomenon involving reciprocal business interactions between parties in various countries is known as: A) switch trading. B) barter. C) offset. D) compensation trading. E) countertrade.
E) countertrade
) In the language of global marketing, ________ is the phrase used to describe advertising that represents a middle ground between 100% standardization and 100% localization. A) "stereotype advertising" B) "template advertising" C) "cookie-cutter advertising" D) "compromise advertising" E) "pattern advertising"
E) "pattern advertising"
The most important preferential trading arrangements in Latin America do not include: A) SICA. B) the Andean Community. C) CARICOM. D) Mercosur. E) BRIC.
E) BRIC
The possible arrangements of the responsibilities for handling exports include all of the following except: A) as a part-time activity performed by domestic employees. B) through an export partner affiliated with the domestic marketing structure. C) through an export department within an international division. D) through an export department that is independent of the domestic marketing structure. E) through an export department of an embassy in a foreign country.
E) through an export department of an embassy in a foreign country
The possible arrangements of the responsibilities for handling exports include all of the following except: A) as a part-time activity performed by domestic employees. B) through an export partner affiliated with the domestic marketing structure. C) through an export department within an international division. D) through an export department that is independent of the domestic marketing structure. E) through an export department of an embassy in a foreign country.
E) through an export department of an embassy in a foreign country.
Which of the following does not describe the Toyota Production System (TPS)? A) jidoka B) "just-in-time" C) fixed setup time D) built-in quality E) visualizing problems
c
Hershey rolled out a new line of condensed-milk candies, named Yo-man, specifically targeting the premium candy segment in: A) India. B) Mexico. C) Japan. D) South Korea. E) China.
e
In a socially responsible firm, employees perform all of the following except: A) conduct business in an ethical manner. B) pursue goals and policies that are in society's best interest. C) use moral principles as guidelines. D) distinguish between right and wrong. E) develop their own core ideologies.
e
In contrast to the lean producers, U.S. mass producers typically maintain operations that involve all of the following except: A) less mechanization. B) greater labor direct content. C) divide employees with no overlap. D) limited quality control. E) employee teamwork
e
In developing countries, globalization's opponents accuse companies of: A) undermining local cultures. B) placing intellectual property rights ahead of human rights. C) promoting unhealthy diets and unsafe food technologies. D) pursuing unsustainable consumption. E) all of the above
e
In the fast changing, competitive environment, new global realities are emerging, which include all of the following needs except: A) to be cost effective. B) to be customer driven. C) to deliver best quality. D) to deliver quickly. E) to deliver success.
e
Coupons are not a favorite promotion tool for use in: A) the United Kingdom. B) Belgium. C) the United States. D) Italy. E) Malaysia.
E) Malaysia.
Which of the following is not in the top five of the world's most valuable brands according to 2012 rankings? A) Sony B) Microsoft C) Coca-Cola D) GE E) Nokia
E) Nokia
Various types of political risk insurance to U.S. companies is provided by: A) BERI (Business Environment Risk Intelligence). B) PRS Group. C) EIU (Economist Intelligence Unit). D) WTO (World Trade Organization). E) OPIC (Overseas Private Investment Corporation).
E) OPIC (Overseas Private Investment Corporation)
According to the Transparency International's Corruption Perceptions Index scores for 2010, the country which was listed as most corrupt was: A) Iraq. B) Uzbekistan. C) Chad. D) Afghanistan. E) Somalia.
E) Somalia
Consten, a French company, had exclusive rights to import and distribute German Grundig's electronic products into France. One of the competitors started bringing "parallel imports" into France illegally, importing Grundig product bought from a foreign supplier. Which of the following does not represent an action taken by different legal bodies? A) Consten's complaint was upheld by two French courts. B) The Paris Court of Appeals suspended the judgment of the French courts. C) The Paris Court of Appeal's judgment was based on pending a ruling by the European Commission. D) The European Commission ruled against Consten on the grounds that territorial protection proved to be damaging to the Common Market. E) The European Commission ruled that German Grundig was in violation of the laws of the Common Market.
E) The European Commission ruled that German Grundig was in violation of the laws of the Common Market
Which of the following is the largest retailer in the world in terms of annual sales according to the top five global retailers, 2012? A) Sears B) Metro C) Kmart D) Carrefour E) Walmart
E) Walmart
A number of explanations have been offered for the low level of U.S. exports relative to other countries. All of the following can be considered as reasons for low level of exports except: A) limited ambition by many American business owners. B) lack of knowledge of market opportunities abroad. C) perceived lack of necessary resources. D) marketing to home-country users is easier than exporting. E) a strong U.S. dollar translates into less affordable prices in export markets.
E) a strong U.S. dollar translates into less affordable prices in export markets
Which of the following most accurately describes the relative length of consumer and industrial distribution channels? A) Consumer channels tend to be longer (consist of more intermediaries) than industrial channels. B) Industrial channels tend to be longer (consist of more intermediaries) than consumer channels. C) Both consumer and industrial channels tend to be long (consist of several intermediaries). D) Both consumer and industrial channels tend to be short (consist of few intermediaries). E) Consumer channels tend to be shorter (consist of few intermediaries) than the industrial channels.
A) consumer channels tend to be longer (consist of more intermediaries) than industrial channels
Chinese direct-response television has learned that there are many obstacles that still need to be overcome, which include all of the following except: A) consumers' savings rate is very low. B) limited number of private telephones. C) low penetration of credit cards. D) delivery logistics in Beijing. E) delivery logistics in Shanghai.
A) consumers' savings rate is very low
The words that are the spoken or written communication elements in advertisements are known as: A) copy. B) manuscript. C) idea. D) script. E) writings.
A) copy.
According to the Global Market Research Reports, data for Chinese markets are available for: A) cosmetics. B) online music. C) whiskies. D) luxury goods. E) pharmaceutical.
A) cosmetics
75) In the global watch industry, the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland. In the strategic framework known as hypercompetition, Swatch's success is an example of interactions in which arena? A) cost/quality B) timing and know how C) entry barriers D) deep pockets E) sporting events
A) cost/quality
76) According to strategy expert Richard D'Aveni, the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena? A) cost/quality B) timing and know-how C) entry barriers D) deep pockets E) Olympics
A) cost/quality
According to strategy expert Richard D'Aveni, the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena? A) cost/quality B) timing and know-how C) entry barriers D) deep pockets E) Olympics
A) cost/quality
In the global watch industry, the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland. In the strategic framework known as hypercompetition, Swatch's success is an example of interactions in which arena? A) cost/quality B) timing and know how C) entry barriers D) deep pockets E) sporting events
A) cost/quality
Saab markets two luxury car models, both prized by drivers for their "quirkiness." About 30% of Saab's sales come from the USA, with most of the rest from Western Europe. Which strategy does Saab appear to be using? A) country concentration/market segment concentration B) country diversification/market segment concentration C) country concentration/market segment diversification D) country diversification/market segment diversification E) none of the above
A) country concentration/market segment concentration
A box of Crest toothpaste contains a coupon entitling the buyer to save 50 cents when purchasing a Crest toothbrush. What type of sales promotion does this represent? A) cross coupon B) product placement coupon C) trade promotion coupon D) freestanding coupon E) online coupon
A) cross coupon
When British entrepreneur Richard Branson established the first Virgin Megastore in France, he invested a great deal of money to develop a retail space on the famous Champs-Elysées. Judging by the approach Branson used, he and his management team must have viewed France as: A) culturally close and easy to enter. B) culturally distant and easy to enter. C) culturally close and difficult to enter. D) culturally distant and difficult to enter. E) culturally difficult and easy to enter.
A) culturally close and easy to enter
Example of a "brand symbol" includes all of the following except: A) date of manufacture on Coca-Cola cans. B) the wave that appears on red Coke cans and bottle labels. C) non-word marks such as the Nike swoosh. D) three-pronged Mercedes star. E) McDonald's golden arches.
A) date of manufacture on Coca-Cola cans
Japanese companies are less inclined to use this approach for selecting advertising agencies: A) designate global agencies. B) designate local agencies. C) use ads in-house. D) use outside agencies. E) use in-house marketing.
A) designate global agencies
Japanese companies are less inclined to use this approach for selecting advertising agencies: A) designate global agencies. B) designate local agencies. C) use ads in-house. D) use outside agencies. E) use in-house marketing.
A) designate global agencies.
"Containerization" refers to a company's: A) designing attractive product packaging that will help a product "sell itself." B) use of computer technology to keep a lid on ("contain") distribution costs. C) use of refrigerated warehouses for perishable products. D) use of standard-sized shipping boxes that can be transported in various ways. E) method of shipment by using oval size steel containers to fit different commodities.
A) designing attractive product packaging that will help a product "sell itself"
Which of the following lists some of the steps in the market research process in the correct order? A) determine information requirement→problem definition→choose unit of analysis→examine data availability→assess value of research B) problem definition→assess value of research→determine information requirement→choose unit of analysis→examine data availability C) examine data availability→problem definition→choose unit of analysis→assess value of research→determine information requirement D) choose unit of analysis→assess value of research→problem definition→determine information requirement→examine data availability E) examine data availability→assess the value of research→problem definition→presentation
A) determine information requirement→problem definition→choose unit of analysis→examine data availability→assess value of research
Which of the following is not a step in the strategic/consultative selling model? A) develop a marketing mix B) develop a personal selling philosophy C) develop a product strategy D) develop a relationship strategy E) develop a presentation strategy
A) develop a marketing mix
A few years ago, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette player. DCC did more than allow users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. However, die-hard audio buffs were the only ones to buy DCC and Philips ultimately discontinued the product. Which of the following statements based on adopter categories describes this? A) early adopters bought, but innovators didn't B) innovators bought, but early adopters didn't C) innovators bought, and everyone else was a laggard D) early majority bought, but late majority didn't E) DCC was a laggard
B) innovators bought, but early adapters didn't
The scandal about finding horse DNA in frozen beef burgers sold in supermarkets in Ireland became a big issue. However, the fact remains that 60,000 tons of horse meat were sold in Europe in 2012. Other facts about horse meat include all of the following except: A) in Europe, horse meat is available from a variety of suppliers. B) it is legal to produce horse meat in the United States. C) horses are shipped from the United States to Mexico and Canada for slaughter. D) Italy imports 50 million pounds of horse meat annually from Ireland. E) horse meat is lean and high in iron and other nutrients.
B) it is legal to produce horse meat in the United States
Which of the following is not true of secondary data about global markets? A) It was not gathered specifically for the research project at hand. B) It is often so expensive that small companies can't afford to use it. C) It can be accessed quickly. D) A great deal is available from government agencies. E) It cannot be retrieved online.
B) it is often so expensive that small companies can't afford to use it
In a joint venture with Russian manufacturer AvtoVAZ, GM executives were planning to have a stripped-down reengineered car based on its Opel model. However, the market research revealed that a "Made-in-Russia" car would only be acceptable if: A) it has a German name. B) it sported a very low sticker price. C) it has an American name. D) it has a very high sticker price. E) it has a Russian name.
B) it sported a very low sticker price
One of the key advantages of an EDI (Electronic Data Interchange) system is: A) it allows easy access to all company data to vendors. B) its transaction formats are universal. C) it allows third-party transmission connections to company data. D) it saves both time and money by using different languages. E) vendors receive orders by voice mail.
B) its transaction formats are universal
The disadvantages of joint venturing can include all of the following except: A) Joint venture partners must share rewards as well as risks. B) Joint ventures allow partners to achieve synergy. C) Joint ventures can have the potential for conflict between partners. D) A dynamic joint venture partner can evolve into a strong competitor. E) A company incurs very significant costs by joint venturing.
B) joint ventures allow partners to achieve synergy
One of the advantages of licensing is: A) licensees have limited control. B) licensees have considerable autonomy. C) license agreements have short life. D) licensees can develop similar products. E) licensees have considerable leverage.
B) licensees have considerable autonomy
Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of: A) building layers of advantage. B) loose bricks. C) changing the rules of engagement. D) collaborating. E) none of the above
B) loose bricks
57) Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of: A) building layers of advantage. B) loose bricks. C) changing the rules of engagement. D) collaborating. E) none of the above
B) loose bricks.
Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of: A) building layers of advantage. B) loose bricks. C) changing the rules of engagement. D) collaborating. E) none of the above
B) loose bricks.
The power distance dimension reflects the degree of trust among members of society. Thus, the higher the power distance (PDI) the: A) greater is uncertainty avoidance. B) lower is the level of trust. C) higher is tolerance for ambiguity. D) greater is male dominance. E) lower is the harmony.
B) lower is the level of trust
Global marketers should take note of the fact that almost half of the world's population is located in: A) low-income countries. B) lower-middle-income countries. C) upper-middle-income countries. D) high-income countries. E) higher-middle-income countries.
B) lower-middle-income countries
As outlined by branding expert Kevin Keller, the benefits of strong brand equity include all of the following except: A) greater loyalty. B) more vulnerability to marketing actions. C) less vulnerability to marketing crises. D) more inelastic consumer response to price increases. E) more elastic consumer response to price decreases.
B) more vulnerability to marketing actions
A marketer of fine French cognac offers fancy cigar ashtrays as prizes to consumers who correctly solve a crossword puzzle. Which of the following most accurately describes this offer? A) price promotion B) non-price promotion C) trade sales promotion D) sweepstakes promotion E) sampling
B) non-price promotion
What solution did Andersen Consulting provide to the Moscow Bread Company to solve the problem of stale bread? A) Deliver the bread frozen. B) Package the bread in plastic bags. C) MBC should convert a paperless office to cut red tape. D) Deliver the bread sliced rather than in whole loaf form. E) Use paper packaging for bread.
B) package the bread in plastic bags
Colgate discovered that in Spanish colgate is a verb form that means "go hang yourself." Whirlpool found that consumers in Italy, France, and Germany had trouble pronouncing the name. These are examples which show the importance of ________ in global marketing. A) syntax and morphology B) phonology and morphology C) syntax and semantics D) semantics and phonology E) semantics and morphology
B) phonology and morphology
The Middle East and North Africa are sometimes viewed as a regional entity referred to as: A) GCC. B) AMU. C) MENA. D) ACC. E) ECOWAS.
C) MENA
Myanmar is considered as one of the emerging markets open for business. All of the following facts pertain to Myanmar except: A) Myanmar is a low-income country in Southeast Asia. B) Myanmar has a population of 65 million people. C) Myanmar is one of the countries considered as "Stans." D) Myanmar's citizens elected a president. E) Only one quarter of Myanmar's population has access to electricity.
C) Myanmar is one of the countries considered as "Stans"
Product and market opportunities in a postindustrial society are more heavily dependent upon new products and innovations than in industrial societies. An example of this would be: A) Nestlé marketing Bono brand cookies in Brazil. B) Coca-Cola Company developing a beverage Vintago in low-income countries. C) New e-commerce markets for interactive forms of electronic communication. D) Hermes creating handbags called Amazonia. E) India's Suzlon Energy using wind-driven turbines.
C) New e-commerce markets for interactive forms of electronic communication
Based on 2011 projections, the top ten nations ranked by per capita income does not include: A) the United States. B) Japan. C) Russia. D) Spain. E) Italy.
C) Russia
In which country are global marketers likely to encounter the most restrictions on advertising? A) the United States B) Japan C) Saudi Arabia D) Russia E) Germany
C) Saudi Arabia
Which of the following ASEAN countries ranks number one in terms of two-way trade with the United States? A) Brunei B) Malaysia C) Singapore D) Thailand E) Vietnam
C) Singapore
With the global economic crisis as a backdrop, the first-ever Happiness Congress was held in: A) Sweden. B) Austria. C) Spain. D) Italy. E) Greece.
C) Spain
Ericsson, IKEA, Saab, and other companies based in Sweden have looked beyond their borders for significant growth market because: A) Sweden has high total annual income. B) Sweden has low total annual income. C) Sweden has a smaller population. D) Sweden is land locked geographically. E) Sweden has relaxed export policies.
C) Sweden has a smaller population
Two automakers that have joined the race to bring low-cost cars to the emerging market are: A) Mercedes and Lexus. B) Toyota and Ford. C) Tata and Nissan. D) Tata and Toyota. E) Nissan and Toyota.
C) Tata and Nissan
Which of the following is true about advertising expenditures in Germany and Brazil? A) Television is the leading medium in both Germany and Brazil. B) Newspapers are the leading medium in both Germany and Brazil. C) Television is the leading medium in Brazil; newspapers are the leading medium in Germany. D) Television is the leading medium in Germany; newspapers are the leading medium in Brazil. E) Magazines are the leading medium in Brazil and Germany.
C) Television is the leading medium in Brazil; newspapers are the leading medium in Germany
Which of the following is true about advertising expenditures in Germany and Brazil? A) Television is the leading medium in both Germany and Brazil. B) Newspapers are the leading medium in both Germany and Brazil. C) Television is the leading medium in Brazil; newspapers are the leading medium in Germany. D) Television is the leading medium in Germany; newspapers are the leading medium in Brazil. E) Magazines are the leading medium in Brazil and Germany.
C) Television is the leading medium in Brazil; newspapers are the leading medium in Germany.
What do Ford Motor Company, Coca-Cola, Nike, and McDonald's all have in common? A) They are all consumer packaged-goods companies. B) They all have foreign CEOs. C) They have all received a great deal of negative publicity in recent years. D) They all rely exclusively on TV advertising. E) They spend more in advertising in foreign markets than home markets.
C) They have all received a great deal of negative publicity in recent years.
Which of the following best describes the legal basis for protection of trade secrets, patents, and copyrights in the United States? A) Trade secrets, patents, and copyrights are protected by federal statutes. B) Trade secrets, patents, and copyrights are protected by state law. C) Trade secrets are protected by state law, while patents and copyrights are protected by federal statutes. D) Trade secrets are protected by federal statutes, while patents and copyrights are protected by state law. E) Trade secrets, patents, and copyrights are not protected by any laws.
C) Trade secrets are protected by state law, while patents and copyrights are protected by federal statutes
Which company ranks number one in terms of ad spending in Europe (2011)? A) General Motors B) Philip Morris C) Unilever D) Procter & Gamble E) Coca-Cola
C) Unilever
Located in The Hague, the International Court of Justice (ICJ) is the judicial arm of the: A) United States. B) European Union. C) United Nations. D) Netherlands. E) United Kingdom.
C) United Nations
The introduction of consumer VCRs in the late 1970s initiated a revolutionized in-home electronic entertainment. For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time. The VCR's popularity also gave rise to an entirely new retailing concept, the video rental store. What type of innovation did the consumer VCR represent? A) a continuous innovation B) a dynamically continuous innovation C) a discontinuous innovation D) a comparative innovation E) none of the above
C) a discontinuous innovation
When Walt Disney Company's executives were planning to build a theme park in France, they firmly believed that the success of McDonald's and Coke as well as their success in Tokyo Disneyland ensures the runaway success of their plans. Disney policies prohibit sale or consumption of alcohol inside the theme parks which they also implemented in France. This proved to be a failure since consuming wine with the midday meal is a long-established custom in France. This is most likely a classical example of: A) the "think global, act local" principle. B) being victim to the self-reference criterion. C) a geocentric management orientation. D) miscalculation of the rate of diffusion of innovations in Europe. E) an unbiased perception of existing culture in Europe.
C) a geocentric management orientation
A number of factors combine to make Russia an excellent location for an alliance which do not include: A) a well-educated workforce. B) quality is important to Russian consumers. C) abundance of supplies. D) potential for economic growth. E) potential for growth in service sector.
C) abundance of supplies
Chinese authorities ratified the WHO's Framework Convention on Tobacco Controls; which means: A) Chinese TV can show tobacco ads only after midnight. B) tobacco companies cannot show ads on TV but can sponsor sports events. C) all forms of tobacco promotion and sponsorships will be phased out by the year 2010. D) tobacco companies can use sponsorships of health and sporting events. E) tobacco companies can sponsor China's national soccer tournament after the year 2010.
C) all forms of tobacco promotion and sponsorships will be phased out by the year 2010
Chinese authorities ratified the WHO's Framework Convention on Tobacco Controls; which means: A) Chinese TV can show tobacco ads only after midnight. B) tobacco companies cannot show ads on TV but can sponsor sports events. C) all forms of tobacco promotion and sponsorships will be phased out by the year 2010. D) tobacco companies can use sponsorships of health and sporting events. E) tobacco companies can sponsor China's national soccer tournament after the year 2010.
C) all forms of tobacco promotion and sponsorships will be phased out by the year 2010.
A market researcher who uses multidimensional scaling (MDS) will: A) attempt to estimate market size by analogy. B) ask respondents to rate a particular product or brand in terms of multiple characteristics or attributes. C) ask respondents to evaluate product or brand pairs in terms of similarity. D) attempt to determine the combination of product features that create the greatest utility for consumers. E) conduct a focus group.
C) ask respondents to evaluate product or brand pairs in terms of similarity
A. Coskun Samli had developed a useful approach to global market segmentation that compares and contrasts "conventional" versus "unconventional" wisdom. An example of unconventional wisdom is: A) since per capita income in India is about $1,420, assuming that all Indians have low incomes. B) assuming that consumers in Europe and Latin America are interested in World Cup soccer whereas Americans are not. C) assuming that there is a presence of a higher-income middle-class segment in India. D) assuming that the potential Indian customer base for a McDonald's is larger than the size of entire developed countries. E) assuming that there is no running water and electricity in India.
C) assuming that there is a presence of higher-income middle-class segment in India
Psychographic segmentation involves grouping people in terms of their: A) combined household income. B) age and income. C) attitudes, values and lifestyle. D) psychological well being. E) gender.
C) attitudes, values and lifestyle
Ads by BMW advertise it as the "ultimate driving machine" which is described as positioning based on: A) high touch. B) use/user. C) attribute/benefit. D) competition. E) quality/price.
C) attribute/benefit
Sales representatives in which Japanese industry cultivate close, long-term relations with customers by selling door-to-door? A) consumer electronics B) pharmaceuticals C) automobiles D) soft drinks E) groceries
C) automobiles
In order to fight piracy in China, Budweiser Beer's approach includes: A) printing labels in Chinese. B) changing color of beer cans. C) beer cans in China have fluted edges. D) printing labels both in Chinese and English. E) making beer very cheap in price in China.
C) beer cans in China have fluted edges
The use of this color dates back millennia as seen by artisans in ancient Egypt, China, and Mayan civilizations all worked with the color, which is now associated with royalty and divinity. A) Red B) Green C) Blue D) Orange E) Brown
C) blue
For decades, the economies of China, the former Soviet Union, and India functioned according to the tenets of: A) market capitalism. B) market socialism. C) centrally planned socialism. D) centrally planned capitalism. E) market capitalism and socialistic capitalism.
C) centrally planned socialism
The Swedish government has significant holdings in key business sectors and has a hybrid economic system that incorporates: A) market capitalism and centrally planned socialism. B) centrally planned socialism and market socialism. C) centrally planned socialism and capitalism. D) market socialism and market capitalism. E) market capitalism and socialistic capitalism.
C) centrally planned socialism and capitalism
Which of the following product category/company pairings best illustrates the concept of "product cultures"? A) earth-moving equipment/Caterpillar B) personal hygiene/Procter & Gamble C) coffee bars/Starbucks D) batteries/Duracell E) automobiles/Ford
C) coffee bars/Starbucks
Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter? A) organic growth B) chain acquisition C) franchise D) joint venture E) own-label focus
C) franchise
Whirlpool conducts usability studies that provide insight into the ways consumers interact with its products. In one study in an emerging market, engineers and designers stood behind a two-way mirror and watched as a volunteer put groceries away in a Kenmore Elite refrigerator. The Whirlpool team recorded a variety of data, such as the amount of time required for the volunteer to finish the task and the number of features used. The basis of this research study was based on the fact that: A) listening to customers is only possible in America. B) data collected in the United States should be applicable in other countries. C) consumers in different countries prefer different types of features. D) in China, it will be difficult to find enough space in homes to put a refrigerator. E) in India, refrigerators are seldom used by customers.
C) consumers in different countries prefer different types of features
The formulation, imagery, and consumer appeal of Colgate's Total brand toothpaste were designed to translate across national boundaries. This new global brand represents which type of product innovation? A) discontinuous innovation B) dynamically continuous innovation C) continuous innovation D) comparative innovation E) dynamically discontinuous innovation
C) continuous innovation
Generally speaking, a company has little control over media. To compensate for this lack of control, many companies utilize: A) image advertising. B) advocacy advertising. C) corporate advertising. D) TV advertising. E) radio advertising.
C) corporate advertising
Generally speaking, a company has little control over media. To compensate for this lack of control, many companies utilize: A) image advertising. B) advocacy advertising. C) corporate advertising. D) TV advertising. E) radio advertising.
C) corporate advertising.
In order to prevent a licensor-competitor from gaining unilateral benefit, licensing agreements should provide for: A) contract manufacturing. B) franchising. C) cross licensing. D) strategic decision making. E) adaptation for local tastes.
C) cross licensing
The form of economic cooperation that calls for 1) eliminating internal barriers to trade and 2) establishing common external barriers is known as a(n): A) European Union. B) Economic union. C) Customs union. D) Free trade area. E) Common market.
C) customs union
________ builds upon the elimination of internal tariff barriers, the establishment of common external barriers, and the free flow of factors. A) European Union B) Economic union C) Customs union D) Free trade area E) Common market
C) customs union
A vice-president of an American software company introduced himself to a group of Korean partners and added "you may just call me John." Although this verbal cue shows the underlying reality that Americans have a high value on informality and equality, it needs adaptation due to the reason that: A) John is not a very popular name in Korea. B) it is difficult to translate John in Korean language. C) customs, hierarchies, and class structure of Korean culture have to be respected. D) Korean culture requires that first and last name be used in addressing guests. E) it is not appropriate to disclose nicknames in business meetings.
C) customs, hierarchies, and class structure of Korean culture have to be respected
The entry global retailing market expansion strategies include all of the following except: A) franchise. B) chain acquisition. C) departmental stores. D) joint ventures. E) organic.
C) departmental stores
In a study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?" the researchers identified different lifestyle groups. The segment that is concentrated in high-crime, inner-city neighborhoods were classified as: A) Successful Idealists. B) Affluent Materialists. C) Disaffected Survivors. D) Trendy Teens. E) Comfortable Belongers.
C) disaffected survivors
By definition, a ________ requires a large amount of learning on the part of users and typically creates new markets and consumption patterns. A) continuous innovation B) dynamically continuous innovation C) discontinuous innovation D) platform-based innovation E) new and improved innovation
C) discontinuous innovation
Which of the following is not true of Japanese keiretsu? A) promotes risk sharing B) promotes long-term employment C) ensures low prices for Japanese consumers D) blocks foreign suppliers from the Japanese market E) relationships are cemented by bank ownership
C) ensures low prices for Japanese consumers
A company that is ________ in its approach to public relations will extend home-country PR activities into host countries. A) regiocentric B) polycentric C) ethnocentric D) domestic E) hostile
C) ethnocentric
The governmental action to dispossess a foreign company or investor is known as: A) compensation. B) confiscation. C) expropriation. D) internationalization. E) nationalization.
C) expropriation
The following criminal penalties may be imposed for violations of the FCPA'S (Foreign Corrupt Practices Act) antibribery provisions except: A) corporations are subject to a fine of up to $2,000,000. B) officers, directors, stockholders, employees, and agents are subject to a fine of up to $100,000. C) fines imposed on individuals can be paid by their employer or principal. D) the fines may be much higher, up to twice the benefit sought by the defendant. E) in addition to fines, there may be imprisonment for up to five years
C) fines imposed on individuals can be paid by their employer or principal
The country which has the highest rates of value-added tax (VAT) in the European Union is: A) Germany. B) Italy. C) France. D) Denmark. E) Switzerland.
D) Denmark
After the aftermath of the tragedy involving fire in garment factories in Bangladesh, Walmart implemented a "zero-tolerance policy." The Workers Rights Consortium, International Labor Organization and other groups monitoring labor issues are stepping up pressure on the companies that participate in the global garment supply chain due to the following reasons, except: A) retailers pay lip service to concerns about factory safety. B) retailers continue to focus on low prices. C) those auditing facilities are audited by BSCI's qualified engineers. D) the buyers and consumer are willing to pay more for garments. E) retailers do not provide funds for fire safety training.
C) those auditing facilities are audited by BSCI's qualified engineers
Negotiation requires both customer and the salesperson: A) to be persistent in their point of view. B) to be subjected to arm-twisting. C) to agree to disagree. D) come away as winners. E) come away as losers.
C) to agree to disagree.
"Cost-based," "market-based," and "negotiated" are three approaches to: A) dumping. B) gray marketing. C) transfer pricing. D) price skimming. E) counter trade.
C) transfer pricing
Joseph Quinlan, chief marketing strategist at Bank of America, estimated that about 25% of U.S. merchandise exports represent shipments by American companies to their foreign affiliates and subsidiaries. This situation underscores the importance of ________ in global marketing. A) dumping B) gray marketing C) transfer pricing D) price skimming E) price fixing
C) transfer pricing
The lesson that SRC (Self-Reference Criterion) teaches can be summarized as: A) a person's perception of market needs is framed by others cultural experience. B) perceptual blockage and distortion about cultures are hard to reduce. C) unbiased perception is a vital and critical skill in global marketing. D) unconscious reference to one's cultural values is critical in global marketing. E) prior success and ethnocentrism can override the SRC.
C) unbiased perception is a vital and critical skill in global marketing
All of the following activities must be performed when goods cross international boundaries except: A) obtaining currency permit, if required. B) packaging the goods for export. C) using cost-based pricing method. D) arranging for ocean freight and preparation. E) obtaining marine insurance and certificate of the policy.
C) using cost-based pricing method
________ occurs when a manufacturer conspires with wholesalers or retailers to ensure certain retail prices are maintained. A) Horizontal price fixing B) Dumping C) Vertical price fixing D) Gray marketing E) Black marketing
C) vertical price fixing
The markets of Central and Eastern Europe present interesting opportunities and offer attractive locations for low-cost manufacturing due to: A) their location being close to the sea. B) the cultural similarities. C) wage rates being lower than in Spain, Portugal and Greece. D) strict laws and regulations. E) prohibitive tariffs and export restrictions.
C) wage rates being lower than in Spain, Portugal and Greece
The world's best-known cosmetics companies are setting their sights on a lucrative new market segment: the emerging middle classes in countries such as Brazil, Russia, India, and China. However, these companies have to understand: A) that women's preferences in those countries are almost similar. B) that Chinese consumers are not willing to invest in beauty products. C) what beauty means to Chinese women. D) that working Indian women prefer only local brands. E) cosmetics are preferred mostly by the top end of the market in China.
C) what beauty means to Chinese women
CRM tools allow companies such as Credit Suisse, AT&T, Hewlett-Packard and others to determine: A) warranty of products sold to consumers. B) amount paid by consumers in different countries. C) which customers are most valuable. D) the use of credit cards for payment. E) the use of laptop computers by customers.
C) which customers are most valuable
Joseph Tripodi is Chief Marketing and Commercial Officer of:
Coca-Cola (United States)
________ represent(s) the cumulative added value of a company's investment in the marketing of a brand over time. A) Brand extensions B) Co-branding C) Brand image D) Brand equity E) Brand loyalty
D) Brand equity
The country which has a massive potential for cigarette manufacturers is: A) Egypt. B) Spain. C) Turkey. D) China. E) Vietnam.
D) China
All of the following facts pertain to China except: A) China is in the upper-middle-income category. B) China is the largest single destination for foreign investment in the developing world. C) China is a member of the World Trade Organization. D) China has sprawling bureaucracy. E) China lacks infrastructure.
D) China has sprawling bureaucracy
) The country which has a massive potential for cigarette manufacturers is: A) Egypt. B) Spain. C) Turkey. D) China. E) Vietnam.
D) China.
Which of the following is true about protection of computer software? A) Copyright laws protect both the actual code and the idea embodied in the code. B) Patent laws protect both the actual code and the idea embodied in the code. C) Patent laws protect the actual code, while copyright laws protect the idea. D) Copyright laws protect the actual code, while patent laws protect the idea. E) License protects both the actual code and the idea embodied in the code.
D) Copyright laws protect the actual code, while patent laws protect the idea
The term magalog is used to describe which communication medium? A) direct mail B) Groupons C) coupons D) catalogs E) infomercials
D) catalogs
Restrictive administrative and technical regulations can create barriers to trade which may take all of the following forms except: A) antidumping regulations. B) product size regulations. C) safety and health regulations. D) common agricultural policies. E) safety and pollution regulations.
D) common agricultural policies
A market research study of soft drink consumption and distribution in Hungary commissioned by an American company indicated that soft drinks were available in drugstores. However, Western-style drugstores do not exist in Hungary. This illustrates an important issue in global marketing research, namely: A) inflated data. B) using convenience samples. C) market estimation by analogy. D) comparability of data. E) using multiple dimensional scaling.
D) comparability of data
After four years of product development, Procter & Gamble recently introduced a new, improved disposable diaper. Pampers Rash Guard diapers are designed to prevent diaper rash and represent the first time a company has made a medical claim for its diapers. What kind of innovation do the new diapers represent? A) platform-based innovation B) dynamically continuous innovation C) discontinuous innovation D) continuous innovation E) none of the above
D) continuous innovation
Porter's four generic strategies for achieving competitive advantage are:
D) cost leadership, product differentiation, cost focus, focused differentiation
44) Porter's four generic strategies for achieving competitive advantage are: A) price determination, cost leadership, product differentiation, distribution savings. B) cost leadership, product differentiation, cost challenger, product challenger. C) price leadership, product differentiation, price challenger, cost differentiation. D) cost leadership, product differentiation, cost focus, focused differentiation. E) cost leadership, product differentiation, consumer differentiation, focused differentiation.
D) cost leadership, product differentiation, cost focus, focused differentiation.
Porter's four generic strategies for achieving competitive advantage are: A) price determination, cost leadership, product differentiation, distribution savings. B) cost leadership, product differentiation, cost challenger, product challenger. C) price leadership, product differentiation, price challenger, cost differentiation. D) cost leadership, product differentiation, cost focus, focused differentiation. E) cost leadership, product differentiation, consumer differentiation, focused differentiation.
D) cost leadership, product differentiation, cost focus, focused differentiation.
Porter's four generic strategies for achieving competitive advantage are: A) price determination, cost leadership, product differentiation, distribution savings. B) cost leadership, product differentiation, cost challenger, product challenger. C) price leadership, product differentiation, price challenger, cost differentiation. D) cost leadership, product differentiation, cost focus, focused differentiation. E) cost leadership, product differentiation, consumer differentiation, focused differentiation.
D) cost leadership, product differentiation, cost focus, focused on differentiation
McDonald's success in franchising in global markets can be attributed to several factors which do not include: A) a well known global brand name. B) a business system that can be easily replicated. C) local market knowledge. D) cross licensing. E) granting franchisees leeway to tailor menu offerings to suit local tastes.
D) cross licensing
When British entrepreneur Richard Branson established the first Virgin Megastore in Japan, he established a joint venture with the Marui retailing chain. Judging by the approach Branson used, he and his management team must have viewed Japan as: A) culturally close and easy to enter. B) culturally distant and easy to enter. C) culturally close and difficult to enter. D) culturally distant and difficult to enter. E) culturally difficult and easy to enter.
D) culturally distant and difficult to enter
When Walmart stores first expanded into Mexico, management established a joint venture with the country's largest retailer. Judging by the approach Walmart used, management must have viewed Mexico as: A) culturally close and easy to enter. B) culturally distant and easy to enter. C) culturally close and difficult to enter. D) culturally distant and difficult to enter. E) culturally difficult and easy to enter.
D) culturally distant and difficult to enter
If a company sells products in export markets at prices that are below fair market value and that can harm producers in the export market, then that company may be accused of: A) market skimming. B) using offsets. C) pursuing artificially high margins. D) dumping. E) gray marketing.
D) dumping
In the Uruguay round of GATT negotiations, many countries took issue with the U.S. system of laws, in part because historically the U.S. Commerce Department almost always ruled in favor of the U.S. company that filed the complaint. This was related to the laws pertaining to: A) black marketing. B) market skimming. C) gray marketing. D) dumping. E) licensing.
D) dumping
Which form of regional cooperation agreement, when fully implemented, entails creation of a unified central bank, the use of a single currency, and common policies on agriculture, social services and welfare? A) Free trade area B) Customs union C) Common market D) Economic union E) Dispute settlement body
D) economic union
Porsche relies on currency hedging rather than price increases in order to: A) boost pretax profits on sales of its automobiles. B) balance the relative value of the dollar compared to the euro. C) protect all earnings from foreign-exchange movements. D) generate about 45% of its sales in the United States. E) A, B, and C
E) A, B, and C
Singapore banned the import, manufacture, and sales of chewing gum in the country since wads of gum were making a mess on sidewalks, buses, and subway trains. Violators are subject to severe penalties, and before buying a pack consumers must register their names and addresses. This, according to author William Greider, demonstrates that Singapore's government: A) is harshly autocratic. B) administers a paranoid control over Singaporeans. C) administers a paranoid control over press and politics. D) runs an effective welfare state. E) all of the above
E) All of the above
According to the authors of the Harvard Business Review article, "Serving the World's Poor, Profitably", which of the following is a mistaken assumption that global companies might have about the BOP (bottom of the pyramid)? A) The poor have no money. B) The poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods. C) People in BOP markets will be criticized for exploiting the poor. D) People in BOP markets cannot use advanced technology. E) All of the above are mistaken assumptions discussed by the authors.
E) All of the above are mistaken assumptions discussed by the authors
All of the following facts pertain to Brazil except: A) Brazil is the largest country in Latin America. B) Brazil boasts the richest reserves of natural resources in the hemisphere. C) Brazil's top trading partner is China. D) Brazil's GNI has grown at an average annual rate of 4 percent over the past 8 years. E) Brazil lacks logistics software, horse-drawn carts are still a common sight on many roads.
E) Brazil lacks logistics software, horse-drawn carts are still a common sight on many roads
Nike produces only a small portion of its output in China, but when the firm refers to China as a "two-billion-foot market," it is referring to the fact that: A) the Chinese do not wear shoes. B) the Chinese shoe market is very competitive. C) China can develop its own shoe market. D) it will take a long time for China to develop future market. E) China is a potential future market.
E) China is a potential future market
Markets of Central and Eastern Europe present interesting opportunities and challenges. Companies such as 3M International, McDonald's, Philips Electronics, and Henkel are moving into the region for all of the following reasons except: A) the region is an important new source of growth. B) that the first company to penetrate a country market often emerges as leader. C) wage rates are much lower than those in Spain, Portugal, and Greece. D) the region offers attractive locations for low-cost manufacturing. E) core products and Western brand names need changes to meet consumer demands.
E) Core products and Western brand names need changes to meet consumer demands
Despite the fact that the American team advanced to the semi-finals in South Africa, the game is much more popular in other parts of the world. There is an effort to make soccer popular in the United States, and many fashion brands are interesting in marketing their products which pertain to soccer and other sports. Considering this aspect which of the following statements is incorrect? A) In the United States, 2010 World Cup merchandise such as T-shirts was available at Walmart. B) FIFA is the only global marketer seeking revenue growth by boosting soccer's popularity in America. C) Yves Saint Laurent designer was selling merchandise with soccer related embossed emblems. D) The fall 2010 collection of designer clothes included "FIFA Heritage Tees" with logos on shirts. E) FIFA has chosen Total Apparel Group (TAG) to boost soccer's visibility and popularity among Americans.
E) FIFA has chosen Total Apparel Group (TAG) to boost soccer's visibility and popularity among Americans
Which of the following is not a useful guideline for U.S.-based direct marketers wishing to reach global customers? A) Do not treat prospects as though they are Americans. B) Do not automatically assume that a direct-mail campaign that works in one country will work in another country. C) Do not assume that all Europeans are similar in their tastes and wants. D) Customers should be able to return products to an address in their local country market. E) Focus on all countries included in the European Union.
E) Focus on all countries included in the European Union.
Which of the following statements is not accurate? A) India's teledensity—a measure of ownership of private telephones—is only 20% of population. B) In China, saturation levels of private motor vehicles and personal computers (PCs) are quite low. C) In 2001, EU had 49 cars per 100 people. D) In Russia, 200 people out of 1,000 own cars. E) In India, 150 people out of 1,000 own cars.
E) In India, 150 people out of 1,000 own cars
The Ministry of International Trade and Industry (MITI) has helped devise export strategies for companies in: A) Singapore. B) South Korea. C) Taiwan. D) Hong Kong. E) Japan.
E) Japan
The United Nations designates 50 countries in the bottom ranks of the low-income category named as: A) Low-income countries. B) Lower-middle-income countries. C) BRIC countries. D) Developing countries. E) LDCs (least-developed countries).
E) LDCs (least developed countries)
McDonald's serves McAloo Tikki Burger in India, McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, and McHuevo Burger in Uruguay and McSamurai Burger in Thailand. These menu variations are examples of: A) a combination of global and local marketing mix elements. B) a reflection of failure of U.S. menu items in those countries. C) a deviation from successful marketing practices. D) a replacement of standard menu names with fancy names. E) a selection of menu items that can be sold eventually in U.S. markets.
A) a combination of global and local marketing mix elements
Which of the following offers a company the best assurance of being paid for exported goods? A) a letter of credit B) a "piggyback" arrangement C) a swap D) an in-house export organization E) a certified check
A) a letter of credit
Which of the following documents represents title to goods in an export transaction? A) bill of lading B) invoice C) packing list D) certificate of origin E) insurance certificates
A) bill of lading
A person who assumes that his or her home country is superior to the rest of the world is said to have: A) ethnocentric orientation. B) polycentric orientation. C) regiocentric orientation. D) geocentric orientation. E) None of the above
A) ethnocentric orientation
Nissan's earlier vehicles were difficult to start in many parts of the United States during the cold winter months. In northern Japan, it was customary for many car owners to put blankets over the hoods of their cars during winter months. Nissan's assumption was that Americans would do the same thing. This is an example of: A) ethnocentric orientation. B) polycentric orientation. C) regiocentric orientation. D) geocentric orientation. E) geopolitic orientation.
A) ethnocentric orientation
Which of the following is sometimes referred to as a "buyer for export" or an "export commission house" and operates on behalf of a buyer from a foreign country? A) foreign purchasing agent B) export broker C) export merchant D) export management company E) freight forwarder
A) foreign purchasing agent
A type of advantage that a global company possesses by virtue of the fact that it has experience in more than one country is referred to as: A) Leverage. B) Transferability. C) Flexibility. D) Capability. E) Enability.
A) leverage
When a country like China is experiencing rapid economic growth, policymakers are likely to: A) look more favorably on outsiders. B) look less favorably on outsiders. C) experience more resistance toward outsiders. D) feel threatened by outsiders. E) None of the above
A) look more favorably on outsiders
Anheuser-Busch, the brewer of Budweiser beer, lost its independence after years of focusing primarily on the domestic U.S. market. This is most likely a result of: A) management myopia. C) opposition to globalization. D) newcomers from emerging markets. E) organizational culture.
A) management myopia
From the global marketing perspective, the customization of the Beatles' records is a good example of: A) product adaptation. B) market penetration. C) diversification. D) product development. E) marketing mix.
A) product adaptation
In an effort to "Americanize" the sound of the Beatles' recordings, a studio effect known as reverb was added to some tracks. This is an example of: A) product adaptation. B) market penetration. C) diversification. D) product development. E) marketing mix.
A) product adaptation
If the dollar, the yen, or the euro becomes seriously overvalued, a company with a production capacity in other locations can achieve competitive advantage by: A) buying different currencies before major fluctuations take place. B) conducting transactions in different currencies of the world. C) shifting production among different sites. D) cutting down production and waiting until the currency rate is reasonable. E) reducing production and labor force simultaneously.
C) shifting production among different sites.
Two decades ago, professor Ted Levitt wrote a classic Harvard Business Review article titled "The Globalization of Markets." Which of the following statements about the author and the article is accurate? A) Levitt urged companies to adopt products on a country-by-country basis. B) There was universal agreement about his thesis that the world is becoming homogeneous. C) Levitt urged companies to develop standardized products that could be marketed worldwide with little adaptation. D) Levitt warned of the coming backlash against globalization. E) Levitt did not recommend developing standardized products.
C) Levitt urged companies to develop standardized products that could be marketed worldwide with little adaptation
Starbucks has launched several new ventures in global markets, including music CDs and movie production. This is an example of: A) Market Penetration. B) Market Development. C) Market Diversification. D) Product Development. E) Global Marketing.
C) Market Diversification
According to the Fortune global 500 companies for 2012, the largest corporation based on revenue is: A) Exxon Corporation. B) Toyota Motors. C) Royal Dutch Shell. D) General Electric. E) Walmart stores.
C) Royal Dutch Shell
Based on 2012 rankings of Fortune Global 500 companies, the world's most valuable car company is: A) GM. B) Daimler AG. C) Toyota. D) Ford. E) Chrysler.
C) Toyota
Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction? A) documentary credit (letter of credit) B) documentary collection C) cash in advance D) sales on open account E) draft
C) cash in advance
Based on the size of the market in U.S. dollars, the leading consumer products are: A) cell phones. B) bottled water. C) cigarettes. D) video games. E) recorded music.
C) cigarettes
Nike recently adopted the slogan "Here I am" for its pan-European clothing advertising targeting women. The decision to drop the famous "Just do it" tag line was based on the research indicating that: A) the famous slogan did not have accurate translation in European languages. B) Europeans do not like tag lines that portray American thinking. C) college-age women in Europe are not as competitive about sports as men are. D) the old slogan conveys superiority of men over women. E) European women want to differentiate themselves from men.
C) college-age women in Europe are not as competitive about sports as men are
A company that succeeds in global marketing: A) pursues a "one size fits all" strategy by creating identical products for homogeneous markets. B) customizes special products for each world country or region. C) creates both standardized and localized products. D) nurtures an ethnocentric management orientation. E) uses localized products only.
C) creates both standardized and localized products
The former chairman of Nestlé recently told an interviewer: "We are food and beverages. We are not running bicycle shops. Even in food we are not in all fields. There are certain areas we do not touch. Also, we have no soft drinks because I have said we either buy Coca-Cola or we leave it alone." What strategic marketing principle does the chairman's comment emphasize most specifically? A) customer value B) competitive advantage C) focus D) myopia E) policy of dealing only with Swiss businesses
C) focus
Pfizer, Merck, Novartis, and other pharmaceutical companies have little choice but to engage in global marketing since: A) there is little demand for their products in home countries. B) their research centers are located overseas. C) no single market is large enough to recover costs incurred in research. D) there is more demand overseas for their products. E) technology is not available in home countries.
C) no single market is large enough to recover costs incurred in research
The furniture industry has become one of the fastest-growing sectors of China's economy. Furniture imports are flooding into the United States from China. This can be attributed to: A) the quality of furniture is better than that made in Europe. B) American tastes in décor have changed. C) China's low labor rates translate into reasonable prices for consumers. D) China can survive tough competition. E) replacement parts are readily available from China.
C) China's low labor rates translate into reasonable prices for consumers.
Which of the following was a major U.S. tax incentive for exporters that the WTO recently ruled was an illegal subsidy? A) NTR B) CVD C) FSC D) NTB E) HTS
C) FSC
An important managerial task in global marketing is learning to recognize the extent to which it is possible to extend marketing plans as well as the extent to which adaptation is desired. The way a company addresses this task is a reflection of the company's: A) market penetration. B) market diversification. C) global marketing strategy. D) product development. E) product standardization.
C) Global marketing strategy
Statements that illustrate the success of global marketing include all of the following except: A) the Coca-Cola Company supports its Coke brand by utilizing global and local marketing mix. B) Apple is synonymous with cutting-edge innovation and high-tech design. C) Italy's Benetton utilizes marketing as a knee-jerk reaction to world marketing needs. D) the backbone of Caterpillar's global success is its network of dealers. E) Germany's reputation for engineering and manufacturing provides a competitive advantage.
C) Italy's Bennetton utilizes marketing as a knee-jerk reaction to world marketing needs
Starbucks is entering India via an alliance with the Tata Group. Phase 1 calls for sourcing coffee beans in India and marketing them at Starbucks stores throughout the world. This is an example of: A) Market Penetration. B) Market Development. C) Market Diversification. D) Product Development. E) Regular Marketing.
B) Market Development
Which of the following correctly states the role of banks in import/export transactions involving a letter of credit (L/C)? A) The importer's bank is the advising and/or confirming bank; the exporter's bank is the issuing bank. B) The exporter's bank is the advising and/or confirming bank; the importer's bank is the issuing bank. C) The exporter's bank is the advising, confirming, and issuing bank. D) The importer's bank is the advising, confirming, and issuing bank. E) none of the above
B) The exporter's bank is the advising and/or confirming bank; the importer's bank is the issuing bank.
Which of the following incorrectly states the role of banks in import/export transactions involving a letter of credit (L/C)? A) The exporter's bank is the advising and/or confirming bank. B) The importer's bank is the advising and/or confirming bank. C) The importer's bank is the advising, confirming, and issuing bank. D) The exporter's bank is the advising, confirming, and issuing bank. E) The importer's bank is neither advising nor confirming bank.
B) The importer's bank is the advising and/or confirming bank.
A fundamental difference between regular marketing and global marketing is: A) the lack of marketing mix. B) the scope of activities. C) the lack of strategic planning. D) the focus on resources. E) the lack of communication.
B) The scope of activities
The essence of marketing worldwide is to surpass the competition in creating perceived value, which can be represented as: A) Value = Price/Benefits. B) Value = Benefits/Price. C) Value = Benefits × Price. D) Value = Benefits - Price. E) Value = Benefits + Price.
B) Value = Benefits/Price
The marketing mix is integral to the value equation which is represented by: A) Value = Price/Benefits. B) Value = Benefits/Price. C) Value = Benefits × Price. D) Value = Benefits - Price. E) Value = Benefits + Price.
B) Value = Benefits/Price
An irrevocable letter of credit transfers the payment obligation for an export deal from the buyer to the buyer's: A) in-house export organization. B) bank. C) freight forwarder. D) credit union. E) checking account.
B) bank.
The decision to enter one or more particular markets outside the home country depends on all of the mentioned factors except: A) company's resources. B) company's age. C) company's managerial mind-set. D) nature of opportunities.
B) company's age
Which of the following receives a fee for bringing together an exporter and a buyer in another country? A) foreign purchasing agent B) export broker C) export merchant D) export management company E) freight forwarder
B) export broker
Coca-Cola achieved success in the Japanese market primarily by: A) standardization of marketing mix elements. B) global localization. C) vending machine operations. D) selecting market mix options. E) homogenization.
B) global localization
Which of the following is described as the three R's of global business: rules, rate schedules, and regulations? A) quotas B) tariffs C) NTBs D) NTR E) duties
B) tariffs
In which of the following forms of export financing does a bank assume a financial obligation? A) with an L/C but not a documentary collection B) with a documentary collection but not an L/C C) neither an L/C nor a documentary collection requires a bank to assume financial obligation D) with either an L/C or a collection letter E) with both an L/C and a documentary collection
B) with a documentary collection but not an L/C
After the aftermath of the tragedy involving fire in garment factories in Bangladesh, Walmart implemented a "zero-tolerance policy." The Workers Rights Consortium, International Labor Organization and other groups monitoring labor issues are stepping up pressure on the companies that participate in the global garment supply chain due to the following reasons, except: A) retailers pay lip service to concerns about factory safety. B) retailers continue to focus on low prices. C) those auditing facilities are audited by BSCI's qualified engineers. D) the buyers and consumer are willing to pay more for garments. E) retailers do not provide funds for fire safety training.
C) those auditing facilities are audited by BSCI's qualified engineers.
Sweden applies a system to certain categories of imported agricultural products which is referred to as: A) temporary surcharges. B) ad valorem duty. C) variable import levies. D) specific duty. E) countervailing duty.
C) variable import levies.
In global markets, Starbucks is a good example of simultaneously executing all of the growth strategies except: A) Market penetration. B) Market development. C) Product development. D) Market orientation. E) Diversification.
D) Market Orientation
Slumdog Millionaire, a movie which received several awards and an Oscar in 2009, was filmed on a location in and around: A) London. B) San Francisco. C) Cancun. D) Mumbai. E) Moscow.
D) Mumbai
Which of the following arranges export financing payment methods in descending order starting with the most secure/reliable and ending with the least secure/reliable? A) sales on open account→cash in advance→documentary credit (L/C)→documentary collection (draft) B) documentary credit (L/C)→sales on open account→documentary collection (draft)→cash in advance C) documentary collection (draft)→documentary credit (L/C)→cash in advance→sales on open account D) cash in advance→documentary credit (L/C)→documentary collection (draft)→sales on open account E) none of the above
D) cash in advance→documentary credit (L/C)→documentary collection (draft)→sales on open account
Restrictive administrative and technical regulations can create barriers to trade which may take all of the following forms except: A) antidumping regulations. B) product size regulations. C) safety and health regulations. D) common agricultural policies. E) safety and pollution regulations.
D) common agricultural policies.
The cell phone divisions of Toshiba, Sharp, and other Japanese companies prospered by focusing on the domestic market. When handset sales in Japan slowed a few years ago, the Japanese companies realized that Nokia, Motorola, and Samsung already dominated key world markets. Atsutoshi Nishida, president of Toshiba, noted, "We were thinking only about Japan. We really missed our chance." This example illustrates: A) geocentric orientation. B) regiocentric orientation. C) polycentric orientation. D) ethnocentric orientation. E) poor globalization orientation.
D) ethnocentric orientation
Renault and its rivals are racing to offer middle-class consumers a new value proposition by selling cars for the equivalent of $10,000 or less. On the heels of Renault's success with Dacia Logan came the $2,500 Nano from India's Tata Motors. This illustrates that: A) consumers are looking for low price irrespective of quality. B) Renault is overcharging for their cars compared to their competitors. C) higher product development costs are a driving force behind globalization. D) market success depends on reaching a threshold of acceptable quality for consumers. E) cars are not very popular in emerging markets like India.
D) market success depends on reaching a threshold of acceptable quality for consumers
Which of the following methods of financing would be used if the exporting and importing parties had a strong, long-standing relationship? A) documentary credit (letter of credit) B) documentary collection C) cash in advance D) sales on open account E) bank draft
D) sales on open account
H.F. Iskander, general manager of Chevron's Kuwait office, stated "Chevron is pumping oil in different locations all over the world . . . there isn't a rock we haven't drilled through. We centralize all that knowledge at our headquarters, analyze it, sort it out, and that enables us to solve any oil-drilling problem anywhere." From the global marketing point of view this is an example of a global company: A) that is hungry to exploit natural resources. B) that is trying to be first to explore oil. C) that it is trying to solve world problems. D) that gains leverage through experience transfers. E) that does not have easy access to information.
D) that gains leverage through experience transfers
McDonald's restaurants are found in more than 118 countries. To ensure high levels of consistency and quality, the company's far-flung restaurant system incorporates many standardized elements (e.g. restaurant design, burgers/fries/soft drinks as basic menu offerings). However, McDonald's also prides itself on sourcing many of its food inputs (e.g. potatoes and dairy products) in individual host countries. McDonald's strives to be locally responsive—it creates new menu items specifically designed with local eating customs and preferences in mind. Typically, McDonald's forms joint ventures with local partners, a tactic that ensures that a local "face" is associated with the company. Finally, McDonald's has been in many country markets long enough that a new generation of consumers has grown up with McDonald's and are not aware of the company's U.S. origins. On the basis of this summary, what is the highest stage of corporate development that McDonald's arguably has achieved? A) international B) multinational C) global D) transnational E) myopic
D) transnational
Uniqlo, a division of Japan's Fast Retail, operates about 850 stores in Japan and currently has six stores in the United States. Their plans call for a total of 200 U.S. stores by 2020. The fulfillment of their plan will depend on: A) industry conditions. B) sources of competitive advantage. C) the condition of the apparel market worldwide. D) the demand in Japan for U.S. style garments. E) all of the above
E) All of the above
Which of the following establishes classification numbers that must be used by importers and exporters? A) NTR B) CVD C) FSC D) NTB E) HTS
E) HTS
The Ministry of International Trade and Industry (MITI) has helped devise export strategies for companies in: A) Singapore. B) South Korea. C) Taiwan. D) Hong Kong. E) Japan.
E) Japan.
A number of explanations have been offered for the low level of U.S. exports relative to other countries. All of the following can be considered as reasons for low level of exports except: A) limited ambition by many American business owners. B) lack of knowledge of market opportunities abroad. C) perceived lack of necessary resources. D) marketing to home-country users is easier than exporting. E) a strong U.S. dollar translates into less affordable prices in export markets.
E) a strong U.S. dollar translates into less affordable prices in export markets.
Direct representation, as opposed to representation by independent intermediaries for exporting in the market country, has several advantages which do not include: A) facilitates control and communications. B) allows decisions concerning program development and resource allocation. C) benefits when a product is not yet established in a market. D) ensures marketer's interest and special efforts. E) helps selling products directly to the consumer in the market country.
E) helps selling products directly to the consumer in the market country.
Governments commonly use activities to support and encourage firms that engage in exporting. Such activities include all of the following except: A) tax incentives. B) subsidies. C) export assistance. D) free trade zones. E) voting rights.
E) voting rights.
