Global MKT Exam 1 Questions

long-term orientation

According to Geert Hofstede, which of the following is a key cultural dimension that helps account for rapid economic growth in Asia? 1. uncertainty avoidance 2. feminine/masculine 3. long-term orientation 4. power distance 5. individualist/collectivist

all of the above are mistaken assumptions discussed by the authors

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)? 1. people in BOP markets cannot use advanced technology 2. the poor are too concerned with fulfilling basic needs to "waste" money on non-essential goods 3. people in BOP markets will be criticized for exploiting the poor 4. the poor have no money 5. all of the above are mistaken assumptions discussed by the authors

McDonald's standardizes all product elements

All of the following correctly states McDonald's approach to standardization and adaptation of the marketing mix except: 1. McDonald's standardizes some place elements and adapts others. 2. McDonald's standardizes some product elements and adapts others. 3. McDonald's standardizes some price elements and adapts others. 4. McDonald's standardizes all product elements. 5. McDonald's standardizes some promotion elements and adapts others.

patent

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? 1. trademark 2. patent 3. trade secrets 4. technological 5. copyright

lower-middle income countries

Global marketers should take note of the fact that almost half of the world's population is located in: 1. upper-middle income countries 2. lower-middle income countries 3. higher-middle income countries 4. low-income countries 5. high-income countries

trademark

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? 1. copyright 2. trademark 3. patent 4. trade dress 5. license

Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria, Sierra Leone, and Ghana are common-law countries

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? 1. In West Africa, Ivory Coast and Senegal are the only common-law countries 2. Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria, Sierra Leone, and Ghana are common-law countries 3. Burkina Faso, the Ivory Coast and Senegal are common-law countries, while Nigeria, Sierra Leone, and Ghana are civil-code countries. 4. All the West African nations mentioned above are likely to be civil-code countries. 5. All the West African nations mentioned above are likely to be common-law countries

jurisdiction

In a recent case, Revlon sued United Overseas Limited (UOL) in 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: 1. intellectual property 2. jurisdiction 3. antitrust 4. bribery and corruption 5. dilution of equity

they must import most of the goods and services

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: 1. of poor accounting practices 2. most of the oil is exported 3. of vast economic diversification 4. new businesses are being developed 5. they must import most of the goods and services

the Koran

Islamic law is a comprehensive code based in part on: 1. Roman Law and Napoleonic Code 2. the Uniform Commercial Code 3. Anglo-Saxon common law 4. the Koran 5. the French Civil Code

high literacy rates

Low-income countries have a GNI per capita of less than $996. The general characteristics shared by countries at this income level include all of the following except: 1. political unrest 2. heavy reliance on foreign aid 3. high birth rates 4. high agricultural population 5. high literacy rates

individuals and firms allocate resources and production resources that are privately owned.

Market capitalism is an economic system in which: 1. market-oriented economies function in an identical manner. 2. market resource allocation is commanded by both private and state ownership. 3. individuals and firms allocate resources and production resources that are privately owned. 4. there is no correlation between economic freedom and a nation's economy. 5. the state has broad powers to serve the public interest as it sees fit.

true

true or false. Many governments in developing countries exercise control over their nations' economic development by passing protectionist laws and regulations.

false. negatively

true or false. Political risk is the possibility of a change in a country's political environment or government policy that would positively affect a company's ability to operate effectively and profitably.

true

true or false. 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. This is an example of Market Penetration.

true

true or false. Today, market capitalism is widely practiced around the world, most notably in North America and the European Union.

the creation of an economic and monetary union (EMU) in Europe

The Maastricht Treaty called for: 1. the creation of an economic and monetary union (EMU) in Europe 2. the creation of the seven-nation European Free Trade Association (EFTA) 3. the creation of an Asia Free Trade Area (AFTA) 4. the purchase of CDs and tapes from distributors in Europe 5. Chile's acceptance into Mercosur

The SRC can be a powerful negative force in global business.

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: 1. Consuming wine with the midday meal is a long-established custom which was not realized by Disney executives. 2. The SRC can be a powerful negative force in global business. 3. French are sensitive about American cultural imperialism. 4. Disney executives believed there is virtually unlimited demand for American cultural exports. 5. Disney executives were blinded by their prior success and ethnocentrism.

IBM

The company receiving the most U.S. patents for the year 2009 is: 1. Microsoft 2. Panasonic 3. Toshiba 4. Intel 5. IBM

attitudes, beliefs, and values

The cultural environment of a country is best defined by which characteristics? 1. standard of living and stage of economic development 2. fast food culture and slow food culture 3. degree of nationalism and economic community membership 4. attitudes, beliefs, and values 5. production process and standards of measurement

Value = Benefits/Price

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

lack of genuine market opportunities

The general characteristics shared by low-income countries do not include: 1. concentration in Africa south of the Sahara 2. lack of genuine market opportunities 3. low literacy rates 4. high birth rates 5. heavy reliance on foreign aid

India

The original six members of the ASEAN (Association of Southeast Asian Nations) included all of the following countries except: 1. Brunei 2. Thailand 3. India 4. Singapore 5. Philippines

lower is the level of trust

The power distance dimension reflects the degree of trust among members of society. Thus, the higher the power distance (PDI) the: 1. higher is tolerance for ambiguity 2. lower is the level of trust 3. lower is the harmony 4. greater is the uncertainty avoidance 5. greater is male dominance

polycentric orientation

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:

phonology

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 matter of: 1. semantics 2. syntax 3. phonology 4. semiotics 5. morphology

economic union

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? 1. economic union 2. customs union 3. common market 4. dispute settlement body 5. free trade area

Singapore

Which of the following ASEAN countries ranks number one in terms of two-way trade with the United States? 1. Brunei 2. Vietnam 3. Singapore 4. Thailand 5. Malaysia

Korea

Which of the following is not a common-law country? 1. Singapore 2. India 3. Pakistan 4. Malaysia 5. Korea

Triad countries account for approximately 75% of world income as measured by GNP.

Which of the following is true about the Triad? 1. Triad countries account for approximately 25% of world income as measured by GNP. 2. Triad countries account for approximately 50% of world income as measured by the World Bank. 3. Triad countries are those in which consumer products, industrial products, and the services sector each contribute one-third to GDP. 4. Triad countries account for approximately 75% of world income as measured by GNP. 5. Triad countries account for approximately one-third of world income and one- third of world population.

true

true or false. Harley-Davidson's motorcycles competitive advantage is based in part on its "Made in the USA" positioning.

true

true or false. It is customary for countries to notify the WTO when they enter into preferential trade agreements.

false

A "value" is an organized pattern of knowledge that an individual holds to be true about the world.

messages are explicit and specific

A characteristic of a low-context culture which is prevalent in United States, Switzerland, and Germany is: 1. major emphasis on a person's values and position in society. 2. less information is contained in verbal communication 3. negotiations are long and protracted. 4. messages are explicit and specific 5. a person's word is his or her bond

the scope of activities

A fundamental difference between regular marketing and global marketing is

ethnocentric orientation

A person who assumes that his or her home country is superior to the rest of the world is said to have

semantics

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? 1. semantics 2. syntax 3. phonology 4. semiotics 5. morphology

free trade area→customs union→common market→economic union

Arrange the following in order from lowest to highest level of economic integration. 1. common market --> economic union --> customs union --> free trade area 2. common market --> free trade area --> economic union --> customs union 3. economic union --> customs union --> common market --> free trade area 4. free trade area --> customs union --> common market --> economic union 5. customs union --> economic union --> free trade area ---> common market

newcomers from emerging markets

Despite the impact of the driving forces, several restraining forces may slow a company's efforts to engage in global marketing. These restraining forces may include all of the following except: 1. management mypia 2. opposition to globalization 3. newcomers from emerging markets 4. organizational culture 5. national controls

the struggle between capitalism and socialism continues.

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: 1. the world economy dominates the scene. 2. the growth of e-commerce diminishes the importance of national barriers. 3. the struggle between capitalism and socialism continues. 4. capital movements have replaced trade as the driving force of the world economy. 5. production has become "uncoupled" from employment.

true

true or false. GATT (General Agreement on Tariffs and Trade) itself had no enforcement power, and the losing party in a dispute was entitled to ignore the ruling.

a combination of global and local marketing mix elements

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

China is a potential future market

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: 1. the Chinese shoe market is very competitive 2. China is a potential future market 3. the Chinese do not wear shoes 4. it will take a long time for China to develop future market 5. China can develop its own shoe market

sets prices, controls output, or takes other actions to maximize profits

OPEC can be considered as a "cartel" which is a group of separate companies that collectively: 1. conducts activities that are considered illegal in United States. 2. works on forming a union against management of other companies. 3. dictates how other countries should use their products. 4. produces more products in order to beat the competition. 5. sets prices, controls output, or takes other actions to maximize profits.

a wide gap between rich and poor nations due to oil revenues

Political and social instability in the Middle Eastern region can primarily be attributed to: 1. absence of Western corporations 2. a wide gap between rich and poor nations due to oil revenues 3. lack of water purification facilities 4. desert conditions and lack of agricultural land 5. cultural differences among nations

market penetration

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

polychronic

in high-context cultures, time is: 1. monochronic 2. short 3. polychronic 4. linear 5. common

false

true or false. A free trade area represents the most fully developed form of preferential trade agreement among nations.

false. multiple generations

true or false. Culture includes both conscious and unconscious values, idea, attitudes, and symbols that shape human behavior and that are confined to one generation.

true

true or false. Culture includes both conscious and unconscious values, idea, attitudes, and symbols that shape human behavior and that are confined to one generation.

false

true or false. Due to globalization, it is easier to categorize economic systems within the confines of a four-cell matrix.