Global Test 3 Chapter 11-14
C. K. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets— bottom-of-the-pyramid markets (BOPMs) 23 —consisting of the 4 billion people across the globe with annual incomes of less than ____. A. $400 B. $1,200 C. $2500 D. $3700 E. $4200
$1,200
The rural population, which accounts for almost three-fourths of the Chinese population, usually receives about _____ percent of the central government budget. A. 10 B. 25 C. 30 D. 45 E. 55
10
The true consumer market in China is probably limited to no more than _____ percent of those who live in the more affluent cities. A. 9 B. 15 C. 25 D. 33 E. 48
25
Identify the correct statement about ISO 9000. A. To receive ISO 9000 certification, a company requests a certifying body to conduct an audit of the governance framework of a company. B. The object of the assessor asking questions about everything is to develop a transitory plan to ensure that minute details are not overlooked. C. A complete assessment for recertification is done every four years. D. Although ISO 9000 is generally involuntary, the EU Product Liability Directive puts pressure on all companies to become certified. E. The assessor helps employees create a quality manual, which will be made available to customers wishing to verify the organization's reliability.
A complete assessment for recertification is done every four years.
The primary multinational trade group in Asia is _____. A. NAFTA B. COMESA C. CEFTA D. SADC E. ASEAN
ASEAN
One result of the Asian financial crisis of 1997 to 1998 was the creation of ____. A. SADC B. NAFTA C. ASEAN+3 D. CEFTA E. COMESA
ASEAN+3
Kodak has already examined a series of environmental factors, reviewed its company's character, and established screening criteria. Which of the following would be the next step that the company should undertake as it proceeds with the international planning process? A. Match the company to countries B. Adapt the market mix to target markets C. Adapt the company's position to communication objectives D. Develop a marketing plan E. Implement and control information obtained in the initial examination
Adapt the market mix to target markets
Two major events that occurred in 2000 are having a profound effect on China's economy. One of these is the United States' granting normal trade relations (NTR) to China on a permanent basis (PNTR). Which of the following is the other one? A. Inclusion in the board of the World Bank B. Admission to the World Trade Organization C. Signing of the new ASEAN pact D. The handover of Honk Kong from the British to China E. Inclusion of Hong Kong as a special administrative region (SAR) of China
Admission to the World Trade Organization
Which of the following is considered to be an important competitive tool in Europe? A. Adoption of ISO 9000 by a company. B. All packaging instructions are printed in English. C. All pricing is pegged to the dollar as the international standard. D. The ability to incorporate U.S. products into inventories. E. All product components are indigenously sourced.
Adoption of ISO 9000 by a company.
Countries such as Japan and Germany are characterized as being in which stage of Rostow's five-stage model of economic growth? A. Traditional society B. Preconditions to takeoff C. Takeoff D. Drive to maturity E. Age of mass consumption
Age of mass consumption
Which of the following is NOT one of the theories explaining the persistence of stagnation in Japan in the 1990s? A. Faulty economic policies B. Inept political apparatus C. Aggressive competition, especially from East Asian economies D. Disadvantages due to global circumstances E. Cultural inhibitions
Aggressive competition, especially from East Asian economies
Which of the following industries would likely have the most visible strategic international alliances? A. Computers B. Airlines C. Retail food stores D. Shoe manufacturing E. Athletic equipment
Airlines
The _____ measures customers' satisfaction and perceptions of quality of a representative sample of America's goods and services. A. ISO 9000 B. Loyalty business model C. Net Promoter Score (NPS) D. American Customer Satisfaction Index (ACSI) E. American Price Index (API)
American Customer Satisfaction Index (ACSI)
Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge "best." Which of the following would not fit in the "best" stereotype scheme? A. English tea B. American chocolate C. French perfume D. Chinese silk E. Jamaican rum
American chocolate
During the global downturn of the 1990s, Company A had more global marketing operations than Company B. Which of the following statements is true in this regard? A. B was more likely to have suffered in the recent financial downturn. B. A was more likely to have suffered in the recent financial downturn. C. Both A and B were equally likely to have suffered. D. Global marketing operations have no connection with losses during a financial crisis. E. B was in a better position to adjust to fluctuations in tax rates.
B was more likely to have suffered in the recent financial downturn
Grameen Bank is a private commercial enterprise in ____. A. Bangladesh B. China C. Japan D. Sri Lanka E. South Korea
Bangladesh
_____ is the capital of China. A. Chongqing B. Beijing C. Taipei D. Changchun E. Kunming
Beijing
This region in China is the political and R&D center of China. The 75-mile corridor in this region hosts some 5,000 Chinese high-tech companies, and more than 1,000 international IT companies. Perhaps the key to this region is the quality of its higher education. Identify the region in discussion. A. The coastal Dalian city B. The Pearl River Delta C. The Yangtze River Delta D. Beijing-Tianjin E. Fujian
Beijing-Tianjin
Which of the following regions is most likely to be considered as the information technology (IT) corridor in north China? A. The coastal Dalian city B. Beijing-Tianjin C. The Yangtze River Delta D. The Pearl River Delta E. Fujian
Beijing-Tianjin
For which of the following products is it advisable that a company have a direct sales force in the country where sales are to occur? A. Big ticket industrial products B. Computer accessories C. Automobiles D. Cosmetics E. None of the above
Big ticket industrial products
IBM entered into a venture with the Railways Ministry that allowed IBM to set up a national network of IBM service centers in railway stations that has enabled IBM to ship computer parts via the railroad around the country within 24 hours. This venture was dubbed the ____. A. Blue Connect B. China Express C. China Blue D. Blue Express E. China Connect
Blue Express
Which of the following characterizes negotiators from the Beijing area? A. Traditional thought pattern B. Bureaucratic sloth C. Forthrightness D. Shrewdness E. Entrepreneurship
Bureaucratic sloth
For many industrial products, the revenues from associated services exceed the revenues from the products. Which of the following examples best illustrates this statement? A. Paper produced in a paper mill B. A dental laboratory that prepares false teeth C. Cell phones D. A fax machine E. A heavy duty lathe machine
Cell phones
_____ is now Japan's most important trading partner. A. Malaysia B. The United States C. Bangladesh D. Bahrain E. China
China
B&F Advertising Agency has just acquired a significant piece of Oracle's multimillion-dollar advertising business. Oracle would particularly like B&F to come up with creative ideas for Oracle's recent expansion into the lower Asian markets of India and Indonesia. In order to accommodate Oracle, B&F has now opened offices in two Indian cities and one Indonesian city. What would be the proper term to use to describe what B&F is doing with its own expansion into the above Asian markets? A. Client baiting B. Client following C. Bargain hunting D. Padding their bet E. Risk avoidance
Client following
Which of the following would be subjects analyzed or explored in the first phase of the international planning process? A. Company character B. Product adaptation C. Advertising D. Situation analysis E. Budgets
Company character
Mark Harmon has found that using his new digital camera is a snap. He did not even have to read the instruction manual to determine how to turn the camera on, snap a digital picture, and export the picture to his computer. The signs (symbols) on the camera body made it very clear what he was to do to achieve digital photography success. Which of the following characteristics of Mark's "new product" made it easy for him to begin his digital experience? A. Relative advantage B. Compatibility C. Complexity D. Trialability E. Observability
Complexity
_____ is/are long-term, nonequity associations between a company and another in a foreign market. A. Direct sales B. Direct exporting C. Indirect exporting D. Contractual agreements E. Joint ventures
Contractual agreements
Simone Francis is a specialist in product design. She is responsible for a product's aesthetic as well as functional appearance. With respect to the product component model shown in the text, in which of the following component categories would Simone's talents most likely be used? A. Core component B. Support services component C. Packaging component D. Functional component E. Global component
Core component
The product platform, design features, and functional features are all found in which of the following components of the product component model used in the text? A. Core component B. Support services component C. Packaging component D. Functional component E. Global component
Core component
_____ planning incorporates generalized goals for the enterprise as a whole. A. Operational B. Tactical C. Corporate D. Collaboration E. Personnel
Corporate
____ is the relationship skill necessary during the imaging activity stage of building a strategic alliance. A. Good relationship self-awareness B. Creating intimacy C. Trust building D. Partnering E. Commitment
Creating intimacy
Red Lobster seafood restaurant is considering opening branch operations in China. However, the restaurant chain's labor union has already pointed out a potential problem with this expansion. In China, service providers would find it to be in bad taste to allow employees to collect tips for service. Since a great portion of a typical wait-staff person's compensation comes in the form of tips, the union would like to know how employees would be compensated for this loss. The above example illustrates which of the following barriers a consumer services marketer faces in a foreign market? A. Protectionism B. Controls on transborder data flows C. Protection of intellectual property D. Cultural requirements for adaptation E. Language translation barriers
Cultural requirements for adaptation
Many reasons for marketing consumer products and services abroad match with those for marketing industrial goods abroad. However, there is one important additional reason for marketing industrial goods abroad that does not apply to the consumer market. What is that reason? A. Avoiding inflationary pressures domestically B. Making as much profit as possible C. Dampening the natural volatility of industrial markets D. Meeting foreign competitors in their home markets E. Setting up situations where strategic alliance opportunities might be realized
Dampening the natural volatility of industrial markets
Because some business services have intrinsic value that can be embodied in some tangible form, they can be produced in one country and exported to another. Which of the following is an example of this? A. Language schools B. In-flight services related to air transportation C. Operating an automatic teller machine D. Data processing E. Consultations of physicians
Data processing
To spur U.S. industry into action, the _____ indicated that accepting the metric system will not be mandatory unless you want to sell something to the U.S. government; all U.S. government purchases are to be conducted exclusively in metric. A. Office of the United States Trade Representative B. International Electrotechnical Commission C. Department of Labor D. International Organization for Standardization E. Department of Commerce
Department of Commerce
Pizza Hut has recently decided on the mode of entry to a particular market. In which phase of the planning process is Pizza Hut currently in? A. Preliminary analysis B. Defining market segment C. Developing the marketing plan D. Implementation and control E. Standardization of the marketing mix
Developing the marketing plan
_____ is the process by which innovation spreads. A. Diffusion B. Filtering C. Dissolution D. Trickle-down E. Cascading
Diffusion
Which of the following modes of foreign market entry requires the most amount of equity and, therefore, the most risk? A. Exporting B. Importing C. Contractual agreements D. Strategic alliances e. Direct foreign investment
Direct foreign investment
The most rapidly growing economies in the Asian region during the 1980s and 1990s were sometimes referred to as the Four Asian Tigers or the Four ____. A. Lions B. Elephants C. Dragons D. Horses E. Swans
Dragons
Industrialized economies such as Korea and the Czech Republic have been characterized as being in which stage of Rostow's five-stage model of economic growth? A. Preconditions to takeoff B. Takeoff C. Traditional society D. Drive to maturity E. Age of mass consumption
Drive to maturity
Which of the following is the term used to refer to both the People's Republic of China (PRC) and the Republic of China (ROC) or Taiwan? A. Integrated China B. The Yellow Route C. Neo China D. Mainland China E. Greater China
E. Greater China
Which of the following is the biggest threat for the fast pace of growth China is experiencing? A. Increased opening of the market to foreign investments B. Trade isolation by other ASEAN countries C. Losing the permanent normal trade relations (PNTR) status conferred by the U.S. D. India and other Asian countries doubling their development efforts E. Economic volatility that accompanies fast growth
Economic volatility that accompanies fast growth
According to the text, which of the following is perhaps the best way to stimulate economic development and growth from within developing countries? A. Improving literacy rates B. Stabilizing the currency exchange rates C. Providing free medical services to poor people D. Reducing inflation levels E. Encouraging entrepreneurial activities
Encouraging entrepreneurial activities
Which of the following has been at the forefront of the "green movement?" A. The United States B. Japan C. Europe D. OPEC countries E. NAFTA countries
Europe
Business-to-business marketers frequently misinterpret the concept of quality. Which of the following examples best illustrates this idea? A. Farmers in third world countries often prefer less-efficient and lower quality but easier-to-maintain products to do work tasks. B. Arabic accountants often use the abacus rather than a calculator. C. The Japanese will no longer do business with many U.S. suppliers because their packaging is faulty. D. The French absolutely abhor the term "French fry." E. The universal acceptance of ISO 9000 standards as a guarantee of the suitability of products in consumer applications.
Farmers in third world countries often prefer less-efficient and lower quality but easier-to-maintain products to do work tasks.
Half of Shanghai's GDP is derived from which of the following industries? A. Financial services B. Steel C. Electronic products D. Shipping E. Software
Financial services
Which of the following is the stereotype of businesspeople in the Northeast? A. Loud and argumentative B. Cold and businesslike C. Aggression D. Simplicity E. Forthrightness
Forthrightness
Kwok Winn is looking to open a new business in his native Singapore. He has decided on a form of licensing that provides him with a standard package of products, systems, and management services in order to sell fast food to local residents. Which of the following best describes the form of business that Mr. Winn has chosen? A. Direct sales B. Exporting C. Importing D. Strategic alliance E. Franchising
Franchising
Which of the following represents the shift of power in the marketplace? A. From a producers' to a sellers' market B. From a sellers' to a customers' market C. From a buyers' to a users' market D. From a producers' to a outsourcers' market E. From a producers' market to a third-party vendors' market
From a sellers' to a customers' market
If a country is in Stage 5 (the age of mass consumption) of Rostow's five-stage model of economic development, where does the country purchase most of its highest-technology products and services? A. From Stage 4 suppliers B. From Stage 3 suppliers C. From other Stage 5 suppliers D. From itself-it never needs anyone else E. From Stage 3 and 4 suppliers together
From other Stage 5 suppliers
Until the _____ and _____ agreements, there were few international rules of fair play governing trade in services. A. WTO; MERCOSUR B. GATT; NAFTA C. FCPA; ISO D. GDP; RRP E. HMO; EU
GATT; NAFTA
McDonald's has just required that all of its paper packages that are used to contain its food products be biodegradable, contain no harmful inks, and be recyclable whenever possible. This would be an example of which of the following marketing strategies? A. Envo-marketing B. Planet marketing C. Socialist marketing D. Green marketing E. Political marketing
Green marketing
_____ is a term used to identify concern with the environmental consequences of a variety of marketing activities. a. Green marketing B. Hybrid business C. Greenfield business D. Greenhouse business E. Alternative marketing
Green marketing
Almost all the Chinese you deal with in _____ will be bilingual and speak at least English fluently. A. Hong Kong B. Mainland China C. Beijing D. Shanghai E. Taiwan
Hong Kong
All of the following are true regarding Hong Kong EXCEPT that: A. Hong Kong became a special administrative region (SAR) of the People's Republic of China in 1944. B. the Basic Law of the Hong Kong SAR forms the legal basis for China's "one country, two systems" agreement. C. the Basic Law of the Hong Kong SAR guarantees Hong Kong a high degree of autonomy. D. the Hong Kong government negotiates bilateral agreements and makes major economic decisions on its own. E. the central government in Beijing is responsible only for foreign affairs and defense of the SAR.
Hong Kong became a special administrative region (SAR) of the People's Republic of China in 1944.
Which of the following about ISO 9000 is true? A. ISO 9000 standards apply to specific products. B. It guarantees that a manufacturer produces a "quality" product or service. C. The series describes five quality system models. D. ISO 9000 standards relate to generic system standards that enable a company to provide assurance that it has a quality control system. E. ISO 9000s were originally designed by the International Organization for Standardization in Zurich.
ISO 9000 standards relate to generic system standards that enable a company to provide assurance that it has a quality control system.
Which of the following would be considered to be the first phase in the international planning process? A. Adapting the marketing mix to target markets B. Developing the marketing plan C. Matching company and country needs D. Implementation and control E. Defining company objectives and resources
Implementation and control
According to the text, which of the following are the two important steps China has to take if the road to economic growth is to be smooth? A. Increasing export barriers and promoting indigenous technology B. Evolving into a democracy and inviting more foreign capital C. Investing in more developing countries and changing the education system D. Membership in more regional trade blocs and lowering of entry barriers E. Improving human rights and reforming the legal system
Improving human rights and reforming the legal system
Which of the following was instrumental in decreasing the historical tension between People's Republic of China (PRC) and the Republic of China (ROC)? A. U.N. negotiations B. Inclusion of both countries in the Security Council C. Increase in direct trade D. American military involvement in peacekeeping E. ASEAN dictates overruling former hostilities between member nations
Increase in direct trade
Crate and Barrel (a large U.S. kitchen ware distributor) sells its inventory twice a year to a large trading company in Vietnam. Basically, Crate and Barrel is in the exporting business with Vietnam as its market. Which of the following forms of exporting best describes what Crate and Barrel is doing? A. Direct exporting B. Indirect exporting C. Multiple layer exporting D. Parallel exporting E. Synergistic exporting
Indirect exporting
_____ requires no equity investment and thus has a low risk, low rate of return, and little control. A. Direct foreign investment B. Indirect exporting C. Direct exporting D. Internet marketing E. Direct sales
Indirect exporting
Insurance, dry cleaning, and hotel accommodations have intrinsic value resulting from a process, a performance, or an occurrence that only exists while it is being created. Which of the following characteristics of services best matches to the above? A. Intangibility B. Inseparability C. Profitability D. Heterogeneity E. Perishability
Intangibility
Which of the following is the largest services export of the United States? A. Media and entertainment B. International tourism C. Healthcare D. Research and development E. Education services
International tourism
Ryan Teed knows that domestic industrial demand is very volatile. He decided to hire a consultant to give him advice on what to do about this unacceptable situation. Which of the following would NOT be a measure put forward as a solution to combat volatile demand in the industrial goods sector? A. Maintain a broad product line B. Raise prices faster C. Reduce advertising expenditures during booms D. Ignore market share as a strategic goal, avoid layoffs, and focus on stability E. Invest in foreign high-yield financial instruments
Invest in foreign high-yield financial instruments
All of the following are considered to be important factors associated with joint ventures EXCEPT: A. JVs are normally between individuals rather than organizations. B. JVs are established, separate, legal entities. C. they acknowledge intent by the partners to share in the management of the JV. D. they are partnerships between legally incorporated entities such as companies, chartered organizations, or governments. E. equity positions are held by each of the partners.
JVs are normally between individuals rather than organizations.
The Four Asian Tigers were the first countries in Asia, after ____, to move from a status of developing countries to newly industrialized countries. A. Bhutan B. Japan C. India D. Indonesia E. Kuwait
Japan
Which of the following has become the most advanced industrialized country in the Asian region? A. South Korea B. Japan C. Hong Kong D. Singapore E. Taiwan
Japan
Which of the following is NOT true of the marketing opportunities in Greater China? A. Rich municipalities like Beijing and Shanghai are quite comparable to Paris, New York, or Tokyo. B. Some municipalities are large and rich enough to be thought of as "more-developed countries." C. As in the United States, luxury cars sell better on the coast, and trucks sell better in rural areas of the west. D. Some of the rural areas might be labeled "least-developed countries." E. Just like in the U.S., the same lines of cosmetics or shampoos are sold nationwide.
Just like in the U.S., the same lines of cosmetics or shampoos are sold nationwide.
According to the text, in China, which of the following can cause some problems for television and radio advertisers in the country that print media can usually avoid? A. Low levels of television and radio penetration B. Cultural diversity C. Lack of common language D. Stringent laws governing the television and radio advertisements E. High cost of advertising on television and radio
Lack of common language
____, Jilin, and Heilongjiang have long represented a cohesive unit in terms of culture and the political economy. The three are referred to as dongbei, meaning Northeast, or dong sansheng, meaning Northeastern Three Provinces, instead of identifying each province individually. A. Gansu B. Shanxi C. Henan D. Liaoning E. Sichuan
Liaoning
How do the vast majority of services enter a foreign market? A. Exporting B. Importing C. Licensing, franchising, or direct investment D. Through brokers E. Through agent intermediaries
Licensing, franchising, or direct investment
The national language of China is standard _____ but more than 56 dialects and other languages are spoken across the country. A. Wu B. Min C. Hakka D. Xiang E. Mandarin
Mandarin
Which of the following factors is mainly responsible for a perceptual bias when interpreting the characteristics of a product? A. Poor product knowledge B. Noise in the communication channel C. Market analyst's self-reference criteria D. Multitude of competing products E. Market analyst's intelligence quotient
Market analyst's self-reference criteria
Which are the two dimensions of quality? A. Product quality and process quality B. Market-perceived quality and performance quality C. Product quality and service quality D. Actual quality and assumed quality E. Absolute quality and relative quality
Market-perceived quality and performance quality
Which of the following organizational forms is becoming increasingly popular by companies that are attempting to reorganize for global competition? A. Product form B. Geographical form C. Tall organizations D. Pyramid structures E. Matrix form
Matrix form
_____ is/are classified on the basis of equity or nonequity requirements of each type. A. Modes of entry to a foreign market B. Modes of selection of a product C. Modes of selection of a country D. Modes of selection of a marketing mix E. Different barriers to market entry
Modes of entry to a foreign market
If a company would "just like to get its feet wet" in the international marketing arena, which of the following methods is generally used? A. Modest exporting B. Importing C. Licensing D. Franchising E. Direct selling
Modest exporting
According to C. K. Prahalad, which of the following represents the misconception that leads international markets to ignore the bottom-of-the-pyramid markets? A. Most products will not be appropriate for BOPMs. B. Most BOPMs are geographically isolated and thus difficult to access. C. Protective policies make BOPMs difficult to penetrate. D. Exchange-rate fluctuations make BOPMs very volatile. E. Language and cultural barriers make BOPMs unattractive and sometimes hostile.
Most products will not be appropriate for BOPMs.
Which of the following companies has been known for its ability to adapt to local needs and wants in the international marketplace since its inception in 1866? A. Kodak B. C.W. Post C. R.J. Reynolds Tobacco D. Ralston Purina E. Nestlé
Nestlé
Which of the following is not one of the Everett Rogers crucial elements in the diffusion of new ideas? A. An innovation B. Communication through certain channels C. New ideas are communicated over time D. New ideas are sent to members of a social system E. New ideas are automatically placed in an incubation zone
New ideas are automatically placed in an incubation zone
A company has four different modes of foreign market entry. Which of the following would NOT be among those modes? A. Exporting B. Nonequity importing C. Contractual agreements D. Strategic alliances E. Direct foreign investment
Nonequity importing
What is the tenet that China follows to ensure that Hong Kong's exuberant capitalism is retained despite the communist leanings of mainland China? A. Free Trade Area of the country B. Sovereignty of the provinces C. Federalism D. Unity in diversity E. One country, two systems
One country, two systems
Apple Computer had difficulties when it first entered the Japanese market with its Macintosh computers. Some of the computers were returned unused after customers found the wrapping on the instruction manual damaged. Though this would probably be no big deal in the U.S., it was certainly a cause for concern in quality-conscious Japan. To fix the problem, Apple needed to concentrate on which of the following components of the product component model? A. Core component B. Support services component C. Packaging component D. Functional component E. Global component
Packaging component
Mark Townes is a dentist in Denver. During a four-day stretch in March, the snows in Denver were so bad that not one single patient was able to come for appointments with Dr. Townes. Since all of the appointments were missed, he made absolutely no money for the four days even though all of his normal expenses were still there. Which of the following best explains the particular difficulty Mark is facing? A. Intangibility B. Inseparability C. Profitability D. Heterogeneity E. Perishability
Perishability
John Deere Tractor Company has just completed a marketing plan for entering South Africa. Included in this plan is the establishment of what is to be done, by whom, how it will be done, and when. Which of the following phases of the international planning process has John Deere planners just completed? A. Phase 1 B. Phase 2 C. Phase 3 D. Phase 4 E. Phase 5
Phase 3
Which of these phases provides the marketer with the basic information necessary to evaluate the potential of a proposed country market and identify problems that would eliminate the country from further consideration? A. Standardization of the marketing mix B. Implementation and control C. Developing the market plan D. Preliminary analysis and screening E. Defining market segments and adapting the marketing mix accordingly
Preliminary analysis and screening
Which of the following is a factor that exacerbates the volatility in demand in industrial markets? A. Professional buyers tend to act in concert. B. Derived demand decelerates changes in markets. C. There are small, noncyclical swings in demand inherent in industrial markets. D. Experienced purchasers tend to act independently. E. Inelastic demand accelerates changes in markets.
Professional buyers tend to act in concert.
Four kinds of barriers face consumer services marketers in the global marketplace. Which of the following of these barriers is in force when a foreign market requires that services (such as banking or insurance) originate within the foreign market itself and not from outside sources? A. Protectionism B. Controls on transborder data flows C. Protection of intellectual property D. Cultural requirements for adaptation E. Language translation barriers
Protectionism
What is the most serious threat to the continued expansion of international services trade? A. Free trade B. Capitalism C. Trade bloc D. Countervailing duties E. Protectionism
Protectionism
Which of the following explains why most of the companies with Indian operations are saying that they are not leaving, but planning on expanding their Indian operations? A. Government machinery is one of the most efficient in the world. B. Living standards for expatriates are comparable to the world's best. C. Qualified labor is cheap, and the market potential is massive. D. Proximity to China makes sourcing of parts easier. E. Paying bribes simplifies otherwise complex procedural hurdles.
Qualified labor is cheap, and the market potential is massive.
To Chinese import managers, which of the following aspects of the purchasing process was ranked as the number one important aspect when buying a product or service from a foreign supplier? A. Quality B. Price C. Product style D. Product features E. Timely delivery
Quality
Apart from market-perceived quality and performance quality, which is other form of quality testing is popular? A. Quality perceived by internal panels B. Quality measured by objective third parties C. Quality assurance from internal vendors D. Quality measured by NGO activist groups E. Quality certified by quality circles
Quality measured by objective third parties
Which of the following was designated China's first Special Economic Zone? A. Shanghai B. Honk Kong C. Taiwan D. Beijing E. Shenzen
Shenzen
What are negotiators from the Shanghai area famous for? A. Shrewdness B. Forthrightness C. Entrepreneurship D. Out-of-the-box thinking E. Bureaucratic sloth
Shrewdness
ASEAN+3 is a forum for ASEAN ministers plus ministers from China, Japan, and ____. A. the United States B. South Korea C. Russia D. Australia E. New Zealand
South Korea
Nestlé focuses on dominating markets in the world arena. The company has four primary points in its highly successful international strategy. Which of the following would not be among those four points? A. Think and plan long term B. Decentralize C. Stick to what you know D. Standardize so that all becomes one E. Adapt to local tastes
Standardize so that all becomes one
In some countries maintenance of automobiles is not the norm. Cars are not repaired until they break down. Since the consumer is automatically angry with the manufacturer when something goes wrong with the car, repair and maintenance has become a concern of the various automobile manufacturers in this market. In which of the following components of the product component model would management need to make improvement if problems such as the one above are going to be solved? A. Core component B. Support services component C. Packaging component D. Functional component E. Global component
Support services component
Installation, repair and maintenance, deliveries, and warranties are all found in which of the following components of the product component model used in the text? A. Core component B. Support services component C. Packaging component D. Functional component E. Global component
Support services component
Managers in this part of China are known to be simultaneously down-to-earth and practical but on occasion daring. A. Hong Kong B. Mainland China C. Taiwan D. Shanghai E. Beijing
Taiwan
Which part of China is considered conservative in both behavior and language? A. Hong Kong B. Mainland China C. Beijing D. Shanghai E. Taiwan
Taiwan
If a country has reached an economic development level where there is a focus on manufacturing of both semidurable and nondurable consumer goods and goods demanded relate to equipment and supplies to support manufacturing, which of the following stages of Rostow's five-stage model of economic growth is the country in? A. The traditional society B. Drive to maturity C. Preconditions for takeoff D. Takeoff E. The age of mass consumption
Takeoff
Russia and Eastern European countries have been characterized as being in which of the following stages of Rostow's five-stage model of economic growth? A. The traditional society B. Drive to maturity C. Preconditions for takeoff D. The age of mass consumption E. Takeoff
Takeoff
Which of the following is NOT one of the Four Asian Tigers? A. Hong Kong B. Thailand C. South Korea D. Singapore E. Taiwan
Thailand
Immediately after World War II, a shattered Japanese nation arrived at a consensus goal for national recovery. That consensual goal provided the incentive for its spectacular progress, decade after decade. Then during the late 1980s, the Japanese people stepped back and looked around at their manifest achievement. It was easy to conclude they had reached their coveted goal. So the question for them became, "all right, what's next?" This theory tries to explain the Japanese crisis of the 90's. Which of the following theory are we talking about? A. The Cultural Causation theory B. The Power Shift theory C. The Third Way theory D. The Hybridity theory E. The Cultural Capital theory
The Cultural Capital theory
Which of the following countries or organizations requires that packaging material through all levels of distribution, from manufacturer to consumer, be recycled or reused? A. The United States B. The European Commission (EC) C. NAFTA D. Australia/New Zealand E. WTO
The European Commission (EC)
Which of the following is the international organization that is attempting to synchronize standards for several international industrial sectors? A. The U.S. Department of Labor B. The Global Harmonization Task Force C. The United Nations D. The Better Business Bureau E. The U.S. Chamber of Commerce
The Global Harmonization Task Force
This region in China includes three cities of over 5 million inhabitants (Hong Kong, Guangzhou, and Shenzhen); five cities with more than 1 million inhabitants (Zhuhai, Huizhou, Foshan, Zhongshan, and Dongguan); and a number of cities that each contain approximately half a million inhabitants, such as Macau. Identify the region. A. Shanghai B. Northeast China C. Yangtze River Delta D. The Greater Pearl River area E. Mainland China
The Greater Pearl River area
Which international organization is concerned with standard specifications for electrical equipment for machine tools? A. The U.S. Department of Labor B. The International Telecommunication Union C. The International Organization for Standardization D. The International Electrotechnical Commission E. The U.S. Chamber of Commerce
The International Electrotechnical Commission
Which of the following is the simplest and cheapest method to enter a foreign market? A. Exporting B. Importing C. The Internet D. Licensing E. Franchising
The Internet
As they have been the closest to foreign influences, negotiators from this part of China are famous for their special forms of entrepreneurship and spontaneity. Identify the region. A. Taiwan B. Mainland China C. Beijing D. Shanghai E. The Pearl River Delta
The Pearl River Delta
The Chinese in this area are less calculating than folks in Shanghai. But they are excellent traders and particularly interested in making short-term gains. These negotiators belong to: A. Taiwan B. The Pearl River Delta C. Beijing D. Shanghai E. Mainland China
The Pearl River Delta
_____ contains Hong Kong, Macau, Guangzhou, and Shenzhen and it is considered as the world's manufacturing base for the IT industry. A. Northeast China B. The Yellow River Delta C. The Yangtze River Delta D. The Pearl River Delta E. Southwest China
The Pearl River Delta
Which of the following countries is not officially on the metric system? A. The United States B. Japan C. Saudi Arabia D. Mexico E. China
The United States
Which of the following out-of-control factor explains Japan's end-of-the-century economic problems? A. The deeply-rooted bureaucratic structure B. The rise in global oil prices C. The complex Japanese language D. The growing fiscal deficit E. The burgeoning population
The complex Japanese language
Which of the following is, perhaps, the most significant environmental factor affecting the international market for industrial goods and services? A. Foreign exchange B. Political conditions C. The degree of industrialization D. The level of competition E. Inflation
The degree of industrialization
Which of the following is the reason why most of the 1.3 billion potential consumers are not accessible? A. Most of them are in Mainland China where entry is prohibited. B. The distribution network is poor or is absent. C. These are mostly Communist party members who are prohibited from dealing with MNC brands. D. They are restricted to settlement zones where marketing is prohibited. E. They are unfamiliar with the English language.
The distribution network is poor or is absent.
Which of the following is, perhaps, the best indicator of the "countries' abilities to benefit from and use technology as economic leverage" dimension of development? A. The educational system B. The degree of industrialization C. The general economic environment D. Market size and growth E. Government regulations
The educational system
If Phase 3 of the international planning process is successfully completed, which of the following will generally occur next in the planning process cycle? A. The objectives and goals phase B. The budget phase C. The action program(s) phase D. The implementation and control phase E. The communication phase where advertising and promotion are emphasized
The implementation and control phase
With respect to industrial demand, which of the following best characterizes the "traditional society" described in Stage 1 of Rostow's five-stage model of economic development? A. A service economy is on the horizon. B. The important industrial demand is associated with natural resources extraction. C. Primary needs are related to infrastructure development. D. Manufacturing of both semidurable and nondurable consumer goods begins. E. The focus in on low-cost manufacturing of a variety of consumer and some industrial goods.
The important industrial demand is associated with natural resources extraction.
Political explanations of Japan's crisis during the 1990s identified two villains. One of them was the powerful Japanese bureaucracy. Which of the following is the other one? A. Japan's trade policies with the U.S. B. Japan's refusal to join Asian trade blocs C. The powerful influence of the royalty in political issues D. The long entrenched Liberal Democratic Political Party E. The splintering of most of Japan's right-wing political parties
The long entrenched Liberal Democratic Political Party
Which of the following is considered to be one of the extraneous variables that affects the rate of diffusion of an object? A. The use of the Internet in the diffusion process B. The age appearance of the innovation C. The number of marketing personnel dedicated to diffusion D. The method used to communicate the idea E. The shelf live of the diffusion object
The method used to communicate the idea
Which of the following is NOT an interrelated trend that spurs demand for technologically advanced products? A. Expanding industrial growth in Asia B. Expanding economic growth in Asia C. The disintegration of the Soviet empire D. The privatization of government-owned industries worldwide E. The opening of the Trans-Arctic route
The opening of the Trans-Arctic route
Which of the following will create expanding demand, particularly for industrial goods and business services, in Latin America? A. The fast economic growth B. The creation of market economies C. The privatization of state-owned enterprises D. Employment creation E. Government regulations
The privatization of state-owned enterprises
With respect to universal standards in the sales of international products, which of the following statements is most applicable? A. There are generally accepted universal standards for industrial products around the world. B. There is a lack of universal standards. C. The movement toward universal standards is nearing completion. D. Most governments now mandate universal standards. E. Universal standards have been present for a number of years.
There is a lack of universal standards.
Which of the following statements regarding standardization versus adaptation in the industrial market is most correct? A. The exact same situation occurs in marketing industrial goods as in marketing consumer goods. B. There is more standardization in industrial goods. C. There is more adaptation in industrial goods than in consumer goods. D. The industrial goods market demands adaptation. E. The industrial goods market varies across cultural groups.
There is more standardization in industrial goods.
Research has shown that after-sales services are crucial in building customer loyalty and maintaining company reputation. What is another key reason that after-sales services should receive particular attention of top management? A. these services are almost always more profitable than the actual sale of the primary good itself. B. These services are very difficult to duplicate. C. These services can be very heavily advertised. D. These services cost almost nothing. E. Degree of outsourcing service support.
These services are almost always more profitable than the actual sale of the primary good itself.
Why are German and Japanese firms generally better at managing market volatility than American firms? A. Their emphasis is on beating competitors. B. They value employees and stability very highly. C. They maintain limited product lines. D. They reduce prices faster and raise advertising expenditures during booms. E. They consider market share as a strategic goal.
They value employees and stability very highly.
What are the particular cultural hurdles, the overcoming of which can transform China into a vast market in the long run? A. Rigid hierarchy and male chauvinism B. Thrift and xenophobia C. Language barrier and stereotyping D. Ritualism and ethnocentrism E. Gender divide and narcissism
Thrift and xenophobia
_____ is China's third largest industrial city after Shanghai and Beijing, but it is also the fastest growing one. A. Wuhan B. Chengdu C. Qingdao D. Tianjin E. Kaohsiung
Tianjin
According to Everett Rogers, which is the element that differentiates diffusion from other types of communications research? A. Breakthrough innovation B. Communications channels C. Time D. Social system E. Government support
Time
What is the chief reason that most U.S. business services companies enter the international market? A. To service their U.S. clients abroad B. To make high profits C. To avoid government restrictions D. To find and service new international customers E. To avoid governmental controls in the domestic market
To service their U.S. clients abroad
Which of the following has become the primary vehicle for business-to-business promotion and selling in many foreign countries? A. Trade shows B. In-office visits by sales teams C. TV advertising D. Local radio advertising E. Transit media
Trade shows
_____ provide(s) the facilities for a manufacturer to exhibit and demonstrate products to potential users and to view competitors' products. A. Catalogs B. Direct mail C. Web sites D. Trade shows E. Specialty advertising venues
Trade shows
Which of the following represent the "three direct links" leading to the establishment of One China? A. Transportation, trade, and communications B. Culture, language, and religion C. History, language, and transportation D. Federal bodies, education, and trade E. Technology, natural resources, and people
Transportation, trade, and communications
In Stage 2 of Rostow's five-stage model of economic growth, manufacturing is beginning and primary needs are related to infrastructure development. Which of the following countries would be characterized as being in this stage of economic development? A. Russia B. Eastern European countries C. South Korea D. Czech Republic E. Vietnam
Vietnam
Which of the following is a question that is not likely to be generated by Phase 2 of the international planning process? A. Are there identifiable market segments that allow for common marketing mix tactics across countries? B. Which cultural adaptations are necessary for successful acceptance of the marketing mix? C. Will adaptation costs allow profitable market entry? D. Which environmental adaptations are necessary for successful acceptance of the marketing mix? E. Which country market to make a market investment in?
Which country market to make a market investment in?
_____ is known as China's Silicon Valley. A. Liaoning B. Zhongguancun C. Jilin D. Guangzhou E. Heilongjiang
Zhongguancun
The ready availability of parts and services provided by U.S. marketers can give them _____ in international markets. A. easy market entry B. increased liability C. performance problems D. reduced costs E. a competitive advantage
a competitive advantage
McDonald's Hamburger University is known for having one of the finest (and most famous) international customer training facilities in the world. This is part of McDonald's _____ when dealing with international customers. A. pricing promotion B. product innovation C. capacity utilization efficiency D. after-sales service E. warranty
after-sales service
When a company conducts Phase 2 of the international planning process, one of the questions generated in this phase is: A. are there identifiable market segments that allow for common marketing mix tactics across countries? B. have objectives and goals been established? C. have all budgets been determined within the constraints of resources? D. have action programs begun? E. have responsibilities been established for implementation and control?
are there identifiable market segments that allow for common marketing mix tactics across countries?
Cathy wants to provide accounting and financial services to her clients as they expand into international markets. Cathy can expect to face most of the same _____ merchandise traders. A. barriers confronting B. receptiveness experienced by C. support from local governments promised to D. alternative distribution channels utilized by E. outsourcing objections by
barriers confronting
C. K. Prahalad and associates introduced the concept of a global market, not necessarily defined by national borders but rather by the pockets of poverty across countries, and consisting of 4 billion people across the globe with annual incomes of less than $1,200. These consumers, concentrated in the LDCs and LLDCs, are referred to as _____ markets. A. subsistence B. third-world C. underdeveloped D. bottom-of-the-pyramid E. peripheral
bottom-of-the-pyramid
Along with industrial goods, the most rapidly growing sector of U.S. international trade today consists of: A. industrial products. B. consumer products. C. computer products. D. business services. E. governmental services.
business services.
Quality is defined by the: A. seller. B. manufacturer. C. buyer. D. government. E. trade publications.
buyer
The text cites studies that report firms committed to international marketing gain competitive advantages from ____. A. delaying entry into specific regions B. an extensive advertising campaign C. developing professional relationships D. clustering operations in specific regions E. using central regional warehouses
clustering operations in specific regions
Innovative product ideas reach markets with varying rates of diffusion based on the time variable. All of the following are actual examples of this phenomenon EXCEPT: A. microwave ovens took 20 years to catch on in the United States. B. the contraceptive pill took only a few years to be accepted in the United States. C. modern math took only about five years to be diffused through the U.S. school systems. D. the idea of kindergartens took nearly 50 years to gain total acceptance in the United States. E. color televisions were available in 1949 but not widely accepted in the market until 1985.
color televisions were available in 1949 but not widely accepted in the market until 1985.
Which of the following industries is most heavily damaged when restrictions are placed on cross-border data flows? A. Construction industry B. Plastics industry C. Pharmaceutical industry D. Communications industry E. Retailing industry
communications industry
Carolyn is interested in marketing her company's diet products in Asia. She is studying what acceptable behavior, norms, and values in Asian markets. Carolyn is studying ____. A. relative advantage B. compatibility C. complexity D. trialability E. observability
compatibility
Phase 3 of the international planning process, begins with: A. the creation of a management performance guide. B. the selection of an action program. C. conducting a situation analysis. D. developing a list of home-country constraints. E. exploration of the distribution option including logistics and channels.
conducting a situation analysis.
As part of the "green marketing" movement, the European Commission has passed legislation to control all kinds of packaging waste throughout the European Union. Two critical issues that affect product development are the control of the packaging component of solid waste and ____. A. variations in standards across different member countries B. consumer demand for environmentally friendly products C. government subsidies for greener technologies D. availability of alternative energy resources for production E. management of existing inventory of conventional energy products
consumer demand for environmentally friendly products
The success of a firm taking inventions to market is referred to as ____. A. conversion ability B. product penetration C. diffusion D. marketization E. mass customization
conversion ability
"Making deals in pounds isn't easy when you're negotiating with someone who speaks in grams" is why many American firms are: A. championing an international weight-loss program. B. only doing business in Great Britain. C. converting measures to the metric system. D. simulating rather than estimating production standards. E. offering to change customers' calculations into standards acceptable to American manufacturers.
converting measures to the metric system.
One of the key functions of global account managers revolves around the notion of: A. mass promotion and advertising. B. customer relationship building. C. mergers and acquisitions. D. coordination with customer's staff. E. data gathering and analysis.
coordination with customer's staff.
If a company wished to alter a product's platform so that the product could be manufactured in a variety of forms to meet local differences in five different foreign markets, the _____ of the product component model would be component that would be in consideration. A. core component B. support services component C. packaging component D. functional component E. global component
core component
Any influence that the company of manufacture, assembly, or design has on a consumer's positive or negative perception of a product is called the: A. plus or minus effect. B. polar effect. C. transfer effect. D. alteration effect. E. country-of-origin effect.
country-of-origin effect.
Relationship marketing is particularly important in international markets where _____ dictates strong ties between people and companies. A. demand B. price C. culture D. government E. manufacturing
culture
The perception of quality rests solely with the: A. retailer. B. customer. C. marketer. D. manufacturer. E. quality inspector.
customer
The first relationship activity in building a strategic alliance where senior executives leverage their personal networks is labeled as: A. imaging. B. initiating. C. interfacing. D. dating. E. committing.
dating
The primary goal of Phase 2 of the international planning process is to: A. perform a preliminary analysis of a country. B. perform a screening of the environment. C. decide on a marketing mix according to the market segments. D. perform a situation analysis for the country that has been selected for entry. E. implement specific plans.
decide on a marketing mix according to the market segments.
The first meeting of the members of the ASEAN+3 was devoted to devising a system whereby the member countries could ____. A. defend their currencies against future attack B. improve the multilateral trade C. keep the inflation under check D. acquire the nuclear technology E. improve agricultural production
defend their currencies against future attack
Derived demand can be defined as demand: A. that is derived from supply. B. that is matched to consumer wants and needs. C. dependent on another source. D. that is volatile. E. for a basic good wanted for its own sake.
dependent on another source.
For managers selling capital equipment and big-ticket industrial services, understanding the concept of _____ demand is absolutely fundamental to their success. A. kinked B. sliding C. multiple D. derived E. postponed
derived
During which of the following international planning phases would the marketer make decisions that involved the situation analysis, objectives and goals, budgets, and action programs? A. Adapting the marketing mix to target markets B. Developing the marketing plan C. Matching company and country needs D. Implementation and control E. Defining company objectives and resources
developing the marketing plan
With _____ exporting, the company sells to a customer in another country. A. direct B. indirect C. multiple layers D. parallel E. synergistic
direct
A major advantage to a multinational corporation (MNC) involved in planning is the: A. assurance of making a profit. B. discipline imposed by the process. C. ability to break down goals and explain the process to all employees. D. ability to circumvent governmental barriers by using the process. E. unification of cultural differences.
discipline imposed by the process.
All of the following are specific uses for trade shows in aiding the marketing effort in most countries EXCEPT: A. selling products. B. reaching prospective customers. C. contacting and evaluating potential agents and distributors. D. dispute settlement. E. marketing.
dispute settlement.
In the _____ stage of Rostow's five-stage model of economic development, an industrialized economy's focus is more on low-cost manufacturing of a variety of consumer and some industrial products; they buy from all categories of industrial products and services. A. traditional society B. drive to maturity C. preconditions to takeoff D. age of mass consumption E. takeoff
drive to maturity
When large market segments can be identified, _____ can be important competitive advantages of global companies. A. profits. B. product differentiation. C. membership in regional bodies like EU. D. economies of scale in production and marketing. E. relational static differentials.
economies of scale in production and marketing.
All of the following are actual phases in the international planning process EXCEPT: A. adapting the marketing mix to target markets. B. developing the marketing plan. c.establish the organizational design of the corporate parent. D. implementation and control. E. matching company and country needs
establish the organizational design of the corporate parent.
In Russia products are placed into two categories—"ours" and "imported." This is an example of: A. cultural revisionism B. ethnocentrism C. conversion to capitalism D. communist mentality E. structural marketing orientation
ethnocentrism
The statement, "Only in America can international market requirements be an afterthought" is an example of American ____. A. ethnocentrism B. marketing myopia C. overconfidence D. concern for international customers E. conservatism
ethnocentrism
Minimum market potential, minimum profit, return on investment, acceptable competitive levels, standards of political stability, acceptable legal requirements are examples of: A. factors that should be kept in mind while evaluating a product. B. problems concerning any market. C. areas of competition between two markets. D. issues that come up during foreign market entry. E. factors that should be considered while evaluating a foreign market.
factors that should be considered while evaluating a foreign market.
The worldwide use of a name, term, sign, symbol, design, or combination thereof intended to identify goods or services of one seller and to differentiate them from those of competitors is called a/an: A. trademark. B. copymark. C. global brand. D. brand's equity position. E. owner's mark.
global brand.
With respect to global marketing management, the argument for market segmentation for the 1990s was framed as: A. standardization versus adaptation. B. globalization versus localization. C. global integration versus local responsiveness. D. capitalism versus socialism/communism. E. buy now versus buy later.
global integration versus local responsiveness.
Everett Rogers notes that crucial elements in the diffusion of new ideas are all of the following EXCEPT: A. innovation. B. communication channels. C. time. D. members of a social system. e. government support.
government support.
Because a service is individually produced and is virtually unique, the service is said to have: A. intangibility B. inseparability C. profitability D. heterogeneity E. perishability
heterogeneity
Strategic planning is conducted at the _____ levels of management and deals with products, capital, and research and the long and short term goals of the company. A. operational B. tactical C. internal D. highest E. secondary
highest
In many countries, the term used to describe the changes mandated by local product and service standards is product ____. A. localization B. blending C. standardization D. dilution E. homologation
homologation
Vital Health Products found out that they had to reduce the length of the tread in their treadmills sold in China owing to the shorter legs of the average Chinese person. By doing this Vital has achieved product ____. A. homologation B. standardization C. dilution D. flexibility E. repositioning
homologation
The environment within which a company plans to operate includes marketing objectives, company limitations or strengths that exist at the beginning of each planning period, home-country and _____ constraints. A. foreign-country B. host-country C. neighboring-country D. external country E. market-country
host-country
With _____ exporting, the company usually sells to a buyer (importer or distributor) in the home country who in turn exports the product. A. direct B. indirect C. multiple layers D. parallel E. synergistic
indirect
Demand in industrial markets is different from that in consumer markets. All of the following are factors that differentiate the industrial market from the consumer market EXCEPT: A. demand is more volatile in the industrial market. B. stages in industrial development affect demand for industrial products. C. stages in economic development affect demand for industrial products. D. industrial products are always more expensive than consumer products. E. the level of technology of products and services makes their sale more appropriate in some countries than others.
industrial products are always more expensive than consumer products.
From a sociological viewpoint, any idea perceived as new by a group of people is a(n) ____. A. creation B. adaptation C. ideation D. homologation E. innovation
innovation
The mode of entry for most consumer services firms is licensing, franchising, strategic alliances, or direct. This tendency is so because of the: A. natural or planned differentiation of commodities. B. perishability or inability to inventory. C. inseparability of creation and consumption. D. variability of inputs and outputs. E. physical intangibility of services.
inseparability of creation and consumption.
For many technical products, the willingness of the seller to provide _____ may be the deciding factor for the buyers accepting one company's product over another's. A. trade in kind B. barter arrangements C. installation and training D. a 90-day no pay period E. a no fault policy
installation and training
One of the key functions of global account managers revolves around the notion of: A. intelligence gathering. B. mass advertising. C. relationship building. D. corporate air travel. E. possibility thinking.
intelligence gathering.
All of the following are benefits of global marketing EXCEPT: A. access to the toughest customers. B. economies of scale. C. transfer of experience and know-how. D. financial benefits. E. international travel benefits.
international travel benefits
According to Everett Rogers, the goal of the diffusion researcher and the marketer are to shorten the time lag between: A. the time that a product is made and the time that retailers place the product in inventory. B. the time that a budget is constructed and the time needed funds reach communication channels. C. the time that an investment is made and the time that a profit is turned. D. introduction of an idea or product and its widespread adoption. E. introduction of an idea or product and when revisions can be made.
introduction of an idea or product and its widespread adoption.
The U.S. Congress and businesses have been resisting conversion to the metric system fearing: A. market competition from international firms already using the metric system. B. consumer backlash and substitution of international products. C. Department of Commerce rules requiring wine to be sold in liters. D. workers would not understand the system. E. it would be too costly
it would be too costly
A _____ occurs when two or more participating companies join forces to create a separate legal entity to facilitate doing business in the international arena. A. consortium B. franchise C. license arrangement D. joint venture E. direct investment agreement
joint venture
Contractual agreements serve as a means of transfer of _____ rather than ____. A. equity; knowledge B. knowledge; equity C. money; profit D. organizational design; organizational theory E. commercial advantage; economic power
knowledge; equity
According to C. K. Prahalad, consumers in the bottom-of-the-pyramid markets have been relatively ignored by international marketers because of misconceptions about their: A. willingness to buy international products. B. buying habits. C. expectations from the product. D. lack of resources. E. traditions and culture.
lack of resources.
Patent rights, trademark rights, and the rights to use technological processes are granted in foreign: A. direct exporting. B. indirect exporting. C. strategic alliances. D. licensing. E. Internet domain source sites.
licensing
KFC began selling Youtiau, a kind of Chinese doughnut, at its outlet in China. The Youtiau is considered an important part of a Chinese breakfast menu. In marketing terms, KFC is practicing a _____ strategy. A. positioning B. localization C. segmentation D. indigenous E. brand
localization
International corporate planning is essentially: A. short term. B. operational. C. tactical. D. long term. E. regional.
long term.
Robert always lets his customers know when changes are being made and calls on his customers regularly. As part of relationship marketing, Robert is building a(n) _____ with customers. A. long-term relationship B. distance relationship C. Internet link D. service-only link E. standard call-contact frequency
long-term relationship
Global competition is placing new emphasis on some basic tenets of business. All of the following represent the major trends EXCEPT: A. longer product life cycles. B. importance of quality. C. competitive prices. D. innovative products. E. shift of power from sellers' to customers' market.
longer product life cycles.
Competition and the ease of global communications are forcing managers around the world to ____. A. expand global advertising B. respond quickly to competitive threats c. make greater commitments to global marketing D. increase customer access to their companies E. extend product and service warranty periods
make greater commitments to global marketing
Many suppliers are adopting ISO 9000 standards because: A. customer satisfaction surveys indicate retail customers prefer ISO certified suppliers. B. it is the latest fad that adds value according to customer perception. C. they want to be perceived as eco-friendly. D. the WTO expects international suppliers to conform to ISO standards. E. manufacturers are requiring them to do so.
manufacturers are requiring them to do so.
More and more companies are offering a mix of products and services to their customers. This leads to a blurring of the distinction between products and services leading to new terms like: A. market applications. B. market solutions. C. product portfolio. D. market offerings. E. product basket.
market offerings.
A strong level of interest in ISO 9000 is being driven more by: A. government regulations. B. marketplace requirements. C. coercive action. D. collective action. E. internal perspectives.
marketplace requirements.
One important dimension of quality is how well the product: A. meets the specific needs of the buyer. B. exceeds competitors' products. C. conforms to manufacturer's specifications. D. alters the marketing landscape. E. matches up to applicable conditions.
meets the specific needs of the buyer.
Ingrid is developing promotional materials and product demonstrations to easily communicate the benefits of her cleaning products. Ingrid is trying to enhance the _____ of her products. A. relative advantage B. compatibility C. complexity D. trialability E. observability
observability
The ideal market segment size, if customer satisfaction is the goal, is: A. one. B. a small group such as 5000-10000. C. local such as a small city of 10,000. D. regional such as a state or territory. E. divided by gender.
one
In the 1970s, Frank Gibney had called Japan The Fragile Superpower, which was confirmed with the crisis of the 1990s. In his new appraisal, Gibney writes that Japan has become the victim of: A. neighborhood sickness. B. political correctness. C. being penny-wise and pound-foolish. D. herd behavior. E. one-party sickness.
one-party sickness.
One of the differences between consortia and joint ventures is that consortia typically: A. makes more money than a JV. B. operates in a country or market in which none of the participants is currently active. C. operates in only one market at a time. D. are associated with academic partners. E. operates in low visibility markets.
operates in a country or market in which none of the participants is currently active.
Which of the following would be subjects analyzed or explored in the second phase of the international planning process? A. company character b. product adaptation C. situation analysis D. budgets E. standards
product adaptation
One of the key functions of global account managers revolve around the notion of: A. mass advertising. B. reconfiguration. C. relationship building. D. corporate air travel. E. possibility thinking.
reconfiguration
ISO 9000 concerns the: A. ability of a company to meet quality expectations of consumers. B. registration and certification of a manufacturer's quality system. C. profitability of a production line. D. ability of a company's computer system to adapt to SAP. E. assurance of product application.
registration and certification of a manufacturer's quality system.
Services are distinguished by all of the following unique characteristics EXCEPT: A. intangibility. B. inseparability. C. heterogeneity. D. perishability. E. repeatability.
repeatability
All of the following are subjects that would be explored in the first phase of the international planning process (preliminary analysis and screening) EXCEPT: A. company character. B. home-country constraints. C. geography. D. host-country constraints. E. selecting the mode of entry.
selecting the mode of entry.
All of the following are decisions that the foreign marketer must make when entering a foreign market EXCEPT: A. what products to develop. B. which markets to conduct business in. C. what should be the level of resource commitment. D. should the organization have a mission statement or not. E. allocating effort and resources among countries.
should the organization have a mission statement or not.
Mary is a new international sales rep for an industrial supply company. She will learn that the inherent nature of industrial goods and the sameness in motive and behavior among business customers create a market where product and marketing mix _____ are commonplace. A. customization B. localization C. standardization D. simplification E. regulations
standardization
In the 1970s, international marketers framed the approach towards market segmentation as: A. standardization versus adaptation. B. globalization versus localization. C. global integration versus local responsiveness. D. capitalism versus socialism/communism. E. buy now versus buy later.
standardization versus adaptation.
In order to enhance their competitiveness and to capitalize on global marketplace opportunities, comprehensive decisions need to be made by multinational companies regarding key strategic choices such as: integration vs. independence, concentration vs. dispersion, and ____. A. import vs. export B. direct sales vs. franchising C. standardization vs. adaptation D. mass production vs. customization E. international vs. global
standardization vs. adaptation
A recent study of North American and European corporations indicated that the need to ____ was considered the most important external issue affecting their marketing strategies. A. gain access to the Chinese market B. avoid competition among themselves C. reduce international exposure D. stay cost competitive E. overcome management resistance
stay cost competitive
A(n) ____ is a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective. A. direct sales group B. contractual exploration C. Internet importing Web site D. strategic international alliance E. franchising organization
strategic international alliance
The _____ process is a primary medium of organizational learning: A. expansion B. managing C. supervisory D. recruitment E. marketing
supervisory
If a company were to focus on market planning that involved specific actions and allocations of resources, the company would be using _____ to carry out plans. A. tactical planning B. strategic planning C. corporate planning D. long term planning E. synergistic planning
tactical planning
To be competitive in today's global markets, the concept of total quality management (TQM) must be part of all MNCs' management strategy, and TQM starts with: A. the initial designer. B. the comptroller's office. C. talking with the customers. D. ISO 9000. E. the corporate mission statement.
talking with the customers
The Internet has proven to be a viable exporting alternative for most markets. However, the European Union approach to _____ is a great cause for concern. A. selling domain names B. spam C. taxing Internet sales D. controlling search engines E. regulating domain country of residence
taxing Internet sales
An important first step in adapting a product to a foreign market is to determine: A. the degree of newness as perceived by the intended market. B. the cost of the adapted product in the foreign market. C. the advertising parallels with the domestic market. D. the ability of a sales force to sell the product. E. the match to religious doctrine(s) in the foreign country.
the degree of newness as perceived by the intended market.
Part of the trend back toward localization is caused by increasingly flexible manufacturing processes and: A. better quality products. B. cost factors. C. the fact that local products are beginning to outshine their international counterparts. D. growing feelings of patriotism among the general population. E. the efficiencies of customization made possible by the Internet.
the efficiencies of customization made possible by the Internet.
Two basic factors account for the market similarities among industrial goods customers. One factor is the motive or intent of industrial customers is the same. The other factor accounting for the similarity among industrial goods customers is: A. the inherent nature of the product. B. the customer is seeking satisfaction. C. the government influence over design specifications. D. the tie to services. E. the perishability of the product.
the inherent nature of the product.
Fiona asked her product manager for samples to give to potential consumers in Madrid, her new European market. Fiona is trying to reduce the degree of economic and/or social risk, or _____ associated with product use. A. relative advantage B. compatibility C. complexity D. trialability E. observability
trialability
In general, the rate of diffusion can be postulated as negatively related to ____. A. relative advantage B. compatibility C. trialability D. complexity E. observability
trialability
All of the following illustrate how products (product concepts) have been rejected by cultures because they did not meet the norms, values, or behavior patterns of the culture EXCEPT: A. many financial services in Muslim countries. B. body jewelry in Japan. C. pork and pork products in Scotland. D. filter cigarettes in Asia. E. whiskey and beer in Ireland.
whiskey and beer in Ireland.
