Marketing Final
"Successful GSPs create win-win situations, where participants pursue objectives on the basis of mutual advantage." When applied to global strategic partnerships, this statement indicates the importance of which factor? A) mission B) strategy C) governance D) culture E) organization
A
According to a 1991 report by McKinsey & Co., problems of alliances between Western and Japanese firms were related to all of the following factors except: A) objective levels of performance. B) a feeling of mutual disillusionment. C) difference in expectations. D) balance between partners. E) frictional loss.
A
British entrepreneur Richard Branson has built a global business empire by: A) relying on brand extension. B) being the first to use smart cards in major markets. C) developing local brands. D) avoiding consumer businesses with established leaders. E) restricting the "Virgin" name only to airlines.
A
Coca-Cola's distinctive contour bottle, which is sold in many countries, illustrates the point that packaging: A) strategies can vary by country and region. B) helps in storing large sizes in refrigerators. C) strategies do not change by country and region. D) appeals only to Asian consumers. E) helps in brand identification.
A
Comparing the traditional formulation of Maslow's hierarchy with the results of current research on the consumer needs and motivation in Asia, which of the following is correct? A) The lowest two levels of the hierarchy are the same in the traditional and Asian versions. B) The lowest three levels of the hierarchy are the same in the traditional and Asian versions. C) The lowest four levels of the hierarchy are the same in the traditional and Asian versions. D) The five levels in the traditional formulation apply equally in the West and in Asia. E) The highest levels of the hierarchy are the same in the traditional and Asian versions.
A
Example of a "brand symbol" includes all of the following except: A) date of manufacture on Coca-Cola cans. B) the wave that appears on red Coke cans and bottle labels. C) non-word marks such as the Nike swoosh. D) three-pronged Mercedes star. E) McDonald's golden arches.
A
Ford and Mazda have market entry and expansion in a relationship known as: A) joint venture. B) licensorship. C) franchising. D) contract manufacturing. E) none of the above
A
Maslow's hierarchy is applicable to global marketing because it can help explain how: A) basic human needs can drive the development of global products. B) "self-actualization" is the highest-order need in Japan as well as Western nations. C) status needs in different countries can only be fulfilled with localized products. D) "luxury badging" is irrelevant to companies marketing in Asia. E) Asians differ from Westerners in their basic physiological needs.
A
Procter & Gamble recently introduced Pampers Rash Guard. Rash Guard does not represent a new product per se; rather, the diapers are being marketed as an alternative to regular Pampers. What type of innovation do Pampers Rash Guard diapers represent? A) a continuous innovation B) a dynamically continuous innovation C) a discontinuous innovation D) a platform-based innovation E) none of the above
A
Saab markets two luxury car models, both prized by drivers for their "quirkiness." About 30 percent of Saab's sales come from the USA, with most of the rest from Western Europe. Which strategy does Saab appear to be using? A) country concentration/market segment concentration B) country diversification/market segment concentration C) country concentration/market segment diversification D) country diversification/market segment diversification E) none of the above
A
The international standard by which letters of credit (L/Cs) are interpreted is known as the ________ 500. A) UCP B) NTR C) FSC D) NTB E) HTS
A
The marketers of Corona beer achieved great success in the U.S. market by: A) retaining the bottle design originally used in Mexico. B) hiring Hispanic movie stars as endorsers. C) distributing Corona in returnable bottles. D) changing the brewing recipe to conform to American palates. E) having the label in Spanish.
A
The sale of merchandise in export markets at unfair prices is known as: A) dumping. B) countervailing. C) tariff. D) ad valorem. E) transaction.
A
When introduced in the late 1970s, the VCR created new patterns of consumer behavior. For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time. DVD, a playback only video system, was introduced in the late 1990s. DVD discs contain full-length movies with digital sound in a format that resembles conventional music compact discs. Which of the following most accurately describes the respective degree of newness of these two global products? A) The VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation. B) The VCR is a dynamically continuous innovation; the DVD is a discontinuous innovation. C) The VCR and DVD are both dynamically continuous innovations. D) The VCR and DVD are both discontinuous innovations. E) The VCR and DVD are both continuous innovations.
A
Which of the following can be referred to as a "buyer for export" or an "export commission house" and operates on behalf of a buyer from a foreign country? A) foreign purchasing agent B) export broker C) export merchant D) export management company E) freight forwarder
A
Which of the following could hinder the success of products labeled "Made in Bangladesh" or "Made in Thailand" in export markets? A) negative country-of-origin bias B) no possible quality/price positioning C) low acceptance of private brands D) lack of promotion in global markets E) high product saturation levels in global markets
A
Which of the following documents represents title to goods in an export transaction? A) bill of lading B) invoice C) packing list D) certificate of origin E) insurance certificates
A
Which of the following is true about Japanese keiretsu? A) Toyota is a vertical keiretsu, Mitsubishi is a horizontal keiretsu. B) Toyota is a horizontal keiretsu, Mitsubishi is a vertical keiretsu. C) Toyota and Mitsubishi are both horizontal keiretsu. D) Toyota and Mitsubishi are both vertical keiretsu. E) none of the above
A
Which of the following offers a company the best assurance of being paid for exported goods? A) a letter of credit B) a "piggyback" arrangement C) a swap D) an in-house export organization E) a certified check
A
"Corporate amnesia" in global partnership is a term which refers to: A) achieving world leadership by differentiation. B) short-term goals with no memory on how to compete. C) a relationship which is short lived. D) discontinuation of a partnership due to personal chemistry. E) losing national identity and ideology.
B
A duty that represents a certain percentage of the value of a particular product is a(n): A) specific duty. B) ad valorem duty. C) BTN duty. D) "schedule B" duty. E) antidumping duty.
B
A global product meets the wants and needs of a global market, including the Triad which includes the following countries: A) Brazil, Russia, and China. B) Japan, Western Europe, and the United States. C) China, the United States, and Europe. D) China, India, and Brazil. E) Japan, China, and Western Europe.
B
After the aftermath of the tragedy involving fire in garment factories in Bangladesh, it was found that the buildings were inspected by: A) Dhaka's building-safety authority. B) Business Social Compliance Initiative (BSCI). C) Walmart's approved contractors. D) Worker Rights Consortium. E) Interfaith Center for Corporate Responsibility.
B
An irrevocable letter of credit transfers the payment obligation for an export deal from the buyer to the buyer's: A) in-house export organization. B) bank. C) freight forwarder. D) credit union. E) checking account.
B
Another perspective on the future of cooperative strategies envisions the emergence of: A) mergers and acquisition. B) virtual corporations. C) franchising. D) joint ventures. E) keiretsu.
B
Around the world, various brands of personal computers are sold with Pentium processors. This fact is often used as a selling point, with advertising that proclaims "Intel Inside." Which branding concept does such advertising reflect? A) brand equity B) co-branding C) brand image D) brand extension E) tiered branding
B
As outlined by branding expert Kevin Keller, the benefits of strong brand equity include all of the following except: A) greater loyalty. B) more vulnerability to marketing actions. C) less vulnerability to marketing crises. D) more inelastic consumer response to price increases. E) more elastic consumer response to price decreases.
B
Before Ben & Jerry's launched their ice cream in the United Kingdom, the company conducted extensive research to determine whether the package design was appropriate. The research indicated that British consumers perceived the colors differently than U.S. consumers. The package design was changed accordingly. This type of strategy can be defined as: A) product-communications extension. B) product extension-communications adaptation. C) product adaptation-communications extension. D) product-communication adaptation. E) product invention.
B
Developed under the auspices of the Custom Cooperation Council (now the World Customs Organization) the system which took effect is referred to as: A) preferential tariffs. B) harmonized tariff. C) BTN duty. D) specialized tariff. E) antidumping duty.
B
Disadvantages of joint venturing can include all of the following except: A) joint venture partners must share rewards as well as risks. B) joint ventures allow partners to achieve synergy. C) joint ventures can have the potential for conflict between partners. D) a dynamic joint venture partner can evolve into a strong competitor. E) a company incurs very significant costs by joint venturing.
B
Dry soup mixes that have long been popular in Europe are marketed as sauces or dips in the United States. This is an example of the ________ strategy. A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention
B
For Walt Disney Company, the best mode for going global is by: A) joint ventures. B) licensing. C) 100-percent ownership. D) exporting. E) franchising.
B
Governmental actions that discourage imports and block markets include all of the following except: A) tariffs. B) free trade zones C) subsidies. D) tax incentives. E) duties.
B
In Chinese markets, Nike had a problem using the "Just Do It" attitude which was found not to be appropriate. Finally, Nike decided to use Chinese athletes in their promotion. This type of adaptation was needed due to: A) the Chinese do not wear running shoes. B) ingrained Chinese values which respect authority. C) Chinese athletes use Nike shoes. D) "Just do it" in Chinese has a negative connotation. E) parents do not want their children to see such ads.
B
In a joint venture with Russian manufacturer AvtoVAZ, GM executives were planning to have a stripped-down reengineered car based on its Opel model. However, the market research revealed that a "Made-in-Russia" car would only be acceptable if: A) it has a German name. B) it sported a very low sticker price. C) it has an American name. D) it has a very high sticker price. E) it has a Russian name
B
In an effort to attract assembly operations, Brazil allows certain product components to be imported at reduced tariff rates. This is an example of: A) offsets. B) preferential tariffs. C) the effect of the Customs Valuation Code. D) an EMC. E) discriminatory procurement.
B
In the post-September 11 business environment in the United States, imports have come under increased security. One of the initiatives taken in the interest of national security is: A) NAFTA. B) C-TPAT. C) WTO. D) NTB. E) FSC.
B
In which of the following forms of export financing does a bank assume a financial obligation? A) with an L/C but not a documentary collection B) with a documentary collection but not an L/C C) neither an L/C nor a documentary collection requires a bank to assume financial obligation D) with either an L/C or a collection letter E) with both an L/C and a documentary collection
B
Many American car buyers perceive Korean cars as: A) durable. B) cheap. C) reliable. D) of high quality. E) good investment.
B
Motorola's failed Iridium venture was a global satellite telephone network designed to allow users to make or receive calls anywhere on the globe using handsets that are somewhat bigger than typical cellular phones. What type of innovation did Iridium represent? A) a continuous innovation B) a dynamically continuous innovation C) a discontinuous innovation D) a platform-based innovation E) none of the above
B
Officially, the EU tariffs on Chinese and Vietnamese shoe imports are known as: A) countervailing duties. B) antidumping duties. C) specific duties. D) ad valorem duties. E) temporary surcharges.
B
One of the advantages of licensing is: A) licensees have limited control. B) licensees have considerable autonomy. C) license agreements have short life. D) licensees can develop similar products. E) licensees have considerable leverage.
B
Packaging aesthetics are particularly important to the ________ consumer. A) Indian B) Japanese C) French D) German E) American
B
Packaging is an important consideration for products that are shipped to markets worldwide. Which of the following statements related to packaging is not true? A) Nestlé's worldwide network of packaging teams provide improvement suggestions on a quarterly basis. B) The Japanese prefer plain soft colors on their packages. C) The Aquafresh Ultimate tube was designed to stand vertically. D) Coca-Cola had contour bottles in both glass and plastic versions in many countries. E) Nestlé asked suppliers to find a glue to make the clicking sound louder when a tube of
B
Representatives of the apparel, footwear, furniture, and textile industries in many countries are deeply concerned about the impact that increased trade with ________ will have on these sectors. A) Hong Kong B) China C) Italy D) India E) Bangladesh
B
Targeting the 300 million farmers in India who still use plows harnessed to oxen, John Deere engineers created a line of relatively inexpensive, no-frills tractors. The Deere team then realized that the same equipment could be marketed to hobby farmers and acreage owners in the United States, a segment that they had previously overlooked. This is an example of ________ strategy. A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention
B
The Advanced Photo System (APS) created by Kodak and its partners combines traditional chemical photo processing with digital technology. One benefit of the system is that shutterbugs can choose three different print sizes. The APS would best be described as a: A) continuous innovation. B) dynamically continuous innovation. C) discontinuous innovation. D) platform-based innovation. E) new and improved innovation.
B
The Russian market for imported premium vehicles is exploding as the number of households that can afford luxury products exhibit rapid growth. The luxury cars include all of the following except: A) Porsche. B) Lexus. C) BMW. D) Rolls-Royce. E) Infiniti.
B
The United States has given Normal Trade Relations (NTR) status to some 180 countries. In actuality only four countries are excluded from this status which includes all of the following countries except: A) North Korea. B) Iraq. C) Iran. D) Cuba. E) Libya.
B
The agreements that allow McDonald's franchisees around the globe to use McDonald's trademarked name and menu items represent, in essence, which form of market entry? A) joint ventures B) franchising C) 100% ownership D) exporting E) acquisition
B
The president of a Mexican company recently remarked, "Business in Mexico is done on a consensus basis, very genteel and sometimes slow by U.S. standards." A few months later, the Mexican company and its U.S. joint venture partner parted company. Judging by the president's remark, one important reason for the "divorce" was: A) failure of one partner to live up to the terms of the contract. B) cultural differences. C) the cancellation of NAFTA. D) the U.S. government's insistence on quick negotiations. E) the language barrier.
B
The so-called "China Triangle" includes: A) Hong Kong, Republic of China, and Singapore B) Republic of China, Taiwan, and Hong Kong C) Republic of China, Taiwan, and South Korea D) Taiwan, Hong Kong, and Republic of China E) Singapore, China, and Republic of China
B
The top ranked country among those exporting to the United States is: A) Taiwan. B) China. C) Mexico. D) India. E) Honduras.
B
To promote its Centrino wireless chip, Intel launched a global ad campaign that features different combinations of celebrities. These celebrities were chosen because they are widely recognized in the key world markets. This type of strategy is referred to as: A) product-communications extension. B) product extension-communications adaptation. C) product adaptation-communications extension. D) product-communication adaptation. E) product invention.
B
Which of the following correctly states the role of banks in import/export transactions involving a letter of credit (L/C)? A) The importer's bank is the advising and/or confirming bank; the exporter's bank is the issuing bank. B) The exporter's bank is the advising and/or confirming bank; the importer's bank is the issuing bank. C) The exporter's bank is the advising, confirming, and issuing bank. D) The importer's bank is the advising, confirming, and issuing bank. E) none of the above
B
Which of the following currently owns a 70 percent stake in Skoda, the Czech automaker? A) GM B) Volkswagen C) Ford D) DaimlerChrysler E) Renault
B
Which of the following incorrectly states the role of banks in import/export transactions involving a letter of credit (L/C)? A) The exporter's bank is the advising and/or confirming bank. B) The importer's bank is the advising and/or confirming bank. C) The importer's bank is the advising, confirming, and issuing bank. D) The exporter's bank is the advising, confirming, and issuing bank. E) The importer's bank is neither advising nor confirming bank.
B
Which of the following is described as the three R's of global business: rules, rate schedules, and regulations? A) quotas B) tariffs C) NTBs D) NTR E) duties
B
Which of the following receives a fee for bringing together an exporter and a buyer in another country? A) foreign purchasing agent B) export broker C) export merchant D) export management company E) freight forwarder
B
Which of the following types of duties would be imposed on a company whose home-country government provides export subsidies? A) ad valorem duty B) countervailing duty C) antidumping duty D) specific duty E) customs duty
B
Which set of documents generally represents the minimum documentation required to clear a shipment through customs? A) packing list, commercial invoice B) bill of exchange, commercial invoice C) certificate of origin, bill of exchange D) packing list, insurance certificate E) letter of credit, commercial invoice
B
________ is the most important aspect of a company's international orientation. A) Experience B) Commitment C) Dynamism D) Confidence
B
________ provides technical specifications to a subcontractor or local manufacturer, who then oversees production. A) A joint venture B) Contract manufacturing C) Licensing D) Exporting E) A Global strategic alliance
B
"Discussion and consensus must be the norms. Partners must be viewed as equals." When applied to global strategic partnerships, this statement indicates the importance of which factor? A) mission B) strategy C) governance D) culture E) organization
C
"Intel inside" campaign promoting both the Intel Corporation and its Pentium-brand processors in conjunction with advertising for various brands of personal computers is an example of: A) brand equity. B) brand symbol. C) co-branding. D) brand extension. E) brand loyalty.
C
A number of factors combine to make Russia an excellent location for an alliance which do not include: A) a well-educated workforce. B) quality is important to Russian consumers. C) abundance of supplies. D) potential for economic growth. E) potential for growth in service sector.
C
After the aftermath of the tragedy involving fire in garment factories in Bangladesh, Walmart implemented a "zero-tolerance policy." The Workers Rights Consortium, the International Labor Organization and other groups monitoring labor issues are stepping up pressure on companies that participate in the global garment supply chain due to the following reasons, except: A) retailers pay lip service to concerns about factory safety. B) retailers continue to focus on low prices. C) those auditing facilities are audited by BSCI's qualified engineers. D) the buyers and consumer are willing to pay more for garments. E) retailers do not provide funds for fire safety training.
C
Agricultural subsidies are particularly controversial because, although they protect the interests of farmers in some countries, they work to the detriment of farmers in countries such as: A) Singapore. B) the United States. C) India. D) Switzerland. E) Japan.
C
An attribute which does not represent true global partnership is: A) achieving world leadership by differentiation. B) achieving a reciprocal relationship. C) relationship is organized vertical lines. D) continual transfer of resources. E) retaining national identities.
C
An express warranty is a written guarantee that assures the buyer that he or she: A) is getting what he or she desired. B) will be able to get express response if any defects are found. C) is getting what he or she has paid for. D) will be able to contact the manufacturer whenever needed. E) has limited time for filling out information required by the manufacturer.
C
As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances? A) acquisition B) licensing C) joint venture D) exporting E) franchising
C
Boeing developed the wide-bodied aircraft, the 777, with about ________ of the work subcontracted out to Mitsubishi, Fuji, and Kawasaki. A) 50% B) 25% C) 20% D) 60% E) 75%
C
By definition, a ________ requires a large amount of learning on the part of users and typically creates new markets and consumption patterns. A) continuous innovation B) dynamically continuous innovation C) discontinuous innovation D) platform-based innovation E) new and improved innovation
C
Critics warn that employees of a company that become reliant on an outside supplier for critical components will: A) encourage outsourcing B) become used to value-added components C) lose expertise and engineering skills D) use time for developing other skills E) look for employment with competitors
C
GM executives are looking for a joint venture with AvtoVAZ, the largest carmaker in: A) Germany. B) Lithuania. C) Russia. D) Kazakhstan. E) Turkey.
C
Generally speaking, which of the following product categories represents the best potential for extension into international markets without adaptation? A) companion products B) food products C) industrial products D) intangible products E) non-alcoholic drinks
C
Generally speaking, which of the following statements is true concerning product attributes? A) Tangible product attributes are more important than intangible ones. B) Intangible product attributes are more important than tangible ones. C) Both tangible and intangible product attributes are important. D) Neither tangible nor intangible product attributes are important. E) A product has more attributes than tangible and intangible ones.
C
If the dollar, the yen, or the euro becomes seriously overvalued, a company with a production capacity in other locations can achieve competitive advantage by: A) buying different currencies before major fluctuations take place. B) conducting transactions in different currencies of the world. C) shifting production among different sites. D) cutting down production and waiting until the currency rate is reasonable. E) reducing production and labor force simultaneously.
C
In order to prevent a licensor-competitor from gaining unilateral benefit, licensing agreements should provide for: A) contract manufacturing. B) franchising. C) cross licensing. D) strategic decision making. E) adaptation for local tastes.
C
Marketers in Gillette's Parker Pen subsidiary focused on upscale shoppers in Malaysia and Singapore. This is an example which coincides with the Maslow's hierarchy related to A) self-esteem B) physiological needs C) security D) self actualization E) social needs
C
Research has shown that exporting is essentially a developmental process that proceeds in different stages. Before a firm reaches stage 4, it must do which one of the following activities? A) explore the feasibility of exporting B) commit resources for exporting C) receive unsolicited export orders D) believe in attractiveness of exporting E) build confidence in firm's ability for exporting
C
Sweden applies a system to certain categories of imported agricultural products referred to as: A) temporary surcharges. B) ad valorem duty. C) variable import levies. D) specific duty. E) countervailing duty.
C
Tata Motors (India) acquired the following auto company: A) Volkswagen AG (Germany). B) Volvo (Sweden). C) Jaguar (UK). D) Toyota (Japan). E) Hyundai (South Korea).
C
The advantages of a market visit include all of the following except: A) confirm market potential. B) contradict market potential. C) gain confidence in firm's ability for exporting. D) gather additional data to reach final decision. E) build confidence in firm's ability for exporting.
C
The benefits of strong brands include all of the following except: A) greater loyalty. B) less vulnerability to marketing actions. C) less inelastic consumer response to price increases. D) more elastic consumer response to price decreases. E) larger margins.
C
The challenges in bringing the Smart across the Atlantic include all of the following except: A) the euro's strength relative to dollar. B) DaimlerChrysler merger ended. C) Smart was under the ownership of DaimlerChrysler. D) Smart was under the ownership of Daimler AG. E) distribution and promotion critical to a successful U.S. launch.
C
The chief executives of Swiss Swatch Group and Japanese Canon would like to: A) outsource all of the manufacturing units overseas in order to save money. B) outsource a majority of the manufacturing functions overseas. C) retain a majority, if not all, of the manufacturing in their home country. D) establish "call centers" in developing countries in order to save labor costs. E) outsource a full line of new products only.
C
The formulation, imagery, and consumer appeal of Colgate's Total brand toothpaste were designed to translate across national boundaries. This new global brand represents which type of product innovation? A) discontinuous innovation B) dynamically continuous innovation C) continuous innovation D) comparative innovation E) dynamically discontinuous innovation
C
The furniture industry has become one of the fastest-growing sectors of China's economy. Furniture imports are flooding into the United States from China. This can be attributed to: A) the quality of furniture is better than that made in Europe. B) American tastes in décor have changed. C) China's low labor rates translate into reasonable prices for consumers. D) China can survive tough competition. E) replacement parts are readily available from China.
C
The introduction of consumer VCRs in the late 1970s initiated a revolutionized in-home electronic entertainment. For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time. The VCR's popularity also gave rise to an entirely new retailing concept, the video rental store. What type of innovation did the consumer VCR represent? A) a continuous innovation B) a dynamically continuous innovation C) a discontinuous innovation D) a comparative innovation E) none of the above
C
The possible arrangements for handling exports include all of the following except: A) as a part-time activity performed by domestic employees. B) through an export partner affiliated with the domestic marketing structure that takes possession of the goods before they leave the country. C) as a low-cost arrangement requiring no additional personnel. D) through an export department within an international division. E) or multidivisional companies, each of the preceding options is available.
C
The specialty retailing industry, as well as the fast-food industry, favors ________ for global growth. A) licensing B) investment C) franchising D) joint ventures E) strategic alliances
C
The strategy to use joint ventures has several advantages which do not include: A) risk sharing. B) reduced financial risk. C) reward sharing. D) achieve synergy. E) the only way to enter a country or region.
C
When a corporate name such as Sony is combined with a product brand name such as Walkman, the brand category is referred to as: A) brand equity B) brand symbol C) tiered brand D) co-brand E) brand loyalty
C
Which automaker currently has a joint venture with Hindustan Motors (India)? A) Volkswagen B) Ford C) GM D) Renault E) Mazda
C
Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction? A) documentary credit (letter of credit) B) documentary collection C) cash in advance D) sales on open account E) draft
C
Which of the following financing methods would be used by an exporter that enjoys good relations with a buyer in a well-established market? A) letter of credit B) cash in advance C) sales on open account D) barter E) arrival draft
C
Which of the following is not true of Japanese keiretsu? A) promotes risk sharing B) promotes long-term employment C) ensures low prices for Japanese consumers D) blocks foreign suppliers from the Japanese market E) relationships are cemented by bank ownership
C
Which of the following refers to a system of farm subsidies in Europe? A) CVD B) FSC C) CAP D) HTS E) NTR
C
Which of the following statements is not an example of local products or brands? A) Coca-Cola developed several branded drink products for Japan. B) Coca-Cola markets Kinely brand bottled water in India. C) BMW uses "the ultimate driving machine" slogan in India. D) Diageo PLC markets Gordon's Edge, a gin-based ready-to-drink beverage in the United Kingdom. E) Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan.
C
Which of the following was a major U.S. tax incentive for exporters that the WTO recently ruled was an illegal subsidy? A) NTR B) CVD C) FSC D) NTB E) HTS
C
________ are variously referred to as buyer for export, export commission house, or export confirming house. A) Export brokers B) Export merchants C) Foreign purchasing agents D) Export managers E) Manufacturer's agents
C
________ is sometimes called a mother hen, a piggyback exporter, or an export vendor A) Export broker B) Export merchant C) Cooperative exporter D) Export manager E) Manufacturer's agent
C
________ represents a market entry strategy whereby one company permits a foreign company to make use of its patents, know-how, technology, company name, or other intangible assets in return for a royalty payment. A) A joint venture B) One-hundred-percent ownership C) Licensing D) Exporting E) A Global strategic alliance
C
A competitive business environment is now characterized by all of the following characteristics except: A) unprecedented degrees of turbulence. B) dynamism. C) unpredictability. D) in adaptability. E) environmental responsiveness
D
A logo can be all of the following except: A) Word Mark B) Non-word Mark C) Brand symbol D) Brand equity E) Trade Mark
D
After four years of product development, Procter & Gamble recently introduced a new, improved disposable diaper. Pampers Rash Guard diapers are designed to prevent diaper rash and represent the first time a company has made a medical claim for its diapers. What kind of innovation do the new diapers represent? A) platform-based innovation B) dynamically continuous innovation C) discontinuous innovation D) continuous innovation E) none of the above
D
Alfred Zeien, former chairman of Gillette, once noted that his company's Parker Pen unit does not have to develop a special model for Malaysia and Singapore because shoppers worldwide seek the same things when buying a gift that will serve the recipient as a status symbol. This insight relates to which level of Maslow's hierarchy of needs? A) physiological B) safety C) social D) esteem E) self-actualization
D
Campbell's has been marketing soup in Japan for more than 40 years. Early on, Japanese consumers were not receptive to ads featuring the Campbell Kids and the "M'm M'm Good" slogan. This compelled Campbell's to develop ads featuring a talking soup can known as "Mr. Campbell." Campbell's also developed soup varieties for Japan with fish as the main protein source and spices that reflect local preferences. As described here, which of the following strategies has Campbell's used in Japan? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) product-communication adaptation E) product invention
D
For Starbucks and other companies whose business models include a service component, it is not recommended that they use one of the following methods for going global. A) joint ventures B) licensing C) 100-percent ownership D) exporting E) franchising
D
Ford Motor Company (United States) has a 50-50 joint venture to build Ford Fiestas with: A) Toyota (Japan). B) Shanghai Automotive Industry (China). C) BMW (Germany). D) Mahindra & Mahindra (India). E) Mazda (Japan).
D
Global marketers must understand the importance of visual aesthetics embodied in the color or shape of a product, label, or package. Which of the following statements is not true regarding the use of color in selected countries? A) The yellow color on Caterpillar's earthmoving equipment is acceptable worldwide. B) Packaging aesthetics are particularly important to the Japanese. C) The color white is associated with death and bad luck in some Asian countries. D) The red Marlboro color had to be changed in some Asian countries. E) The Chinese consider the color red to be lucky.
D
Honda has invested $550 million in building an assembly plant in Greensburg, Indiana; IKEA spent nearly $2 billion to open stores in Russia; and South Korea's LG Electronics purchased a 58% stake in Zenith Electronics. All of these are examples of: A) acquisition. B) licensing. C) franchising. D) FDI. E) exporting.
D
McDonald's success in franchising in global markets can be attributed to several factors which do not include: A) a well known global brand name. B) a business system that can be easily replicated. C) local market knowledge. D) cross licensing. E) granting franchisees leeway to tailor menu offerings to suit local tastes.
D
Pollo Campero, a chicken restaurant chain based in Central America, is using the following method for expanding operations in the United States: A) joint ventures. B) licensing. C) exporting. D) franchising. E) acquisition.
D
Prior to 2004, Nokia launched different cell phone products in different countries at different times. Nokia also used different advertising images and messages in different countries. Which approach to the world marketplace was Nokia using? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) product-communication adaptation E) product invention
D
Regulators in different countries have proposed various regulations for product labeling. All of the following statements pertaining to such regulations are true except: A) mandatory health warnings on tobacco products are required in most countries. B) the American Automobile Labeling Act clarifies the country of origin as well as the final assembly point. C) in 2008, the United States enacted a country of origin labeling (COOL) law. D) the use of terms "light" and "natural" are allowed on labels only in the United States. E) McDonald's is posting nutrition information on all food packaging and wrappers in selected markets.
D
Restrictive administrative and technical regulations can create barriers to trade which may take all of the following forms except: A) antidumping regulations. B) product size regulations. C) safety and health regulations. D) common agricultural policies. E) safety and pollution regulations
D
Strictly speaking, a (n) ________ is an entry strategy for a single target country in which the partners share ownership of a newly created business entity. A) acquisition B) licensing C) franchising D) joint venture E) exporting
D
The American Automobile Labeling Act clarifies all of the following except: A) country of origin. B) final assembly point. C) the percentages of the major sources of every car and truck. D) information about car dealer. E) aesthetic style.
D
The export and import process can entail red tape and bureaucratic delays. In an effort to facilitate exports, countries are designating certain areas as: A) import control zones. B) special tariff zones. C) global business zones. D) free trade zones. E) duty free zones.
D
The only marketing mix element that is applicable in export selling is: A) price. B) product. C) promotion. D) place. E) process.
D
The organizational decision to purchase production inputs, components, or finished goods from domestic or foreign producers is known as the ________ decision. A) import/export B) NTB C) preferential D) sourcing E) security
D
Which of the following arranges export financing payment methods in descending order starting with the most secure/reliable and ending with the least secure/reliable? A) sales on open account→cash in advance→documentary credit (L/C)→documentary collection (draft) B) documentary credit (L/C)→sales on open account→documentary collection (draft)→cash in advance C) documentary collection (draft)→documentary credit (L/C)→cash in advance→sales on open account D) cash in advance→documentary credit (L/C)→documentary collection (draft)→sales on open account E) none of the above
D
Which of the following consumer products companies experienced a major product failure in Europe due to inadequate test marketing? A) Procter & Gamble B) Colgate C) Kao D) Unilever E) Seagram
D
Which of the following does not fit into the sequence of experiences Anheuser-Busch had in Japan? A) Anheuser-Busch first entered Japan by means of a licensing agreement with Suntory, the smallest brewery in Japan. B) Anheuser-Busch created a joint venture with Kirin Brewery, the market leader. C) Anheuser-Busch dissolved the joint venture with Kirin Brewery. D) Anheuser-Busch entered into a joint venture with Kirin Brewery. E) Anheuser-Busch reverted to a licensing agreement with Kirin Brewery.
D
Which of the following is not a characteristic of global strategic alliances? A) Participants maintain independence outside the framework of alliance. B) Participants share benefits as well as control. C) Participants make ongoing contributions in technology, products, and other areas. D) Participants focus on an individual country market. E) Participants share benefits of the alliance.
D
Which of the following methods of financing would be used if the exporting and importing parties had a strong, long-standing relationship? A) documentary credit (letter of credit) B) documentary collection C) cash in advance D) sales on open account E) bank draft
D
Would-be franchisors ask all of the following questions except one before expanding overseas: A) How tough is the local competition? B) Does the government respect trademark and copyrights? C) Can profits be easily repatriated? D) Can products be easily counterfeited? E) Is commercial space available?
D
________ are licensed specialists in traffic operations, customs clearance, and shipping tariffs and schedules. They can be considered as the travel agents for handling export goods. A) Foreign purchasing agents B) Export brokers C) Export merchants D) Freight forwarders E) Cooperative exporters
D
________ can also be thought of as an asset representing the value created by the relationship between the brand and its customers over time. A) Brand extensions B) Co-branding C) Brand image D) Brand equity E) Brand loyalty
D
________ is an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other. A) Manufacturer's export agent B) Export commission representative C) Export merchant D) Export management company E) Cooperative exporter
D
________ represents the cumulative added value of a company's investment in the marketing of a brand over time. A) A brand extension B) Co-branding C) Brand image D) Brand equity E) Brand loyalty
D
A nontariff barrier (NTB) includes all of the following except: A) quotas. B) discriminatory procurement policies. C) restrictive administrative policies. D) restrictive technical regulations. E) ad valorem duty.
E
A number of explanations have been offered for the low level of U.S. exports relative to other countries. All of the following can be considered as reasons for low level of exports except: A) limited ambition by many American business owners. B) lack of knowledge of market opportunities abroad. C) perceived lack of necessary resources. D) marketing to home-country users is easier than exporting. E) a strong U.S. dollar translates into less affordable prices in export markets.
E
After the research effort has zeroed in on potential markets, marketers should: A) work on understanding the target market environment. B) modify methods used for marketing research. C) identify products that can be marketed. D) make decisions concerning product design. E) plan a personal visit.
E
Avon Products uses ________ to enter developing markets . A) franchising and licensing B) joint venture and licensing C) acquisition and franchising D) licensing and franchising E) acquisition and joint ventures
E
Colgate's Total is a new toothpaste brand whose formulation, imagery, and consumer appeal were designed from the beginning to translate across national boundaries. Which strategy did Colgate use with Total? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product innovation
E
Direct representation, as opposed to representation by independent intermediaries, for exporting by the market country, has several advantages which do not include: A) facilitates control and communications. B) allows decisions concerning program development and resource allocation. C) benefits when a product is not yet established in a market. D) ensures marketer's interest and special efforts. E) helps selling products directly to the consumer in the market country.
E
Export marketing requires all of the following except: A) an understanding of the target market environment. B) the use of marketing research. C) identification of market potential. D) decisions concerning product design. E) reaching retail customers.
E
GSPs (Global Strategic Partnerships) are attractive for several reasons which do not include: A) sharing high product development costs. B) sharing technological developments. C) securing access to national and regional markets. D) continuous transfer of technology between partners. E) focus on a single national market or a specific problem.
E
Governments commonly use activities to support and encourage firms that engage in exporting. Such activities include all of the following except: A) tax incentives. B) subsidies. C) export assistance. D) free trade zones. E) voting rights.
E
Guidelines which can assist managers in their effort to establish global brand leadership include all of the following except: A) create a compelling value proposition for customers. B) before taking brand overseas, select name, marks and symbols. C) make a process template available to all managers. D) assign specific responsibility for managing branding issues. E) make a process template for international consumers.
E
Having partners from another country can have advantages which include all of the following except: A) reducing product development costs. B) securing technology. C) access to capital. D) shared risks. E) increased competition.
E
Hindustan Lever recently developed a hard candy flavored with natural fruit juice that it sells profitably in India for the equivalent of 1 cent per piece. This is Hindustan Lever's first-ever candy product. What strategy is evident here? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention
E
In the summer of 2006, it was announced that the company's Smart car would be offered for sale in the United States. Which global company was responsible for bringing the Smart car to market? A) Swatch B) Volkswagen C) Nissan D) Ford E) DaimlerChrysler
E
Licensing as a market entry mode has several disadvantages and opportunity costs, which does not include: A) limited market control. B) agreement may have short life. C) leveraging and exploiting by licensee. D) similar product or technology development by licensee. E) adaptations by licensee to fit local tastes.
E
Products that belong to the category of "game changers" are considered as ________ innovations. A) new product B) line extensions C) continuous D) dynamically continuous E) discontinuous
E
The Ministry of International Trade and Industry (MITI) has helped devise export strategies for companies in: A) Singapore. B) South Korea. C) Taiwan. D) Hong Kong. E) Japan.
E
The advantages of "contract manufacturing" include all of the following except: A) access to technical specifications by subcontractors. B) access to technical specifications by local manufacturers. C) a licensing firm can specialize in product marketing. D) limited commitment of financial resources. E) considerable commitment of management resources.
E
The corporate development team at Virgin evaluates more than a dozen proposals each day from outside and within the company. When assessing new-product ideas, they look for all of the following except: A) synergy with existing Virgin products. B) pricing and return on investment. C) marketing opportunities. D) if the idea "uses or abuses" the Virgin brand. E) aesthetic attributes of competitors products.
E
The four tigers-Singapore, South Korea, Taiwan, and Hong Kong-learned from the ________ experience and built strong export-based economies of their own. A) Chinese B) Indian C) German D) American E) Japanese
E
The possible arrangements of the responsibilities for handling exports include all of the following except: A) as a part-time activity performed by domestic employees. B) through an export partner affiliated with the domestic marketing structure. C) through an export department within an international division. D) through an export department that is independent of the domestic marketing structure. E) through an export department of an embassy in a foreign country.
E
The success of CFM International (the strategic partnership between GE and Snecma) can be attributed to which of the following? A) compatibility of the partners B) capability of the partners C) commitment of the partners D) personal chemistry between executives E) all of the above
E
The terminology used to describe the new forms of cooperation strategies varies widely and the phrases used include all of the following except: A) collaborative agreements. B) strategic alliances. C) global strategic partnerships. D) strategic international alliances. E) Greenfield operations.
E
Which automaker owns an equity stake in Japan's Nissan Motor? A) GM B) Volkswagen C) Ford D) DaimlerChrysler E) Renault
E
Which of the following does not fit in with the factors that should be considered by companies forming GSPs? A) Partners are competitors to each other. B) Harmony is the most important measure of success. C) All employees and managers must understand where cooperation ends and competitive compromise begins. D) Learning from partners is critically important. E) none of the above
E
Which of the following establishes classification numbers that must be used by importers and exporters? A) NTR B) CVD C) FSC D) NTB E) HTS
E
Which of the following is not a characteristic of global strategic partnership? A) Participants maintain independence outside the framework of alliance. B) Participants share benefits of the alliance. C) Participants share control over the performance of the assigned tasks. D) Participants make ongoing contributions in technology, products, and other areas. E) Participants agree not to compete in areas unrelated to the alliance.
E
Which of the following is not in the top five of the world's most valuable brands according to 2012 rankings? A) Sony B) Microsoft C) Coca-Cola D) GE E) Nokia
E
Which of the following is not one of the levels in the Asian version of Maslow's hierarchy? A) physiological B) safety C) affiliation D) admiration E) self-actualization
E
Which of the following is not true about a personal visit to size up the market firsthand and begin the development of an actual export-marketing program? A) Confirm assumptions regarding market potential B) Contradict assumptions regarding market potential C) Gather additional data to help make decisions D) Develop a marketing plan in cooperation with local agents E) Arrange a face-to-face meeting and avoid going to trade shows
E
________ is an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other. A) Export commission B) Manufacturer's export agent C) Cooperative exporter D) Freight forwarders E) Export Management Company
E
T/F "Export selling" involves tailoring various elements of the marketing mix to global market requirements
FALSE
T/F "Piggyback exporter," "cooperative exporter," and "export vendor" are all terms used to describe an export broker.
FALSE
T/F A company that has developed a successful local product or brand cannot implement an adaptation strategy
FALSE
T/F A dynamic joint venture partner can evolve into a strong competitor.
FALSE
T/F A joint venture with a local partner represents a more extensive form of strategy that is similar to exporting and licensing.
FALSE
T/F According to research, exporting is essentially a developmental process starting with the first stage when the firm exports to one or more markets on a trial basis.
FALSE
T/F According to the international Licensing Industry Merchandisers Association (LIMA), the United States and Canada account for about 90 percent of licensed goods sales.
FALSE
T/F According to the top brand rankings, Microsoft is the world's most valuable brand.
FALSE
T/F Anheuser-Busch created a joint venture with Kirin Brewery, the market leader. Anheuser-Busch's 90 percent stake in the venture entitled it to market and distribute beer produced in Los Angeles.
FALSE
T/F Before executives at Ben & Jerry's Homemade launched their ice cream in the United Kingdom, the company conducted extensive research to determine whether the package design effectively communicated the brand's "super premium" position. This is an example of dual-extension strategy.
FALSE
T/F By pursuing a joint venture entry strategy, a company can limit its financial risk as well as its exposure to political uncertainty.
FALSE
T/F CVDs are additional duties levied by exporting countries on imported videodiscs.
FALSE
T/F Coca-Cola's latest packaging innovation is Fridge Pack, a long, slender carton that holds the equivalent of 12 cans of soda. This pack fits into the refrigerator's lower shelf and is convenient for use by global consumers.
FALSE
T/F Direct representation identifies that the exporter is selling directly to the consumer or customer.
FALSE
T/F Eventually, an affiliate-based strategy gives way to an export-driven strategy
FALSE
T/F Export management company (EMC) is an independent marketing intermediary that acts as the export department for two or more manufacturers (principals) whose product lines compete with each other.
FALSE
T/F Foreign purchasing agents are also referred to as jobbers
FALSE
T/F Franchising is a variation of licensing strategy in which there is a contract between the parent company franchiser and a franchisee that allows the franchisee to operate a business developed by the franchiser in return for all rights for operations.
FALSE
T/F GM and South Korea's Daewoo Group formed a joint venture which helped Daewoo improve its competitiveness. The venture was terminated since Daewoo prevented the import of GM cars to Korea.
FALSE
T/F Generally speaking, franchising is a market-entry strategy that is typically executed with more localization than is licensing.
FALSE
T/F In 2008, the largest merger and acquisition deal in the pharmaceutical industry, Roche's acquisition of Genentech, is an example of an equity stake.
FALSE
T/F In Hellmut Schutte's modified hierarchy to explain the needs and wants of Asian consumers, the last three levels are affiliation, admiration, and self actualization.
FALSE
T/F In general, the greater the distance between the product source and the target market, the greater the time delay for delivery and the lower the transportation cost
FALSE
T/F In his 2010 State of the Union address, U.S. President Barack Obama had vowed to double U.S. exports by 2015; doing so would require boosting exports 25 percent annually
FALSE
T/F One of the advantages of a license arrangement is that it can create export market opportunities and open the door to a high-risk manufacturing relationship.
FALSE
T/F One of the benefits of strong brand equity is more elastic consumer response to price increases.
FALSE
T/F Outsourcing means shifting undesirable jobs or work assignments to another company to cut costs. When the outsourced work moves to another country, the terms "global outsourcing" or "offshoring" are used.
FALSE
T/F Perceptions and attitudes about a product's origins can be positive or negative. On the positive side, "German" is synonymous with style
FALSE
T/F Tariffs can be thought of as the "three R's" of global business: rules, rigor, and regulations of individual countries.
FALSE
T/F The Common Agricultural Policy (CAP) determines the level of subsidies granted to farmers in Latin America.
FALSE
T/F The Harmonized Tariff System (HTS) has eliminated virtually all problems associated with assigning tariff classifications to new products.
FALSE
T/F The South Korean government has recently abandoned the "chaebol" industry structure in favor of the "keiretsu" structure.
FALSE
T/F The alliance between GE and Snecma got off with a feeble start due to the personal chemistry between the top two executives of respective companies.
FALSE
T/F The export marketer takes the domestic product "as is" and sells it to international customers.
FALSE
T/F The extension strategy where the product remains virtually unchanged but extending it in markets outside the home country is known as "adaptation strategy."
FALSE
T/F The term consumer packaged goods applies to a specific variety of products whose packaging is designed to protect or contain the product during shipping, at retail locations, and at the point of use or consumption.
FALSE
T/F The terms "export selling" and "export marketing" are interchangeable
FALSE
T/F To succeed in global markets, firms can now rely exclusively on the technological superiority or core competence that brought them past success.
FALSE
T/F U.S. executives working on the importance of aesthetics learnt that in Japan "a book is judged by its content."
FALSE
T/F When Kraft Foods launched Oreo brand cookies in China in 1996, they found that Oreo was too sweet for the Chinese palate, and the price was too low. Oreo reformulated a less-sweet chocolate-covered wafer and increased its price. This strategy is referred to as product extension approach.
FALSE (a whole new product)
T/F A company that assigns a sufficiently high priority to its export business will establish an in-house organization. It then faces the question of how to organize it effectively.
TRUE
T/F A lesson that can be learned from Anheuser-Busch's experience in Japan is that it is better to give control to a local partner via a licensing agreement rather than making a major investment.
TRUE
T/F A licensed asset may be a brand name, company name, patent, trade secret, or product formulation
TRUE
T/F A nontariff barrier (NTB) is a hidden trade barrier that is a deterrent or obstacle to the sale of products in a foreign market.
TRUE
T/F A product is a good, service, or idea with both tangible and intangible attributes that collectively create value for a buyer or user.
TRUE
T/F According to President Obama, "The more American companies export, the more they produce. And the more they produce, the more people they hire-and that means more jobs."
TRUE
T/F According to the recent import regulations in the United States, action figures that represent non-human creatures such as monsters or robots are categorized as toys and qualify for lower duties than human figures that are classified as dolls.
TRUE
T/F After research has zeroed in on potential markets, there is no substitute for a personal visit to size up the market firsthand and begin the development of an actual export marketing program.
TRUE
T/F American Apparel is building a global brand on the positioning "Made in Downtown LA."
TRUE
T/F An ad valorem duty is expressed as a percentage of the value of goods
TRUE
T/F An express warranty is a written guarantee that assures the buyer that he or she is getting what he or she has paid for or that provides recourse in case a product's performance falls short of expectations.
TRUE
T/F Apple's retail stores reinforce the brand's hip, cool image
TRUE
T/F Avon Products uses both acquisition and joint ventures to enter developing markets
TRUE
T/F China and India take great pride in their manufacturing capabilities but, generally speaking, consumer perception lags behind the reality.
TRUE
T/F China has imposed tariffs as high as 28% on foreign-made auto parts
TRUE
T/F Coca-Cola's contour bottle version helps consumers seek out the "real thing" is intended to differentiate Coke from other soft drinks
TRUE
T/F Companies may move from licensing or joint venture strategies to ownership in order to achieve faster expansion in a market, greater control, and/or higher profits.
TRUE
T/F Despite commanding a 37 percent share of the global cellular handset market, Nokia announced that it would make the source code for handset manufactured by Siemens AG.
TRUE
T/F Due to the European Commission's regulation, McDonald's can only give away soft plastic toys with its Happy Meals in Europe.
TRUE
T/F Duty drawback refers to refunds of duties paid on imports that are processed or incorporated into other goods and then re-exported.
TRUE
T/F For every one yen increase relative to the American dollar, Canon's operating income declines by 6 billion yen.
TRUE
T/F Foreign direct investment figures reflect investment flows out of the home country as companies invest in or acquire plants, equipment, or other assets.
TRUE
T/F Foreign investments may take the form of minority or majority shares in joint ventures, minority or majority equity stake in another company, or outright acquisition.
TRUE
T/F Franchising in a global market is actually a market-entry strategy that is typically executed with less localization than is licensing
TRUE
T/F Google's myriad product development initiatives illustrate the point that products and brands are arguably the most crucial element of a company's marketing program.
TRUE
T/F Google[x], the company's semi-secret research facility, is known as the Moonshot Laboratory. That's because staff members are working on "moonshot" projects that represent leading-edge technology leaps.
TRUE
T/F If government restrictions prevent 100 percent ownership by foreign companies, the investing company will have to settle for a majority or minority equity stake
TRUE
T/F In 2008, the United States enacted a country-of-origin labeling (COOL) law. The law requires supermarkets and other food retailers to display information that identifies the country that meat, poultry, and certain other food products come from.
TRUE
T/F In 2013, U.S. goods and services exports totaled $2.3 trillion, which comes to about 15 percent of the GDP. This means that nearly 85 percent of the goods and services produced in the United States are consumed at home.
TRUE
T/F In China, regulations require foreign franchisers to directly own two or more stores for a minimum of one year before franchising.
TRUE
T/F In a country and market concentration strategy, a company serves many markets in a few countries.
TRUE
T/F In an effort to facilitate exports, countries are designating certain areas as "free trade zones" (FTZ) or "special economic zones" (SEZ).
TRUE
T/F In an export/import transaction requiring a letter of credit (L/C), the exporter's (seller's) bank can be known as the "advising" bank, the "confirming" bank, or both.
TRUE
T/F In countries like India and Vietnam, and other emerging markets, amenities such as refrigerators, flush toilets, and cell phones are considered status symbols.
TRUE
T/F In the U.S., the average Buick buyer is 61 years old, which stands in marked contrast to Volvo, whose average buyer is only 50.
TRUE
T/F In the last stage of the developmental process for exporting, a firm evaluates global market potential before screening for the "best" target markets to include in its marketing strategy and plan.
TRUE
T/F Intangible product attributes, include the status associated with product ownership, a manufacturer's service commitment, and a brand's overall reputation or mystique
TRUE
T/F Japan's Fuji Photo Film Company invested hundreds of millions of dollars in the United States after the U.S. government ruled that Fuji was guilty of dumping
TRUE
T/F Japanese keiretsu executives can legally sit on each other's boards, share information, and coordinate prices in closed-door meetings of "presidents' councils."
TRUE
T/F Licensing agreements offer limited market control since the licensee typically does not become involved in the licensor's marketing program.
TRUE
T/F Licensing is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in exchange for royalties, license fees, or some other form of compensation.
TRUE
T/F Licensing, joint ventures, minority or majority equity stake, and ownership are points along a continuum of alternative strategies for global market entry and expansion.
TRUE
T/F Many consumers consider products with labels such as "Made in Bangladesh" and "Made in Brazil" to be of inferior quality and value.
TRUE
T/F Marketers in Gillette's Parker Pen subsidiary are confident that consumers in Malaysia and Singapore shopping for an upscale gift will buy the same Parker Pen as Americans shopping at Neiman Marcus.
TRUE
T/F McDonald's has learned the wisdom of leveraging local market knowledge by granting franchisees considerable leeway to tailor restaurant interior designs and menu offerings to suit country-specific preferences and taste
TRUE
T/F Microsoft's Windows 7 operating system was launched in 2009 with the user-centric global advertising campaign keyed to the theme "I'm a PC, and Windows 7 was my idea." This is an example of the dual-extension strategy.
TRUE
T/F Nestlé asked suppliers to find a type of glue to make the clicking sound louder when consumers snap open a tube of Smarties brand chocolate candies.
TRUE
T/F Organizations as diverse as Disney, Caterpillar, and the National Basketball Association make extensive use of licensing in overseas markets.
TRUE
T/F Overall, Italy's retail sector has pursued very little international expansion; by contrast, other European supermarket chains such as Tesco (UK), Metro (Germany), and Carrefour (France) took local products and brands with them as they expanded around the globe.
TRUE
T/F People have local tastes based on their unique cultures and traditions-a good candy bar in Brazil is not the same as a good candy bar in China
TRUE
T/F Potential export problems include packaging, government red tape, warehousing, advertising, and trade restrictions.
TRUE
T/F Prior to the economic crisis of 1997-1998, the South Korea's "chaebol" had become bloated and heavily in debt.
TRUE
T/F Representatives of the apparel, footwear, and textile industries in many countries are deeply concerned about the impact that increased trade with China will have on these sectors.
TRUE
T/F Research discovered that even the most experienced exporters express lack of confidence in their knowledge about shipping arrangements, payment procedures, and regulations
TRUE
T/F Robust economic growth and rising incomes mean that consumers in China, India, and other emerging markets can buy cell phones as status symbols.
TRUE
T/F Scotland's top export category is information technology
TRUE
T/F Some consumers flaunt their wealth by buying expensive products and brands that others will notice. Such behavior is referred to as "luxury badging."
TRUE
T/F Sony entered into a strategic partnership with Samsung in order to produce flat-panel TV screens due to the high product development costs.
TRUE
T/F Starbucks founder and Chairman Howard Schultz and his management team have used a variety of market-entry approaches, direct ownership, licensing, and franchising-to create an empire of more than 21,000 coffee cafés in 65 countries.
TRUE
T/F Tax incentives, subsidies, export assistance, and free trade zones are common support provided by governments to firms that engage in exporting
TRUE
T/F The "Virgin" brand is a global brand with several brand extensions.
TRUE
T/F The "wave" that appears on red Coke cans and bottle labels is an example of a brand symbol.-
TRUE
T/F The Buy American Act of 1933, which stipulates that U.S. federal agencies must buy articles produced in the United States unless domestically produced goods are not available, is an example of discriminatory procurement policies.
TRUE
T/F The Customs Trade Partnership Against Terrorism (C-TPAT) recognizes that U.S. Customs and Border Protection (CBP) is responsible for screening import cargo transactions
TRUE
T/F The Fly American Act is an example of a nontariff barrier
TRUE
T/F The French Government owns 14% of the Renault automakers
TRUE
T/F The Harmonized Tariff System (HTS) is currently the dominant system for determining the correct classification number.
TRUE
T/F The MEA can act as an export distributor or as an export commission representative. However, the MEA does not perform the functions of an export department, and the scope of market activities is usually limited to a few countries.
TRUE
T/F The Sony Walkman is an example of combination or tiered branding, whereby a corporate name is combined with the name of the product.
TRUE
T/F The appeal of the product extension-communication adaption strategy is its relatively low cost of implementation.
TRUE
T/F The decision to offer a global product into a global brand is risky. For example, in the United Kingdom, Snickers may get confused with Knickers, the British slang for a woman's undergarment.
TRUE
T/F The driving force behind many business acquisitions is globalization
TRUE
T/F The equity value of global megabrands such as Coca-Cola and Marlboro runs in the tens of billions of dollars-
TRUE
T/F The failure of partnership between Great Britain's General Electric Company was blamed in part due to the fact that it was run by engineers.
TRUE
T/F The four tigers—Singapore, South Korea, Taiwan, and Hong Kong—learned from the Japanese experience and built strong export-based economies of their own.
TRUE
T/F The joint venture between Corning Glass and Mexican manufacturer Vitro failed primarily due to conflicts arising from cultural differences.
TRUE
T/F The virtual corporation will seem to be a single entity with vast capabilities but will really be the result of numerous collaborations assembled only when needed.
TRUE
T/F Volkswagen's business environment includes a significant wage differential between Mexico and Germany
TRUE
T/F When Honda's U.S. manufacturing subsidiaries purchase parts from Japan, customs authorities in the United States have the right to scrutinize the transfer price to make sure it is a fair reflection of market value.
TRUE
T/F Switzerland exports 51 percent of their GDP, compared to the United States, which exports only about 14 percent.
TRUE