MKT204 - TF
T
18) Robust economic growth and rising incomes mean that consumers in China, India, and other emerging markets can buy cell phones as status symbols.
False
12) When a foreign country expropriates an American corporation, the U.S. court can get involved in arbitration.
F
12) When assessing market segments in terms of income data, global companies should avoid targeting countries with per capita incomes of less than $755.
True
13) A 'civil-law country' is one in which the legal system reflects the structural concepts and principles of the Roman Empire in the sixth century.
T
13) An extrapolation of current economic growth trends suggest that China, with its combination of high real income growth and relatively low population growth, is a strong candidate to become a leading world economic power.
TRUE
13) In a Common Market there are no internal barriers to trade and it allows for free movement of factors of production such as labor and capital.
T
13) Market research should focus on finding out how a potential customer can be changed into an actual customer.
T
13) The Sony Walkman is an example of combination or tiered branding, whereby a corporate name is combined with a product name.
True
14) Louisiana is the only state that has not fully adopted the Uniform Commercial Code (UCC) since its laws are heavily influenced by the French civil code.
T
14) Mattel toys thought that Barbie would be as popular in Japan as it is the United States. This assumption was due to the self-reference criterion (SRC).
T
14) Sony is a global brand and the company's portable MP3 player is an example of a global product.
T
14) Ten most populous countries in the world account for roughly 60 percent of the world population.
TRUE
14) Under Economic Union a doctor or lawyer qualified in one country can practice in another member country.
T
15) An awareness of SRC can help ensure that the research effort is designed with minimal home-country or second-country bias.
TRUE
15) As a result of CFTA, Canada takes 20 percent of U.S. exports and the United States buys approximately 85 percent of Canada's exports.
False
15) India, Pakistan, Malaysia, Korea, and Japan have common-law jurisdictions.
T
15) The "Intel Inside" campaign is an example of co-branding.
T
15) Using averages alone, it is possible to underestimate a market's potential, for example, fast-growing, higher income segments are present both in India and China.
False
16) "Sharia" and "haram" are important concepts in civil-code laws, which are commonly practiced in Middle Eastern countries.
F
16) Global marketing research in countries such as China and India should be conducted mainly using the entire country as the unit of analysis.
TRUE
16) In spite of NAFTA creating a free trade area, Mexican avocado growers can only ship their fruit to the United States during the winter months, and only to states in the northeast subject to a quota of $ 30 million worth of avocados per year.
T
16) The "Virgin" brand is a global brand with several brand extensions.
T
16) The vast majority of India's population comprises a "bullock cart" segment whose households lack most comforts but typically own a television.
T
17) A psychographic study showed that Porsche buyers could be divided into several distinct categories, one consisting of "Top Guns" who buy Porsches and expect to be noticed.
F
17) According to the top brand rankings, Microsoft is the world's most valuable brand.
F
17) By definition, secondary data is data gathered from country markets that rank as "secondary" in terms of income and population figures.
TRUE
17) In spite of NAFTA, Canadians fear that their own national industries will not be able to survive the global juggernaut originating south of the border and are concerned about their cultural preservation.
True
17) The requirement that all restaurants declare that the meat is "halal" is based on Islamic Laws.
T
18) Categories such as "successful idealists" and "affluent materialists" can be used to describe psychographic segments.
True
18) If a foreign company only has a sign board in any state in the United States then that company is subject to the jurisdiction of U.S. courts.
T
18) In addition to big, showy, custom motorcycles, Harley-Davidson has a broad range of bikes that well suit European riding habits.
FALSE
18) NAFTA ensures that any product for sale in the U.S., Mexico, and Canada bearing a certificate of origin qualifies for tariff reduction.
False
19) A trademark gives the inventor of a product the exclusive legal right to make, use, and sell an invention for a specific period of time.
T
19) Coca-Cola, McDonald's, Singapore Airlines, Mercedes-Benz, and Sony are a few of the companies that have transformed local products and brands into global ones.
F
19) Companies wishing to minimize the cost and effort associated with market research should start by collecting and analyzing primary data.
TRUE
19) El Salvador, Honduras, Guatemala, Nicaragua, Costa Rica, and Panama are all members of the Central American Integration System.
T
19) The segmentation and targeting approach used by the same company can vary from country to country.
TRUE
2) GATT (General Agreement on Tariffs and Trade) itself had no enforcement power and the losing party in a dispute was entitled to ignore the ruling.
True
2) In Europe, the individual EU countries are giving up the right to set their own product standards, and are making other sacrifices in exchange for improved market access.
T
2) Intranet is a private network that allows authorized company personnel or outsiders to share information electronically in a secure fashion.
T
2) The product P of the marketing mix is at the heart of the challenges and opportunities facing global companies today.
F
2, Market Segmentation is the process of evaluating the segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond.
T
3) EDI links with vendors to enable retailers to improve inventory management and restock hot-selling products in a timely, cost-effective manner.
False
3) Political risk is the possibility of a change in a country's political environment or government policy that would positively affect a company's ability to operate effectively and profitably.
TRUE
3) Since GATT did not have enforcement power and the process of dealing with disputes sometimes stretched on for years, some critics referred to it as General Agreement to Talk and Talk.
T
3) Sushi, Falafel, Tandoori Chicken or Pizza are in demand in many parts of the world. This phenomenon can be due to pluralization of consumption and segment simultaneity.
T
30) In Germany, product packaging must conform to Green Dot regulations as part of "Eco-packaging."
T
30) Marketing model drivers are key elements or factors required for a business to take root and grow in a particular country market environment.
True
30) Procter & Gamble instigated a review of Colgate-Palmolive's 1995 acquisition of Brazil's Kolynos oral care company under antitrust laws since Colgate will have 79 percent of the market.
TRUE
30) Singapore's standard of living is second highest in the region as well as its seaport is the world's second largest container port.
T
30) Volkswagen, Peugeot, Chrysler, and other global automakers have established manufacturing operations in China since they consider it to be an incipient market.
FALSE
31) ASEAN's goal is to strengthen intra-regional trade relationships so members do not have to trade with China.
T
31) In India, refrigeration is not widely available and this restricts many foreign companies to market items that need refrigeration. This can be considered as one of the "enabling conditions" that needs to be considered in a marketing model.
F
31) It will be convenient to do a telephone survey in rural areas in China since, according to the Ministry of Information Industry reports, 40 percent households have at least one fixed-line telephone.
True
31) KLM and Northwest airlines won an exemption from antitrust rules in the United States and now share computer codes and set prices jointly.
T
31) The European Union now requires mandatory labeling for some foods containing genetically modified ingredients.
F
32) "Back translation" is a technique used to ensure that currency conversion is performed correctly when financial statements of foreign subsidiaries are consolidated with financial statements at headquarters.
True
32) Formation of a cartel like OPEC, consisting of oil-producing companies, would most likely be illegal in the United States.
T
32) In 2008, the United States enacted a country-of-origin labeling (COOL) law, which requires supermarkets to display information that identifies the country that meat, poultry, and certain other food products come from.
TRUE
32) Japan has changed from being a closed market to one that is a tough market. Marketers have to master the 'kei retsu' system of tightly knit corporate alliances.
F
32) When making a decision about market entry timing, a company's management team should understand that the first-mover always becomes the market leader.
F
33) "Back translation" is a technique whereby a survey or other document that has been translated is returned (i.e. "sent back") to the translator for corrections.
F
33) Before targeting the North American market, the Lexus marketing team succeeded in making Lexus the number one luxury-car nameplate in Japan.
T
33) Packaging aesthetics such as color or shape of a product, label, or package are very important for Japanese consumers.
TRUE
33) The objective of the EU member countries is to harmonize national laws and regulations so that goods, services, people, and eventually money can flow freely across national boundaries.
True
33) Trade secrets are confidential information or knowledge that has commercial value and is not in the public domain, and for which steps have been taken to keep it secret.
True
34) A company hoping to protect its trade secrets from being stolen by a foreign company can seek relief under the TRIPs agreement if both companies do business in GATT signatory countries.
T
34) Due to the European Commission's regulation, McDonald's cannot give away soft-plastic toys with its Happy Meals in Europe.
T
34) Nielsen now uses an electronic device for getting national audience data, which is known as a peoplemeter.
F
34) Standardized global marketing is analogous to mass marketing in a single country and is also known as differentiated target marketing.
TRUE
34) The adoption of a single currency euro helps countries in the euro zone by eliminating costs associated with currency conversion and exchange rate uncertainty.
T
35) A marketer of breakfast cereals might send researchers to preselected households at 6 a.m. to watch families go about their morning routines
T
35) Apple launched its iPhone in the United States in mid-2007 and in the following months, it was gradually rolled out in several more markets. This is an example of the dual-extension strategy.
T
35) Differentiated global marketing represents a more ambitious approach than concentrated target marketing.
False
35) Finland ranks highest in bribery as listed by the Corruption Perceptions Index (CPI) by Transparency International in 2006.
TRUE
35) Slovakia became a member of Euro Zone on January 01, 2009 because the government has kept inflation low and the budget deficit below 3 percent of GDP.
TRUE
36) As a result of the formation of EU, record companies like Sony, Warner and EMI are forced to adopt more uniform pricing policies across Europe.
False
36) If an American businessperson pays a Russian customs agent a $20 cash "processing fee" to avoid delay in leaving Russia, the American has violated the FCPA.
F
36) There is a significant difference between the "mass market" and the "premium market." In the premium market customers are looking for a good deal whereas in the mass market customers are looking for a product that fulfills their expectations.
T
36) Unilever reformulated its Cif brand spray cleaner to do a better job on grease in Italy since it was found that Italian women are not interested in labor-saving conveniences compared to cleanliness.
F
36) When using a "projective technique," the researcher presents close-ended or ambiguous stimuli to a subject in a focus group
T
37) A company that is oriented towards product "platforms" is likely to be pursuing a product adaptation approach to global marketing.
T
37) BMW's slogan "the ultimate driving machine," is an example of an attribute or benefit which has proven successful in their positioning strategy.
True
37) Bribery payments are considered a deductible business expense in many European countries.
T
37) In global marketing research, it is important to establish scalar equivalence when obtaining information from different countries.
FALSE
37) Markets in Central and Eastern Europe are not eager to embrace well-known global brands such as McDonald's, 3M International, and Philips Electronics.
T
8) Gillette reaps economies of scale associated with creating a single ad campaign for the world and the advantages of executing a single brand strategy.
False
8) If a foreign company is taken over by the host country government and some form of compensation is paid, "confiscation" has occurred.
F
8) The assumption of homogeneity should be the cornerstone of a company's market segmentation effort.
T
8) The term "safe harbor agreement" applies to privacy issues pertaining to the companies that gather information about consumers.
T
9) A global brand has the same name and in some cases a similar image and positioning throughout the world.
TRUE
9) About 50 percent of global trade takes place among nations linked by Free Trade Areas.
T
9) About two-thirds of world GNI is generated in the Triad countries, whereas only about 12 percent of the world's population is located in those countries.
T
9) Direct sensory perception such as seeing, feeling, hearing, smelling, or tasting is the best way to know what is going on in a country rather than taking information from secondary sources.
True
9) If a foreign company is taken over by the host country government and some form of compensation is paid, "expropriation" has occurred.
19) In centrally planned socialism economic systems, the state allocates resources, whereas production resources are privately owned.
FALSE
19) Suppose the Japanese yen is weak in relation to the U.S. dollar. Rather than stressing price benefits, Japanese companies exporting to the U.S. should emphasize quality improvements and after-sales service.
FALSE
20) In Sweden, where the government controls two-thirds of all expenditures, resource allocation is more "market" oriented than "command" oriented.
FALSE
22) When domestic currency is strong, expenditures in the local (host country) should be minimized.
FALSE
23) Copywriters are specialists who check advertisements to see that they meet copyright regulations in different countries.
FALSE
23) When domestic currency is weak, it is advisable to bill foreign customers in the domestic currency.
FALSE
24) Improved price transparency in the Euro zone leads to greater price disparities.
FALSE
25) Apple's iTunes Music Store was a global transaction site effective day one of its launch.
FALSE
26) In China, a humorous TV ad showing a student humiliating a teacher in the classroom would be an effective execution for a soft drink brand.
FALSE
3) IBM was the first company to develop a personal computer
FALSE
32) Localizing a Web site in native language can be done by translating a Web site from the home-country language
FALSE
33) Publicity is similar to advertising in that companies pay the media for placement of stories and news items.
FALSE
34) Many companies utilize corporate advertising which, despite the name, is generally considered part of the PR function.
FALSE
35) Advocacy advertising enhances the public's perception of a company, creates goodwill, or announces a major change.
FALSE
37) A global company that uses market skimming as a pricing strategy is likely to invite charges of "dumping" by competitors in host-country markets.
FALSE
38) Bluetooth works over shorter distances than Wi-Fi technology and consumes more power than Wi-Fi.
FALSE
4) "Market skimming" is a strategy that uses low prices as a competitive weapon to gain market position.
FALSE
4) The popularity of personal computers received a boost in the late 1970s with the introduction of digital photography software
FALSE
40) A company that is ethnocentric in its approach to PR will not extend home-country PR activities into host countries.
FALSE
5) The skimming pricing strategy is appropriate in the mature phase of the product life cycle.
FALSE
55) About 25% of the world population is included in the low-income economic countries category as per the World Bank classification system.
FALSE
59) With a 2013 GNI per capita of $1,570, India has transitioned out of the low-income category and is now classified as an upper-middle-income country, also known as an industrializing or developing country.
FALSE
61) China is the first BRICS nation in the upper-middle-income category with a GNI per capita income of $6,560 in 2013.
FALSE
62) Brazil, China, and India are classified as upper-middle income countries, also known as industrialized or developing countries.
FALSE
63) The 34 nations that belong to the OECD, who believe in market-allocation economic systems and pluralistic democracy, are also addressed as "economic think tank" or the "rich man's club."
FALSE
72) The "balance of payments" is a record of all economic transactions between the residents of a country and the developed countries of the world.
FALSE
73) A country with a positive current account balance has a trade deficit; that is, the outflow of money to pay for imports exceeds the inflow of money for sales of exports.
FALSE
75) The foreign exchange market consists literally of a buyer's and a seller's market where currencies are traded for both spot and future delivery on a continuous basis. The forward market is for immediate delivery and the spot market is for future delivery.
FALSE
8) A market penetration pricing strategy calls for setting price levels that are high enough to quickly build market share.
FALSE
8) The lack of employment as seen in the recent times is indicative of the fact that manufacturing is in decline.
FALSE
86) A country's currency would be overvalued if the Big Mac price (converted to dollars) is lower than the U.S. price.
FALSE
88) Hedging exchange rate exposure involves establishing an offsetting currency position such that the loss of one currency position is offset by a corresponding gain in some other currency.
FALSE
9) The "localized" versus "standardized" debate pertaining to global advertising has finally been resolved in favor of standardization.
FALSE
If Nestlé decides not to market biscuits (cookies) in the United States due to competitive reasons, it is considered to be having a lack of strategic focus and missed opportunity.
False
Starbucks entered India via an alliance with the Tata Group. This is an example of "market penetration."
False
Starbucks offers a loyalty card and rewards program in the United States with an app that displays a bar code that can be scanned by the barista. This is an example of "market development."
False
The value equation can be represented as Value = Price/Benefits.
False
16) Foreign direct investment figures reflect investment flows out of the home country as companies invest in or acquire plants, equipment, or other assets.
T
17) Foreign investment can take the form of outright acquisition.
T
19) 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.
T
2) 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.
T
20) The joint venture between Corning Glass and Mexican manufacturer Vitro failed primarily due to conflicts arising out of cultural differences.
T
22) An example of a successful joint venture is Ericsson's cell phone alliance with Sony.
T
25) Companies may move from licensing or joint venture strategies to ownership in order to achieve faster expansion in a market, greater control, or higher profits.
T
27) If government restrictions prevent majority or 100 percent ownership by foreign companies, the investing company will have to settle for a minority equity stake.
T
28) 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.
T
29) Following its bankruptcy filing in 2009, GM divested itself of several non-core businesses and brands, including Saab.
T
3) Licensing enables companies to circumvent tariffs, quotas, or similar export barriers.
T
30) Borden ended licensing and joint venture arrangements for branded food products in Japan and set up its own production, distribution, and marketing capabilities for dairy products. For non-food products, Borden has maintained joint venture relationships with Japanese partners in flexible packaging and foundry materials. All this indicates that strategy preference may change over time.
T
32) Sony entered into a strategic partnership with Samsung in order to produce flat-panel TV screens due to the high product development costs.
T
34) The CFM partnership between General Electric (USA) and Snecma (France) is a notable example of a successful GSP.
T
35) In Japan, a horizontal "keir etsu" is a form of business alliance between companies in a particular group headed by a trading company, bank, or other cash-rich entity.
T
36) Because "keir etsu" relationships are crossing the Pacific and directly affecting the American market, U.S. companies have reason to be concerned.
T
38) "Digital keiretsu" refers to alliances between companies in several industries that are undergoing transformation and convergence.
T
5) Apple's failure to license its technology in the pre-Windows era arguably cost the company tens of billions of dollars.
T
6) Companies may find that the upfront easy money obtained from licensing turns out to be a very expensive source of revenue.
T
8) Sony's worldwide success in manufacturing and marketing transistor radios in the 1950s stemmed from its joint venture arrangement with an American corporation.
T
9) One of the cornerstones of Apple Computers' business strategy has been licensing its famed operating system.
T
A U.S. company that focuses on the countries included in the North American Free Trade Agreement (NAFTA) has a regiocentric orientation.
T
A company with a geocentric orientation views the world as a potential market and strives to develop integrated global strategies.
T
A global company possesses the unique opportunity to develop leverage.
T
According to Fortune Magazine, Walmart is ranked number one in revenue, although it currently generates only about one-third of its revenues outside the United States
T
Anheuser-Busch, the brewer of Budweiser beer, lost its independence after years of focusing primarily on the U.S. market.
T
Global Marketing, 6e (Keegan/Green) Chapter 9 Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances 1) Companies like Bill Blass, Hugo Boss, and other global design icons typically generate more revenue from licensing deals for jeans, fragrances, and watches than from their high-priced couture lines.
T
Globalization is presenting significant marketing opportunities to sports organizations such as the National Basketball Association and the National Football League.
T
Globaphobia is a term which describes a hostile attitude toward global brands or company policies that appear to result in hardship for some individuals or countries while benefiting others.
T
People and organizations that are both able and willing to buy are considered as markets.
T
Tang drink powder became a $1 billion brand as regional managers in the Middle East added mango and pineapple flavors.
T
Toyota and Honda are two examples of companies that exhibit key characteristics of transnationality.
T
When a company succeeds in creating more value for customers than its competitors do, that company is said to enjoy competitive advantage.
T
1) Price floor and price ceiling are two basic factors which determine the boundaries within which prices should be set.
TRUE
1) Websites such as Facebook, MySpace, and YouTube are collectively referred to as Web2.0
TRUE
10) Recently, China, India, Brazil, and the EU have taken the position that since the Internet is global; no single country should be in control.
TRUE
10) Sony used penetration pricing when it launched the Walkman personal stereo in 1979.
TRUE
10) Standardized print campaigns can be used for industrial products or for technology- oriented consumer products such as Apple iPhone.
TRUE
11) According to a recent "digital opportunity index" published by the United Nations, South Korea leads the world in providing its citizens with access to information and communications technologies (ICT).
TRUE
11) Despite an unmistakable trend toward using global advertising agencies to support global marketing efforts, companies with geocentric orientations will adapt to the global market requirements and select the best agency or agencies accordingly.
TRUE
11) Hewlett-Packard is the world's leading marketer of inkjet printers. H-P's printers are priced very low and margins are slim; by contrast, the company enjoys healthy margins on sales of replacement ink cartridges. This approach is sometimes known as "razors and blades" pricing.
TRUE
12) "Convergence" is a term that describes a world in which the telecommunications, consumer electronics, computer, and entertainment industries are entering each others' markets.
TRUE
12) A German agency devised McDonald's "I'm lovin' it" tagline.
TRUE
12) Toyota, Sony, Olympus, and Komatsu are some of the well-known Japanese companies that use target costing, a process which is also known as "design to cost."
TRUE
13) In 1994, the Chinese government banned tobacco advertising from television, radio, newspaper, magazine, and cinema ads.
TRUE
13) In France, industry deregulation has resulted in vastly improved broadband service for consumers.
TRUE
13) Vodaphone, AT&T and other cellular service providers buy handsets at prices set by Motorola, Nokia, and other manufacturers, and then subsidize the cost by offering significant discounts.
TRUE
14) The Omnicom Group is the world's largest advertising organization.
TRUE
15) Ironically, Motorola, a key player in the cell phone business, could have been first to market with a cell phone camera.
TRUE
16) Originally, Sony was a consumer electronics company best known for innovative products such as transistor radios and Trinitron televisions.
TRUE
16) Western advertising agencies still find markets such as China and Japan to be very complex, as Asian agencies find it just as difficult to establish local agency presence in Western markets.
TRUE
17) According to industry estimates, by 2010, annual sales of camera-equipped cell phones will reach one billion.
TRUE
17) In the advertising industry, "creative strategy" is a statement of what a particular message or campaign will say.
TRUE
18) Suppose the Japanese yen is weak in relation to the U.S. dollar. Japanese firms should be able to stress price benefits for products exported to the U.S.
TRUE
18) The advertising agencies can be thought of as "idea factories."
TRUE
18) Today, market capitalism is widely practiced around the world, most notably in North America and the European Union.
TRUE
19) A well-managed company that pays attention to and responds to the needs of established customers may be confronted by the innovator's dilemma.
TRUE
19) Some of the world's most memorable advertising campaigns originate from "big" ideas with unlimited number of new executions. Such a campaign is said to have "legs."
TRUE
2) McDonald's "I'm lovin' it" theme is a good example of global advertising.
TRUE
2) Price can be used as a strategic variable to achieve specific goals, including ROI, profit, and rapid recovery of product development costs.
TRUE
2) The integrated circuit and the concept of binary code permitted the development of the personal computer (PC)
TRUE
20) According to innovation expert Clayton Christensen, the value network for the personal computer industry is different from the value network for mainframe computers.
TRUE
20) When creating global advertising, it is important to remember that the "advertising appeal" should be based on the agency's understanding of the target audience's buying motives.
TRUE
20) Within the Euro zone price transparency means that buyers will be able to comparison shop easily because goods are priced in euros as opposed to marks, francs, or lira.
TRUE
21) According to innovation expert Clayton Christensen, a sustaining technology is an incremental or radical innovation that improves product performance.
TRUE
21) According to the 2015 Index of Economic Freedom compiled by the Heritage Foundation, Hong Kong is ranked as having the highest degree of economic freedom.
TRUE
21) The way a product's appeal or proposition is presented is called the "creative execution."
TRUE
21) When domestic currency is weak, it is advisable to speed repatriation of foreign-earned income and collections.
TRUE
22) Revlon has used a French producer to develop television commercials in English and Spanish for use in international markets.
TRUE
22) The industries dominant firms with reputations as well-managed firms lead in developing and/or adopting sustaining technologies.
TRUE
23) An innovation that is disrupting to one firm can be sustaining to another firm.
TRUE
23) As per the listings of the 2015 Index of Economic Freedom by the Heritage Foundation, there is a high correlation between the degree of economic freedom and the extent to which a nation's mixed economy is market-oriented.
TRUE
24) In reality, market capitalism and centrally planned socialism do not exist in "pure" form.
TRUE
24) In spring 2004, Adidas launched a $50 million global print and TV campaign keyed to the tagline "Nothing is impossible."
TRUE
24) Worldwide revenues for business-to-business (B2B) e-commerce surpass worldwide revenues for business-to-consumer (B2C) e-commerce.
TRUE
25) In China, McDonald's is careful not to advertise prices with multiple occurrences of the number four since, in Cantonese, the pronunciation of the word four sounds similar to that of the word death.
TRUE
25) In Singapore, gum is available at pharmacies; before buying a pack, however, consumers must register their names and addresses.
TRUE
25) In countries where high inflation is the rule, companies should make price adjustments to maintain operating margins.
TRUE
26) Louis Vuitton executives raised prices in 2008 and sales continued to increase.
TRUE
26) Proctor & Gamble Far East Inc., the consumer products company's operation in Japan, is using the Web to build its portfolio of brands in the region.
TRUE
27) Germany has traditionally severely restricted competition in a number of industries.
TRUE
27) In Japan, intimate scenes between men and women are in bad taste and in Saudi Arabia such ads are outlawed.
TRUE
27) The Web address of Proctor & Gamble Far East Inc. is shufufufu.com which is Japan's first virtual community for women; with shufu meaning housewife, and fufufu, the sound of women's laughter
TRUE
28) Ads that strike viewers in some countries as humorous or irritating may not necessarily be perceived that way by viewers in other countries.
TRUE
28) The strategic insight behind Procter & Gamble's successful shufufufu.com Web site was that Japanese housewives feel isolated.
TRUE
28) The video piracy problem is not confined to emerging markets. In the United States, losses from piracy exceed $1 billion each year for the movie industry as a whole.
TRUE
29) Amazon.com is perhaps the most successful example of the global audience-transaction business model.
TRUE
29) In some instances, deregulation represents a quid pro quo that will allow German companies wider access to other country markets.
TRUE
29) Partial nudity and same-sex couples are frequently seen in ads in Latin America and Europe.
TRUE
3) The globalization of coffee culture has created market opportunities for companies such as Starbucks.
TRUE
3) The market skimming pricing strategy is a part of a deliberate attempt to reach a market segment that is willing to pay a premium price for a particular brand or for a specialized or unique product.
TRUE
30) Cybersquatting is the practice of registering a particular domain name for the express purpose of reselling it to the company that should rightfully use it.
TRUE
30) In Germany, expenditures for newspaper advertising are greater than those for television advertising.
TRUE
30) The open-skies agreement between the United States and Germany would allow Lufthansa to fly more routes within the United States.
TRUE
31) "Paid Search Advertising" refers to a growing trend whereby companies pay to have their ads appear when users type certain search terms.
TRUE
31) In the United States, Levi Strauss & Company has to face competitive behavior since JCPenny and Sears are both aggressively marketing their own brands.
TRUE
31) U.S. ads contain more price information, and are more likely to include comparative appeals than Arabic ads.
TRUE
32) Benetton's striking print and outdoor advantage campaigns keyed to the "United Colors of Benetton" generated both controversy and wide media attention.
TRUE
32) Marketers of domestically manufactured finished products may be forced to switch to offshore sourcing of certain components to keep costs and prices competitive.
TRUE
33) A German language Web site requires more than double the capacity of an English language site.
TRUE
33) Dieter Zietsche, sales chief at Germany's Mercedes-Benz, once said that, in setting prices, "We know what the customer wants, and he will have to pay for it." This is an example of an ethnocentric pricing policy.
TRUE
34) The EUs regulations for e-commerce are among the world's most strict.
TRUE
34) When subsidiary country managers are given broad discretion to set prices in their markets, a polycentric pricing strategy is in evidence.
TRUE
35) Bandwidth determines the range of frequencies that can pass over a given transmission channel.
TRUE
35) In global marketing, there is no such thing as a "normal" margin for pricing.
TRUE
36) Image advertising is used by global companies to present themselves as good corporate citizens in foreign countries.
TRUE
36) Streaming media represents a huge market opportunity for the video game industry.
TRUE
36) The terms "parallel importing" and "gray marketing" mean the same thing.
TRUE
37) "United Colors of Benetton" generated both controversy and wide media attention, which executives consider as an opportunity to generate publicity.
TRUE
37) Gamers in different locations, even different countries, compete against each other using PCs, Xbox, or PlayStation consoles.
TRUE
38) According to current GATT standards, governments cannot penalize foreign companies for dumping if the export price of a given product differs from the domestic price by less than 2 percent.
TRUE
38) Consumer products companies typically use advocacy advertising to give the public reasons to buy their products.
TRUE
39) Any company that is increasing its activities outside the home country can utilize PR personnel as boundary spanners between the company and employees, unions, stockholders, customers, the media, financial analysts, governments, or suppliers.
TRUE
39) Telematics refers to a car's ability to exchange information about the vehicle's location or mechanical performance.
TRUE
39) Transfer pricing is a term that applies to transactions between different divisions or units of the same company.
TRUE
4) "Globalness" of consumer products companies such as P&G, Unilever, and Nestlé can be inferred from the proportion of advertising expenditures outside the home-country markets.
TRUE
4) Economic integration was at 10 percent at the beginning of the twentieth century; today, it is approximately 50 percent.
TRUE
40) Lockheed and other military aircraft marketers are likely to face requests for offsets before closing a sale in the Middle East.
TRUE
40) VoIP has the potential to render the current telecommunications infrastructure, consisting primarily of twisted copper and fiber optic cable, obsolete.
TRUE
5) According to data published by Advertising Age in 2007, Proctor & Gamble ranks # 1 in worldwide advertisement spending.
TRUE
5) The popularity of personal computers received a boost in the late 1970s with the introduction of the first spreadsheet software
TRUE
5) The world economy has changed profoundly as evident by the fact that the global competitors have steadily displaced or absorbed local competitors.
TRUE
54) The World Bank has developed a four-category classification system for stages of marketing development which uses per capita gross national income (GNI) as a base.
TRUE
56) Although Bangladesh is categorized in the low-income countries, the country has opportunities, particularly in the garment industry.
TRUE
57) Myanmar, a low-income country in Southeast Asia with a population of 65 million people, can be considered as an emerging markets.
TRUE
58) Myanmar people are very similar to Japanese in some ways.
TRUE
6) In recent times, trade has replaced capital movements as the driving force of the world economy.
TRUE
6) The "extension versus adaptation" debate is essentially a debate over "standardized versus localized" advertising.
TRUE
6) The Internet's origins can be traced back to the defense department in the United States.
TRUE
6) When Apple introduced iPhone in the United States in the summer of 2007 with a sale price of $ 599 it used skimming pricing strategy.
TRUE
60) Grocery distribution companies in Brazil use logistics software to route their trucks; meanwhile, horse-drawn carts are still a common sight on many roads.
TRUE
64) The CEO of Otis Elevators says they measure elevator populations in countries as units installed per thousand people. According to this, China is about one-half an elevator per thousand people.
TRUE
7) Price can be used as a competitive weapon to gain or maintain market position.
TRUE
7) Recently, global companies have embraced a technique known as "pattern advertising."
TRUE
7) The struggle between capitalism and socialism that began in 1917 is over.
TRUE
7) Vint Cerf and Bob Kahn are credited with creating a "network of computer networks," otherwise known as the Internet.
TRUE
74) The important fact to recognize about the overall balance of payments is that it is always in balance, although imbalances do occur in subsets of the overall balance.
TRUE
77) When a company conducts business across boundaries in countries with different currencies, it is thrust into the turbulent world of exchange risk.
TRUE
8) As a practical matter, marketing managers may choose to run both global and local ads rather than adopt an "either/or" stance.
TRUE
8) Tim Berners-Lee is the Internet pioneer who devised URL, HTML, and http and made the World Wide Web possible
TRUE
9) Penetration prices often mean that the product may be sold at a loss for a certain period of time.
TRUE
9) The Chinese government, alarmed by the free flow of information across the Internet, closely monitors the content on Web sites that its citizens access.
TRUE
F
20) For behavior segmentation, marketers use the 80/20 rule when assessing the consumers' usage rate, which means that 20 percent of the company's revenues or profits are accounted for by 80 percent of the firm's products or customers.
TRUE
20) Implementation of the Central American Free Trade Agreement with the United States created a free trade area known as DR-CAFTA.
T
20) Industrial growth patterns generally reveal consumption patterns, which in turn can be helpful in knowing production patterns that can be used in assessing market opportunities.
T
20) The basic human need to consume food and drink is not the same thing as wanting or preferring a Big Mac or a Coke.
False
20) To establish ownership of a written, recorded, performed, or filmed creative work, it is necessary to apply for and be granted a patent.
TRUE
21) Despite trade agreements, attempts to achieve integration in Central America have been described as uncoordinated, inefficient, and costly. There are still tariffs on imports of sugar, coffee, and alcoholic beverages.
T
21) Global benefit segmentation is based on a marketer's understanding of the problem a product solves, the benefit it offers, or the issue it addresses, regardless of geography.
F
21) If a market researcher would like to know how much the typical Nigerian consumer spends on soft drinks, the information can be obtained from GNP or GDP.
T
21) In countries like India and Vietnam, and other emerging markets, amenities such as refrigerators, flush toilets, and cell phones are considered as status symbols.
False
21) Patents and trademarks that are registered in the United States are protected in all countries of the world.
False
22) A patent is a distinctive motto that a manufacturer affixes to a particular product or package to distinguish it from goods produced by other manufacturers.
T
22) Based on the trends and segmentation of Europe's Single Market, marketers are particularly advised to take the Golden Grays seriously and market brands that provide happiness, convenience, and time savings.
TRUE
22) In the year 2000, in an attempt to bring rampant inflation under control, Ecuador adopted the U.S. dollar as its official currency.
T
22) Market researchers should be alert to the fact that the quality of government statistics can vary greatly from country to country.
T
22) 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
23) A U.S. company wishing to obtain foreign patent rights must apply to the Paris Union within one year of filing in the United States or risk a permanent loss of patent rights abroad.
FALSE
23) After President Hugo Chavez declared Venezuela to adapt socialism, there are no U.S. firms operating in that country.
F
23) Recent research has confirmed that the levels in Maslow's hierarchy are the same in the United States and Asia.
T
23) The small markets around the world and the relatively low profit potential justifies only modest expenditures for market research.
T
23) The widespread adoption of the Internet and other new technologies will result in new segmentation approaches to be developed in response to changing business environment.
T
24) If Avon would like to sell cosmetics in India, a good estimate can be achieved by researching the average wage of an office secretary.
FALSE
24) Mercosur or the Common Market of the South resulted from a treaty signed by four countries: Argentina, Brazil, Paraguay, and Venezuela.
T
24) Recent research has suggested that, in Asia, the highest level needs in Maslow's hierarchy pertain to status.
T
24) Thai Americans, Vietnamese Americans, and Chinese Americans, each of whom speak a different language, can be separated by ethnic segmentation.
False
24) The Patent Cooperation Treaty (PCT) requires companies to file separate applications in all signatory countries.
False
25) A company wishing to register a trademark in the European Union can only do so on a country-by-country basis.
F
25) 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.
TRUE
25) The currency devaluation made Argentina's wine industry a major player in the world market..
F
25) Triangulation is a useful method in global market research where data is collected from three different sources within the same country.
F
25) When assessing potential country target markets, management should rely heavily on its network of contacts as a primary criterion for targeting.
T
26) About 1.3 million cars are sold each year in India; in absolute terms, this is a relatively small number.
TRUE
26) Chile decided to become only an associate member of Mercosur since full membership would have required raising external tariffs.
T
26) Demand and market potential depend, in part, on whether the market being studied can be classified as existing or potential.
T
26) Finland is home to Nokia, which rose in stature from a local brand to a global brand in little more than a decade.
True
26) Japan has recently promised to speed up patent examinations, eliminate challenges to patent submissions, and allow patent applications to be filed in English.
TRUE
27) CARICOM's main objective has been to achieve a deepening of economic integration by means of a Caribbean common market
F
27) India is the world's fastest growing cell phone market with the industry expanding at a rate of 50 percent annually with 5 million new subscribers added every month. This is an indication of continued private-sector growth.
T
27) Studies conducted during the 1970s and 1980s indicated that the "made in the USA" image lost ground to the "made in Japan" image.
F
27) Toyota's decision to launch the new Sienna minivan in the United States reflects the company's understanding of latent and incipient markets.
True
27) Under current U.S. patent laws, patents are valid for 20 years after the application filing date.
F
28) A market segment or country market characterized by strong competition may be a segment to target since it will be easier to enter a proven market.
True
28) A recent rash of antitrust actions brought in the United States against foreign companies has raised concerns that the United States is violating international law as well as the sovereignty of other nations.
TRUE
28) Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand were the original six members of the Association of Southeast Asian Nations (ASEAN).
F
28) Japanese companies relied heavily on traditional survey research in identifying the potential market for fax machines.
T
28) Many consumers consider products with labels such as "Made in Bangladesh" and "Made in Brazil" to be of inferior quality and value
T
29) Honda first created the market for small-displacement dirt bikes and then moved up market with bigger bikes targeted at casual riders.
True
29) Microsoft is subject to U.S. antitrust laws no matter what country it is doing business in.
T
29) Motorola learned the hard way that there was no latent market for a premium-priced global satellite telephone service.
T
29) Scotland's top export category is information technology.
TRUE
29) Singapore has more engineers per capita than the United States.
F
3) Brand equity is an example of a tangible product attribute.
T
12) Global brands are symbols of cultural ideals and as such, marketers can use global consumer culture positioning (GCCP) to communicate a brand's global identity.
F
12) The first step in global marketing research is the collection of data.
T
1) India's Suzlon Energy has become a major player in the wind-turbine industry due to an inefficient and inconsistent power distribution system.
T
1) One component of a firm's MIS is a business intelligence (BI) network that helps managers make decisions; one of its major objectives is to enable manipulation of the data obtained by interactive access.
TRUE
1) The Free Trade Agreement deal between the United States and South Korea, one of the world's largest bilateral agreements, will reduce tariffs on about 90 percent of product categories.
True
1) When Barack Obama was sworn in as the president of the United States, he inherited a situation that had confounded his predecessors for half a century. America's complex relationship with Cuba illustrates the impact the political, legal, and regulatory environments can have on international trade and global marketing activities.
T
1, Many Chinese women use whitening creams to lighten and brighten their complexions since white skin is associated with wealth.
True
10) If a foreign country decides to take over banking business from private banks to benefit public and pays adequate payment then it is referred to as nationalization.
T
10) Like entertainment stars, sports celebrities, and politicians, global brands have become a lingua franca for consumers all over the world.
T
10) Market research is the project-specific, systematic gathering of data and is the activity that links the consumer, customer, and public to the marketer through information.
FALSE
10) The Group of Three (G3) is a Free Trade Area encompassing Brazil, Mexico, and Venezuela.
F
10) The United States ranks number one among nations in terms of both per capita income and in terms of income adjusted for purchasing power.
FALSE
11) A Customs Union represents the most fully developed form of preferential trade agreement among nations.
F
11) Global brand is the same thing as global product.
T
11) Market research may prevent psychological overload that may be faced by a company entering more than one new geographic market.
False
11) Nationalization, expropriation, and confiscation are approved by international law as a legitimate exercise of government power as long as the act satisfies a "public purpose."
F
11) Swedish companies such as IKEA, Ericsson, and Saab have looked beyond their borders for significant growth opportunities since they have a high per capita income.
TRUE
12) Despite the fact that 16 member nations ratified a proposed European Constitution, the initiative was derailed after voters in France and the Netherlands voted against the measure.
F
38) IKEA, the home furnishings retailer based in Sweden, wraps itself in the Swedish flag — literally, since inside and out, their stores are decorated in the national colors of blue and yellow. This is an example of local consumer culture positioning.
True
38) In emerging countries, journalists may themselves become targets if they criticize the rich or powerful.
T
38) In marketing research, factor analysis is a useful technique for reducing large quantities of data to a few underlying dimensions
F
38) Products that fall under the dynamically continuous innovation category require more R & D expenditures.
TRUE
38) The Gulf Cooperation Council or GCC countries in Middle East hold about 45 percent of the world's known oil reserves.
T
39) Benetton uses the slogan "United Colors of Benetton" to position itself as a brand concerned with the unity of humankind. This type of strategy is referred to as GCCP (global consumer culture positioning).
T
39) Sony created a new market when it introduced VCRs, which can be considered as an example of discontinuous innovations.
True
39) The United Nations Conference on International Trade Law (UNCITRAL) has also been a significant force in the area of arbitration.
FALSE
39) The ultimate goal of SADC (Southern African Development Community) is to fully develop a customs union and a common currency.
TRUE
4) At the WTO, a Dispute Settlement Body (DSB) handles disagreements between countries.
F
4) ECR is a joint initiative by members of the supply chain to work towards improving and optimizing aspects of the supply chain to benefit managers.
T
4) Intangible attributes of a product includes the status associated with the product ownership.
True
4) It is estimated that 90 percent of the foreign cigarettes sold in China are smuggled in.
T
4) The fact that significant numbers of pizza-loving consumers are found in many countries indicates that they are eating the exact same thing in all parts of the world.
TRUE
40) Dubai World, a state-owned company, is negotiating a deal in Nigeria's energy sector that could be valued at several billion dollars.
T
40) In France, the National Assembly approved a bill that would require Apple to share the iTunes software codes with other companies so that music downloads would play on all digital music players, not just iPods.
T
40) Many global firms are creating flattened organizations, with less hierarchical, less centralized decision-making structures, which facilitate the exchange and flow of information. Answer: TRUE
True
40) The European Court of Justice, based in Luxembourg, is the European Union's highest legal authority.
T
40) Whenever a new product interacts with human, mechanical, or chemical elements, there is the potential for a surprising and unexpected incompatibility.
F
5) Conventional wisdom about market segmentation calls for acknowledging the emergence of global market segments that transcend national boundaries. Answer: FALSE
TRUE
5) It remains to be seen whether the WTO will live up to expectations when it comes to additional major policy initiatives on such vexing issues as foreign investment and agricultural subsidies.
T
5) McDonald's golden arches have the great advantage of transcending language and therefore are very valuable to global marketers.
T
5) Supply chain innovations, such as radio frequency identification tags (RFID), are likely to provide increased momentum for ECR.
True
5) When cars cross borders from France to Switzerland or from France to Great Britain, they contain several bottles of wine, due to high excise and VAT can also encourage legal cross-border shopping.
TRUE
6) A preferential trade agreement is a mechanism that confirms special treatment on select trading partners, thereby at times discriminating against other trading partners.
T
6) CRM tools allow companies like Credit Suisse, AT&T, and Hewlett-Packard to determine which customers are most valuable and to react in a timely manner with customized products and service offerings that closely match customer needs.
True
6) It has been estimated that tax minimization of foreign companies doing business in the United Sates cost the government $3 billion each year.
F
6) Strong brand equity is more vulnerable to marketing crises and actions.
T
6) The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers.
T
7) A fact found by demographic segmentation is that by the year 2030, 20 percent of the U.S. population or 70 million will be 65 years old or older.
T
7) Coca-Cola has a noncarbonated ginseng-flavored beverage for sale only in Japan.
T
7) In the EU companies that use CRM to collect data about individual consumers must satisfy the regulations in each of the member countries.
TRUE
7) The ultimate goal of a free trade agreement is to have zero duties on goods that cross borders between the partners.
True
7) The various forms of asset seizure represent the ultimate threat that a government can direct toward a company.
FALSE
8) A free trade area represents the most fully developed form of preferential trade agreement among nations
10) Starbucks' relentless pursuit of new market opportunities in Germany and other countries illustrates the fact that most firms face a limited range of strategy alternatives.
F
12) 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.
F
14) McDonald's has the largest number of overseas sites according to a listing in the Wall Street Journal (2006).
F
18) A joint venture with a local partner represents another form of strategy that is similar to exporting and licensing.
F
21) 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.
F
23) "Greenfield investment" is a phrase sometimes used interchangeably with the phrase "licensing agreement."
F
24) In 2008 the largest merger and acquisition deal in the pharmaceutical industry, Roche's acquisition of Genentech, is an example of an equity stake.
F
26) Monsanto and the German pharmaceutical company, Bayer AG, recently entered a joint venture.
F
31) To succeed in global markets, firms can rely exclusively on the technological superiority or core competence which made them successful in the past.
F
33) Some companies prefer global strategic partnerships to joint ventures because, with a GSP, there is less risk of strengthening a competitor.
F
37) The South Korean government has recently abandoned the "chaebol" industry structure in favor of the "keiretsu" structure.
F
39) In a country and market concentration strategy, a company serves many markets in a few countries.
F
4) Licensing agreements offer unlimited market control.
F
40) In country and market diversification strategy, a company seeks out the world market for a product.
F
7) Sony was the first company to manufacture and market a transistor radio.
F
A company which is ethnocentric will expand geographically.
F
An industry is considered to be global to the extent that its industry position in one country is dependent upon the industry position in other countries.
F
Leverage from scale economies is limited to manufacturing industries.
F
McAloo Tikka potato burger offered in India is an example of standardization.
F
McDonald's global marketing strategy is based primarily on local marketing mix elements.
F
Multinational companies pursuing strategies of product adaptation run the risk of failing to be successful against global competitors that have recognized opportunities to serve global customers.
F
Nonmonetary costs do not factor into the equation of value, which is represented by the equation Value = Benefits/Price
F
The geocentric orientation represents a synthesis of ethnocentrism and regiocentrism.
F
The term "polycentric" describes management's belief or assumption that each country in which a company does business is the same as the home country business.
F
U.S. companies that wish to achieve maximum growth potential must "go global," because 25 percent of world market potential is outside their home country.
F
1) The environment in which marketing communications programs and strategies are implemented remains the same among countries.
FALSE
14) If the terms of trade for an export transaction specify "ex-works," the exporter/seller pays all expenses incurred until the product is delivered to the importer/buyer's warehouse.
FALSE
14) Kodak has easily made the transition from industry leadership in chemical-based photography to industry leadership in digital photography
FALSE
15) If the product needs a strong local identification, it would be best to select an international agency.
FALSE
15) To protect against possible losses from currency exchange rates, exporters add a charge known as "CIF" to the ex-works price of most export shipments.
FALSE
16) With a free on board (FOB) named port, the responsibility and liability of the seller ends at the docking point at the port.
FALSE
17) Currency fluctuations mean that companies doing business in global markets should regularly review prices and make adjustments when conditions dictate.
FALSE
18) According to innovation expert Clayton Christensen, the creation of the Internet represented a disruptive technology for Dell Computer.
FALSE
11) A company that emphasizes direct investment as a market entry strategy is subject to a higher degree of political risk than a company that relies heavily on exporting.
T
13) In China, regulations require foreign franchisers to directly own two or more stores for a minimum of one year before franchising.
T
15) Franchising in a global market is actually a market entry strategy that is typically executed with less localization than licensing.
T
A critical reason why companies need to take global marketing seriously is survival.
True
A fundamental difference between regular marketing and global marketing is the scope of activities.
True
Four decades ago, the phrase global marketing did not exist.
True
Nike dropped its well-known tag line "Just do it" in advertising women's clothing in Europe and replaced it with slogan "Here I am" since college-age women in Europe are not as competitive about sports as men are.
True
Starbucks dropped the word "Coffee" from its logo when it acquired a juice maker and a bakery. This is an example of "diversification."
True
The essence of marketing is to surpass the competition at the task of creating perceived value.
True
