MKTG 485
Under the Harmonized Tariff System (HTS), products with a value of less than $_______ are not counted as a U.S. export. However, all imports, regardless of value, are counted.
$2,500
Which of the following best describes a global brand?
A brand that has the same name and, in some instances, a similar image and positioning.
Apple's brilliant string of new-product introductions in the 2000slong dash—the iPod (2001), the iPhone (2007), and the iPad (2010) long dash—revolutionized the technology industry. What type of innovation did Apple's products represent?
A discontinuous innovation
_____________ is an entry strategy for a single target country in which the partners share ownership of a newly created business entity.
A joint venture
In a discussion of trade financing, what document specifies how much and by what means the exporter-seller wants to be paid?
A pro forma invoice
A study by DMBB identified four European lifestyle segments. Which of these is described as "status conscious up and comers"?
Affluent Materialists
Which of the following transportation modes has the highest cost?
Air
________ 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.
An export management company
A company that assigns high priority to its export business will probably use which of the following arrangements for handling export responsibilities?
An in-house organization
For years, ads for the Visa credit card has stressed features and protection no matter what part of the world you travel in. Visa is developing a reputation based on which positioning strategy?
Attribute/benefit
PepsiCo used to trade soft drink syrup concentrate with the Soviet Union for Stolichnaya vodka. This represents which type of countertrade?
Barter
Which of the following is the oldest and least complex form of countertrade?
Barter
Transfer pricing represents which type of exchange transaction?
Between buyers and sellers that have the same corporate parent.
________ is defined as perceptions about a brand as reflected by brand associations that consumers hold in their memories.
Brand image
________ is a composite measure of the amount of effort a customer expends, the level of risk associated with the purchase, and buyer involvement in the purchase.
Buyer orientation
In 2000, the U.S. Congress passed the ______________. This law calls for antidumping revenues to be paid to U.S. companies harmed by imported goods sold at below-market prices.
Byrd Amendment
Which type of pricing strategy is typically used by HP for its laser printers?
Captive pricing
Which of the following methods of payments offers the exporter the best assurance of being paid?
Cash in advance
Assuming that risks can be minimized and problems overcome, which markets does the text identify as markets in which joint ventures could proceed at a faster pace than previous joint ventures in Asian markets?
Central and Eastern Europe
What has been the overall impact of the application of advanced computer controls and other new manufacturing technologies on labor costs?
China's low labor rates translate into reasonable prices for consumers
Which of the following is the most important aspect of a company's international orientation?
Commitment
Which of the following statements is correct regarding establishing global marketing channels?
Companies should document the nature of the relationship with the foreign partner.
Dove's "Campaign for Real Beauty" broke new ground by positioning the brand around a new definition of beauty. What is the positioning strategy being adopted by Dove?
Competition
In cosmetics, Estée Lauder, Chanel, and other cosmetics marketers have successfully targeted the upscale, prestige segment of the market. Which target market strategy does this illustrate?
Concentrated global marketing
Which of the following groups gains the most from a gray market?
Consumers
Which of the following statements regarding containerization is correct?
Containerization offers flexibility in shipping modes.
After 4 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?
Continuous innovation
Which of the following are the two major advantages to direct representation in a market?
Control and communication
Mother hen, piggyback exporter, and export vendor are other names for which of the following?
Cooperative exporter
Which of the following terms refers to an alternative financing method where products are exchanged between nations rather than currency.
Countertrade
Procter & Gamble Co., also known as P&G, is an American multinational consumer goods company that serves global markets with a variety of products including personal care, household cleaning, laundry detergents, prescription drugs, and disposable diapers. P& G would appear to be using which strategy to continue their global growth?
Country and market diversification
Which of the following market expansion strategies best serves the global, multi-business company?
Country and market diversification
Which of the following market expansion strategies is the strategy of the well-managed business that serves a distinct need and customer category?
Country diversification and market concentration
Which of the following is a government policy that discourages imports?
Customs duties
Danone SA, the French food products company, targets consumers in developed countries with premium brands such as Evian and Badoit mineral water and the Dannon and Activia yogurt brands. Which target market strategy does this illustrate?
Differentiated global marketing
Possibilities for feedback from the market to the corporation are much greater with which type of organization?
Direct representation
When considering organizing in the market country, which of the following enables decisions concerning program development, resource allocation, or price changes to be implemented unilaterally?
Direct representation
Elon Musk, founder of Tesla and Space X, is an entrepreneur. He has developed several innovative products and services, created new brands, and started companies to market his creations. By applying the basic tools and principles of modern marketing, Musk has achieved remarkable success. What kind of innovation does Musk employ in these new products?
Discontinuous innovation
Which of the following is a type of innovation that could be described as a "game changer"?
Discontinuous innovation
__________ are government rules, laws, or administrative regulations requiring that goods or services be purchased from domestic companies.
Discriminatory procurement policies
________ is defined as the sale of an imported product at a price lower than that normally charged in a domestic market or country of origin.
Dumping
In which of the following innovation categories do products share certain features with earlier products while incorporating new, added-value features?
Dynamically continuous innovation
The Sensor, SensorExcel, and MACH3 shaving systems represent Gillette's ongoing efforts to bring new technology to bear on wet shaving, an activity that is performed today pretty much as it has been for centuries. These products represent which type of new product innovation?
Dynamically continuous innovation
Which of the following is key to licensing strategy success?
Ensuring ongoing competitive advantage
Many consumers worldwide engage in conspicuous consumption. According to the text, which of Maslow's needs does conspicuous consumption fulfill?
Esteem
If company managers decide to set the export price for a particular product at an amount equivalent to the home-country price, they would be using which approach to pricing?
Ethnocentric
Which of the categories of Incoterms refers to a transaction where the buyer takes delivery at the seller's location?
Ex-works (EXW)
_____________ refers to a transaction in which the buyer takes delivery at the premises of the seller; the buyer bears all risks and expenses from that point on.
Ex-works (EXW)
Which of the following is an independent marketing intermediary that acts as the export department for two or more non-competing manufacturers?
Export management company (EMC)
Which of the following distinguishes export marketing from export selling?
Export marketing targets the customer in the context of the total market environment.
Which of the pricing alternatives calls for a per-unit price of a product to be the same no matter where in the world it is being sold?
Extension pricing
Which of the following correctly characterizes the retailing strategy of Benetton, IKEA, and Gap?
Few product categories, own-label focus
Which of the following is a general term that refers to capital that flows out of the home country as companies invest in plants, equipment, and other assets?
Foreign direct investment (FDI)
Which of the following is sometimes referred to as a buyer for export or an export commission house and operates on behalf of a buyer from a foreign country?
Foreign purchasing agent
Car manufacturers of expensive models, such as Mercedes or Audi, insist on wrap covering each individual vehicle with protective sheathing for the duration of the journey from the factory to the dealership. Such manufactures are creating which kind of channel utility?
Form utility
The agreements that enable McDonald's outlets around the globe to use McDonald's trademarked name and menu items represent which form of market entry?
Franchising
Which of the following statements about franchising is correct?
Franchising is a market-entry strategy that is typically executed with less localization than is licensing.
________ 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.
Freight forwarders
Which of the following statements about the global teen market is correct?
Global teens exhibit consumption behavior that is remarkably consistent across borders.
Which of the following is a government program that supports exports?
Government subsidies
Which of the following statements is correct regarding the costs or consequences that gray markets impose on global marketers?
Gray markets can damage the manufacturer's reputation.
Which of the following terms refers to the startup of new operations?
Greenfield investment
Which type of retailer offers a limited assortment of goodslong dash—typically 1,000 to 3,000 different itemslong dash—at rock-bottom prices.
Hard discounters
Which of the following requires a classification system for all products and services that will cross national borders?
Harmonized Tariff System (HTS)
In ___________, competitors within an industry that make and market the same product conspire to keep prices high.
Horizontal price fixing
Which Central European market with interesting potential does the text identify because it already has the most liberal financial and commercial systems in the region?
Hungary
What is the first step marketers should take in screening a market segment according to Arnold's model?
Identify the key drivers of the marketing model
Generally speaking, which of the following product categories represents the best potential for extension into international markets without any adaptation?
Industrial products
What does the word Incoterms stand for in relation to conducting international terms of trade?
International Commercial Terms
The internationally accepted terms of trade are known as ________.
International Commercial Terms (Incoterms)
What is the most extensive form of participation in global markets?
Investment that results in either an equity stake or full ownership.
Which of the following is an advantage of making export responsibility a part of a domestic employee's job description?
Is a low-cost arrangement requiring no additional personnel
Why are individual governments concerned with transfer pricing?
It is believed to be used to avoid taxes.
Which of the following best explains why some Western retailers have struggled in developing global markets?
It is not always possible to export a retail business model.
________ represents a special category of cooperative strategy that has been described as "a fighting clan in which business families join together to vie for market share."
Keiretsu
Which of the following statements is true regarding Japanese keiretsu?
Keiretsu relationships are cemented by bank ownership.
When forming a global strategic partnership (GSP), which of the following factors is considered critically important?
Learning from partners
_______ represent(s) a global 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.
Licensing
________ is defined as a contractual arrangement whereby one company makes a legally protected asset available to another company in exchange for some form of compensation.
Licensing
Which of the following is an approach used by companies to avoid anti-dumping laws?
Make non-price competitive adjustments
Of the key attributes of a global strategic partnership, which of the following reflects the potentially divisive issues created by different management styles?
Management
Which of the following categories best describes the approach of Britain's Marks & Spencer (M&S) to global retailing?
Many product categories, private-label focus
For the home company, which of the following is one of the goals of a global strategic partnership (GSP)?
Market entry
Which type of pricing strategy sets a high price in the introductory phase of the product life cycle?
Market skimming
The most important distribution activities are _____________.
Order processing, warehousing, inventory management, and transportation
Which of the following is a term used to describe modern, branded chain retail stores?
Organized retail
Which of the following is a major problem in connection with joint ventures in developing countries such as Russia?
Outdated regulatory and legal systems
Which of the following terms refers to the shift of production jobs or work assignments to another country in order to cut costs?
Outsourcing
Which of the following is listed as a potential pitfall associated with market segmentation?
Overstating the size and short-term attractiveness of a market
Which of the following is NOT a characteristic of global strategic alliances?
Participants agree not to compete in areas unrelated to the alliance.
Which of the following statements is true regarding the country-of-origin effect?
Perceptions based on the country-of-origin effect become part of a brand's image and contribute to brand equity.
McDonald's and Coca-Cola have focused on which of the following needs to create global brand franchises?
Physiological and social
Which of the global pricing alternatives allows management in each global market to establish its own prices?
Polycentric pricing
Which of the following terms refers to the act of differentiating a brand in a consumer's mind in relation to the brand's competitors?
Positioning
Price discrepancies across the euro zone have been disappearing because manufacturers can no longer cite currency fluctuations as a justification for the discrepancies. ______________ means that buyers can comparison shop easily because goods will be priced in euros as opposed to marks, francs, or lira.
Price transparency
Why do Chinese consumers prefer products from Germany, Italy, and France to "Made in China" products?
Products made in Europe still carry a great appeal as symbols of success.
Which of the following involves grouping people in terms of their attitudes, values, and lifestyles?
Psychographic segmentation
The target costing process begins with market mapping and product definition and positioning. The marketing team must complete several steps. Which of the following is NOT a step of this process?
Purchase the inventory well in advance to make significant cost-savings.
As one marketing expert pointed out in the mid-1990s, Italian is synonymous with style, and French is synonymous with chic. What is Germany synonymous with?
Quality engineering
A legendary print ad campaign for Belgium's Stella Artois beer included various executions that positioned the brand at the premium end of the market. Which positioning strategy does this represent?
Quality/price
Which of the following statements is correct regarding international transportation modes?
Rail provides an extremely cost-effective means for moving large quantities of merchandise long distances.
Which of the following financing methods would be used by an exporter that enjoys good trustworthy relations with a buyer in a well-established market?
Sales on open account
After segmenting the market, the groups are then evaluated on the basis of which factors?
Segment size and growth potential, competition, compatibility, and feasibility
Which of the following is an appropriate guideline for companies selecting independent distributors in international markets?
Select distributors; don't let them select you.
The internal motivation driving demand for status-oriented products is based on which of the following levels of Maslow's needs hierarchy?
Self-esteem
Which of the following companies was formed as a direct result of a government industrial policy in the United States?
Sematech
Which of the following target marketing strategy is most similar to mass marketing?
Standardized marketing
Which of the following is considered an intangible attribute of a product?
Status associated with ownership
In which type of countertrade arrangement does a third party steps into a simple barter or other countertrade arrangement when one of the parties is not willing to accept all the goods received in a transaction?
Switch trading
Procter & Gamble (P&G) managers know that workers are often paid a daily wage and that its Mexican customers generally carry 5- and 10-peso coins. To keep prices of shampoo and detergent below 11 or 12 pesos and ensure satisfactory profit margins, Procter & Gamble is using which method of pricing?
Target costing
Which of the following can be considered the "three Rs" of global business?
Tariffs
What does the Harmonized Tariff System's (HTS) Schedule B stipulate?
That the export classification number for any exported item is the same as the import classification number.
Which of the following statements is correct regarding chaebol (South Korea's strategic alliance groups)?
The Chaebol are composed of dozens of companies that are centered on a central bank or holding company.
What is the purpose if the Harmonized Tariff System (HTS)?
The HTS requires importers and exporters to determine the correct classification number for a given product or service that will cross borders.
Which of the following establishes classification numbers that must be used by importers and exporters?
The Harmonized tariff system (HTS)
Which of the following has had the greatest impact on global price transparency?
The Internet
Which of the following major transportation modes has low capability, low cost, and high reliability?
The Internet
In a typical corporation, which of the following internal positions would be most interested in competitive pricing in the world marketplace?
The director of global marketing
For a company to make export responsibility part of a domestic employee's job description, which of the following conditions should be present?
The domestic employee assigned to the task must be thoroughly competent in terms of product and customer knowledge.
What is the "law of one price"?
The law of one price states that in a truly global market all customers in the market could get the best product available for the best price.
What is the major appeal of the product extensiondash-communication adaptation strategy?
The low cost of implementation
What is the purpose of the product-market grid?
The purpose of the product-market grid is to provide a company review of current and potential product offerings in terms of their suitability for the country market or segment.
A manufacturing company that assigns a sufficiently high priority to its export business will establish an in-house organization for exporting. The effectiveness of this organization depends on which two factors?
The company's appraisal of the opportunities in export marketing and its strategy for allocating resources to markets on a global basis.
Which of the following correctly states the role of banks in import/export transactions involving a letter of credit (L/C)?
The exporter's bank is the advising and/or confirming bank; the importer's bank is the issuing bank.
Which of the following is used by marketers to assess the suitability of current or potential products for a specific market segment?
The product-market grid
What is the underlying purpose of price fixing?
To ensure higher prices
Pulsar watch associates the brand with a handsome man who is "addicted to reality TV" and enjoys reading Dostoevsky. Which positioning strategy does this represent?
Use/user
Nintendo was fined nearly $150 million after it was determined that the video game company had colluded with European distributors. The distributors in countries with lower retail prices had agreed not to sell to retailers in countries with high prices. This is a classic example of _______.
Vertical price fixing
Which of the following refers to a manufacturer conspiring with retailers to ensure certain retail price levels are maintained?
Vertical price fixing
_______ occurs when a manufacturer conspires with wholesalers or retailers to ensure certain retail prices are maintained.
Vertical price fixing
Honda invested $550 million in building a vehicle 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 these are examples of _______.
a Foreign Direct Investment
A documentary collection uses which payment method?
a bill of exchange
Which of the following conditions would discourage gray marketing practices?
a product is in abundant supply
Gray markets flourish when ________.
a product is in short supply
For which payment method is the importer-buyer required in principle to make payment when presented with both the draft and the shipping documents even though the buyer may not have taken possession of the goods yet?
a sight draft
Concentrated global marketing targets ______ whereas differentiated global marketing targets ______.
a single segment; multiple segments
When disparities in prices between different country markets exceed the transportation and duty costs separating the markets, enterprising individuals can purchase goods in the lower-price country market and then transport them for sale in markets where higher prices prevail. This is called ______________.
arbitrage
Maslow's hierarchy is applicable to global marketing because it can help explain how _________.
basic human needs can drive the development of global products
Research has shown that exporting is essentially a developmental process that proceeds in different stages. Before a firm reaches stage 4, a company normally passes through all the following activities except __________.
becomes an experienced exporter to one or more markets.
In South Korea, a group of companies centered on a central holding company and dominated by a founding family is a ________.
chaebol
In some product categories, foreign products have a substantial advantage over their domestic counterparts simply because of their "foreign-ness." According to the text, global marketers have an opportunity to capitalize on this situation by __________________.
charging premium prices
An agent or middleman who chooses to distribute only a few select products from the vendor's product line is said to be ________.
cherry picking
Left to their own devices, middlemen may seek to maximize their own profit rather than that of the manufacturer. These agents sometimes engage in ___________, the practice of accepting orders only from manufacturers with established demand for certain products and brands.
cherry picking
The most important aspect of a company's international orientation is _______.
commitment
The relationship enterprise is another possible stage of evolution of the strategic alliance. In a relationship enterprise, groupings of firms in different industries and countries are held together by ______________ that encourage them to act as a single firm.
common goals
According to the text, relationship enterprises will be more than the simple strategic alliances we know today; they will be super-alliances among _____________.
companies that are global giants
Which of the following statements about a personal visit to size up the market firsthand and begin the development of an actual export-marketing program is correct?
confirm assumptions regarding market potential.
Demographic segmentation is based on measurable characteristics of populations, which includes all the following examples except __________.
consumers buying Porsches
A company must also make arrangements to distribute the product in the target market country. The two major advantages to using direct representation for this task in a market are _______.
control and communications
The _____________________ sometimes called a mother hen, a piggyback exporter, or an export vendor, is an export organization of a manufacturing company retained by other independent manufacturers to sell their products in foreign markets.
cooperative exporter
The obvious advantage of rigid _______ pricing is its simplicity: Assuming that both internal and external cost figures are readily available, it is relatively easy to arrive at a quote.
cost-based
Rockwell International sold a printing press to Zimbabwe for $8 million. The deal went through, however, only after Rockwell agreed to purchase $8 million in ferrochrome and nickel from Zimbabwe, which it subsequently sold on the world market. This is an example of ________.
counterpurchase
Which global market expansion strategy is the typical starting point for most companies?
country and market concentration
In which global market expansion strategy does a company seek out the world market for a product?
country diversification and market concentration
Four market expansion strategies are available for companies to adopt in expanding abroad. The four are listed here except ________.
country expansion and market expansion
A market holding strategy is often used in response to unfavorable ________.
currency valuation swings
All of the following would be used by a company with a strong home-country currency except _______________.
cut export prices to increase market share
Governments commonly use activities to support and encourage firms that engage in exporting. Such activities include all the following except __________.
debt forgiveness
Possible arrangements for handling exports from the manufacturer's home country include all of the following except:
direct representation
Which of the following best explains why direct sales is the most effective channel in a country like Japan?
direct sales is based on relationships.
In Japan, the biggest barrier facing U.S. auto manufacturers isn't high tariffs; rather, it's that one-half of the cars that are sold each year are through ______________.
door-to-door salespeople
If a company sells products in export markets at prices lower than that normally charged in a domestic market or country of origin they are engaging in _______.
dumping
In the Uruguay round of GATT negotiations, many countries took issue with the U.S. legal system, in part because historically the U.S. Commerce Department almost always ruled in favor of the U.S. company that filed the complaint. This was related to the laws pertaining to _______.
dumping
Peer-to-peer (p2p) marketing uses distribution channels through _______.
electronic commerce
In India, refrigeration is not widely available in shops and market food stalls. This structural market characteristic is called a(n) _______.
enabling condition
When companies adopt an "indirect involvement" channel, they have all the following activities except ________.
establishing their own sales force
Suppose a company selling in various country markets makes statements such as "We know what customers want, and they will have to pay for it." This is an indication of a(n) _______ approach to setting prices.
ethnocentric
What is the final consideration as to whether a company can and should target a specific market segment in a foreign country?
feasibility and compatibility
Which of the following is a disadvantage of GSPs (Global Strategic Partnerships)?
focus on a single national market or a specific problem
Purposely communicating that a brand is imported is an approach known as ________.
foreign consumer culture positioning
The process of ______________ begins with the choice of one or more variables to use as a basis for grouping customers.
global market segmentation
The unauthorized distribution of trademarked goods sold by unauthorized persons or organizations in world markets is known as ______________.
gray marketing
Which of the following is not an advantage of direct representation?
helping to sell products directly to the consumer in the market country
In 2011 the European Commission determined that P&G, Unilever, and Henkel conspired to set prices for laundry detergent. This is an example of _______.
horizontal price fixing
The attempt by global companies to pinpoint high-income consumers in each market emphasizes the importance of identifying the appropriate segmentation and targeting variables. Market segmentation represents _________.
identifying and categorizing customers based on common characteristics
One way for a country to curb runaway inflation is to ________.
impose price controls
The status associated with product ownership, a manufacturer's service commitment, and a brand's overall reputation all represent ______.
intangible product attributes
The Opel Corsa was a new model originally introduced in Europe. GM then decided to build different versions of the Corsa for Mexico and Brazil. This is an example of a(n) _______.
international product
Each cell of a product-market grid represents the possible ________.
intersection of a product and a market segment
An interbusiness alliance or enterprise group in Japan, that, in the words of one observer, "resembles a fighting clan in which business families join together to vie for market share." is called a(n) ______.
keiretsu
When a company uses intermodal transportation, it is using _________________.
land and water shipping
Diageo PLC successfully markets Gordon's Edge, a gin-based ready-to-drink beverage, in the United Kingdom only. This is an example of a(n) _________.
local brand
Typically, a(n) ________ is required when companies enter emerging markets for the first time.
local distributor
The makers of Chanel, Givenchy, Clarins, Guerlain, and other leading cosmetics brands create different formulations for different regions of the world. Which strategy in the product/brand matrix for global marketing does this represent?
local product/global brand
Generally speaking, international trade results in___________.
lower prices for goods
Which of the following is an essential requirement for pricing in an inflationary environment?
maintain operating margins
A company that reaches stage 7 is a mature, geocentric enterprise that is relating global resources to global opportunity. To reach this stage requires ______________________.
management with vision and commitment
The sales force, distributors or agents, and wholesalers are three basic elements of ________.
marketing channel alternatives for industrial or business products companies
As the vice president of sales and marketing of one manufacturer noted in export-marketing programs, "We have to approach the international market with _________ literature as opposed to _______ literature.
marketing, sales
Assessing market sectors can be performed by creating a product-market grid that maps _________ as horizontal rows on a spreadsheet and ____________ as vertical columns.
markets; products
In some product categories, marketers can charge premium prices for imported items because ________.
of consumer perception of foreign superiority
A reciprocal arrangement whereby the government in the importing country seeks to recover large sums of hard currency spent on expensive purchases such as military aircraft or telecommunications systems, is known as a(n)________.
offset
Marketers of domestically manufactured finished products may be forced to switch to ______________ of certain components to keep costs and prices competitive.
offshore sourcing
The following is a potential logistical export problem?
packaging
A market _______ pricing strategy calls for setting price levels that are low enough to quickly build market share.
penetration
The country-of-origin effect is largely based on _______.
perceptions
Coca-Cola and McDonald's have learned from experience that some food and drink preferences remain deeply embedded in culture. The basic need for food and drink relate to which need in Maslow's hierarchy?
physiological
The only marketing mix element that differs in export selling as opposed to domestic selling is _______.
place
According to the text, which of the following will drive the relationship enterprise?
political necessity
According to a recent study of European industrial exporters, companies that utilized independent distributors would be most likely to utilize ______________.
polycentric pricing
Marketing channels exist to create utility for customers. The major categories of channel utility include all the following except _______ utility.
price
A manufacturer attempting to set prices for its products in export markets must realize that CIF, VAT, and distributor markups all lead to _______________.
price escalation
The marketing opportunity that presents itself, however inappropriate, requires gray market goods to be ______________ than goods sold by authorized distributors or domestically produced goods.
priced lower
For positive proof that dumping has occurred in the United States, both _______ and _______ must be demonstrated.
price discrimination, injury
Because of differences in national markets, the global marketer must develop pricing systems and pricing policies that take into account which of the following three factors?
price floors, price ceilings, and optimum prices
When Companies sell the same product with virtually no adaptation, using the same advertising and promotional appeals used domestically, in two or more country markets or segments, which global product planning strategy are they using?
product-communication extension
To promote its Centrino wireless chip, Intel launched a global ad campaign that features different celebrities in different countries. The wireless chip itself is standardized. Which global product planning approach is this?
product extension-communications adaptation
Eco-packaging is a key issue today, and package designers must address all of the following environmental issues except _______.
profitability
Worldwide, consumers, corporate buyers, governments, activists, and other groups associate global brands with three characteristics. What are these three characteristics?
quality signal, global myth and social responsibility
Which of the following do governments use to discourage imports?
quotas
Which of the following would negatively impact the feasibility of targeting a particular segment?
regulatory hurdles
A(n) ________ is a grouping of firms in different industries and countries held together by common goals that encourage them to act as a single firm.
relationship enterprise
Hellmut Schütte has proposed a modified hierarchy to Maslow's in attempting to explain the needs and wants of Asian consumers. Which of the following is NOT listed in Schütte's model?
self-actualization
What are the three characteristics that all forms of strategic alliances have in common?
shared benefits, independence of participants and ongoing contributions
If a company operates in several different countries, and if the currency in one of those counties becomes seriously overvalued, what could the company do to achieve competitive advantage?
shift production among the different countries
One study reported an interesting finding that even the most experienced exporters express lack of confidence in their knowledge about ______________.
shipping arrangements, payment procedures, and regulations
In which type of market is it usually not feasible to establish direct representation?
smaller markets
The organizational decision to purchase production inputs, components, or finished goods from domestic or foreign producers is known as the _______ decision.
sourcing
Whether a company makes or buys its products as well as where it makes or buys its products is a ________.
sourcing decision
By definition, ______________ feature a narrow but deep merchandise mix and high levels of service.
specialty retailers
Mass marketing in a single country is also called ______.
standardized global marketing
Oneworld is a global network that brings together American Airlines and other carriers in a number of different countries. Passengers booking a ticket on any network member can easily connect with other carriers for smooth travel around the globe. A further benefit for travelers is that AAdvantage frequent-flyer miles earned can be redeemed with any member of the network. This is an example of a ______________.
strategic alliance
The text identifies Asia, India, and Mexico as offering exciting opportunities for firms that seek to enter gigantic and largely untapped markets. Which entry strategy does the text recommend for these markets?
strategic alliance
Which of the following does the text cite as a potential problem with strategic alliances in Russia?
supply shortages
Transfer pricing is an important topic in global marketing because goods crossing national borders represent a sale; therefore, their pricing is a matter of interest both to the ______________, who want to collect a fair share of income taxes, and to the______________, which wants to collect an appropriate duty on the goods.
tax authorities; customs service
Export marketing requires all the following except __________.
testing the product with retail customers.
One of the advantages of licensing is ________.
that licensees have considerable autonomy
An express warranty is a written guarantee that assures buyers _________.
that they are getting what they have paid for.
As _______ has made price information for many products available around the globe, companies must carefully consider how customers in one country or region will react if they discover they are paying significantly higher prices for the same product than customers in other parts of the world.
the Internet
What is on the vertical axis of the product-market grid?
the country and segment
The only component of the marketing mix that changes with export selling is ________.
the market
What does each cell in the product-market grid represent?
the possible intersection of a product and a market segment
Joseph Quinlan, chief marketing strategist at Bank of America, estimated that approximately 25% of U.S. merchandise exports represent shipments by American companies to their own foreign affiliates and subsidiaries. This situation underscores the importance of ______ in global marketing.
transfer pricing
Cost-based, market-based, and negotiated are three approaches to ________.
transfer pricing
Standardized global marketing is also known as ________.
undifferentiated global target marketing
All the following activities must be performed when goods cross international boundaries except _______________.
using cost-based pricing method
Which future cooperative strategy could, on a global level, combine the twin competencies of cost-effectiveness and responsiveness?
virtual corporations
Global marketers must understand the importance of ______, which are embodied in the color or shape of a product, label, or package.
visual aesthetics
When organizing for exporting in the manufacturer's home country, how do most companies handle export operations?
within their own in-house export organization
Which of the following statements regarding licensing as an entry mode to a foreign market is correct?
Licensing, by its very nature, enables a company to "borrow"long dash—that is, leverage and exploitlong dash—another company's resources.
Which of the following is the strategic alternative where both the product and at least one of the promotional elements are adapted for a particular country market?
Product-communication adaptation (dual adaptation)
_______ is a strategic alternative that uses almost no product or brand adaptation for global distribution.
Product-communication extension (dual extension)
For centuries, nations have combined two opposing policy attitudes toward the movement of goods across national boundaries. On the one hand, nations _______ exports; on the other hand, the flow of imports can be _______.
encourage, restricted
Transfer pricing refers to ________.
intra-corporate exchanges
Factor costs include which of the following?
land, labor, and capital
Several other keiretsu have formed, bringing new configurations to the basic forms. Vertical keiretsu are hierarchical alliances between _______ and __________.
manufacturers; retailers