Exam 1

Transnational companies, such as Toyota and Honda, have characteristic features that include: A. being in both global markets and utilizing global supply chains. B. using both localized and standardized elements in marketing programs. C. decisions made on the basis of ongoing research. D. characterized by a mind-set of being "stateless." E. All of these

E

french champagne producers have been compelled to seek growth elsewhere. Which of the following statements is not accurate? In 2016, Champagne producers shipped: A. 0.07 bottle per person in the United States B. one-half bottle per person in Great Britain C. 2 bottles per person in France D. 1 bottle per person in Switzerland E. 1 bottle per person in India

E

A fundamental difference between regular marketing and global marketing is the: A. Scope of activities B. Domestic research C. Use of localized elements D. Needs assessment E. Use of extension elements

A

A key factor that distinguishes transnational companies from international companies is their ________ for the marketing program: A. Mind-set B. Domestic Research C. Use of localized elements D. Needs assessment E. Use of extension elements

A

A type of advantage that a global company possesses by virtue of the fact that it has experience in more than one country is referred to as: A. Leverage. B. Transferability. C. Flexibility. D. Capability. E. Enability.

A

Global economic growth has been a driving force for companies to expand globally due to all of the following reasons except: A. Rapid growth in industrialized countries has provided new opportunities B. Rising per capita incomes in developing countries C. Growing ranks of middle class consumers have more money to spend D. Economic growth has reduced resistance in response to entry into new markets E. Policymakers are likely to look more favorably on outsiders

A

Launching of Burberry Acoustic to enhance advocacy and sharing via social media and online channels is an example of which marketing mix element? A. Promotion B. Price C. People D. Product E. Place

A

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

A

One of the major issues in trade relations between the high and lower income countries is trade in: A. Services B. Shoes C. Computers D. Automobiles E. Textiles

A

The dimensions of global marketing strategy include all of the following except: A. Development of cultural activities B. Coordination of marketing activities C. Integration of competition activities D. Concentration of marketing activities E. Integration of Marketing Mix

A

To the extent that a country sells more goods and services abroad than it buys, there will be: A. a greater demand for its currency. B. a surplus production of goods and services. C. a scarcity of goods and services within the country. D. a need for revaluation of its currency. E. time for fluctuating its currency.

A

When a country like China is experiencing rapid economic growth, policymakers are likely to: A. look more favorably on outsiders. B. look less favorably on outsiders. C. experience more resistance toward outsiders. D. feel threatened by outsiders. E. None of the above

A

which one of the following nations falls in the lower middle income category? A. India B. Bangladesh C. Burundi D. Venezuela E. None of the above

A

Companies that fail to formulate adequate responses to the challenges and opportunities of globalization will face all of the following consequences except: A. Getting absorbed by visionary enterprises B. Becoming locally profitable enterprises C. Simply disappearing from the business horizon D. Getting absorbed by dynamic enterprises E. undergoing wrenching transformations

B

McDonald's developed a vegetarian burger in India. This is an example of: A. Market Development B. Product Development C. Market Diversification D. Market Penetration E. Product Diversification

B

Prahalad and Hammond have identified several assumptions and misconceptions about the "bottom of the pyramid" (BOP) that need to be corrected. All of the following mistaken assumptions are correct except: A. The poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods. B. The goods sold in developing markets are so expensive that there is no room for a new market entrant to make a profit. C. The poor have no money. D. People in BOP markets cannot use advanced technology. E. Global companies that target BOP markets will be criticized for exploiting the poor.

B

The "balance of payments" is a record of all economic transactions between the residents of a country and the rest of the world. It is divided into the current and capital accounts. Current accounts include all of the following except: A. balance on goods. B. portfolio investments. C. balance on services. D. goods imports. E. goods exports.

B

The cell phone division of Toshiba prospered by doing business in the domestic market. When handset sales slowed, Atsutoshi Nishida, president of Toshiba noted, "We were thinking only about Japan. We really missed our chance." This statement is indicative of ________ orientation. A. polycentric B. ethnocentric C. geocentric D. technocentric. E. regiocentric

B

The essence of marketing worldwide is to surpass the competition in creating perceived value, which can be represented as: A. Value = Price/Benefits. B. Value = Benefits/Price. C. Value = Benefits × Price. D. Value = Benefits - Price. E. Value = Benefits + Price.

B

The worldview of a company's personnel can be described by all of the following types of orientation except: A. Geocentric B. Technocentric C. Polycentric D. Ethnocentric E. Regioncentric

B

Upper-middle-income countries, also known as industrializing or developing countries are those with GNI per capita ranging from: A. $996 to $3,945. B. $4,036 to $12,475. C. $12,475 or higher. D. less than $995. E. None of the above

B

for decades, the economies of China, the former Soviet union, and india functioned according to the tenets of: A. Market capitalism B. Centrally planned socialism C. Centrally planned capitalism D. Market capitalism and sociable capitalism E. Market socialism

B

with per capita income of less than $700. Ethiopians enjoyed more than a decade of double-digit economic expansion due to all of the following reasons except: A. the country has a sufficient available workforce with low wage levels B. garment workers were trained in Hong Kong by J Crew and Burberry C. foreign investment from China helped in building several industrial parks D. ethiopia provides duty-free access to the key US markets E. the country is sufficiently near a seaport for exports

B

An important managerial task in global marketing is learning to recognize the extent to which it is possible to extend marketing plans as well as the extent to which adaptation is desired. The way a company addresses this task is a reflection of the company's: A. market penetration. B. market diversification. C. global marketing strategy. D. product development. E. product standardization.

C

Facebook acquired Instagram for $1 billion in 2012. Which one of the following statements does not portray Instagram? A. Using photo images and videos can show the "behind the scenes" processes B. Instagram has 600 million users who upload about 100 million photos each day C. Social meda savvy companies were hesitant to embrace Instagram D. About two thirds of Instagram users use the app to learn about brands E. Food categories are helping drive Instagram's popularity

C

In the United States, some people believe that globalization has depressedthe wages of American workers and resulted in the loss of both blue-collar and white-collar jobs. This is an example of: A. discrimination B. domination C. globophobia D. management myopia E. economic crisis

C

Nike recently adopted the slogan "Here I am" for its pan-European clothing advertising targeting women. The decision to drop the famous "Just do it" tag line was based on the research indicating that: A. the famous slogan did not have accurate translation in European languages. B. Europeans do not like tag lines that portray American thinking. C. college-age women in Europe are not as competitive about sports as men are. D. the old slogan conveys superiority of men over women. E. European women want to differentiate themselves from men.

C

Pfizer, Merck, Novartis, and other pharmaceutical companies have little choice but to engage in global marketing since: A. there is little demand for their products in home countries. B. their research centers are located overseas. C. no single market is large enough to recover costs incurred in research. D. there is more demand overseas for their products. E. technology is not available in home countries

C

Product and market opportunities in a postindustrial society are more heavily dependent upon new products and innovations than in industrial societies. An example of this would be: A. Nestlé marketing Bono brand cookies in Brazil. B. Coca-Cola Company developing a beverage Vintago in low-income countries. C. New e-commerce markets for interactive forms of electronic communication. D. Hermes creating handbags called Amazonia. E. India's Suzlon Energy using wind-driven turbines.

C

The Washington, D.C.-based Heritage Foundation survey consists of over 175 countries ranked by degree of economic freedom. The key economic variables considered for this ranking includes all of the following except: A. taxation policy. B. government consumption of economic output. C. percent foreign ownership. D. banking policy. E. wage and price control.

C

The only two countries where Coca-Cola is not available through authorized channels are: A. India and China. B. North Korea and South Korea. C. Cuba and North Korea. D. Cuba and Venezuela. E. Singapore and Indonesia

C

The way a company addresses the global marketing strategy (GMS) includes all of the following except: A. Integration of competitive moves B. Global market participation C. Integration of inflationary moves D. Coordination of marketing activities E. Concentration of marketing activities

C

All of the following facts pertain to China except: A. Beijing is shifting from an external focus to an internal one in order to deal with infrastructure, bribery, and corruption. B. Beijing has launched a new industrial strategy dubbed "Made in China 2025.". C. for years China's economic growth has been built on exports and low-wage manufacturing. D. China has received the "market economy" status by the World Trade Organization (WTO). E. China is in the upper-middle-income category.

D

In global markets, Starbucks is a good example of simultaneously executing all of the growth strategies except: A. Market penetration. B. Market development. C. Product development. D. Market orientation E. Diversification.

D

Key characteristics of the Anglo-Saxon model market system consists of private ownership and: A. inflexible employment policies. B. generous social safety net. C. "social partners" orientation. D. free enterprise economy. E. mix of state ownership.

D

McDonald's has been in many country markets long enough that a new generation of consumers has grown up with McDonald's and are not aware of the company's U.S. origins. On the basis of this summary, what is the highest stage of corporate development that McDonald's arguably has achieved? A. international B. multinational C. global D. transnational E. myopic

D

Pursuing alternative sources of energy, such as wind and solar power, is important due to the fact that: A. people in developing countries are more conscious about the environment. B. global marketers are more interested in publicizing environmental issues. C. it is easy to develop solar power in many parts of the world. D. heavy reliance on fossil fuels contributes to global warming. E. people worldwide can afford to buy power generated from wind and solar.

D

The United States' growing trade deficit reflects a number of factors which exclude: A. increased imports from China. B. a seemingly insatiable consumer demand for imported goods. C. the enormous cost of military operations in the Middle East. D. the services trade surplus. E. record goods sales to developing countries.

D

The world economy has changed profoundly since the end of the World War II. Perhaps the most fundamental changes that took place include all of the following except: A. Integration of the world economy is visible in NAFTA B. Global competitors have steadily displaced local competitors C. Economic integration is particularly striking in the European Union D. Protectionism and nationalism have rapidly increased economic integration E. The integration of the world economy has increased significantly

D

Upper-middle-income countries that achieve the highest rates of economic growth are sometimes referred to collectively as: A. LDCs. B. BEMs. C. BRICs. D. NIEs. E. BOPs.

D

According to the authors of the Harvard Business Review article, "Serving the World's Poor, Profitably", which of the following is a mistaken assumption that global companies might have about the BOP (bottom of the pyramid)? A. The poor have no money. B. People in BOP markets cannot use advanced technology. C. The poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods. D. People in BOP markets will be criticized for exploiting the poor. E. all of the above are mistaken assumptions discussed by the authors

E

All of the following correctly states McDonald's approach to standardization and adaptation of the marketing mix except: A. McDonald's standardizes some product elements and adapts others. B. McDonald's standardizes some place elements and adapts others. C. McDonald's standardizes some promotion elements and adapts others. D. McDonald's standardizes some price elements and adapts others. E. McDonald's standardizes all product elements.

E

At Proctor and Gamble, one of the problems they were facing was that 80 plus country teams were all acting independently. Pampers Europe was not collaborating with Pampers North America. This example illustrates differences due to their: A. Ethnocentric orinetation B. Polycentric orientation C. Poor globalization orientation D. Geocentric orientation E. Regiocentric orientation

E

Ethnocentric orientation is sometimes associated with all of the following attitudes except: A. Indifference to marketing opportunities B. Assumption of national superiority C. Selecting a standardized approach D. Selecting an adaptation approach E. National arrogance

E

Singapore banned the import, manufacture, and sales of chewing gum in the country since wads of gum were making a mess on sidewalks, buses, and subway trains. Violators are subject to severe penalties, and before buying a pack consumers must register their names and addresses. This, according to author William Greider, demonstrates that Singapore's government: A. is harshly autocratic. B. administers a paranoid control over Singaporeans. C. administers a paranoid control over press and politics. D. runs an effective welfare state. E. all of the above

E

Some globalization strategies do not yield the expected results as evidenced by the: A. acquiring of majority stake in Nissan Motor by Peugeot Citroen. B. leverage resulting from scale economies. C. leverage resulting from manufacturing. D. larger scale improvement of quality. E. unravelling of the DaimlerChrysler merger.

E

The Organization for Economic Cooperation and Development (OECD) is described as the: A. Rich man's club B. Organization of 35 nations C. Economic think tank D. Pluralistic democracies E. All of these statements are applicable

E

The United Nations designates 50 countries in the bottom ranks of the low-income category named as: A. Low-income countries. B. Lower-middle-income countries. C. BRIC countries. D. Developing countries. E. LDCs (least-developed countries).

E

The fastest-growing sector of world trade includes: A. travel and entertainment. B. accounting and legal services. C. royalties and license fees. D. engineering services. E. all of the above

E

The general characteristics shared by low-income countries do not include: A. high birth rates. B. low literacy rates. C. concentration in Africa south of the Sahara. D. heavy reliance on foreign aid. E. lack of genuine market opportunities.

E