International Marketing Chapter 1 and 2
Which of the following is used to indicate the relative wealth of a country's citizenry? A) Gross National Product B) Gross Output C) Gross Domestic Product D) Gross Value Added
A) Gross National Product
Which of the following statements is true about the strategic concept of marketing? A) Its objective is to maximize stakeholder benefits. B) It has a product-centric marketing focus. C) It emphasizes marketing from a company-centric paradigm. D) Its focus is only on consumers and not their societies.
A) Its objective is to maximize stakeholder benefits.
Which of the following is a trade block created between Canada, Mexico, and the United States? A) NAFTA B) SCCM C) CIS D) APEC
A) NAFTA
________ provides the best comparison of the standards of living in the countries of the world. A) Purchasing power parity B) Exchange rate C) Gross National Product per capita D) Gross National Income
A) Purchasing power parity
Which of the following is characteristic of a pure market allocation system? A) The consumers decide what goods will be produced and by whom. B) The state determines the goods that consumers should use. C) It has limited economic integration with the rest of the world regions. D) It fails to utilize the market mix elements when demand exceeds supply.
A) The consumers decide what goods will be produced and by whom.
Which of the following is a characteristic of countries in a free trade area? A) abolition of internal tariffs and quotas B) establishment of common external barriers C) removal of restriction on factor movements D) harmonization of economic, social, and regulatory policies
A) abolition of internal tariffs and quotas
Which of the following portrays all the economic transactions of a country with the rest of the world? A) balance of payments B) International Comparison Program C) purchasing power parity D) Gross National Product per capita
A) balance of payments
In a(n) ________ international company, foreign operations are viewed as being secondary or subordinate to domestic operations. A) ethnocentric B) concentric C) polycentric D) regiocentric
A) ethnocentric
Which of the following companies is centralized in its market management strategies? A) ethnocentric B) polycentric C) regiocentric D) geocentric
A) ethnocentric
Which of the following orientations is based only on home-country superiority? A) ethnocentric B) polycentric C) geocentric D) regiocentric
A) ethnocentric
Which of the following is the primary output of the World Bank's International Comparison Program? A) purchasing power parities B) currency fluctuations C) market demand and supply D) production costs
A) purchasing power parities
________ accounts for the largest share of output in less developed countries. A) Education B) Agriculture C) Consumer goods D) Heavy industries
B) Agriculture
________ refers to the price of one currency in terms of another. A) Tariff B) Exchange rate C) Duty D) National income
B) Exchange rate
Which of the following statements is true of a polycentric company? A) Its orientation is based on a belief in home-country superiority. B) Its marketing management is decentralized. C) It's generally referred to as a domestic company. D) It views foreign operations as being secondary to domestic operations.
B) Its marketing management is decentralized.
Which of the following statements is true about the trends in world economy? A) Global economic activity will shift from the East to the West. B) The demand for natural resources will continue to grow. C) Shifts in consumer segments will not affect the consumer marketplace. D) An aging worldwide population will demand decreasing levels of productivity.
B) The demand for natural resources will continue to grow
A company that sees only the similarities between the domestic and the world market is said to have a(n) ________ orientation. A) regiocentric B) ethnocentric C) concentric D) polycentric
B) ethnocentric
A(n) ________ corporation tries to link world resources to world market opportunities. A) ethnocentric B) geocentric C) polycentric D) concentric
B) geocentric
With regard to Gross National Product per capita, which of the following categories of countries is considered to be developed? A) lower-middle income B) high-income C) low-income D) upper-middle income
B) high-income
Which of the following is the most important variable considered for identifying opportunities in the global economy to sell low-priced products? A) middle-class income B) location of population C) demand in products D) cost of products
B) location of population
Which of the following is a driving force for global integration? A) domestic focus B) market needs C) market differences D) national controls
B) market needs
Which of the following is a marketing mix element? A) profit B) promotion C) potential D) package
B) promotion
A(n) ________ company typically has a regiocentric or geocentric management orientation. A) multinational B) transnational C) domestic D) international
B) transnational
Which of the following statements best describes the phrase "global localization" in a nutshell? A) A global product must be the same product everywhere without modifications in the marketing mix. B) A global marketer must push local markets to accept global products. C) A global marketer must adapt product marketing mix to the similarities and differences in the world market. D) A global product must be a different product everywhere across the world regions.
C) A global marketer must adapt product marketing mix to the similarities and differences in the world market.
Which of the following statements is true of global trade patterns? A) The annual rate of output is less than the total merchandise trade. B) In most countries, the share of trade as a percentage of the national economy has reduced. C) Import and export growth has outpaced the rate of increase in GNP. D) The share of agriculture in exports has increased over the past decade.
C) Import and export growth has outpaced the rate of increase in GNP.
Which of the following statements is true about world economy? A) Countries in emerging markets have sustained low rates of growth. B) Global competitors are deprived of new opportunities. C) The emergence of global markets has displaced local ones. D) The integration between all world regions has steadily decreased
C) The emergence of global markets has displaced local ones.
Which of the following can be perceived from measuring actual individual consumption across global markets? A) Developed countries are likely to benefit more from full integration than developing countries. B) Purchasing power differences do not account for differences in demand of products and services. C) The living standards of high-income countries differ from low-income countries. D) A vast majority of the world's income is concentrated in the lower-middle or upper-middle income countries.
C) The living standards of high-income countries differ from low-income countries.
Which of the following is characteristic of a command allocation system? A) The government's role is to ensure the protection of consumer rights. B) Product distribution is handled by a large number of intermediaries. C) The state makes decisions on what consumers should purchase. D) Consumers allocate resources to the system.
C) The state makes decisions on what consumers should purchase.
Which of the following is the most valuable economic variable used to chart strategic plans for global market expansion of commercial products? A) regulations B) competitors C) income D) location
C) income
Which of the following management orientations views only the differences in the world regions? A) ethnocentric B) regiocentric C) polycentric D) concentric
C) polycentric
Latour Boutiques, which is based in Europe, views each section within the European Union as a unique market and develops an integrated marketing strategy to sell its products. Due to its success in the European territory, Latour exports its products to other world markets sans any modifications. In this case, Latour's management orientation is typically ________. A) concentric B) polycentric C) regiocentric D) geocentric
C) regiocentric
Which of the following is an example of a customs union? A) CSME B) European Economic Area C) NAFTA D) Mercosur
D) Mercosur
Which of the following eliminates trade barriers to allow the harmonization of economic, social, and regulatory policies? A) a customs union B) a common market C) a free trade area D) an economic union
D) an economic union
Levy Inc., a U.S.-based smartphone manufacturer, extends its line of high-end smartphones to the Asian market to capitalize on the high demands for smartphones. Owing to its huge success in the United States, Levy uses the same set of marketing mix in the Asian markets. In this case, the company's management orientation is referred to as ________. A) regiocentric B) polycentric C) concentric D) ethnocentric
D) ethnocentric
Which of the following management orientations provides a worldview and sees the similarities and differences in home and host countries? A) ethnocentric B) polycentric C) concentric D) geocentric
D) geocentric
Which of the following is characteristic of low-income countries? A) sustained economic growth B) low engagement in agriculture C) high degree of urbanization D) heavy reliance on foreign aid
D) heavy reliance on foreign aid
Which of the following categories of countries is referred to as a postindustrial country? A) low-income B) upper-middle income C) lower-middle income D) high-income
D) high-income
Which of the following factors restrains ethnocentric companies from pursuing opportunities in the global market? A) experience transfer B) scale economies C) global strategy D) management myopia
D) management myopia
Which of the following companies typically has a polycentric management orientation? A) transnational B) international C) domestic D) multinational
D) multinational
Which of the following is a restraining force behind global integration? A) market needs B) management vision C) strategic intent D) national controls
D) national controls
Which of the following is a focus of the new concept of marketing? A) Making a profit is the only end result of selling products. B) emphasizing the product rather than the end consumer C) achieving objectives by pushing products toward consumers D) using integrated marketing mix to achieve profits
D) using integrated marketing mix to achieve profits
A company engaging in global marketing must standardize all elements of the marketing mix everywhere in the world.
FALSE
A company's competitive advantage exists only in its price differentiation strategies.
FALSE
A domestic company will have many times the revenue of a global company as it focuses only on local regions.
FALSE
A polycentric company views foreign operations as being secondary or subordinate to domestic operations.
FALSE
According to the Heritage Foundation, the country with the highest degree of economic freedom is the United States.
FALSE
Agricultural output and services, in particular, are often priced higher in relation to industrial output in developing countries than in industrial countries.
FALSE
Another name for lower-middle income countries is industrializing countries.
FALSE
Countries in emerging markets have sustained high rates of growth by taking advantage of high labor costs.
FALSE
Economic growth remains concentrated at the high-income countries.
FALSE
Ethnocentric companies are sometimes referred to as global companies.
FALSE
Ethnocentric companies cater to the different needs of different world regions.
FALSE
Geocentric companies are based on a belief of home-country superiority.
FALSE
Government regulations on advertising and promotion are similar across all world countries.
FALSE
High-income countries are referred to as emerging markets.
FALSE
In a fixed exchange-rate system, the currency value is determined by demand and supply
FALSE
In general, a country accumulates reserves when the net of its current and capital account transactions shows a deficit.
FALSE
Location is the single most valuable economic indicator of potential for industrial products.
FALSE
Low-income countries are typically referred to as industrialized nations.
FALSE
Low-income countries typically have low birth rates and high literacy rates.
FALSE
Market capitalization is defined as a company's total revenues in a given accounting period.
FALSE
Marketers can always directly apply experience from one country to another or from one market to another.
FALSE
Marketing discipline varies from one region to another.
FALSE
Multinational companies adhere to the notion that the products that succeed in the home country are superior and, therefore, can be sold everywhere without adaptation.
FALSE
Purchasing power parity measures an economy's output in terms of demand and supply.
FALSE
The United States is an example of a country that follows a fixed exchange-rate system.
FALSE
The current account is a record of all long-term direct investment, portfolio investment, and other short- and long-term capital flows.
FALSE
The members of a customs union agree to the establishment of individual external trade barriers.
FALSE
The more developed a country is, the scarcer the availability of economic data.
FALSE
The old marketing concept focused on a customer-centric marketing approach
FALSE
The time and cost barriers associated with distance have increased over the past decade.
FALSE
Trade agreements such as the European Union and NAFTA have decreased the pace of global integration.
FALSE
A common market goes beyond the removal of internal barriers to trade and the establishment of common external barriers to the important next stage of eliminating the barriers to the flow of factors (labor and capital) within the market.
TRUE
A global company can leverage its experiences in any market in the world.
TRUE
A market can be defined as a group of people willing and able to buy a particular product or service.
TRUE
A polycentric orientation is diametrically different from an ethnocentric orientation.
TRUE
A regiocentric manager views the world outside his area of interest with an ethnocentric orientation.
TRUE
Cost is a restraining force affecting globalization.
TRUE
Countries protect local enterprise and interests by maintaining control over market access and entry.
TRUE
Devaluation means that more of the home-country's currency is now needed to buy the same amount of a foreign currency.
TRUE
Geocentric companies are integrated on a global scale.
TRUE
Global companies entering new markets will need to adapt their offerings, distribution systems, and operations to local demand and custom.
TRUE
Global companies view world regions as unique and seek to develop an integrated regional strategy.
TRUE
Global marketing requires marketers to behave in a way that is global and local at the same time by responding to similarities and differences in world markets.
TRUE
Management vision is a driving force for global integration.
TRUE
Member states of the North American Free Trade Agreement (NAFTA) are allowed to make separate bilateral treaties with nonmember states.
TRUE
Most countries of the world have a mixed system of allocation.
TRUE
Most global markets do not exist in nature; they are created by marketing effort.
TRUE
One difference between domestic marketing and global marketing is the scope of activities.
TRUE
Purchasing power differences can account for differential in demand of products and services, and also provide an indication on differences in costs.
TRUE
Technology as a factor has contributed to the flattening of the world economy.
TRUE
The ASEAN Free Trade Area, or AFTA, was created in 1992 with the aim of promoting the region's competitive advantage as a single production area with the elimination of tariff and nontariff barriers among the member countries.
TRUE
The Euro is a common currency adopted by the members of the European Union.
TRUE
The macro dimensions of the environment are economic, social and cultural, political and legal, and technological.
TRUE
The member states of the Commonwealth of Independent States (CIS) have signed agreements addressing issues of integration and cooperation with respect to economics, defense, and foreign policy.
TRUE
The nations of the G20 are among the most powerful nations of the postindustrial societies
TRUE
The strategic concept of marketing focuses on customer satisfaction in a socially responsible and sustainable way.
TRUE
There are no pure market or command allocation systems today.
TRUE
