International Marketing Exam 4 (2)
35) Coca-Cola's distinctive contour bottle, which is sold in many countries, illustrates the point that: A) the packaging strategies can vary by country and region. B) the packaging helps in storing large sizes in refrigerators. C) the packaging strategies do not change by country and region. D) the packaging appeals only to Asian consumers. E) the packaging helps in brand identification.
A) the packaging strategies can vary by country and region.
34) Packaging is an important consideration for products that are shipped to markets worldwide. Which of the following statements related to packaging is not true? A) Nestlé's worldwide network of packaging teams gives improvement suggestions on a quarterly basis. B) Japanese prefer plain soft colors on their packages. C) The Aquafresh Ultimate tube was designed to stand vertically. D) Coca-Cola had contour bottles in both glass and plastic versions in many countries. E) Nestlé asked suppliers to find a glue to make the clicking sound louder when a tube of Smarties brand chocolate candies are unwrapped.
B) Japanese prefer plain soft colors on their packages.
52) Packaging aesthetics are particularly important to the: A) Indian. B) Chinese. C) Japanese. D) American. E) Russian.
C) Japanese.
33) An express warranty is a written guarantee that assures the buyer: A) that he or she is getting what he or she desired. B) that he or she will be able to get express response if any defects are found. C) that he or she is getting what he or she has paid for. D) that he or she will be able to contact the manufacturer whenever needed. E) that he or she has limited time for filling out information required by the manufacturer.
C) that he or she is getting what he or she has paid for.
39) The American Automobile Labeling Act clarifies all of the following except: A) country of foreign. B) final assembly point. C) the percentages of the major sources of every car and truck. D) information about car dealer. E) aesthetic style.
D) information about car dealer.
34) When Sony introduced the first consumer VCRs in the 1970s, the retail price exceeded $1,000. Within a few years the price dropped well below $500. This is an example of: A) skimming strategy. B) penetration strategy. C) cost-based strategy. D) price ceiling strategy. E) transfer pricing strategy.
a
47) In July 2001, the euro's value relative to the dollar was about €1.00 = $0.85. By November 2009, the euro had strengthened to €1.00 = $1.48. In February 2012, one euro was equal to $1.33. All other things being equal, if a European-based global company wants to preserve margins for goods exported to the U.S. market, the company should: A) raise prices in dollars. B) switch to cost-based pricing. C) adopt a policy of market penetration pricing. D) reduce prices in dollars. E) use skimming pricing.
a
49) Suppose a company selling in various country markets makes statements such as "we know what the customer wants, and he or she will have to pay for it." This is an indication of a(n) ________ approach to setting prices. A) ethnocentric B) polycentric C) regiocentric D) geocentric E) adaptation
a
50) All of the listed advantages are for "Extension or Ethnocentric" pricing strategy except: A) it does not respond to the competitive and market conditions of each national market. B) it calls for the per-unit price of an item to be the same all over the world. C) it is extremely simple since it does not require information on market condition. D) it does not require competitive conditions for implementation. E) the importer must absorb freight and import duties.
a
51) 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? A) ethnocentric B) polycentric C) regiocentric D) geocentric E) extension pricing
a
6) Which of the following forms of countertrade does not require use of money or credit between parties? A) barter B) switch trading C) offset D) compensation trading E) none of the above
a
69) The direct exchange of goods or services between parties in lieu of monetary payment is known as: A) barter. B) switch trading. C) offset. D) compensation trading. E) counterpurchase.
a
70) Which of the following forms of countertrade does not require use of money or credit between parties? A) barter B) switch trading C) offset D) compensation trading E) none of the above
a
76) When one of the parties to a barter transaction is not willing to accept the goods included in the transaction, that party is likely to utilize the services of a: A) switch trader. B) Foreign Trade Organization. C) Foreign Sales Corporation. D) Mittelstand owner. E) broker.
a
94) ________ is derived from the price required to be competitive in the global marketplace. A) Market-based transfer price B) Cost-based transfer price C) Negotiated transfer price D) Horizontal price E) Vertical price
a
52. Which of the following is NOT in the top five of the world's most valuable brands and determined by Business Week (2006): a. Sony b. Microsoft c. Coca-Cola d. GE e. Nokia
a. Sony
70. When introduced in the late 1970s, the VCR created new patterns of consumer behavior. For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time. DVD, a playback only video system, was introduced in the late 1990s. DVD discs contain full-length movies with digital sound in a format that resembles conventional music compact discs. Which of the following most accurately describes the respective degree of newness of these two global products: a. The VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation. b. The VCR is a dynamically continuous innovation; the DVD is a discontinuous innovation. c. The VCR and DVD are both dynamically continuous innovations. d. The VCR and DVD are both discontinuous innovations. e. The VCR and DVD are both continuous innovations.
a. The VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation.
55. Comparing the traditional formulation of Maslow's hierarchy with the results of current research on the consumer needs and motivation in Asia, which of the following is correct: a. The lowest 2 levels of the hierarchy are the same in the traditional and Asian versions. b. The lowest 3 levels of the hierarchy are the same in the traditional and Asian versions. c. The lowest 4 levels of the hierarchy are the same in the traditional and Asian versions. d. The five levels in the traditional formulation apply equally in the West and in Asia. e. The highest levels of the hierarchy are same in the traditional and Asian versions.
a. The lowest 2 levels of the hierarchy are the same in the traditional and Asian versions.
74. Procter & Gamble recently introduced Pampers Rash Guard. Rash Guard does not represent a new product per se; rather, the diapers are being marketed as an alternative to regular Pampers. What type of innovation do Pampers Rash Guard represent: a. a continuous innovation b. a dynamically continuous innovation c. a discontinuous innovation d. a platform-based innovation e. none of the above
a. a continuous innovation
53. Maslow's hierarchy is applicable to global marketing because it can help explain how: a. basic human needs can drive the development of global products. b. "self-actualization" is the highest-order need in Japan as well as Western nations. c. status needs in different countries can only be fulfilled with localized products. d. "luxury badging" is irrelevant to companies marketing in Asia. e. Asians differ from Westerners in their basic physiological needs.
a. basic human needs can drive the development of global products.
43. It has been said that, if terrorists succeeded in destroying every Coca-Cola production facility on the planet, company executives could approach virtually any bank and borrow the billions necessary to rebuild the company. This is a reflection of which concept: a. brand equity b. co-branding c. brand image d. brand extension e. brand loyalty
a. brand equity
57. Which of the following could hinder the success of products labeled "Made in Bangladesh" or "Made in Thailand" in export markets: a. negative country-of-origin bias b. no possible quality/price positioning c. low acceptance of private brands d. high product saturation levels in global markets e. lack of promotion in global markets
a. negative country-of-origin bias
59. Gillette's MACH3 razor and "Best a Man Can Get" communications theme exemplify the _________ strategy. a. product-communications extension b. product extension-communications adaptation c. product adaptation-communications extension d. dual adaptation e. product invention
a. product-communications extension
51. British entrepreneur Richard Branson has built a global business empire by: a. relying on brand extension b. being the first to use smart cards in major markets c. developing local brands d. avoiding consumer businesses with established leaders e. restricting the "virgin" name only to airlines
a. relying on brand extension
58. The marketers of Corona beer achieved great success in the U.S. market by: a. retaining the bottle design originally used in Mexico b. hiring Hispanic movie stars as endorsers c. distributing Corona in returnable bottles d. changing the brewing recipe to conform to American palates e. by having the label in Spanish language
a. retaining the bottle design originally used in Mexico
24) Historically, many companies that used the ________ for pricing were located in the Pacific Rim. A) skimming strategy B) penetration strategy C) cost-based strategy D) price ceiling strategy E) transfer pricing strategy
b
31) For years, Mercedes-Benz utilized a ________ pricing strategy; however, this created an opportunity for Toyota to introduce its luxury Lexus line and undercut Mercedes. A) gray market B) skimming C) penetration D) market holding E) cost-based
b
32) If the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as "innovators" and "early adopters" with relatively inelastic demand curves, the company should use the ________ pricing strategy. A) gray market B) skimming C) penetration D) market holding E) cost-based
b
38) Mexican customers generally carry small coins. To keep prices of shampoo and detergent below 11 or 12 pesos, Procter & Gamble is using which method of pricing? A) price bundling B) target costing C) cost-plus approach D) export price costing E) cost-based pricing
b
53) According to a recent study of European industrial exporters, companies that utilized independent distributors would be most likely to utilize: A) ethnocentric pricing. B) polycentric pricing. C) regiocentric pricing. D) geocentric pricing. E) extension pricing.
b
54) Parallel importing occurs when companies employ a(n) ________ multinational pricing policy that calls for setting different prices in different country markets. A) ethnocentric B) polycentric C) regiocentric D) geocentric E) extension
b
65) Which of the following companies would be most likely to use some form of countertrade when selling its products in developing countries? A) Procter & Gamble B) Bell Helicopter Textron C) Nokia D) Mercedes-Benz E) Coca-Cola
b
68) One of the highest profile companies, PepsiCo, which has done business in the Soviet and post-Soviet market for decades, has used this form of countertrade: A) switch trading. B) barter. C) offset. D) compensation trading. E) counterpurchase.
b
72) If a company's home currency strengthens, it is: A) a favorable turn of events for the typical exporter. B) an unfavorable turn of events for the typical exporter. C) a favorable turn of events since the revenues increase in home currency. D) an unfavorable turn of events for exporter's home country. E) neither favorable nor unfavorable turn of events for the typical exporter
b
78) Despite the high expenses associated with operating elegant stores and purchasing advertising space in upscale magazines, the premium retail prices that luxury goods like Louis Vuitton command translate into handsome profits. The Louis Vuitton brand alone accounts for 60% of LVMH's operating profit. On the other hand, Louis Vuitton spends $10 million annually battling: A) EU regulations. B) counterfeiters in countries such as Turkey, South Korea, & Italy. C) competitors in European countries. D) suppliers of needed materials. E) export freight and taxes.
b
75. Motorola's failed Iridium venture was a global satellite telephone network designed to allow users to make or receive calls anywhere on the globe using handsets that are somewhat bigger than typical cellular phones. What type of innovation did Iridium represent: a. a continuous innovation b. a dynamically continuous innovation c. a discontinuous innovation d. a platform-based innovation e. none of the above
b. a dynamically continuous innovation
49. Around the world, various brands of personal computers are sold with Pentium processors. This fact is often used as a selling point, with advertising that proclaims "Intel Inside." Which branding concept does such advertising reflect: a. brand equity b. co-branding c. brand image d. brand extension e. tiered branding
b. co-branding
50. The Lexus LX 470 sport utility vehicle is available with an optional $1,200 Mark Levinson premium audio system. Which branding concept does this represent: a. brand equity b. co-branding c. brand image d. brand extension e. tiered branding
b. co-branding
72. The Advanced Photo System (APS) created by Kodak and its partners combines traditional chemical photo processing with digital technology. One benefit of the system is that shutterbugs can choose 3 different print sizes. The APS would best be described as a: a. continuous innovation b. dynamically continuous innovation c. discontinuous innovation d. platform-based innovation e. new and improved innovation
b. dynamically continuous innovation
77. In Chinese market, Nike had a problem using the "Just Do It" attitude which was not found to be appropriate. Finally Nike decided to use Chinese athletes in their promotion. This type of adaptation was needed due to: a. Chinese do not wear running shoes b. ingrained Chinese values which respect authority c. Chinese athletes use Nike shoes d. "Just do it" in Chinese have a negative connotation e. parents do not want their children to see such ads
b. ingrained Chinese values which respect authority
61. Dry soup mixes that have long been popular in Europe are marketed as sauces or dips in the U.S. This is an example of the _________ strategy. a. product-communications extension b. product extension-communications adaptation c. product adaptation-communications extension d. dual adaptation e. product invention
b. product extension-communications adaptation
62. Stella Artois is a Belgian beer brand described by locals as a run-of-the-mill brew that is "fit for peasants." Accordingly, a pint of Stella sells for the equivalent of $1.10 in Brussels. By contrast, in New York, London, and other cities, Stella Artois is marketed as a premium beer that sells for as much as $8 per glass at upscale bars. As described here, which of the following strategies is being used to market Stella outside of Belgium: a. product-communications extension b. product extension-communications adaptation c. product adaptation-communications extension d. dual adaptation e. product invention
b. product extension-communications adaptation
65. Before Ben & Jerry's launched their ice cream in the United Kingdom the company conducted extensive research to determine whether the package design was appropriate. The research indicated that British consumers perceived the colors differently than U.S. consumers. The package designed was changed accordingly. This type of strategy can be defined as: a. product-communications extension b. product extension-communications adaptation c. product adaptation-communications extension d. product-communication adaptation e. product invention
b. product extension-communications adaptation
66. To promote its Centrino wireless chip, Intel launched a global ad campaign that features different combinations of celebrities. These celebrities were chosen because they are widely recognized in the key world markets. This type of strategy is referred to as: a. product-communications extension b. product extension-communications adaptation c. product adaptation-communications extension d. product-communication adaptation e. product invention
b. product extension-communications adaptation
32) All of the following basic consideration questions are important for those whose responsibility includes setting prices on goods that cross borders except: A) Does the price reflect the product's quality? B) Is the price competitive given local market conditions? C) Does the local market use target costing? D) Should prices differ with market segment? E) Do the foreign country's dumping laws pose a problem?
c
33) Two automakers that have joined the race to bring low-cost cars to the emerging market are: A) Mercedes and Lexus. B) Toyota and Ford. C) Tata and Nissan. D) Tata and Toyota. E) Nissan and Toyota.
c
35) A market ________ pricing strategy calls for setting price levels that are low enough to quickly build market share. A) gray B) skimming C) penetration D) holding E) cost-based
c
41) All of the following activities must be performed when goods cross international boundaries except: A) obtaining currency permit, if required. B) packaging the goods for export. C) using cost-based pricing method. D) arranging for ocean freight and preparation. E) obtaining marine insurance and certificate of the policy.
c
46) Which of the following does not contribute to price escalation in global marketing? A) shipping and insurance charges B) value added taxes (VAT) C) different Incoterms as incentives D) duties and tariffs E) fluctuating exchange rates
c
56) The unauthorized distribution of trademarked goods to exploit price differentials in world markets is known as: A) market skimming. B) black marketing. C) gray marketing. D) dumping. E) licensing.
c
60) ________ occurs when a manufacturer conspires with wholesalers or retailers to ensure certain retail prices are maintained. A) Horizontal price fixing B) Dumping C) Vertical price fixing D) Gray marketing E) Black marketing
c
63) "Cost-based," "market-based," and "negotiated" are three approaches to: A) dumping. B) gray marketing. C) transfer pricing. D) price skimming. E) counter trade.
c
64) Joseph Quinlan, chief marketing strategist at Bank of America, estimated that about 25% of U.S. merchandise exports represent shipments by American companies to their foreign affiliates and subsidiaries. This situation underscores the importance of ________ in global marketing. A) dumping B) gray marketing C) transfer pricing D) price skimming E) price fixing
c
71) Which type of countertrade arrangement is required by governments seeking to reduce the budgetary impact of expenditures for defense or telecommunications? A) barter B) switch trading C) offset D) compensation trading E) none of the above
c
74) Givenchy and Christian Dior's Dune fragrance are two of the luxury perfume brands that are sometimes diverted from authorized channels for sale at mass-retail outlets. This practice is referred to as: A) barter. B) switch trading. C) gray market. D) offset. E) dumping.
c
79) Luxury good marketers found a new way to combat gray market imports into the United States. In March 1995, the U.S. Supreme Court let stand an appeals court ruling prohibiting a discount drugstore chain from selling Givenchy perfume without permission. The distinctive packaging of the perfume is also protected by the U.S. Copyright law. The ruling implies that: A) Givenchy can only be sold in copyrighted packages. B) Costco and Walmart will no longer be able to sell Givenchy. C) Costco and Walmart will be able to sell Givenchy with authorization. D) gray marketers will be able to market with authorization. E) discount drugstores cannot market a product resembling Givenchy's
c
80) One of the reasons why the initial enthusiasm for OLPC [one laptop per child] did not translate into firm commitments for orders was: A) the computer XO was not rugged enough to handle heavy use and abuse. B) the computer XO was not dust and water proof, dust being a major problem in many countries. C) the higher price of computer XO. D) the images were bright even in sunlight. E) the computer XO did not have Wi-Fi community.
c
41. Generally speaking, which of the following statements is true concerning product attributes: a. Tangible product attributes are more important than intangible ones. b. Intangible product attributes are more important than tangible ones. c. Both tangible and intangible product attributes are important. d. Neither tangible nor intangible product attributes are important. e. A product has more attributes than tangible and intangible ones.
c. Both tangible and intangible product attributes are important.
71. The introduction of consumer VCRs in the late 1970s initiated a revolutionized in-home electronic entertainment. For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time. The VCR's popularity also gave rise to an entirely new retailing concept, the video rental store. What type of innovation did the consumer VCR represent: a. a continuous innovation b. a dynamically continuous innovation c. a discontinuous innovation d. a comparative innovation e. none of the above
c. a discontinuous innovation
42. Advertising, company name, news stories, and promotion activities are a few of the elements that contribute to a company's: a. logo development b. brand equity c. brand image d. co-branding effort e. brand label
c. brand image
69. The formulation, imagery, and consumer appeal of Colgate's Total brand toothpaste were designed to translate across national boundaries. This new global brand represents which type of product innovation: a. discontinuous innovation b. dynamically continuous innovation c. continuous innovation d. comparative innovation e. dynamically discontinuous innovation
c. continuous innovation
76. By definition, a ______ requires a large amount of learning on the part of users and typically creates new markets and consumption patterns. a. continuous innovation b. dynamically continuous innovation c. discontinuous innovation d. platform-based innovation e. new and improved innovation
c. discontinuous innovation
60. Generally speaking, which of the following product categories represents the best potential for extension into international markets without adaptation: a. companion products b. food products c. industrial products d. intangible products e. non-alcoholic drinks
c. industrial products
42) A manufacturer attempting to set prices for its products in export markets must realize that CIF, VAT, and distributor markup all lead to: A) currency devaluations. B) dumping charges. C) market skimming. D) price escalation. E) market penetration.
d
48) Which of the following would not be used by an exporter with a weak home-country currency? A) Expand product line and add more costly features. B) Speed repatriation of foreign-earned income. C) Buy advertising, insurance, and other services in home-country market. D) Shift sourcing outside home-country market. E) Exploit marketing opportunities in all markets.
d
55) Which automaker was described as using an ethnocentric approach to setting prices in the United States? A) Toyota B) Nissan C) Volkswagen D) Mercedes E) Lexus
d
57) When Tag Heuer, a marketer of luxury watches, takes out newspaper ads urging consumers to purchase Tag Heuer products from authorized dealers only, the company is most likely attempting to combat the ________ problem. A) countertrade B) market holding C) price escalation D) gray market E) market skimming
d
58) If a company sells products in export markets at prices that are below fair market value and that can harm producers in the export market, then that company may be accused of: A) market skimming. B) using offsets. C) pursuing artificially high margins. D) dumping. E) gray marketing.
d
59) In the Uruguay round of GATT negotiations, many countries took issue with the U.S. system of laws, 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: A) black marketing. B) market skimming. C) gray marketing. D) dumping. E) licensing.
d
61) Germany's Bayer Group was fined millions of dollars to settle a lawsuit alleging it had conspired with Archer Daniels Midland and other global companies to set prices for an enzyme used in animal feeds. What was the issue in this lawsuit? A) price skimming B) market penetration C) price bundling D) price fixing E) dumping
d
62) 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: A) price skimming. B) market penetration. C) price bundling. D) price fixing. E) transfer pricing.
d
66) Which of the following is true about proper use of the term "countertrade"? A) The term "countertrade" is interchangeable with "offsets." B) The term "countertrade" is interchangeable with "barter." C) The term "countertrade" is interchangeable with "counterpurchase." D) "Countertrade" is a blanket term that refers to several different types of business transactions. E) The term "countertrade" is interchangeable with "dumping."
d
73) To win a contract to supply the United Kingdom with AWACS military aircraft, Boeing agreed to purchase products from the United Kingdom whose value was equivalent to 130% of the contract. This type of pricing arrangement, which is common when the customer is a foreign government and the product has military applications, is known as: A) barter. B) switch trading. C) compensation trading. D) offset. E) dumping.
d
75) Suppose that World Corp. signs a contract to build a lumber processing plant in Siberia. If World Corp. signs a second contract agreeing to take partial payment for the plant in the form of lumber products produced at the plant, it is engaging in: A) barter. B) switch trading. C) offset. D) compensation trading. E) a hybrid countertrade arrangement.
d
77) The country which has the highest rates of value-added tax (VAT) in the European Union is: A) Germany. B) Italy. C) France. D) Denmark. E) Switzerland.
d
87) For positive proof that dumping has occurred in the United States, both ________ and injury must be demonstrated. A) black marketing B) market skimming C) gray marketing D) price discrimination E) price fixing
d
48. Sony is famous worldwide for its Walkman® personal stereo. Which of the following reflects the most accurate use of marketing terminology: a. "Sony," "Walkman," and "personal stereos" are global brands. b. "Sony" is a global brand, "Walkman" and "personal stereo" are global products. c. "Sony," "Walkman," and "personal stereos" are global products. d. "Sony" and "Walkman" are global brands; "personal stereo" is a global product. e. "Sony" only is a global brand and the rest are descriptors.
d. "Sony" and "Walkman" are global brands; "personal stereo" is a global product.
44. ____________ represents the cumulative added value of a company's investment in the marketing of a brand over time. a. Brand extensions b. Co-branding c. Brand image d. Brand equity e. Brand loyalty
d. Brand equity
60. Which of the following consumer products companies experienced a major product failure in Europe due to inadequate test marketing: a. Procter & Gamble b. Colgate c. Kao d. Unilever e. Seagram
d. Unilever
45. For nearly 60 years, DeBeers has used the advertising slogan "A diamond is forever." Such a long-term investment in marketing is central to developing: a. brand extensions b. co-branding c. local brands d. brand equity e. brand marks
d. brand equity
46. In recent years, the Coca-Cola Company has been plagued by such problems as employee lawsuits over diversity issues, deteriorating bottler relations, a production stoppage, and a disastrous product recall in Belgium. Taken together, these problems could dilute the company's __________. a. brand extension program b. co-branding efforts c. international brands d. brand equity e. product/communications extension strategy
d. brand equity
73. After four years of product development, Procter & Gamble recently introduced a new, improved disposable diaper. Pampers Rash Guard are designed to prevent diaper rash and represent the first time a company has made a medical claim for its diapers. What kind of innovation do the new diapers represent: a. platform-based innovation b. dynamically continuous innovation c. discontinuous innovation d. continuous innovation e. none of the above
d. continuous innovation
54. Alfred Zeien, former chairman of Gillette, once noted that his company's Parker Pen unit does not have to develop a special model for Malaysia and Singapore because shoppers worldwide seek the same things when buying a gift that will serve the recipient as a status symbol. This insight relates to which level of Maslow's hierarchy of needs: a. physiological b. safety c. social d. esteem e. self-actualization
d. esteem
63. Campbell's has been marketing soup in Japan for more than 40 years. Early on, Japanese consumers were not receptive to ads featuring the Campbell Kids and the "M'm M'm Good" slogan. This compelled Campbell's to develop ads featuring a talking soup can known as "Mr. Campbell." Campbell's also developed soup varieties for Japan with fish as the main protein source and spices that reflect local preferences. As described here, which of the following strategies has Campbell's used in Japan: a. product-communications extension b. product extension-communications adaptation c. product adaptation-communications extension d. product-communication adaptation e. product invention
d. product-communication adaptation
64. Prior to 2004, Nokia launched different cell phone products in different countries at different times. Nokia also used different advertising images and messages in different countries. Which approach to the world marketplace was Nokia using: a. product-communications extension b. product extension-communications adaptation c. product adaptation-communications extension d. product-communication adaptation e. product invention
d. product-communication adaptation
36) In India, consumers do not like to be locked in to long-term contracts, and Apple distributes its iPhone exclusively through stores operated by Airtel, an Indian carrier, and Vodaphone. This pricing is an example of: A) gray market. B) price bundling. C) market skimming. D) razors and blades. E) cost-based.
e
37) A firm without much export experience uses the rigid cost-based pricing method. Which of the following considerations is the exporter ignoring? A) Is the price competitive in view of local market conditions? B) Does the price reflect the product's quality? C) Will authorities in export markets view the price as reasonable or exploitative? D) Does the price take antidumping laws into consideration? E) all of the above
e
39) As a starting point, firms that comply with Western cost-accounting principles typically use the pricing method known as: A) price bundling. B) target costing. C) cost-plus pricing. D) export price costing. E) full absorption cost.
e
40) Which pricing strategy has the advantage of being simple to calculate but has the disadvantage of ignoring demand and competitive conditions? A) gray marketing B) skimming C) penetration D) market holding E) cost-based
e
43) The following activities must be performed when goods cross international boundaries except: A) obtaining currency permit. B) packing goods for export. C) transporting the goods. D) preparing a land bill of lading. E) receiving payments.
e
44) If a distributor's margins are based on the "landed" price of an import shipment, they will be based on: A) ex-works price. B) transportation costs. C) insurance costs. D) VAT. E) all of the above
e
45) Coffee bearing the Fairtrade label signifies that the coffee is: A) sponsored by an organization that supports price decisions. B) pure and free of contamination and grown organically. C) purchased with no taxes and duties paid to exporters. D) donated by a Catholic organization to its members. E) purchased with farmers getting a fair share based on the quality.
e
46) All import charges are assessed against the A) ex-works price. B) rigid cost-plus price. C) estimated future cost price D) flexible cost-plus price E) landed price
e
52) Which of the following would not be taken into account by a company using an ethnocentric approach to pricing decisions? A) the possibility of implementing a penetration strategy B) profitable price points that could be tied to local sourcing as opposed to home-country sourcing C) integration of price with other marketing mix elements D) factors unique to individual country markets E) None of the above would be taken into account by a company using
e
67) The most general term for the global phenomenon involving reciprocal business interactions between parties in various countries is known as: A) switch trading. B) barter. C) offset. D) compensation trading. E) countertrade.
e
79) Gray markets impose several costs or consequences on global marketers, which does not include: A) damage to channel relationships. B) dilution of exclusivity. C) free riding D) reputation and legal liability. E) increase product demand
e
47. The Nike swoosh, McDonald's golden arches, and Apple's rainbow apple are all examples of: a. non-word marks b. brand extensions c. brand symbols d. global brands e. both A and C
e. both A and C
67. Colgate's Total is a new toothpaste brand whose formulation, imagery, and consumer appeal were designed from the beginning to translate across national boundaries. Which strategy did Colgate use with Total: a. product-communications extension b. product extension-communications adaptation c. product adaptation-communications extension d. dual adaptation e. product invention
e. product invention
68. Hindustan Lever recently developed a hard candy flavored with natural fruit juice that it sells profitably in India for the equivalent of 1 cent per piece. This is Hindustan Lever's first-ever candy product. What strategy is evident here: a. product-communications extension b. product extension-communications adaptation c. product adaptation-communications extension d. dual adaptation e. product invention
e. product invention
56. Which of the following is NOT one of the levels in the Asian version of Maslow's hierarchy: a. physiological b. safety c. affiliation d. admiration e. self-actualization
e. self-actualization