Global Ch. 1, Chapter 2, International Marketing Ch. 2, Int'l Marketing - chapter 2, Mktg 452 Chapter 1
The top global merchandise exporter is: A) China. B) Germany. C) the United States. D) Japan. E) Korea.
A) China.
50) According to analysis by the Heritage Foundation, which of the following countries ranks number one in the world in terms of economic freedom? A) Hong Kong B) Singapore C) Ireland D) Denmark E) Australia
A) Hong Kong
Upper-middle-income countries are also known as: A) Industrializing countries. B) BRIC countries. C) Stabilized countries. D) Manufacturing countries. E) Agricultural countries.
A) Industrializing countries.
75) 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) a greater demand for its currency.
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) a greater demand for its currency.
Which two companies are sourcing product components from small-scale enterprises, which in turn are helping preserve old-growth forests as well as economic opportunities in Brazil? A) Ford Motor Company and Armani B) Daimler AG and Hermes C) General Motors and Hugo Boss D) Volkswagen and Coach E) Coca-Cola and Nestlé
B) Daimler AG and Hermes
61) Which two companies are sourcing product components from small-scale enterprises, which in turn are helping preserve old-growth forests as well as economic opportunities in Brazil? A) Ford Motor Company and Armani B) DaimlerAG and Hermes C) General Motors and Hugo Boss D) Volkswagen and Coach E) Coca-cola and Nestlé
B) DaimlerAG and Hermes
66) The term "tiger" has frequently been used to describe fast-growing economies in Asia which does not include: A) South Korea. B) India. C) Taiwan. D) Singapore. E) Hong Kong.
B) India.
63) Which country is the only country classified as an emerging market among the high-income countries by influential stock market indexes? A) United States B) South Korea C) Britain D) Italy E) Malaysia
B) South Korea
Which country was upgraded from "emerging" to "developed" status by the Financial Times Stock Exchange (FTSE) in 2009? A) United States B) South Korea C) Britain D) Italy E) Malaysia
B) South Korea
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 goods sold in developing markets are so expensive that there is no room for a new market entrant to make a profit.
For decades, the economies of China, the former Soviet Union, and India functioned according to the tenets of: A) market capitalism. B) market socialism. C) centrally planned socialism. D) centrally planned capitalism. E) market capitalism and socialistic capitalism.
C) centrally planned socialism.
44) One of the distinguishing features of a Centrally Planned Capitalism economic system is: A) all production resources are privately owned. B) the state has broad powers to serve the public interest as it sees fit. C) command resource allocation is utilized extensively in a private resource ownership environment. D) market allocation policies are permitted within an environment of state ownership. E) none of the above
C) command resource allocation is utilized extensively in a private resource ownership environment.
One of the distinguishing features of a Centrally Planned Capitalism economic system is: A) all production resources are privately owned. B) the state has broad powers to serve the public interest as it sees fit. C) command resource allocation is utilized extensively in a private resource ownership environment. D) market allocation policies are permitted within an environment of state ownership. E) none of the above
C) command resource allocation is utilized extensively in a private resource ownership environment.
The demise of communism as an economic and political system can be explained by all of the following facts except: A) communism is not an effective economic system. B) relatively superior performance of the world's market economies. C) communism works when the currency exchange rate is weak. D) difficult to manage national economies with a single central plan. E) increased public participation in matters of state.
C) communism works when the currency exchange rate is weak.
When countries or regions experience currency and/or economic stress, all of the following events can take place except: A) increased exposure to certain risks. B) new profit opportunities. C) lower local currency financing costs. D) bad debts occur. E) cancellation of aircraft equipment sales
C) lower local currency financing costs.
The majority of the world's population is included in the following economic category: A) high-income countries. B) upper-middle-income countries. C) lower-middle-income countries. D) low-income countries. E) lower-upper-income countries
C) lower-middle-income countries.
With a 2011 GNI per capital of $1,410, India has transitioned out from the former category and now is classified as a(n): A) low-income country. B) upper-middle-income country. C) lower-middle-income country. D) upper-income country. E) lower-upper-income country.
C) lower-middle-income country.
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) percent foreign ownership.
42) That Russia is being transformed by economic change can be witnessed in all of the following observations except: A) affluent Russians can shop at boutiques that offer Versace. B) per capita gross national income in Russia is only $ 5770. C) the banking system in Russia is robust. D) Russian shoppers spend an estimated $ 4 billion each year on luxury goods. E) Russian government lifted all currency controls.
C) the banking system in Russia is robust.
Coke's worldwide success is based on:
adaptation of the marketing mix.
Transnational companies, such as Toyota and Honda, have characteristic features that include:
all of the above.
A fundamental difference between regular marketing and global marketing is the: A) lack of marketing mix. B) scope of activities. C) lack of strategic planning. D) focus on resources. E) lack of communication.
b
At Procter & 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 the differences due to their: A) geocentric orientation. B) regiocentric orientation. C) polycentric orientation. D) ethnocentric orientation. E) poor globalization orientation.
b
Burberry's global marketing strategy of offering "affordable luxury" to customers in the United States, with a value proposition of being more expensive than Coach and less expensive than Prada represents a focus on: A) product. B) price. C) promotion. D) position. E) place.
b
Examples of effective global marketing by McDonald's include both standardized and localized marketing mix elements. Which of the following does not represent a localized element? A) It serves McAloo tikki potato burger in India. B) It uses the advertising slogan "I'm lovin' it." C) It operates themed dining cars on the Swiss national rail system. D) It has home delivery service in India. E) It has slang nicknames such as MakDo in the Philippines and McDo in France.
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
All of the following facts pertain to China except: A) China is in the upper-middle-income category. B) China is the largest single destination for foreign investment in the developing world. C) China is a member of the World Trade Organization. D) China has sprawling bureaucracy. E) China lacks infrastructure.
D) China has sprawling bureaucracy.
79) Porsche relies on currency hedging rather than price increases in order to: A) boost pretax profits on sales of its automobiles. B) balance the relative value of the dollar compared to the euro. C) protect all earnings from foreign-exchange movements. D) generate about 45% of its sales in the United States. E) A, B & C
E) A, B & C
Porsche relies on currency hedging rather than price increases in order to: A) boost pretax profits on sales of its automobiles. B) balance the relative value of the dollar compared to the euro. C) protect all earnings from foreign-exchange movements. D) generate about 45% of its sales in the United States. E) A, B, and C
E) A, B, and C
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) The poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods. C) People in BOP markets will be criticized for exploiting the poor. D) People in BOP markets cannot use advanced technology. E) All of the above are mistaken assumptions discussed by the authors.
E) All of the above are mistaken assumptions discussed by the authors.
The Organization for Economic Cooperation and Development (OECD) is comprised of: A) the 34 high-income countries. B) countries that believe in market-allocation economic systems. C) pluralistic democracies. D) countries that demonstrate progress toward economic reform. E) All of the above statements are applicable.
E) All of the above statements are applicable.
All of the following facts pertain to Brazil except: A) Brazil is the largest country in Latin America. B) Brazil boasts the richest reserves of natural resources in the hemisphere. C) Brazil's top trading partner is China. D) Brazil's GNI has grown at an average annual rate of 4 percent over the past 8 years. E) Brazil lacks logistics software, horse-drawn carts are still a common sight on many roads
E) Brazil lacks logistics software, horse-drawn carts are still a common sight on many roads
65) The term tiger has frequently been used to describe: A) market socialism. B) less reliance on foreign aid. C) upper-middle-income countries. D) postindustrial countries. E) fast-growing economies in Asia.
E) fast-growing economies in Asia.
55) The general characteristics shared by low-income countries does 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) lack of genuine market opportunities.
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) lack of genuine market opportunities.
49) The Washington, DC-based Heritage Foundation compiles a survey of over 150 countries ranked by degree of economic freedom. Although there are a number of key economic variables which are considered in this ranking it does not include: A) monetary policy. B) banking policy. C) black market. D) property rights. E) no correct answer
E) no correct answer
Lower-middle-income countries
Global marketers should take note of the fact that almost half of the world's population is located in:
Walmart's exit from the German market was due, in part, to the fact that German shoppers could find lower prices at stores known as:
Hard discounters.
industrializing countries.
Upper-middle-income countries are also known as:
The marketing mix is integral to the value equation which is represented by:
Value = Benefits/Price
The essence of marketing worldwide is to surpass the competition in creating perceived value, which can be represented as:
Value = Benefits/Price.
According to the Fortune magazine's ranking of the global 500 companies for 2014, the largest corporation based on revenues is:
Walmart stores.
Lower local currency financing costs.
When countries or regions experience currency and/or economic stress, all of the following events can take place except:
South Korea
Which country was upgraded from emerging to developed status by the Financial Times Stock Exchange (FTSE) in 2009?
The best-selling smartphone in China is marketed by:
Xiaomi.
) McDonald's restaurants in France do not look like McDonald's elsewhere. This is an example of: A) think locally and act globally. B) think globally and act locally. C) diversification. D) standardization E) adaptation
a
A person who assumes that his or her home country is superior to the rest of the world is said to have: A) ethnocentric orientation. B) polycentric orientation. C) regiocentric orientation. D) geocentric orientation. E) none of the above
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) Accountability.
a
Anheuser-Busch, the brewer of Budweiser beer, lost its independence after years of focusing primarily on the domestic U.S. market. This is most likely a result of: A) management myopia. B) national controls. C) opposition to globalization. D) newcomers from emerging markets. E) organizational culture.
a
Coke's worldwide success is based on: A) adaptation of the marketing mix. B) standardization of the marketing mix. C) selected elements of the marketing mix. D) using local sales force and vending machines. E) using existing local infrastructure.
a
Ethnocentric orientation is sometimes associated with all of the following attitudes except: A) national arrogance. B) assumption of national superiority. C) indifference to marketing opportunities. D) selecting a standardized approach. E) selecting an adaptation approach.
a
McDonald's serves McAloo Tikki Burger in India, McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, and McHuevo Burger in Uruguay and McSamurai Burger in Thailand. These menu variations are examples of a: A) combination of global and local marketing mix elements. B) reflection of failure of U.S. menu items in those countries. C) deviation from successful marketing practices. D) replacement of standard menu names with fancy names. E) selection of menu items that can be sold eventually in U.S. markets.
a
Nissan's earlier vehicles were difficult to start in many parts of the United States during the cold winter months. In northern Japan, it was customary for many car owners to put blankets over the hoods of their cars during winter months. Nissan's assumption was that Americans would do the same thing. This is an example of: A) ethnocentric orientation. B) polycentric orientation. C) regiocentric orientation. D) geocentric orientation. E) geopolitic orientation.
a
The largest single market in the world in terms of national income is the United States representing roughly ________ of the total world market for all products and services. A) 25% B) 35% C) 55% D) 65% E) 75%
a
Walmart exited from the German market due to the fact that Germans A) could find lower prices at discount stores. B) preferred shopping in larger malls. C) did not care for American businesses. D) preferred "all-in-one" store. E) preferred only European businesses.
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
The largest single market in the world in terms of national income is the United States representing roughly ________ of the total world market for all products and services.
25%
Burberry's global marketing strategy of offering "affordable luxury" to customers in the United States, with a value proposition of being more expensive than Coach and less expensive than Prada represents a focus on:
price
t/f Multinational companies pursuing strategies of product adaptation run the risk of failing to be successful against global competitors that have recognized opportunities to serve global customers.
t
t/f Nike dropped its well-known tag line "Just do it" in advertising women's clothing in Europe and replaced it with slogan "Here I am" since college-age women in Europe are not as competitive about sports as men are.
t
t/f People and organizations that are both able and willing to buy are considered as markets.
t
t/f Starbucks dropped the word "Coffee" from its logo when it acquired a juice maker and a bakery. This is an example of "diversification."
t
t/f Tang drink powder became a $1 billion brand as regional managers in the Middle East added mango and pineapple flavors.
t
t/f The essence of marketing is to surpass the competition at the task of creating perceived value.
t
t/f Toyota and Honda are two examples of companies that exhibit key characteristics of transnationality.
t
t/f When a company succeeds in creating more value for customers than its competitors do, that company is said to enjoy competitive advantage.
t
t/f Starbucks offers a loyalty card and rewards program in the United States with an app that displays a bar code that can be scanned by the barista. This is an example of "market development."
f
t/f The geocentric orientation represents a synthesis of ethnocentrism and regiocentrism.
f
t/f The term "polycentric" describes management's belief or assumption that each country in which a company does business is the same as the home country business.
f
t/f The value equation can be represented as Value = Price/Benefits.
f
t/f U.S. companies that wish to achieve maximum growth potential must "go global," because 25 percent of world market potential is outside their home country.
f
As apparent from the 2014 rankings of Fortune magazine's global 500 companies, Volkswagen is trying to unseat ________, the world's most valuable car company. A) GM B) Daimler AG C) Toyota D) Ford E) Chrysler
c
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) getting absorbed by dynamic enterprises. C) becoming locally profitable enterprises. D) undergoing wrenching transformations. E) simply disappearing from the business horizon.
c
Harley-Davidson's competitive advantage is based, in part, on it's A) shifting production outside of the United States. B) new production facility in China. C) "Made in the USA" positioning. D) simultaneous production of Buell Motorcycles. E) acquiring MV Augusta, an Italian motorcycle manufacturer.
c
In the United States, some people believe that globalization has depressed the wages of American workers resulting in the loss of both blue-collar and white-collar jobs. This is an example of: A) discrimination. B) domination. C) globaphobia. 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
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
Renault and its rivals are racing to offer middle-class consumers a new value proposition by selling cars for the equivalent of $10,000 or less. On the heels of Renault's success with Dacia Logan came the $2,500 Nano from India's Tata Motors. This illustrates that: A) consumers are looking for low price irrespective of quality. B) Renault is overcharging for their cars compared to their competitors. C) higher product development costs are a driving force behind globalization. D) market success depends on reaching a threshold of acceptable quality for consumers. E) cars are not very popular in emerging markets like India.
d
According to the Fortune magazine's ranking of the global 500 companies for 2014, the largest corporation based on revenues is: A) Exxon Corporation. B) Toyota Motors. C) Royal Dutch Shell. D) General Electric. E) Walmart stores.
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
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
Today, the success of Honda and Toyota in world markets is primarily due to: A) exporting cars from factories in Japan. B) reporting cars are made in the USA. C) exporting cars from Japan to European countries. D) assembling cars in Japan and Europe. E) manufacturing cars in the Americas, Asia, and Europe.
e
Transnational companies, such as Toyota and Honda, have characteristic features that include: A) being in both global markets and utilizing global supply chains. B) characterized by a mind-set of being "stateless." C) using both localized and standardized elements in marketing programs. D) decisions made on the basis of ongoing research. E) all of the above.
e
47) China predominantly follows an economic system that can be classified under: A) centrally planned socialism. B) market socialism. C) market capitalism. D) centrally planned capitalism. E) socialistic capitalism.
A) centrally planned socialism.
73) Between the year 2001 and 2006, China bought more than $ 250 billion in U.S. Treasury bonds. Such purchases: A) ensures that China's currency is relatively weak compared to the U.S. dollar. B) indicate that China is not sure of its economic viability. C) show that currency exchange rate is unpredictable. D) predict that yuan will be devalued in the near future. E) indicate that China's currency is stronger than the U.S. dollar.
A) ensures that China's currency is relatively weak compared to the U.S. dollar.
Low-income countries have a GNI per capita of $1,025 or less. The general characteristics shared by countries at this income level include all of the following except: A) high literacy rates. B) high birth rates. C) heavy reliance on foreign aid. D) political unrest. E) high agricultural population
A) high literacy rates.
43) 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) no correct answer
A) individuals and firms allocate resources and production resources that are privately owned.
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) individuals and firms allocate resources and production resources that are privately owned.
70) India's teledensity ; a measure of ownership of private telephones — is only about 20 percent of the population is indicative of: A) low product saturation level. B) high product saturation level. C) triad power. D) high technological level. E) low technological level.
A) low product saturation level.
Measuring elevator populations in countries measured as units installed per thousand people gives an estimate of the market for elevators. That China has about one half an elevator per thousand people is indicative of: A) low product saturation level. B) high product saturation level. C) high population level. D) high technological level. E) low technological level.
A) low product saturation level.
56) Global marketers should take note of the fact that almost half of the world's population is located in: A) low-income countries. B) lower-middle income countries. C) upper-middle income countries. D) high-income countries. E) higher-middle income countries.
A) low-income countries.
none of these
Among the upper-middle-income countries, also known as industrializing or developing countries, the following aspects are observed except:
53) Upper-middle-income countries, also known as industrializing or developing countries, are those with GNI per capita ranging from: A) $ 936 to $ 3,705 B) $ 3,706 to $ 11,455 C) $ 11,456 or higher D) less than $ 936 E) no correct answer
B) $ 3,706 to $ 11,455
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) $4,036 to $12,475.
69) Which of the following is true about the Triad? A) Triad countries account for approximately one-third of world income and one- third of world population. B) Triad countries account for approximately 75% of world income as measured by GNP. C) Triad countries are those in which consumer products, industrial products, and the services sector each contribute one-third to GDP. D) Triad countries account for approximately 25% of world income as measured by GNP. E) Triad countries account for approximately 50% of world income as measured by the World Bank.
B) Triad countries account for approximately 75% of world income as measured by GNP.
Which of the following is true about the Triad? A) Triad countries account for approximately one-third of world income and one- third of world population. B) Triad countries account for approximately 75% of world income as measured by GNP. C) Triad countries are those in which consumer products, industrial products, and the services sector each contribute one-third to GDP. D) Triad countries account for approximately 25% of world income as measured by GNP. E) Triad countries account for approximately 50% of world income as measured by the World Bank.
B) Triad countries account for approximately 75% of world income as measured by GNP.
74) As a repercussion set by the devaluation of Chinese yuan in 1994, the following action was noted: A) the yuan became stronger than the U.S. dollar. B) a stage was set for the devaluation of the Thai baht. C) the demand for Indonesian rupiah increased considerably. D) Malaysian ringgit became very competitive. E) India rupees were devalued.
B) a stage was set for the devaluation of the Thai baht.
Global marketers should take note of the fact that almost half of the world's population is located in: A) low-income countries. B) lower-middle-income countries. C) upper-middle-income countries. D) high-income countries. E) higher-middle-income countries.
B) lower-middle-income countries.
64) When the world's leaders meet to discuss policy issues, non-governmental organizations (NGOs): A) are included in meetings. B) often take advantage of the opportunity to make their voices heard. C) sign final documents. D) provide educational materials. E) are excluded from meetings.
B) often take advantage of the opportunity to make their voices heard.
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.
B) portfolio investments.
78) If an American tourist in Tokyo pays more in dollars for the same amount of yen that she bought last week, then: A) a Japanese tourist in San Francisco pays more in yen for the same amount of dollars that she bought the week before. B) the dollar has depreciated relative to the yen. C) the yen has depreciated relative to the dollar. D) the dollar has appreciated relative to the yen. E) the dollar and yen both remained same in value.
B) the dollar has depreciated relative to the yen.
If an American tourist in Tokyo pays more in dollars for the same amount of yen that she bought last week, then: A) a Japanese tourist in San Francisco pays more in yen for the same amount of dollars that she bought the week before. B) the dollar has depreciated relative to the yen. C) the yen has depreciated relative to the dollar. D) the dollar has appreciated relative to the yen. E) the dollar and yen both remained same in value.
B) the dollar has depreciated relative to the yen.
80) The ripple effect from the global recession was felt strongly in: A) China. B) Japan. C) Canada. D) Russia. E) India.
C) Canada.
58) Which of the following nations fall in the lower-middle-income category? A) Burundi B) Bangladesh C) China D) Venezula E) none of the above
C) China
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) Cuba and North Korea.
Which of the following nations fall in the lower-middle-income category? A) Burundi B) Bangladesh C) Egypt D) Venezuela E) none of the above
C) Egypt
Myanmar is considered as one of the emerging markets open for business. All of the following facts pertain to Myanmar except: A) Myanmar is a low-income country in Southeast Asia. B) Myanmar has a population of 65 million people. C) Myanmar is one of the countries considered as "Stans." D) Myanmar's citizens elected a president. E) Only one quarter of Myanmar's population has access to electricity.
C) Myanmar is one of the countries considered as "Stans."
62) 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) New e-commerce markets for interactive forms of electronic communication.
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) New e-commerce markets for interactive forms of electronic communication.
48) Which of the following is true about economic output in China today? A) The state sector accounts for about 70 percent of output. B) The state and private sectors each account for about 50 percent of output. C) The private sector accounts for about 70 percent of output. D) The private sector is virtually nonexistent in China. E) The state sector is virtually nonexistent in China.
C) The private sector accounts for about 70 percent of output.
46) Coca-Cola returned to India in 1994 after two decades of being forced out of the government because: A) Coca-Cola decided to reveal its formula to the government. B) Coke was not very popular in earlier days. C) a new law allowing 100 percent foreign ownership was passed. D) the water supply was not consistent in earlier years. E) installation of a bottling plant required special permits.
C) a new law allowing 100 percent foreign ownership was passed.
45) The Swedish government has significant holdings in key business sectors and has a hybrid economic system that incorporate: A) market capitalism and centrally planned socialism. B) centrally planned socialism and market socialism. C) centrally planned socialism and capitalism. D) market socialism and market capitalism. E) market capitalism and socialistic capitalism.
C) centrally planned socialism and capitalism.
The Swedish government has significant holdings in key business sectors and has a hybrid economic system that incorporates: A) market capitalism and centrally planned socialism. B) centrally planned socialism and market socialism. C) centrally planned socialism and capitalism. D) market socialism and market capitalism. E) market capitalism and socialistic capitalism.
C) centrally planned socialism and capitalism.
76) The Big Mac Index dated May 01, 2009 shows that the price of Big Mac in China converted from the local currency, yuan, to be $ 1.83; whereas its price in the United States was $ 3.54. This shows that: A) Big Mac is more popular in China than in the United States. B) Big Mac is less expensive in the United States than in China. C) Chinese yuan is overvalued when compared to US $. D) Chinese yuan is undervalued against the US $. E) beef is less expensive in China than in the United States.
D) Chinese yuan is undervalued against the US $.
77) One Friday a few years ago, the Big Mac Index suggested that the yen was overvalued relative to the dollar by 70%. When currency markets opened on the following Monday, anyone using the Big Mac Index would conclude that yen was only 20% overvalued relative to the dollar. What is the most likely explanation for this? A) Japan's Central Bank acted to prop up the yen. B) Inflation in Japan suddenly spiked upward. C) McDonald's headquarters stopped hedging. D) McDonald's Japan reduced the yen price of a Big Mac. E) McDonald's Japan increased the yen price of a Big Mac.
D) McDonald's Japan reduced the yen price of a Big Mac.
One Friday a few years ago, the Big Mac Index suggested that the yen was overvalued relative to the dollar by 70%. When currency markets opened on the following Monday, anyone using the Big Mac Index would conclude that the yen was only 20% overvalued relative to the dollar. What is the most likely explanation for this? A) Japan's Central Bank acted to prop up the yen. B) Inflation in Japan suddenly spiked upward. C) McDonald's headquarters stopped hedging. D) McDonald's Japan reduced the yen price of a Big Mac. E) McDonald's Japan increased the yen price of a Big Mac.
D) McDonald's Japan reduced the yen price of a Big Mac.
57) 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) NIEs.
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) NIEs.
Devaluation can result from government action or an economic crisis. In August 1998, the Russian economy imploded. As a result, all of the following listed events happened except: A) the ruble plunged in value. B) the government defaulted on its foreign debt obligation. C) many Russians faced wage cuts and layoffs. D) Russia's economy did not recover from the impact. E) savings were wiped out as banks collapsed.
D) Russia's economy did not recover from the impact.
60) 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) heavy reliance on fossil fuels contributes to global warming.
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) heavy reliance on fossil fuels contributes to global warming.
The Gross Domestic Product (GDP), a measure of a nation's economic activity, is calculated by all of the following factors except: A) consumer spending. B) investment spending. C) government purchases D) industry purchases. E) net exports.
D) industry purchases.
The Big Mac Index shows that the price of the Big Mac in China converted from the local currency, yuan, to be $2.18, whereas its price in the United States is $3.73. This shows that: A) the Big Mac is more popular in China than in the United States. B) the Big Mac is less expensive in the United States than in China. C) the Chinese yuan is overvalued when compared to US $. D) the Chinese yuan is undervalued against the US $. E) beef is less expensive in China than in the United States.
D) the Chinese yuan is undervalued against the US $.
71) 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 services trade surplus.
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 services trade surplus.
During the past two decades, the world economic environment has become increasingly dynamic. To achieve success, executives and marketers must take into account all of the following realities except: A) capital movements have replaced trade as the driving force of the world economy. B) production has become "uncoupled" from employment. C) the world economy dominates the scene. D) the struggle between capitalism and socialism continues. E) the growth of e-commerce diminishes the importance of national barriers.
D) the struggle between capitalism and socialism continues
41) During the past two decades, the world economic environment has become increasingly dynamic. To achieve success, executives and marketers must take into account all of the following realities except: A) capital movements have replaced trade as the driving force of the world economy. B) production has become "uncoupled" from employment. C) the world economy dominates the scene. D) the struggle between capitalism and socialism continues. E) the growth of e-commerce diminishes the importance of national barriers.
D) the struggle between capitalism and socialism continues.
52) About 40 percent of the world's population is included into the following economic category: A) high-income countries. B) upper-middle-income countries. C) lower-middle-income countries. D) low-income countries. E) lower-upper income countries.
D)low-income countries.
The dimensions of global marketing strategy include all of the following except:
Development of cultural activities
Starbucks dropped the word "Coffee" from its logo. This is an example of:
Diversification.
The struggle between capitalism and socialism continues.
During the past two decades, the world economic environment has become increasingly dynamic. To achieve success, executives and marketers must take into account all of the following realities except:
Nike produces only a small portion of its output in China, but when the firm refers to China as a "two-billion-foot market," it is referring to the fact that: A) the Chinese do not wear shoes. B) the Chinese shoe market is very competitive. C) China can develop its own shoe market. D) it will take a long time for China to develop future market. E) China is a potential future market.
E) China is a potential future market.
Which of the following statements is not accurate? A) India's teledensity—a measure of ownership of private telephones—is only 20% of population. B) In China, saturation levels of private motor vehicles and personal computers (PCs) are quite low. C) In 2001, EU had 49 cars per 100 people. D) In Russia, 200 people out of 1,000 own cars. E) In India, 150 people out of 1,000 own cars.
E) In India, 150 people out of 1,000 own cars.
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) LDCs (least-developed countries).
Among the upper-middle-income countries, also known as industrializing or developing countries, the following aspects are observed except: A) the CNI per capita ranges from $4,036 to $12,475. B) the percentage of the population engaged in agriculture drops sharply. C) people move to the industrial sector. D) the degree of urbanization increases. E) None of the above
E) None of the above
The term "Expanded Triad" includes all of the following countries or regions except: A) Japan. B) United States. C) Canada. D) Mexico. E) Russia.
E) Russia.
51) 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) all of the above
54) According to the earlier classification of the BEM (big emerging markets) the country/countries included were: A) Indonesia. B) Argentina. C) South Africa. D) Poland. E) all of the above
E) all of the above
67) Recently, the Organization for Economic Cooperation and Development (OECD) has become more focused on global issues as seen by: A) addressing the vexing problem of bribery. B) requiring members to cooperate when pursuing bribery allegations. C) helping members candidly assess their own economic policies. D) member nations working together in committees to review social policies. E) all of the above
E) all of the above
Recently, the Organization for Economic Cooperation and Development (OECD) has become more focused on global issues, social policy, and labor market regulations as seen by: A) addressing the vexing problem of bribery. B) requiring members to cooperate when pursuing bribery allegations. C) helping members candidly assess their own economic policies. D) member nations working together in committees to review social policies. E) all of the above
E) all of the above
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) all of the above
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) all of the above
59) 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) The poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods. C) People in BOP markets will be criticized for exploiting the poor. D) People in BOP markets cannot use advanced technology. E) all of the above are mistaken assumptions discussed by the authors
E) all of the above are mistaken assumptions discussed by the authors
34) Traditionally economists identified main types of economic systems, which include all of the following except: A) market capitalism. B) market socialism. C) centrally planned socialism. D) centrally planned capitalism. E) centrally planned nationalism.
E) centrally planned nationalism.
Venezuelan President Hugo Chavez believed in all of the following aspects except: A) nationalization of international companies. B) imposition of currency controls. C) free-market economic policies. D) capitalism is a structural crisis. E) energy pact known as Petrocribe.
E) energy pact known as Petrocribe.
Free enterprise economy.
Key characteristics of the Anglo Saxon model market system consist of private ownership and:
high literacy rates.
Low-income countries have a GNI per capita of $1,045 or less. The general characteristics shared by countries at this income level include all of the following except:
Starbucks entered India via an alliance with the Tata Group. They are sourcing coffee beans in India and marketing them at Starbucks stores throughout the world. This is an example of:
Market Development
Individuals and firms allocate resources that are privately owned.
Market capitalism is an economic system in which:
Low product saturation
Measuring elevator productions in countries measured as units installed per thousand people gives an estimate of the market for elevators. That China has about one-half an elevator per thousand people is indicative of:
Myanmar is one of the countries considered as "Stans."
Myanmar is considered as one of the emerging markets open for business. All of the following facts pertain to Myanmar except:
China is a potential future market.
Nike produces only a small portion of its output in China, but when the firm refers to China as a "two-billion-foot-market," it is referring to the fact that:
services.
One of the major issues in trade relations between the high and lower-income countries in trade is:
China
The top global merchandise exporter is:
Boost pretax profits on sales of it automobiles, balance the relative value of the dollar compared to the euro, and protect all earnings from foreign-exchange movements.
Porsche relies on currency hedging rather than price increases in order to:
The goods sold in developing markets are so expensive that there is no room for a new market entrant to make a profit.
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:
McDonald's developed a vegetarian burger in India. This is an example of:
Product Development.
New e-commerce markets for interactive forms of electronic communication
Product and market opportunities in a post-industrial society are more heavily independent upon new products and innovations than in industrial societies. An example of this would be:
Heavy reliance on fossil fuels contribute to global warming
Pursuing alternative sources of energy, such as wind and solar power, is important due to the fact that:
The worldview of a company's personnel can be described by all of the following types of orientation except:
Technocentric.
portfolio investments.
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:
The Chinese yuan is undervalued against the US $.
The Big Mac Index shows that the price of the Big Mac in China converted from the local currency, the yuan, to be $2.18, whereas its price in the United States is $3.73. This shows that:
Industry purchases
The Gross Domestic Product (GDP), a measure of a nation's economic activity, is calculated by all of the following factors except:
LDCs (least-developed countries)
The United Nations designates 50 countries in the bottom ranks of the low-income category named as:
The services trade surplus
The United States' growing trade deficit reflects a number of factors which exclude:
Communism works when the currency exchange rate is weak.
The demise of communism as an economic and political system can be explained by all of the following facts except:
all of these.
The fastest-growing sector of world trade includes:
Lack of genuine market opportunities.
The general characteristics shared by low-income countries do not include:
Lower-middle-income countries.
The majority of the world's population is included in the following economic category:
Russia.
The term "Expanded Triad" includes all of the following countries or regions except:
A greater demand for its currency
To the extent that a country sells more goods and services abroad than it buys, there will be:
Centrally planned nationalism.
Traditionally economists identified main types of economic systems, which include all of the following except:
In their book, Daniel Yergin and Joseph Stanislaw wrote "Governments are getting out of businesses by disposing of what amounts to trillions of dollars of assets. Everything is going-from steel plants and phone companies . . . to hotels, restaurants, and nightclubs." This is an indication of: A) the fact that governments can make more money by selling assets. B) privatization is becoming a driving force for global marketing. C) these businesses are considered as closed markets. D) foreign companies are competing with governments. E) there is less demand for these type of companies.
b
Starbucks entered India via an alliance with the Tata Group. They are sourcing coffee beans in India and marketing them at Starbucks stores throughout the world. This is an example of: A) Market Penetration. B) Market Development. C) Market Diversification. D) Product Development. E) Regular Marketing.
b
The best-selling smartphone in China is marketed by: A) Samsung. B) Xiaomi. C) Apple. D) Mitsubishi. E) Android.
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 dimensions of global marketing strategy include all of the following except: A) Concentration of marketing activities B) Development of cultural activities C) Coordination of marketing activities D) Integration of competitive moves E) Integration of marketing mix
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 marketing mix is integral to the value equation which is represented by: A) Value = Price/Benefits. B) Value = Benefits/Price. C) Value = Benefits × Price. D) Value = Benefits - Price. E) Value = Benefits + Price.
b
The success of Uniqlo's retail stores can be attributed to it's decision to: A) remain in Japan. B) locate in high population density areas. C) locate in low population density areas. D) manufacture most of their products in Japan. E) become the world's number one apparel retailer.
b
Unilever, the Anglo-Dutch consumer products company, at one time had 30 different package designs and 48 different formulations for its Rexona deodorant brand. This is an example of: A) ethnocentric orientation. B) polycentric orientation. C) regiocentric orientation. D) geocentric orientation. E) transnational orientation.
b
A company that succeeds in global marketing: A) pursues a "one size fits all" strategy by creating identical products for homogeneous markets. B) customizes special products for each world country or region. C) creates both standardized and localized products. D) nurtures an ethnocentric management orientation. E) uses localized products only.
c
Starbucks dropped the word "Coffee" from its logo. This is an example of: A) Standardization. B) Adaptation. C) Diversification. D) Automation. E) Modernization.
c
Statements that illustrate the success of global marketing include all of the following except: A) the Coca-Cola Company supports its Coke brand by utilizing global and local marketing mix. B) Apple is synonymous with cutting-edge innovation and high-tech design. C) Italy's Benetton utilizes marketing as a knee-jerk reaction to world marketing needs. D) the backbone of Caterpillar's global success is its network of dealers. E) Germany's reputation for engineering and manufacturing provides a competitive advantage.
c
The former chairman of Nestlé recently told an interviewer: "We are food and beverages. We are not running bicycle shops. Even in food, we are not in all fields. There are certain areas we do not touch. Also, we have no soft drinks because I have said we either buy Coca-Cola or we leave it alone." What strategic marketing principle does the chairman's comment emphasize most specifically? A) customer value B) competitive advantage C) focus D) myopia E) policy of dealing only with Swiss businesses
c
The worldview of a company's personnel can be described by all of the following types of orientation except: A) Ethnocentric. B) Geocentric. C) Technocentric. D) Polycentric. E) Regiocentric.
c
Walmart exited from the German market due to the fact that Germans
could find lower prices at discount stores
A company that succeeds in global marketing:
creates both standardized and localized products.
Even though the dollar value of the home market for Japanese companies is the third largest in the world, the market outside Japan is ________ of the world market potential for Japanese companies. A) 40% B) 55% C) 70% D) 90% E) 95%
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
McDonald's developed a vegetarian burger in India. This is an example of: A) Market Penetration. B) Market Development. C) Market Diversification. D) Product Development. E) Global Marketing.
d
Walmart's exit from the German market was due, in part, to the fact that German shoppers could find lower prices at stores known as: A) All-in-one stores. B) Dollar stores. C) Discount sores. D) Hard discounters. E) Fresh & Easy stores.
d
________ refers to some type of advantage that a company enjoys by virtue of the fact that it has experience in more than one country. A) Transferability B) Capability C) Accountability D) Leverage E) Flexibility
d
A key factor that distinguishes transnational companies from international companies is their ________ for the marketing program. A) use of localized elements B) use of extension elements C) needs assessment D) domestic research E) mind-set
e
A number of multilateral trade agreements have accelerated the pace of global integration which include: A) NAFTA. B) GATT. C) WTO. D) EU. E) all of the above
e
t/f A company which is ethnocentric will expand geographically.
f
t/f An industry is considered to be global to the extent that its industry position in one country is dependent upon the industry position in other countries.
f
t/f If Nestlé decides not to market biscuits (cookies) in the United States due to competitive reasons, it is considered to be having a lack of strategic focus and missed opportunity.
f
t/f Leverage from scale economies is limited to manufacturing industries.
f
t/f McAloo Tikka potato burger offered in India is an example of standardization.
f
t/f McDonald's global marketing strategy is based primarily on local marketing mix elements.
f
t/f Nonmonetary costs do not factor into the equation of value, which is represented by the equation Value = Benefits/Price.
f
t/f Starbucks entered India via an alliance with the Tata Group. This is an example of "market penetration."
f
Anheuser-Busch, the brewer of Budweiser beer, lost its independence after years of focusing primarily on the domestic U.S. market. This is most likely a result of:
management myopia.
Today, the success of Honda and Toyota in world markets is primarily due to:
manufacturing cars in the Americas, Asia, and Europe.
A fundamental difference between regular marketing and global marketing is the:
scope of activities.
t/f A U.S. company that focuses on the countries included in the North American Free Trade Agreement (NAFTA) has a regiocentric orientation.
t
t/f A company with a geocentric orientation views the world as a potential market and strives to develop integrated global strategies.
t
t/f A critical reason why companies need to take global marketing seriously is survival
t
t/f A fundamental difference between regular marketing and global marketing is the scope of activities.
t
t/f A global company possesses the unique opportunity to develop leverage.
t
t/f According to Fortune Magazine, Walmart is ranked number one in revenue, although it currently generates only about one-third of its revenues outside the United States.
t
t/f Anheuser-Busch, the brewer of Budweiser beer, lost its independence after years of focusing primarily on the U.S. market
t
t/f Four decades ago, the phrase global marketing did not exist
t
t/f Globalization is presenting significant marketing opportunities to sports organizations such as the National Basketball Association and the National Football League.
t
t/f Globaphobia is a term which describes a hostile attitude toward global brands or company policies that appear to result in hardship for some individuals or countries while benefiting others.
t
McDonald's restaurants in France do not look like McDonald's elsewhere. This is an example of:
think locally and act globally.