89) The United States imports more goods from China than it exports to China. This is known as
A) gross national income (GNI).
B) a trade surplus.
C) gross domestic product (GDP).
D) a trade deficit.
E) an import imbalance.
90) When Ford Motor Company decided to sell the Fiesta—in the same form and design—
around the globe, instead of selling different versions in different countries, this was part of
Ford’s global ________ strategy.
A) communication
B) pricing
C) distribution
D) exchange
E) product
91) When Cisco Systems Inc. of San Jose, California, and Tata Consultancy Services of
Mumbai, India, entered into a relationship, they both continued to develop market-ready
infrastructure and network solutions for customers, but they relied on each other to provide the
training and skills that one or the other might have lacked. This relationship is best described as
A) NAFTA.
B) a strategic alliance.
C) CAFTA.
D) an international partnership.
E) a joint venture.
92) Ford Motor Company decided to sell the Fiesta around the globe. Which of the following
would be an example of glocalization of the Fiesta?
A) The same product design and features, and the same basic promotional campaign, used in all
countries.
B) Variations in the product design country by country, with the same basic promotional
campaign used in all countries.
C) The same product design and features in all countries, with variations in the promotional
campaigns country by country.
D) Variations in the product design and the promotional campaign country by country.
E) The same marketing mix for all of the four Ps used in all countries.
93) One Laptop Per Child is a nonprofit initiative with the goal of making extremely low–cost
laptops available to children in the developing world, with the goal of helping them learn skills
needed in today’s workforce. If some of the low-cost technology developed for this laptop found
its way into laptops created for U.S. consumers, this would be an example of
A) glocalization.
B) reverse innovation.
C) franchising.
D) a strategic alliance.
E) purchasing power parity.
94) Despite multiple upturns and downturns in its economy, Russia’s overall growth prospects
appear promising, especially as a consumer market. However, there are still multiple dilemmas
for firms trying to market their goods and services. These dilemmas include all of the following
except Russia’s
A) aging population and low both rates.
B) widespread corruption.
C) international sanctions.
D) involvement in China.
E) fluctuations in oil prices.
95) What do the BRIC countries have in common?
A) They participate together in a trading bloc.
B) They have suffered more than most other countries in the recent recession.
C) They are Asian countries experiencing explosive population growth.
D) They are the four countries experiencing the lowest levels of economic growth.
E) They are experiencing significant levels of economic growth.
96) Which of the following is currently a negative factor for foreign investment in Russia?
A) The Russian population is poorly educated.
B) Russian consumers have little interest in online shopping.
C) Russia is known for corruption, creating ethical dilemmas for firms.
D) Russian consumer markets are saturated, offering few opportunities for goods from U.S.
companies to sell well.
E) Few Russians have access to the Internet due to heavy regulation.
97) Which of the following is currently a negative factor for foreign investment in India?
A) India’s population is fairly old and aging fast.
B) India’s retail environment lacks modern supply chain management facilities and systems.
C) India prevents foreign investors from entering into joint ventures.
D) India has no shopping malls or other large commercial centers.
E) India lacks a skilled workforce.
98) Which of the following is a potential negative factor for foreign investment in China?
A) China’s population is aging and is likely to continue to do so for many years.
B) China drastically restricts the goods it allows U.S. companies to export to China.
C) China’s standard of living has dropped over the past 30 years.
D) China has imported fewer goods from the United States each year for the past decade.
E) Chinese consumers are not interested in purchasing products from the United States.
99) A company is assessing opportunities in the BRIC companies and determines that ________
is one of the youngest populations in the world and is increasingly adopting global attitudes.
A) Russia
B) Brazil
C) India
D) Italy
E) China
100) Why should marketers be aware of the BRIC countries?
A) They are a microcosm of the rest of the world.
B) They represent almost half the world’s population.
C) They are likely to be the source of most market growth.
D) They have had the most dramatic changes in culture and consumer buying patterns.
E) They have stable population growth, which makes them easier to study.
101) Which statement about India’s population is true?
A) With a median age of 61, India has one of the oldest populations in the world.
B) India’s young people mostly live in rural areas in large families.
C) India’s workforce is highly skilled, particularly in technical fields.
D) India claims more than 25 percent of the world’s population.
E) Most Indian citizens shop in large retail outlets.
102) A publishing company plans to outsource its production-related tasks to a BRIC country.
They are assessing opportunities and are attracted to this country due to its population of young,
well-educated, technically-skilled workers who are fluent in English.
A) Russia
B) China
C) Brazil
D) India
E) Chile
103) Which of the following statements is true with regard to growth in global markets?
A) A country’s infrastructure does not impact growth in the global market.
B) The number of Russian Internet users is decreasing at a rate of 10 percent annually.
C) Russia’s population is expected to increase by one-third in the next half century.
D) Changes in technology, especially communications, have been a driving force for growth in
global markets for decades.
E) Brazil does not welcome foreign investors.
104) A U.S. company is analyzing its business prospects in Brazil. Marketing executives
understand which of the following statements to be true regarding this market?
A) Brazil, a democracy, welcomes foreign investors.
B) Censorship issues in Brazil are highly complex.
C) Brazil is currently the world’s fifth-largest economy.
D) The relations between the United States and Brazil are complicated due to the fall of Brazil’s
economy.
E) Brazil holds the status of one of the slowest developing economies in the world.
105) Which country is Europe’s largest Internet market, with Internet users growing at a rate of
10 percent annually?
A) Great Britain
B) Spain
C) France
D) Germany
E) Russia
106) A U.S. firm is analyzing its business prospects in China. Marketing executives understand
which of the following to be true of this potential market?
A) China’s leadership, which maintains communist political ideals, has rejected market-oriented
economic development.
B) Recent developments in China have led to dramatically decreased living standards and levels
of personal freedom.
C) China maintains a thriving retail market, despite the slowing growth of its gross domestic
product.
D) China’s economy has recently seen a substantial decrease in its Global Retail Development
Index (GRDI).
E) China’s population has been aging due to its one-child policy but this is not expected to have a
significant impact on its economy.
107) Which country has embraced market-oriented economic development in spite of
maintaining communist political ideals?
A) Brazil
B) Russia
C) Iran
D) China
E) Afghanistan
108) Which country has a rapidly aging population due to its one-child policy?
A) Brazil
B) Russia
C) India
D) China
E) Japan
109) Once a firm has done an analysis of the most viable markets for its products, then it must
next
A) determine the competition and develop strategies to overcome it.
B) conduct an internal assessment of its capabilities.
C) conduct an external analysis of the target market’s economy, culture, and regulatory barriers.
D) develop a product to meet the needs of those markets.
E) achieve success with the product in its home market.
110) Mary wants to sell her products in Europe, since they are doing well in the United States.
She does not have a lot of capital and is risk-averse, so she most likely would choose to begin
with
A) opening a franchise.
B) exporting her products.
C) forming a strategic alliance with another company.
D) entering a joint venture with a local firm.
E) making a direct investment in another country.
111) Franco wants to start a business in his home city of Madrid, Spain. He does not have an
existing firm or a product, and he doesn’t have a lot of capital, but since he loves Five Guys food,
he decides to
A) open a Five Guys franchise.
B) directly invest in Five Guys.
C) export Five Guys products to other countries.
D) form a strategic alliance with Five Guys.
E) form a joint venture with Five Guys.
112) Sydney’s Emporium has 59 stores in the United States and wants to expand globally.
Sydney’s wants to achieve the highest possible returns, and is not concerned about pursuing a
high-risk strategy as long as it maintains complete control over its stores. The best global entry
strategy for Sydney’s is most likely
A) exporting.
B) a strategic alliance.
C) a joint venture.
D) direct investment.
E) franchising.
113) When Porsche filmed an advertisement in which its vehicles ran over the Great Wall of
China, Chinese consumers were left more confused than intrigued. To address or avoid such
issues, one important cultural classification scheme that firms can use is Geert Hofstede’s
cultural dimensions concept. Hofstede proposes that cultures differ on all of the following
dimensions except
A) collectivism.
B) individualism.
C) masculinity.
D) time orientation.
E) indulgence.
114) If you visit a Kentucky Fried Chicken restaurant in China, you will find on its menu not
only KFC’s regular items, but also congee, a rice porridge that can feature pork, pickles,
mushrooms, and preserved egg. This is an example of which global product strategy?
A) sell the same products in both the home country market and the host country
B) sell only products native to the home country
C) sell a product similar to that sold in the home country, but include minor adaptations
D) sell only products native to the various global markets
E) sell totally new products or services
115) According to Hofstede‘s cultural dimensions concept, which BRIC country posts high
scores in the dimension of power distance?
A) Brazil
B) Russia
C) India
D) China
E) Iran
116) Gandolph’s Tires sells the same tire globally, but it uses different advertisements based on
the country and culture. This is an example of
A) cultural shift.
B) glocalization.
C) ethnic sensitivity.
D) promotional flex.
E) unethical marketing practices.