48) Herbie recently read that Crane Airways of Japan, Kestrel Airlines of Germany, Heron Air of
Australia, and Egret Airways of India have code sharing partnership, which allows passengers to
fly on any of the airlines, share frequent flyer miles, and give each other logistical support.
Herbie had just learned in his Global Marketing class that this arrangement is known as a(n)
________.
A) franchising
B) strategic alliance
C) green field project
D) acquisition
E) licensing
49) Arthur’s Auto Parts Inc. wants to enter the Russian market. Russian law prevents foreign
entities from owning a majority position in a company there. The best method of entry for
Arthur’s is most likely ________.
A) merger
B) joint venture
C) acquisition
D) franchising
E) direct foreign investment
50) Many countries restrict marketing to children more severely than in the United States. A firm
considering direct foreign investment would report this finding under the heading of ________.
A) technology transfer
B) legal issues
C) transaction costs
D) marketing communication barriers
E) product differentiation
51) The value of the Japanese yen has fluctuated widely during the 2000s compared to the U.S.
dollar. A firm considering direct foreign investment would report this finding under the heading
of ________.
A) timing
B) legal issues
C) transaction costs
D) marketing communication barriers
E) product differentiation
52) NaviCal Inc., a personal navigation system company, has contracted its manufacturing to a
firm in Malaysia for five years. NaviCal had high financial growth, and it wants to purchase the
manufacturing facility. This market entry method is called ________.
A) franchising
B) strategic alliance
C) joint venture
D) direct foreign investment
E) licensing
53) The primary organizational patterns employed by organizations around the world are
________.
A) highly decentralized, decentralized, and centralized
B) highly centralized, centralized, and decentralized
C) regionalized, highly regionalized, and centralized
D) decentralized, centralized, and regionalized
E) regionalized, moderately decentralized, and centralized
54) When local government relationships are critical to the success of international operations,
the best organizational structure for a firm would be ________.
A) targeted organization
B) global product lines
C) geographic regions
D) hybrid or matrix
E) multinationals
55) In the context of organizational structures, most companies today use some form of
________ structure that encourages regional autonomy while building product competence in
key areas around the world.
A) targeted organization
B) global product lines
C) geographic region
D) matrix
E) multinational
56) Coca-Cola changes the taste of its soft drinks to meet local market preferences. This is an
example of ________.
A) direct product extension
B) product adaptation
C) backward product invention
D) product invention
E) hybrid products
57) Bistrone corn canned soup was made expressly for the Japanese market by Coca-Cola Japan.
This is an example of ________.
A) direct product extension
B) product adaptation
C) backward product adaptation
D) product invention
E) hybrid products
58) Outdated cell phones used in Europe or Asia have been introduced into the Latin American
markets that don’t have more updated models. This is an example of ________.
A) forward extension
B) product adaptation
C) backward invention
D) product extension
E) hybrid products
59) In the context of identifying specific consumer trends, ________ is not a product issue for
international consumer marketers.
A) brand strategy
B) country-of-origin effect
C) quality
D) fitting the product to the culture
E) manufacturing
60) Coca-Cola introduced a new product called Diet Coke in Japan. Sales of this product were
low in the initial stages because Japanese women associated the word diet with weakness;
however, changing the name of the product from Diet Coke to Coke Light proved effective.
Which of the following product issues affected the sales of Diet Coke in this scenario?
A) brand strategy
B) country-of-origin effect
C) quality
D) fitting the product to the culture
E) manufacturing
61) Ford Motor Co. introduced its automobile called Nova in Mexico. It faced difficulty in
selling the car because “Nova” in Spanish means “It doesn’t go.” This illustrates a problem with
________.
A) brand strategy
B) country-of-origin effect
C) quality
D) fitting the product to the culture
E) manufacturing
62) People around the world prefer Swiss watches over watches manufactured in other countries.
In the context of product issues, which of the following best describes the customer’s perception?
A) brand strategy
B) country-of-origin effect
C) quality
D) fitting the product to the culture
E) manufacturing
63) Steve wants to gift a box of chocolates to his best friend. He walks into a store and buys
Belgian chocolates because his friend once mentioned that they are the best in the world. This is
an example of how consumers respond to ________.
A) brand strategy
B) country-of-origin effect
C) quality
D) fitting the product to the culture
E) price
64) In the context of market channels, the use of local distribution networks to reach target
customers is identified in the ________ channel factor.
A) cost
B) coverage
C) character
D) continuity
E) control
65) Which of the following channel strategies helps in increasing the efficiency of local
distribution systems by eliminating unnecessary middlemen?
A) cost
B) coverage
C) character
D) continuity
E) control
66) Well-established distributors in a marketing channel often have relationships with
competitors. In the context of market channels, which of the following channel strategies
corresponds to this issue?
A) capital
B) coverage
C) character
D) continuity
E) control
67) Aligning the firm’s philosophy with that of a potential channel partner would be identified in
the channel strategy of ________.
A) cost
B) coverage
C) character
D) continuity
E) control
68) Most global marketers rely on local distribution networks in foreign markets. This is because
it is very expensive to build a company’s own distribution network in a foreign market. This
issue can be identified in the channel strategy of ________.
A) change
B) coverage
C) character
D) continuity
E) control
69) PepsiCo and Coca-Cola sponsor traveling carnivals in rural Latin America to encourage
product trial. This element of marketing communications is called ________.
A) advertising
B) personal selling
C) sales promotion
D) public relations
E) direct marketing
70) The task of handling crises and giving the company’s perspective to news organizations
belongs in the ________ element of marketing communications.
A) advertising
B) personal selling
C) sales promotion
D) public relations
E) direct marketing
71) Jason went to an automobile dealership to buy a car, and he spent two hours talking to an
employee about options. This element of marketing communications is called ________.
A) advertising
B) personal selling
C) promotion
D) public relations
E) direct marketing