After Fidel Castro took power in Cuba in 1959, his government seized control of
American property without paying compensation. Coca-Cola, DuPont, Texaco, and
dozens of other American companies have filed claims against Cuba seeking financial
settlements. Which of the following terms most specificallydescribes the action Castro
took against these companies?
A) nationalization
B) confiscation
C) expropriation
D) internationalization
E) deportation
Which of the following can be defined as a business philosophy that values two-way
communication between a company and individual customers?
A) ECR
B) CRM
C) EDI
D) EPOS
E) BOLD
In order to prevent a licensor-competitor from gaining unilateral benefit, licensing
agreements should provide for:
A) contract manufacturing.
B) franchising.
C) cross licensing.
D) strategic decision making.
E) adaptation for local tastes.
What happens if a nation has allowed a case against it to be brought before the ICJ
(International Court of Justice) and then refuses to accept a judgment against it?
A) American Arbitration Association can be sought for justice.
B) UN Conference on International Trade Law can be approached.
C) International Chamber of Commerce will be another source for seeking justice.
D) European Court of Justice can be approached if the country is in the European
Union.
E) The plaintiff nation can seek recourse through the UN Security Council.
Despite the positive publicity, the phrases used to describe the arbitrary exercise of state
power in Russia include all of the following except:
A) state capitalism.
B) political culture.
C) renationalization.
D) kleptocracy.
E) managed democracy.
In Southern China, McDonald’s is careful not to advertise prices with multiple
occurrences of the number 4 because:
A) prices ending in odd numbers are preferred in China.
B) there is no number four in the Chinese language.
C) the word four is pronounced similar to the word death in Cantonese.
D) multiple occurrences are considered as unlucky in China.
E) prices are not included on menus in China.
Departmentalized, single-story retail establishments that offer food and nonfood items,
mostly on a self-service basis are called:
A) Specialty retailers.
B) Supermarkets.
C) Convenience stores.
D) Discount retailers.
E) Hyper markets.
Political and social instability in the Middle Eastern region can primarily be attributed
to:
A) desert conditions and lack of agricultural land.
B) cultural differences among nations.
C) a wide gap between rich and poor nations due to oil revenues.
D) lack of water purification facilities.
E) the “Arab Spring.”
Alcatel-Lucent, the French telecommunications equipment manufacturer, has launched
a service that sends tailored text messages when smartphone users are near a specific
location, such as a store, hotel, or restaurant. This capability can help in all of the
following ways except:
A) text messages can be sent to smartphone users who are in the vicinity.
B) offering special deals to smartphone users who happen to be in the vicinity.
C) promoting mobile campaigns which will reach smartphone users.
D) obtaining demographic information about the smartphone users.
E) locating smartphone users for delivering products or services.
Which of the following is not in the top five of the world’s most valuable brands
according to 2012 rankings?
A) Sony
B) Microsoft
C) Coca-Cola
D) GE
E) Nokia
Market capitalism is an economic system in which:
A) individuals and firms allocate 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.
Packaging aesthetics are particularly important to the ________ consumer.
A) Indian
B) Japanese
C) French
D) German
E) American
Consumers shopping for high-touch products, such as fine perfume, are generally
energized by ________ motives.
A) emotional
B) rational
C) both emotional and rational
D) neither emotional nor rational
E) high-tech
The top ranked country among those exporting to the United States is:
A) Taiwan.
B) China.
C) Mexico.
D) India.
E) Honduras.
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.
When companies operate abroad in the absence of home-country legal constraints, the
best choice for ethical conduct would be:
A) to ignore bribery and act as if it does not exist.
B) to maintain home-country ethics worldwide with no adaptations.
C) to abandon any attempt to maintain company ethics.
D) to have a product that is clearly superior to that of the competition.
E) to adapt in varying degrees to local customs and practices.
Which of the following is true of the arbitration framework created by the New York
Convention?
A) Signatory countries can require parties to an arbitration agreement to actually use
arbitration.
B) Signatory countries recognize and can enforce arbitration judgments.
C) There are limited grounds for appealing arbitration decisions.
D) The grounds that are recognized are different than the typical appeals that are
permitted in a court of law.
E) all of the above
Which of the following is not true of secondary data about global markets?
A) It was not gathered specifically for the research project at hand.
B) It is often so expensive that small companies can’t afford to use it.
C) It can be accessed quickly.
D) A great deal is available from government agencies.
E) It cannot be retrieved online.
Industry observers expect the popularity of home shopping to increase during the next
few years due to the:
A) formation of European Union.
B) economic development in India.
C) introduction of interactive television.
D) introduction of iPhone.
E) introduction of TV shops.
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.
In the post-September 11 business environment in the United States, imports have come
under increased security. One of the initiatives taken in the interest of national security
is:
A) NAFTA.
B) C-TPAT.
C) WTO.
D) NTB.
E) FSC.
An ________ system allows a company’s business units to submit orders, issue
invoices, and conduct business electronically with other company units as well as
outside companies.
A) Internet
B) intranet
C) ECR
D) EDI
E) EPOS
A ban on billboards in Brazil meant they had to come down, including transit ads.
Denied access to traditional outdoor advertising, companies devised a number of
alternative ways to communicate with prospective customers. These ways included all
of the following except:
A) Citibank used the color blue in much of its advertising.
B) ads were placed indoors in elevators.
C) ads were placed in rest rooms and other indoor traffic areas.
D) ads were placed on buses.
E) ads were placed using social media or online channels.
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
“Corporate amnesia” in global partnership is a term which refers to:
A) achieving world leadership by differentiation.
B) short-term goals with no memory on how to compete.
C) a relationship which is short lived.
D) discontinuation of a partnership due to personal chemistry.
E) losing national identity and ideology.
Caterpillar’s attention was focused elsewhere when Komatsu made its first international
entry into the Eastern European Market. Based on the strategic intent framework, this is
an example of:
A) changing the rules.
B) collaborating.
C) comparative advantage.
D) layers of advantage.
E) loose bricks.
An ________ is a company’s private data network, accessible only by authorized
persons inside the organization.
A) EDI
B) Internet
C) intranet
D) EPOS
E) ECR
The advertising promise that captures the reason that people buy products is known as:
A) creative strategy.
B) the advertising appeal.
C) the selling proposition.
D) the creative execution.
E) the big idea.
Consten, a French company, had exclusive rights to import and distribute German
Grundig’s electronic products into France. One of the competitors started bringing
“parallel imports” into France illegally, importing Grundig product bought from a
foreign supplier. Which of the following does not represent an action taken by different
legal bodies?
A) Consten’s complaint was upheld by two French courts.
B) The Paris Court of Appeals suspended the judgment of the French courts.
C) The Paris Court of Appeal’s judgment was based on pending a ruling by the
European Commission.
D) The European Commission ruled against Consten on the grounds that territorial
protection proved to be damaging to the Common Market.
E) The European Commission ruled that German Grundig was in violation of the laws
of the Common Market.
The retail environment in developing countries presents challenges for marketing
nonperishable items. In Mexico, Proctor & Gamble, Unilever, Colgate-Palmolive, and
other global consumer product companies use ________ for their products.
A) door-to-door selling
B) buy-in-bulk selling
C) mom-and-pop stores
D) franchised stores
E) manufacturer-owned stores
A global segment is referred to as “global teens” which includes:
A) people between the ages of 12 and 19.
B) affluent, well-traveled persons.
C) young, global travelers.
D) technology professionals.
E) persons having power.
Harley-Davidson celebrated its 110th anniversary in 2013. The company grew
impressively during its century of operations. All of the following mentioned facts
regarding the company are true except:
A) the company’s international success came after years of neglecting overseas markets.
B) the company reacted swiftly to a growing threat from Japanese manufacturers.
C) early on, the company used an export-selling approach.
D) early on, it had an underdeveloped dealer network.
E) after the 1980s, they recruited dealers in the important Japanese markets.