1) Recently, China, India, Brazil, and the EU have taken the position that since the
Internet is global, no single country should be in control.
2) The essence of marketing strategy is successfully relating the strengths of an
organization to its environment.
3) Both Gillette and Ericsson reorganized themselves into matrix organizations.
4) The Fly American Act is an example of a nontariff barrier.
5) The term “polycentric” describes management’s belief or assumption that each
country in which a company does business is unique.
6) Upper-middle-income countries, also known as industrializing or developing
countries, are those that achieve the highest rates of economic growth and are also
collectively referred to as Newly Incoming Economies or NIEs.
7) About 50% of global trade takes place among nations linked by free trade areas.
8) An important trend in the use of information technology is “paid search advertising,”
whereby companies pay to have their ads appear when users type certain search terms.
9) Hypermarkets are a hybrid retailing format combining the discounter, supermarket,
and warehouse club approaches under a single roof.
10) In order to convey the sense of the country of origin it is advisable to use the same
background music in broadcast commercials in all parts of the world.
11) Advocacy advertising enhances the public’s perception of a company, creates
goodwill, or announces a major change.
12) The antiglobalization movement constitutes an important primary stakeholder for
global companies.
13) 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
14) Which of the following is not true of Japanese keiretsu?
A) promotes risk sharing
B) promotes long-term employment
C) ensures low prices for Japanese consumers
D) blocks foreign suppliers from the Japanese market
E) relationships are cemented by bank ownership
15) Coupons are not a favorite promotion tool for use in:
A) the United Kingdom
B) Belgium
C) the United States
D) Italy
E) Malaysia
16) Building layers of advantage, searching for loose bricks, changing the rules of
competitive engagement, and collaborating are elements of Hamel and Prahalad’s
framework for:
A) quality advantage
B) positioning
C) competitive innovation
D) marketing management
E) innovation leadership
17) ________ are licensed specialists in traffic operations, customs clearance, and
shipping tariffs and schedules. They can be considered as the travel agents for handling
export goods.
A) Foreign purchasing agents
B) Export brokers
C) Export merchants
D) Freight forwarders
E) Cooperative exporters
18) In the United States, the Foreign Corrupt Practices Act (FCPA) is a legacy of the
Watergate scandal during Richard Nixon’s presidency. Administered by the Department
of Justice and the Securities and Exchange Commission, the act is concerned with
disclosure and prohibition. What is this law concerned with, and why is it a subject of
criticism by many?
19) Packaging is an important consideration for products that are shipped to markets
worldwide. Which of the following statement related to packaging is not true?
A) Nestle’s worldwide network of packaging teams contributes packaging 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) Nestle asked suppliers to find a glue to make the clicking sound louder when a tube
of Smarties brand chocolate candies are unwrapped
20) 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”
21) Italy recently introduced the Reguzzoni-Versace Law which is intended to regulate
trade in textiles, leather, and footwear. All of the following statements pertaining to the
law are correct except:
A) at least four stages of production should occur in Italy for the product to be labeled
as “Made in Italy”
B) the countries in which the remaining production stages took place must be identified
C) Brussels objected on grounds that the law conflicts with restrictions provided by the
European Union
D) EU regulators view the law as “protectionist”
E) the law is more stringent than the existing laws where only one production stage has
to occur in the country of origin
22) 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
23) Which of the following was a major U.S. tax incentive for exporters that the WTO
recently ruled was an illegal subsidy?
A) NTR
B) CVD
C) FSC
D) NTB
E) HTS
24) 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
25) Another perspective on the future of cooperative strategies envisions the emergence
of:
A) mergers and acquisition
B) virtual corporations
C) franchising
D) joint ventures
E) keiretsu
26) The Common Agricultural Policy (CAP) determines the level of subsidies granted
to farmers in Latin America.
27) Campbell is the world’s largest soup company, commanding about 80% of the U.S.
canned soup market. However, the company has a presence in only 6% of the world’s
soup markets. Russians eat 32 billion servings of soup each year, and the Chinese
consume 300 billion! By contrast, Americans eat 15 billion servings each year. Sensing
a huge opportunity, Campbell has dispatched teams to observe Russian and Chines
habits. This type of interpretation and decision is based on:
A) demand pattern analysis
B) income elastic analysis
C) time series displacement
D) polycentrism
E) comparative analysis
28) The United States has more lawyers than any other country in the world and is
arguably the most litigious nation on earth. This is a reflection of:
A) the lack of class action lawsuits
B) the low-context nature of the American culture
C) the lack of spirit of confrontational competitiveness
D) the fact that lawyers cannot undertake cases on contingency fee basis
E) the fact that conflicts arise more in the United States
29) Which of the following offers a company the best assurance of being paid for
exported goods?
A) a letter of credit
B) a “piggyback” arrangement
C) a swap
D) an in-house export organization
E) a certified check
30) A recent global campaign for IKEA, the Swedish home furnishings retailer,
positioned houses as homes a place for love, memories, and laughter. This is a classic
example of:
A) emotional appeal
B) rational appeal
C) selling proposition
D) advertising appeal
E) creative appeal
31) Which of the following shows the correct order of the product adoption process?
A) evaluation->trial->awareness->interest->adoption
B) trial->interest->evaluation->awareness->adoption
C) interest->awareness->adoption->trial->evaluation
D) awareness->interest->evaluation->trial->adoption
E) adoption->evaluation->trial->interest->awareness
32) When Mattel first introduced Barbie in Japan, managers assumed that Japanese girls
would find the doll’s design just as appealing as American girls did. This may be due to:
A) Barbie’s physical features such as long legs and blonde hair
B) Barbie being a symbol of American lifestyle
C) the SRC tendency on the part of American managers
D) the SRC tendency on the part of Japanese consumers
E) the limited competition for dolls in Japan
33) 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
34) GSPs (Global Strategic Partnerships) are attractive for several reasons which do not
include:
A) sharing high product development costs
B) sharing technological developments
C) securing access to national and regional markets
D) continuous transfer of technology between partners
E) focus on a single national market or a specific problem
35) McDonald’s restaurants are found in more than 118 countries. To ensure high levels
of consistency and quality, the company’s far-flung restaurant system incorporates many
standardized elements (e.g. restaurant design, burgers/fries/soft drinks as basic menu
offerings). However, McDonald’s also prides itself on sourcing many of its food inputs
(e.g. potatoes and dairy products) in individual host countries. McDonald’s strives to be
locally responsiveit creates new menu items specifically designed with local eating
customs and preferences in mind. Typically, McDonald’s forms joint ventures with local
partners, a tactic that ensures that a local “face” is associated with the company. Finally,
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
36) 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
37) Which of the following is not a characteristic of global strategic alliances?
A) Participants maintain independence outside the framework of alliance
B) Participants share benefits of the alliance
C) Participants share control over the performance of the assigned tasks
D) Participants make ongoing contributions in technology, products, and other areas
E) Participants agree not to compete in areas unrelated to the alliance
38) Marketers must be aware of the impact of SRC and other cultural assumptions
since:
A) it can have several positive effects on market planning
B) it enhances management’s willingness to pursue market research
C) it can help ensure that the research effort is designed with minimal home-country
bias
D) it can help ensure that the research effort is designed with minimal second-country
bias
E) All of the above are correct
39) The domain name for Amazon company in Germany is:
A) Amazon.co.ge
B) Amazon.co.de
C) Amazon.de
D) Amazon.gy
E) Amazon.gr
40) Sony Ericsson is a ________ Sweden’s Telefonaktiebolaget LM and Japanese
consumer electronics giant Sony Corporation.
A) joint venture between
B) licensor for
C) licensee for
D) franchisee for
E) franchisor for
41) Boeing has reorganized its commercial transport design and manufacturing
engineers from functional lines into a matrix organization. This new design is expected
to have all but one of the following benefits:
A) lower costs and quicken updates
B) facilitate problem solving
C) unite engineering and manufacturing processes
D) provide customer contacts
E) enhance product consistency
42) 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
43) 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
44) 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 diapers represent?
A) a continuous innovation
B) a dynamically continuous innovation
C) a discontinuous innovation
D) a platform-based innovation
E) none of the above
45) Measured by national income, the United States represents the world’s largest single
market for goods and services. Roughly what percentage of world income is found
outside the U.S.?
A) 25%
B) 50%
C) 75%
D) 95%
E) 35%
46) Why does NAFTA create a free trade area as opposed to a customs union or a
common market? Explain the difference giving examples.
47) What are some of the pitfalls in assessing market potential and choosing target
markets or segments?
48) Joint ventures are becoming very popular as entry mode into foreign markets. Why
is this strategy so attractive to companies interested in entering other markets in the
world?
49) Direct marketing and mass marketing are becoming a very popular method for
communicating with consumers. Giving reasons for their worldwide popularity, show
the differences between direct and mass marketing.
50) Authors Michael Czinkota and Ilka Ronkainen identified four specific
environmental factors that may require international research efforts to be conducted
differently than domestic research. Describe those factors to outline the differences.
51) What are “interdependence techniques” in the analysis of data? What type of
measurement is possible with this technique, and what are different methods that are
used in marketing research?
52) How do specialty retailers differ from “hypermarkets,” ‘supercenters,” and
“convenience stores”? Why are some businesses called “category killers”?
53) If a label on a product states “Made in Thailand,” and a similar product has a label
“Made in Germany,” then why do consumers consider the latter to be better than the
former? What different does a label make in the perception of a consumer?