1) A useful way of gaining insight into competitors is through industry analysis.
2) Penetration prices often mean that the product may be sold at a loss for a certain
period of time.
3) Under the HTS, only U.S. exports valued at more than $2,500 are counted in export
statistics.
4) Music represents a “transculture” that cannot be identified with any particular nation
since rhythm is a universal aspect of music.
5) There is general agreement that the matrix design is the single best organization
structure for global marketing.
6) Unique product attributes represent a barrier to industry entry known as
differentiation.
7) As a practical matter, marketing managers may choose to run both global and local
ads rather than adopt an “either/or” stance.
8) Franchising in a global market is actually a market entry strategy that is typically
executed with less localization than licensing.
9) An exporter that is new to a particular market would do well to choose a middleman
with a reputation for “cherry picking” products.
10) Japan’s Fuji Photo Film Company invested hundreds of millions of dollars in the
United States after the U.S. government ruled that Fuji was guilty of dumping.
11) Distribution channels for automobiles in Japan and the United States are similar in
that most car buyers in both countries visit dealerships before making a purchase.
12) In the case of product placement, the viewers are being marketed to subliminally
without their consent.
13) In 2009, the 10 most populous countries in the world account for just under 50% of
world income; whereas the 10 most populous countries in the world account for roughly
60% of the world’s population.
14) If a foreign company only has a sign board in any state in the United States, then
that company is subject to the jurisdiction of U.S. courts.
15) Companies that cannot formulate or successfully implement a coherent global
strategy may lose their independence.
16) A distinction between industrial and postindustrial countries is that the
postindustrial countries exhibit an orientation toward the future and stress the
importance of interpersonal relationships in the functioning of society.
17) The Buy American Act of 1933, which stipulates that U.S. federal agencies must
buy articles produced in the United States unless domestically produced goods are not
available, is an example of discriminatory procurement policies.
18) 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 specifically describes the action Castro
took against these companies?
A) nationalization
B) confiscation
C) expropriation
D) internationalization
E) deportation
19) The reason why Greece, Ireland, Portugal, and Spain sometimes are referred to as
the eurozone’s “peripheral countries” is:
A) that all have tourist attractions
B) that they are situated in the peripheral parts of Europe
C) that they all rank lower than their EU neighbors in terms of infrastructure
D) that they are riding on the way of technology boom
E) that they are all marred by sex scandals
20) 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
21) Harley-Davidson celebrates its 110th anniversary in 2013. The company has grown
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
22) Industry observers expect the popularity of home shopping to increase during the
next few years due to:
A) the formation of European Union
B) the economic development in India
C) the introduction of interactive television
D) the introduction of iPhone
E) the introduction of TV shops
23) Which of the following would constitute a copyright violation?
A) manufacturing and selling illegal videocassette copies of “Spiderman 2”
B) manufacturing and selling illegal copies of Levi “501” jeans
C) printing and selling illegal copies of Harry Potter books
D) A, B, and C are copyright violations
E) A and B are copyright violations
24) Secondary shareholders include all of the following except:
A) media
B) employees
C) local community groups
D) nongovernmental organizations
E) general business community
25) All of the following activities must be performed when goods cross international
boundaries except:
A) obtaining currency permit, if required
B) packaging the goods for export
C) using cost-based pricing method
D) arranging for ocean freight and preparation
E) obtaining marine insurance and certificate of the policy
26) A company’s efforts to effectively communicate with customers is very important.
All of the following are major difficulties which can compromise an organization’s
attempt to communicate with customers except:
A) the message does not reach the intended recipient
B) the message reaches the intended recipient but is misunderstood
C) the message reaches the intended recipient and is understood, but the recipient may
fail to take action
D) the message is distorted by noise
E) the message is only in one language
27) 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
28) A number of factors combine to make Russia an excellent location for an alliance
which do not include:
A) a well-educated workforce
B) quality is important to Russian consumers
C) abundance of supplies
D) potential for economic growth
E) potential for growth in service sector
29) Which of the following documents represents title to goods in an export
transaction?
A) bill of lading
B) invoice
C) packing list
D) certificate of origin
E) insurance certificates
30) Japan’s Fuji Photo Film asked its advertising agency to develop an advocacy
campaign for the United States targeted to appeal both to Wal-Mart and to its
customers. This is an example of ________.
A) local advertising
B) pattern advertising
C) global advertising
D) advocacy advertising
E) image advertising
31) Under the geographical and product division structures, for the company with
French origins, France is:
A) the headquarter country market
B) simply another geographic market
C) European market
D) divisional market
E) product market
32) Expo 2010 in Shanghai, China was a critical marketing tool for global companies
such as General Motors and Coca-Cola.
33) In West Africa, Burkina Faso, the Ivory Coast and Senegal are former French
colonies, while Nigeria, Sierra Leone, and Ghana are former British colonies. Based on
this information, which of the following would be correct?
A) Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria,
Sierra Leone, and Ghana are common-law countries
B) Burkina Faso, the Ivory Coast and Senegal are common-law countries, while
Nigeria, Sierra Leone, and Ghana are civil-code countries
C) In West Africa, Ivory Coast and Senegal are the only common-law countries
D) All the West African nations mentioned above are likely to be civil-code countries
E) All the West African nations mentioned above are likely to be common-law countries
34) A characteristic of a low-context culture which is prevalent in United States,
Switzerland, and Germany is:
A) less information is contained in verbal communication
B) major emphasis on a person’s values and position in society
C) messages are explicit and specific
D) a person’s word is his or her bond
E) negotiations are long and protracted
35) Any Western country doing business in Malaysia or the Middle East should have
understanding of:
A) the French Civil Code
B) Anglo-Saxon common law
C) Islamic law
D) the Uniform Commercial Code
E) Roman law and the Napoleonic Code
36) Positioning refers to the act of:
A) determining on what points on the globe to target
B) ensuring a choice retail shelf location
C) differentiating a brand in customer’s mind
D) formulating a private label strategy
E) formulating a companion product
37) ________ -commerce is one of the significant marketing opportunities made
possible by the digital revolution.
A) Multinational
B) Mobile
C) Multisegment
D) Marginal-cost
E) Multilingual
38) American Nancy McKinstry recently became the new CEO at Dutch publisher
Wolters Kluwer. As Ms. McKinstry noted, she had to drop the word “aggressive” in
describing her strategic plan to company managers. She said, “I learned that the word
has a negative connotation to a lot of Europeans. I was coming across too hard, too
much of a results-driven American to the people. I needed to get on board so I started
describing our strategy as ‘decisive’ and that made all the difference.” Which of the
following grammar topics is the critical element in this passage?
A) syntax
B) semantics
C) morphology
D) phonology
E) semiotics
39) In today’s dynamic global competitive environment, organizations need to develop
new forms of:
A) ethnocentrism and myopia
B) flexibility, efficiency, and responsiveness
C) export department structure
D) self-reference criterion
E) geographic structure
40) Two decades ago, professor Ted Levitt wrote a classic Harvard Business Review
article titled “The Globalization of Markets.” Which of the following statements about
the author and the article is accurate?
A) Levitt urged companies to adopt products on a country-by-country basis
B) There was universal agreement about his thesis that the world is becoming
homogeneous
C) Levitt urged companies to develop standardized products that could be marketed
worldwide with little adaptation
D) Levitt warned of the coming backlash against globalization
E) Levitt did not recommend developing standardized products
41) The company receiving the most U.S. patents for the year 2009 is:
A) Microsoft
B) Panasonic
C) IBM
D) Toshiba
E) Intel
42) Which of the following does not qualify as a “category killer?”
A) Victoria’s Secret
B) IKEA
C) Home Depot
D) Circuit City
E) Toys “R” Us
43) Basic criteria that marketers should keep in mind while assessing opportunities in
global markets include all of the following except:
A) current size of the market segment
B) anticipated growth potential of the market
C) compatibility with company’s overall objectives
D) competition in the market
E) securing first mover advantage
44) Three of the world’s five largest malls are in Asia.
45) Managers must decide how well a company’s product fits the country market by
asking the following questions except:
A) Will adaptation be required?
B) Will import restriction drive up the product price?
C) Is it advisable to source locally?
D) Will strong home currency have an adverse impact on product price?
E) Will it be possible to neglect home-country regulations?
46) What are Regional Management Centers? What are the advantages of having such
centers in the management of global businesses?
47) What is “Economic exposure,” and how does it impact companies like Nestl,
Daimler AG, Royal Dutch Shell, and Astra Zeneca? Assess the impact of a weaker
dollar on the financial performance of these corporations.
48) According to various statistics, South Korea leads the world in providing its citizens
with access to information and communications technologies. Discuss how Korea could
lead the world in technology and why the United States has taken a relatively slow start,
particularly in spreading the broadband technology.
49) Distribution channels around the world are highly differentiated. However these
differences cannot be explained just by culture and income level of the existing market.
What is the different between organic growth and franchising?
50) What are some of the salient characteristics and differences between high- and
low-context cultures?
51) What is meant by competitive advantage? Explain, giving examples as to how
globalization presents companies with unprecedented opportunities to reconfigure
themselves.
52) Nike provides technical specifications to a subcontractor or local manufacturer for
its products. What is this arrangement called and what are its major benefits and
drawbacks?
53) There are specific characteristics of innovations that affect which innovations are
adopted. Define those characteristics giving examples of products or services.
54) A laptop manufactured in Canada and imported by Chile would not be subjected to
duty. If the same laptop was manufactured in the USA and exported to Chile, it will
have to pay duty. In order to avoid duty, can the manufacturer in the USA send the
computer via Canada?
55) The European Commission recently fined Nintendo nearly $150 million after it was
determined that the video game company had colluded with European distributors to fix
prices. Why is price fixing not considered a good practice? What are different kinds of
price fixings?