1) Toyota Production system (TPS), as the Japanese company’s manufacturing methods
are known, achieves efficiencies by following a lean production system.
2) In 1994, the Chinese government banned tobacco advertising from television, radio,
newspaper, magazine, and cinema ads.
3) “Convergence” is a term that describes a world in which the telecommunications,
consumer electronics, computer, and entertainment industries are entering each others’
markets.
4) Price floor and price ceiling are two basic factors which determine the boundaries
within which prices should be set.
5) In China, McDonald’s is careful not to advertise prices with multiple occurrences of
the number four since, in Cantonese, the pronunciation of the word four sounds similar
to that of the word death.
6) Despite an unmistakable trend toward using global advertising agencies to support
global marketing efforts, companies with geocentric orientations will adapt to the global
market requirements and select the best agency or agencies accordingly.
7) “Piggyback exporter,” “cooperative exporter,” and “export vendor” are all terms used
to describe an export broker.
8) Channel strategy in a global marketing program must fit the company’s competitive
position and overall marketing objectives in each national market.
9) Marketers in Gillette’s Parker Pen subsidiary are confident that consumers in
Malaysia and Singapore shopping for an upscale gift will buy the same Parker Pen as
Americans shopping at Neiman Marcus.
10) Sony introduced Walkman first as “Soundabout.” Two months later it went on sale
in the United Kingdom as “Stowaway” and then came out as “Walkman.” Thus, Sony
managers found themselves losing sales because they had three different names for the
same item.
11) Prior to the economic crisis of 1997-1998, the south Korea’s “chaebol” had become
bloated and heavily in debt.
12) When marketers refer to “fast-food culture”, or “credit-card culture” they are
referring to a cosmopolitan culture which is comprised of various segments of the
population which are interconnected by information technology.
13) About 13% of the world population is included into the low-income economic
countries category as per the World Bank classification system.
14) According to the recent import regulations in the United States, action figures that
represent non-human creatures such as monsters or robots are categorized as toys and
qualified for lower duties than human figures that are classified as dolls.
15) Claude Shannons technical report led to his pioneer work for which he is regarded
as the inventor of:
A) the transistor
B) the spreadsheet
C) the information theory
D) the silicon chip
E) the Internet
16) According to percent market share of top ten apparel exporting countries to the
United States, which country ranked as number one in 2010?
A) Taiwan
B) China
C) Mexico
D) India
E) Honduras
17) Masterfoods USA, a unit of Mars, Inc., invited consumers in 200 countries to their
Global Color vote promotion. Participants were asked to vote whether a new M&M
candy should be purple, aqua, or pink. Purple won. This is an example of:
A) promotion of different colors for marketing
B) lack of interesting colors in current M& M candy
C) people in different countries prefer different colors
D) purple color is the most popular color worldwide
E) sales promotion by global marketer
18) Ericsson, IKEA, Saab, and other companies based in Sweden have looked beyond
their borders for significant growth market because:
A) Sweden has high total annual income
B) Sweden has low total annual income
C) Sweden has a smaller population
D) Sweden is land locked geographically
E) Sweden has relaxed export policies
19) Transnational companies, such as Toyota and Honda, have characteristic features
that include:
A) being in both global markets and utilizing global supply chains
B) characterized by a mind-set of being ‘stateless”
C) using both localized and standardized elements in marketing programs
D) decisions made on the basis of ongoing research
E) all of the above
20) “Cloud computing” is different from currently available technologies in all of the
following aspects except:
A) it is performed “in the cloud”
B) applications are delivered through Web browser
C) it is installed in the computers hard drive
D) computer files can be accessed remotely
E) archives are stored on massive remote servers
21) Companies like Coca-Cola had the first-mover advantage since they were the first
company to enter a global market. However, there are also first-mover disadvantages
which include:
A) best chance of becoming world leader
B) advantage in adapting to the local culture
C) lead in advertising and promotion exposure
D) gain business experience
E) substantial investments in marketing
22) If the dollar, the yen, or the euro becomes seriously overvalued, a company with a
production capacity in other locations can achieve competitive advantage by:
A) buying different currencies before major fluctuations take place
B) conducting transactions in different currencies of the world
C) shifting production among different sites
D) cutting down production and waiting until the currency rate is reasonable
E) reducing production and labor force simultaneously
23) An irrevocable letter of credit transfers the payment obligation for an export deal
from the buyer to the buyer’s ________.
A) in-house export organization
B) bank
C) freight forwarder
D) credit union
E) checking account
24) In which country are global marketers likely to encounter the most restrictions on
advertising?
A) United States
B) Japan
C) Saudi Arabia
D) Russia
E) Germany
25) Primary stakeholders include all of the following except:
A) top management
B) employees
C) media
D) suppliers
E) customers
26) Chinese authorities ratified the WHO’s Framework Convention on Tobacco
Controls; which means:
A) Chinese TV can show tobacco ads only after midnight.
B) tobacco companies cannot show ads on TV but can sponsor sports events
C) all forms of tobacco promotion and sponsorships will be phased out by the year 2010
D) tobacco companies can use sponsorships of health and sporting events
E) tobacco companies can sponsor China’s national soccer tournament after the year
2010
27) Which of the following nations fall in the lower-middle-income category?
A) Burundi
B) Bangladesh
C) China
D) Venezuela
E) none of the above
28) Diageo PLC, V&S Vin & Spirit AB, and Seagram and other marketers know that
Russians consume a great deal of vodka. This type of market segmentation can be
classified as:
A) demographic
B) behavioral
C) psychographic
D) occupational
E) benefit
29) As a general rule, the Chinese government allows foreign companies to participate
in its market only if those companies agree to establish operations with local Chinese
enterprises. Which market entry mode would be the appropriate choice under these
circumstances?
A) acquisition
B) licensing
C) joint venture
D) exporting
E) franchising
30) The direct exchange of goods or services between parties in lieu of monetary
payment is known as:
A) barter
B) switch trading
C) offset
D) compensation trading
E) counterpurchase
31) Which automaker owns an equity stake in Japan’s Nissan Motor?
A) GM
B) Volkswagen
C) Ford
D) DaimlerChrysler
E) Renault
32) Based on the total annual units sold in the worldwide market, the leading product
category is:
A) flat-panel TV sets
B) cigarettes
C) cell phone handsets
D) cars and light trucks
E) HDTV sets
33) Which of the following best sums up the experience of Walt Disney Company
executives when creating Disney’s theme park in Paris?
A) They were guided by the “think global, act local” principle
B) They fell victim to the self-reference criterion
C) They exhibited a geocentric management orientation
D) They miscalculated the rate of diffusion of innovations in Europe
E) They had an unbiased perception of existing culture in Europe
34) Which of the following assumptions does not belong in a list of characteristics of
lean production?
A) labor is more costly than machines
B) set up time can be reduced
C) minimize inventory to cut costs, waste
D) maximize backwards integration
E) inspection to prevent defective production
35) Categories of political risk listed by EIU (The Economist Intelligence Unit)
includes all of the following except:
A) war
B) political turmoil
C) bureaucracy
D) corruption
E) crime
36) Danes generally are not afraid of taking chances; they are comfortable doing things
that are not carefully thought out or planned. Denmark’s “flexicurity” policy combines
free labor markets with adjustable welfare benefits. This is an example of the
application of Hofstede’s typology under the values which highlight:
A) Future Orientation
B) Uncertainty Avoidance
C) Gender Differentiation
D) Power Distance
E) Individualism/Collectivism
37) Which of the following establishes classification numbers that must be used by
importers and exporters?
A) NTR
B) CVD
C) FSC
D) NTB
E) HTS
38) Some of the world’s most memorable advertising campaigns have achieved success
because they originate from an idea that is so big that the campaign offers opportunities
for a seemingly unlimited number of new executions. Such a campaign is said to have:
A) “life”
B) “legs”
C) “love”
D) “fun”
E) “toes”
39) Based on 2009 projections, the top ten nations ranked by per capita income do not
include:
A) United States
B) Japan
C) Russia
D) Spain
E) Italy
40) OPEC can be considered as a cartel which is a group of separate companies that
collectively:
A) sets prices, controls output, or takes other actions to maximize profits
B) dictates how other countries should use their products
C) produces more products in order to beat the competition
D) conducts activities that are considered illegal in United States
E) works on forming a union against management of other companies
41) Based on the size of the market in US dollars, the second highest consumer
products are:
A) luxury goods
B) cell phones
C) cigarettes
D) bottled water
E) recorded music
42) Which of the following is not in the top five of the world’s most valuable brands
according to a 2010 rankings?
A) Sony
B) Microsoft
C) Coca-Cola
D) GE
E) Nokia
43) The feasibility of targeting a particular market segment can be negatively impacted
by various factors which does not include:
A) regulatory hurdles
B) cultural barriers
C) lack of distribution system
D) time required to establish business
E) surplus demand
44) Which of the following methods of financing would be used if the exporting and
importing parties had a strong, long-standing relationship?
A) documentary credit (letter of credit)
B) documentary collection
C) cash in advance
D) sales on open account
E) bank draft
45) Toyota buys on a regular basis from its subsidiaries. How is the pricing of different
products handled? What is the significance of such transactions in global marketing?
46) Companies are faced with the decision whether to expand by seeking new markets
in existing countries or seeking new country markets for already identified and served
market segments. Faced with these situations, what are the strategies that can be
followed?
47) What are the market entry expansion strategies which are available to retailers that
wish to cross borders? Describe these strategies in detail.
48) In India, 60 million middle-class men and women earn more than $275 per month.
The segment is growing rapidly and is expected to increase to 73 million by 2010.
Young consumers are buying international brands and the economy is strong. India is
also the world’s fastest growing cell phone market. The industry is expanding at a rate
of 50% annually, with 5 million new subscribers added every month. Still, barriers
originating in the political and regulatory environments have shackled private-sector
growth. Considering all of the above-mentioned aspects, is the market segment large
enough for a company to utilize the opportunity and make a profit? Does it have enough
potential for future growth to make it attractive for any company to pursue a long-term
strategy?
49) What are the assumptions about mass production compared to Toyota Production
system?
50) Companies entering emerging markets for the first time must exercise particular
care in choosing a channel intermediary. Generally, a local distributor is required. What
are some of the guidelines that should be considered in selecting a distributor in order to
avoid any problems?
51) What are customs duties? How do they work in controlling imported goods?
Discuss in light of the different categories of customs duties.
52) It is reported that packaging aesthetics are important to Japanese. What are
aesthetics and why are those important considerations in global product marketing?