1) It will be convenient to do a telephone survey in rural areas in China since, according
to the Ministry of Information Industry reports, 40% of households have at least one
fixed-line telephone.
2) The “Virgin” brand is a global brand with several brand extensions.
3) The transformation of formerly local or national industries into global ones is a part
of a broader economic process of globalization.
4) The globalization of coffee culture has created market opportunities for companies
such as Starbucks.
5) In a country and market concentration strategy, a company serves many markets in a
few countries.
6) Research by Morgan Stanley indicates that the United States is home to more
companies with global competitive advantage than any other country.
7) A company or activity that is somewhat removed from the final customer is said to
be upstream in the value chain.
8) IKEA, the home furnishings retailer based in Sweden, wraps itself in the Swedish
flag literally, since inside and out, their stores are decorated in the national colors of
blue and yellow. This is an example of local consumer culture positioning.
9) In Mexico, Proctor & Gamble operates stores serving single-use quantities at a
relatively high per-use cost, which are known as “high-frequency” stores.
10) One of the advantages of targeting a market segment globally is that although the
segment in a single-country market might be small, even a narrow segment can be
served profitably if the segment exists in several countries.
11) “Switching costs” are one of the barriers to entry in Porter’s five forces model.
12) Tata Motors (India) acquired the following auto company:
A) Volkswagen AG (Germany)
B) Volvo (Sweden)
C) Jaguar (UK)
D) Toyota (Japan)
E) Hyundai (South Korea)
13) Excelsior Corp. launches a new hand-held personal digital assistant (PDA) for busy
corporate executives. The initial retail price is set at $699. One year later, in an effort to
reach a broader market, the price is lowered to $299. Which of the following describes
the pricing strategies used by Excelsior Corp?
A) skimming strategy followed by penetration strategy
B) penetration strategy followed by cost-based strategy
C) penetration strategy followed by skimming strategy
D) penetration strategy only
E) skimming strategy only
14) Three Mexican retailersFamso, Grupo Gigant SA, and Grupo Commercial Chedraui
SA have opened stores in the United States. This is an indication of:
A) U.S. retailers were lagging behind in collecting demographic information
B) the Mexican retailers provide better products than American stores
C) the Hispanic American segments represent a great opportunity for marketers
D) American businesses cannot compete with Mexican retailers
E) the Mexican retailers would like to compete with businesses like Best Buy and
Circuit City
15) The efforts of global companies to reach low-income consumers in emerging
markets highlight the importance of skillful global market segmentation and targeting.
Market segmentation represents:
A) targeting prospective customers
B) finding customers who can respond to advertisement
C) promoting products and services internationally
D) identifying customers who can help in promoting products
E) an effort to identify and categorize customers based on common characteristics
16) Cadbury, the British confectionary company, estimates that the chocolate market in
India is worth about $465 million per yer compared to annual sales of $4.89 billion in
Britain, which has one-tenth of the population in India.
17) The Middle East and North Africa are sometimes viewed as a regional entity
referred to as:
A) GCC
B) AMU
C) MENA
D) ACC
E) ECOWAS
18) Coca-Cola’s latest packaging innovation is Fridge Pack, a long, slender carton that
holds the equivalent of 12 cans of soda. This pack fits into refrigerator’s lower shelf and
is convenient for use by global consumers.
19) According to Michael Porter, a global industry is one in which ________ can be
achieved by integrating and leveraging operations on a worldwide scale.
A) marketing mix
B) competitive advantage
C) cross border infiltration
D) ration analysis
E) production capability
20) A decade ago, a number of countries in Central Europe, Latin America, and Asia
were expected to experience rapid economic growth. Today much attention is focused
on opportunities in Brazil, Russia, India, and China. Give reasons for this shift using an
example of a manufacturer.
21) The furniture industry has become one of the fastest-growing sectors of China’s
economy. Furniture imports are flooding into the United States from China. This can be
attributed to:
A) the quality of furniture is better than that made in Europe
B) American tastes in dcor have changed
C) China’s low labor rates translate into reasonable prices for consumers
D) China can survive tough competition
E) replacement parts are readily available from China
22) In many parts of the world, McDonald’s utilizes TV advertising that shows parents
interacting with their happy children. Such advertising utilizes:
A) rational appeals
B) emotional appeals
C) SRC appeals
D) melodramatic appeals
E) localized appeal
23) Which type of sales person is best suited to selling technologically-sophisticated
products in developed countries?
A) expatriates
B) third-country nationals
C) host-country nationals
D) agents of any nationality
E) none of the above
24) Porter’s four generic strategies for achieving competitive advantage are:
A) price determination, cost leadership, product differentiation, distribution savings
B) cost leadership, product differentiation, cost challenger, product challenger
C) price leadership, product differentiation, price challenger, cost differentiation
D) cost leadership, product differentiation, cost focus, focused differentiation
E) cost leadership, product differentiation, consumer differentiation, focused
differentiation
25) In a recent book, Daniel Yergin and Joseph Stanislaw wrote “It is the greatest sale in
the history of the world. Governments are getting out of businesses by disposing of
what amounts to trillions of dollars of assets. Everything is going from steel plants and
phone companies . to hotels, restaurants, and nightclubs.” This is an indication of:
A) the fact that governments can make more money by selling assets
B) privatization is becoming a driving force for global marketing
C) these businesses are considered as closed markets
D) foreign companies are competing with governments
E) there is less demand for these type of companies
26) In exchange for a pledge to carry at least 40 different Procter & Gamble products,
participating stores receive regular visits from P & G representatives who tidy and
arrange display areas. This motivational program is referred to as:
A) “buy-in-bulk store” program
B) “high-frequency’store program
C) “mom-and-pop” store program
D) ‘shop operators” program
E) “golden store” program
27) Which of the following is not true about a personal visit to size up the market
firsthand and begin the development of an actual export-marketing program?
A) Confirm assumptions regarding market potential
B) Contradict assumptions regarding market potential
C) Gather additional data to help make decisions
D) Develop a marketing plan in cooperation with local agents
E) To have face-to-face meeting and avoid going to trade shows
28) Which of the following incorrectly states the role of banks in import/export
transactions involving a letter of credit (L/C)?
A) The exporter’s bank is the advising and/or confirming bank
B) The importer’s bank is the advising and/or confirming bank
C) The importer’s bank is the advising, confirming, and issuing bank
D) The exporter’s bank is the advising, confirming, and issuing bank
E) The importer’s bank is neither advising nor confirming bank
29) According to Carly Florina, former CEO of Hewlett-Packard, leadership is about:
A) hierarchy
B) title
C) status
D) connecting
E) bragging
30) Engineers at a company in a developing country study an American computer chip
design, copy it, and produce identical chips that are then sold to local computer makers.
What form of intellectual property has been wrongly appropriated?
A) patent
B) copyright
C) trademark
D) trade secrets
E) technological
31) Marketing channels exist to create utility for customers. The major categories of
channel utility include all of the following except:
A) place utility
B) price utility
C) information utility
D) form utility
E) time utility
32) To promote its Centrino wireless chip, Intel launched a global ad campaign that
features different combinations of celebrities. These celebrities were chosen because
they are widely recognized in the key world markets. This type of strategy is referred to
as:
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) product-communication adaptation
E) product invention
33) The effective integration of products and brands with entertainment can be seen on
the TV hit American Idol. This type of trend is referred to as:
A) advertising age
B) traditional advertising
C) global advertising
D) branded entertainment
E) image entertainment
34) The unauthorized distribution of trademarked goods to exploit price differentials in
world markets is known as:
A) market skimming
B) black marketing
C) gray marketing
D) dumping
E) licensing
35) Nike produces only a small portion of its output in China, but when the firm refers
to China as a “two-billion-foot market,” it is referring to the fact that:
A) the Chinese do not wear shoes
B) the Chinese shoe market is very competitive
C) China can develop its own shoe market
D) it will take a long time for China to develop future market
E) China is a potential future market
36) Which country has the biggest market for Amway?
A) Romania
B) Ukraine
C) China
D) Russia
E) India
37) In the tech world, about 90% of the world’s nearly one billion PCs run on
Microsoft’s operating systems and 80% use Intel’s microprocessors. This represents
which aspect of the Porter’s five forces model?
A) bargaining power of suppliers
B) bargaining power of buyers
C) threat of substitute products
D) rivalry among competitors
E) threat of new entrants
38) Suppose Apple has collected extensive survey data about its new iPhone, and
respondents have rated it on twenty different features and benefits. Now researchers
want to reduce the amount of data to a few underlying dimensions. Which data analysis
technique should the researchers use?
A) analogy
B) conjoint analysis
C) factor analysis
D) multidimensional scaling
E) cluster analysis
39) In response to increasing worldwide concerns about obesity, diabetes, and other
food-related health issues, some of the world’s largest food companies are developing
new products. Nestle and Groupe Danone SA have developed several health-foods
which include all of the following except:
A) Souvenaid
B) Activa
C) NutriChoice
D) Nutraceuticals
E) Medical Foods
40) A company adopting a(n) ________ approach to worldwide PR activities gives the
host-country practitioner maximum leeway to incorporate local customs and practices
into the PR effort.
A) ethnocentric
B) regiocentric
C) local
D) polycentric
E) publicity
41) Which of the following is generally true about the marketing of high-touch products
such as fine china and crystal?
A) It relies equally on specialized information and image
B) It relies less on image and more on specialized information
C) It relies less on specialized information and more on image
D) Neither image nor specialized information is relevant to the marketing of high-touch
products
E) It relies partially on specialized information and partially on image
42) As a result of the digital revolution, a variety of companies in all parts of the world
are developing a new generation of products, services, and technologies; which include
all of the following except:
A) broadband network
B) mobile commerce
C) wireless connectivity
D) smart cell phones
E) landline connectivity
43) The cell phone divisions of Toshiba, Sharp, and other Japanese companies
prospered by focusing on the domestic market. When handset sales in Japan slowed a
few years ago, the Japanese companies realized that Nokia, Motorola, and Samsung
already dominated key world markets. Atsutoshi Nishida, president of Toshiba, noted,
“We were thinking only about Japan. We really missed our chance.” This example
illustrates:
A) geocentric orientation
B) regiocentric orientation
C) polycentric orientation
D) ethnocentric orientation
E) poor globalization orientation
44) An executive is undecided whether to rely on in-house or external export
specialists/ intermediaries in the home country. He is leaning towards direct
representation in a market. What are the benefits of going forth with direct
representation?
45) Discuss the basics of a framework for selecting target markets highlighting the
salient features of David Arnold’s framework.
46) Due to globalization “it is a small world after all.” Also, vast scale migration of
populations due to various reasons, including opportunities, has created large segments
of ethnic population. Considering these facts, highlight the ethnic segmentation and its
importance.
47) What are the differences between antidumping and countervailing duties? Under
what conditions are these duties imposed?
48) Nestl in Brazil is using door-to-door selling to reach low-income neighborhoods;
Dell computers provide home delivery for its products; Avon is using sales
representatives and other companies are using different methods to reach consumers.
Describe different channels that can be used for reaching the customers.
49) When a company invents a product or service, it should have a right to defend its
creativity with intellectual patents. However, there are some countries like Italy and
China where piracy and copyright violations are common. How can a corporation
prevent this by having some built-in measures in products and services?
50) Historically, most of the Latin American nations have witnessed decades of slow or
no growth, crippling inflation, increasing foreign debt, protectionism, the bloated
government payrolls, money laundering problems, and currency fluctuations. What
measures are now being taken by countries in that region that will begin the process of
economic transformations?