__________________ refers to an economic system in which free enterprise is
permitted and encouraged along with private ownership.
a. Socialism
b. Communism
c. Fascism
d. Capitalism
e. Planned economics
Embargoes and sanctions are ______________________ political trade controls.
a. locally-based
b. regionally-based
c. country-based
d. company-based
e. party-based
In Interbrand’s 2012 leading ‘green brands’, four in the top 10 came from the:
a. Food and beverage sector
b. Personal care industry
c. Cosmetics
d. Car industry
e. Electronics
Exchange rate stability cannot be imposed by adoption of ______________________
and official intervention in the foreign exchange markets.
a. pegged exchange rates
b. pegged value rates
c. pegged equity rates
d. pegged volume rates
e. pegged finance rates
Which of the following countries is not considered to be a big emerging market?
a. Mexico
b. Brazil
c. Russia
d. India
e. China
Japanese consumers fond of high-tech gadgets may even set the world standard for
gas pumps that come equipped with online service that offer motorists access to
weather forecasts and traffic information. This is an EXAMPLE of a:
a. grey market.
b. slow market.
c. backward market.
d. lead market.
e. black market.
With respect to product categories analyzed on the basis of sales turnover, a
_____________ product is one where the product is only a small portion of the
subsidiary’s overall sales. These even might be ‘dead-weight’ items.
a. core product
b. cultural product
c. niche item
d. seasonal product
e. filler product
In 2012, the GDP of the United States was ____________.
a. $500 billion.
b. $800 billion.
c. $1 trillion.
d. $8 trillion.
e. $16 trillion.
Because of the Internet, many MNCs’ pricing decisions are less _____________.
a. national
b. flexible
c. creative
d. rigid
e. vertical
The goal of ________________________________ is to coordinate mass
advertising, sponsorships, sales promotions, packaging, point-of-purchase displays,
and so forth.
a. integrated marketing communications
b. integrated horizontal communications
c. integrated vertical communications
d. global communications
e. synergistic communications
According to Nestle’s Branding Tree, the company has four types of brands in its
global operations EXCEPT:
a. plain brands.
b. local brands.
c. regional brands.
d. worldwide strategic brands.
e. worldwide corporate brands.
Nestle’s Creating Shared Value does NOT include the following area
a. Nutrition
b. Water
c. Rural development
d. Urban development
e. Compliance
Trying to obtain sanctions against countries that tolerate product piracy would be an
example of which of the following strategic options available to international
marketers trying to stop product piracy?
a. joint ventures.
b. lobbying activities.
c. legal action.
d. product policy options.
e. communication options.
Nestle used an ad for Taster’s Choice coffee originally developed in the U.K. as its
campaign in the U.S., with some minor changes to reflect actors and speech. This would
be an example of which of the following reasons for using standardization in the
foreign market?
a. scale economics
b. consistent image
c. cross-fertilization
d. global consumer segments
e. creative talent
During the last decade, car buyers in the Triad markets (Japan, the United States, and
Europe) have increasingly begun to have the same outlook and preferences in cars.
Which of the following factors that favor globalization of product, would most
accurately be associated with this trend?
a. common customer needs.
b. global customers.
c. scale economies.
d. time-to-market.
e. Europe 1992 and other Regional Market Agreements.
Which country has the greatest number of mobile phone subscribers per 100
inhabitants?
a. Italy
b. Russia
c. Germany
d. United Kingdom
e. Nigeria
Companies that wish to make their Web sites international by translating the
information and content into other languages have two alternatives that may include:
a. hire a firm or a person doing the translation.
b. use a software having the translation function.
c. use only English.
d. both a and b
e. both b and c
The primary difference between a common market and a customs union is that the
common market:
a. adopts a common set of external tariffs on nonmembers.
b. eliminates all tariffs.
c. eliminates all trade barriers.
d. removes all restrictions on the flow of capital and labor among member nations.
e. the number of countries involved.
All of the following are disadvantages or drawbacks of the matrix structure of
organizing EXCEPT:
a. dual reporting leads to conflicts and confusion.
b. dual profit responsibilities lead to conflicts and confusion.
c. bureaucratic bloat.
d. power clashes can occur.
e. managers think globally and act locally.
There are two ways to deal with the price escalation phenomenon. One of these
methods is to cut the export price. The other is to:
a. change the promotion strategy.
b. position the product as a (super) premium brand.
c. position the product as a lower quality brand.
d. reduce retailer margins.
e. reduce distances that the good must be shipped.
In the United States, ITA stands for:
a. International Training Administration.
b. International Testing Administration.
c. International Teaching Administration.
d. International Tourism Administration.
e. International Trade Administration.
In general, the larger the country’s domestic economy, the less dependent it tends
to be on exports and imports relative to its ________________.
a. gross domestic product (GDP).
b. gross domestic income.
c. gross domestic spending.
d. gross domestic capital.
e. global domestic knowledge.
Which of these does not describe the BRIC nations?
a. They consist of Brazil, Russia, India and China.
b. They have large populations.
c. They constitute almost 15 percent of world GDP.
d. They are developed countries.
e. All have growing economies.
With respect to a brand name changeover strategy, the _________________ strategy
ties the new global brand name to the existing local brand name. After a transition
period, the old name is dropped.
a. transparent forewarning
b. summary axing
c. fade-in/fade-out
d. pyramid focusing
e. parallel dimension