1) When Honda’s U.S. manufacturing subsidiaries purchase parts from Japan, customs
authorities in the United States have the right to scrutinize the transfer price to make
sure it is a fair reflection of market value.
2) Tariffs can be thought of as the “three R’s” of global business: rules, rigor, and
regulations of individual countries.
3) Sushi, Falafel, Tandoori Chicken or Pizza are in demand in many parts of the world.
This phenomenon can be due to pluralization of consumption and segment simultaneity.
4) Michael Porter’s five forces model and Rugman and D’Cruz’s flagship model are both
based on the concept of corporate individualism.
5) In Indonesia, home of the world’s largest Muslim population, KFC uses
Ramadan-themed outdoor advertising to encourage Indonesians to come to the
restaurants at buka puasa, the end of each day’s fast.
6) About two-thirds of world GNI is generated in the Triad countries, whereas only
about 12% of the world’s population is located in those countries.
7) CARICOM’s main objective has been to achieve a deepening of economic
integration by means of a Caribbean common market.
8) Organized retail is a term that is used to describe the modern, branded chain stores.
9) In China, a humorous TV ad showing a student humiliating a teacher in the
classroom would be an effective execution for a soft drink brand.
10) Toyota, Sony, Olympus, and Komatsu are some of the well-known Japanese
companies that use target costing, a process which is also known as “design to cost.”
11) Which of the following could hinder the success of products labeled “Made in
Bangladesh” or “Made in Thailand” in export markets?
A) negative country-of-origin bias
B) no possible quality/price positioning
C) low acceptance of private brands
D) lack of promotion in global markets
E) high product saturation levels in global markets
12) A company with headquarters in Europe and operational units in Canada, the United
States, and Mexico would be well advised to consider establishing a(n):
A) matrix structure
B) international division structure
C) geographic structure
D) worldwide product division structure
E) regional management center
13) Product and market opportunities in a postindustrial society are more heavily
dependent upon new products and innovations than in industrial societies. An example
of this would be:
A) Nestl marketing Bono brand cookies in Brazil
B) Coca-Cola company developing a beverage Vintago in low-income countries
C) New e-commerce markets for interactive forms of electronic communication
D) Hermes creating handbags called Amazonia
E) India’s Suzlon Energy using wind-driven turbines
14) Psychographic segmentation involves grouping people in terms of their:
A) combined household income
B) age and income
C) attitudes, values and lifestyle
D) psychological well being
E) gender
15) An intern from the United Kingdom was working in an American software
company during summers. One day her boss gave her a memo asking her to post it,
with the intention of having it put on the bulletin board. To her boss’s surprise the letter
was mailed by the intern since the word post means mail in British English. In
communication terms this error can be attributed due to:
A) syntax
B) phonology
C) morphology
D) semantics
E) semiotics
16) Ideally, each country-specific site should reflect all of the following except:
A) local culture
B) language usage
C) customs
D) English translations
E) aesthetic preferences
17) Traditional support media include:
A) indoor posters
B) billboards
C) newspapers
D) magazines
E) catalogs
18) One of the key advantages of an EDI (Electronic Data Interchange) system is:
A) it allows easy access to all company data to vendors
B) its transaction formats are universal
C) it allows third-party transmission connections to company data
D) it saves both time and money by using different languages
E) vendors receive orders by voice mail
19) Which form of regional cooperation agreement, when fully implemented, entails
creation of a unified central bank, the use of a single currency, and common policies on
agriculture, social services and welfare?
A) Free trade area
B) Customs union
C) Common market
D) Economic union
E) Dispute settlement body
20) Direct sensory perception provides a vital background for the information that
comes from human and documentary sources since:
A) it provides secondhand information
B) it is easy and the most economical way of collecting data
C) it means firsthand seeing, feeling, hearing, smelling, and tasting
D) it involves reading and reviewing documents
E) top executives are involved in getting firsthand information
21) Having established that the matrix is appropriate, management can expect the
matrix to integrate the following competency on a worldwide basis.
A) geographic knowledge
B) product knowledge and know-how
C) functional competence in finance, production and marketing
D) knowledge of customer or industry and its needs
E) all of the above are competencies
22) Which of the following actions were approved both by the Antitrust Review in the
EU as well as in the United States?
A) acquisition of Honeywell (U.S.) by GE (U.S.)
B) joint venture between music businesses of EMI group (Great Britain) and Time
Warner (U.S.)
C) merger of Sony Music (Japan) and BMG (Germany)
D) merger of WorldCom (U.S.) and MCI (U.S.)
E) British Airways (U.K.) and American Airlines (U.S.)
23) Which of the following principles of disruptive innovation pertains to the notion of
agnostic marketing?
A) Companies depend on customers for resources
B) Small markets don’t satisfy the growth needs of large companies
C) Markets that don’t exist can’t be analyzed
D) Technology supply may not equal market demand
E) A company’s capabilities define its weaknesses
24) Benefits for using sales agents includes all of the following except:
A) agents work under contract rather than as full-time employees
B) agents are less expensive than full-time, in-country national sales representatives
C) agents possess the same market knowledge as in-country nationals
D) agents can eventually replace manufacturer’s sales agents
E) agents possess the same cultural knowledge as in-country nationals
25) Comedies such as Outsourced that traffic in parodies and satires of cultural
stereotypes are popular in India.
26) GM and South Korea’s Daewoo Group formed a joint venture which helped
Daewoo improve its competitiveness. The venture was terminated since Daewoo
prevented the import of GM cars to Korea.
27) Counterfeiting is:
A) the use of a formal legal document for illegal purposes
B) the ownership of a written, recorded, performed or filmed creative work
C) the unauthorized copying or production of a product
D) the use of a product name that has different meaning than the original brand
E) the use of a distinctive mark of a brand that is no longer producing the original brand
28) The Timberland Company is best known for its popular hiking boots and work
boots. It is a global mission-centered company. Timberland unveiled a sort of
“nutritional label” on its footwear boxes as a means of:
A) showing the strength of work boots
B) promoting the health benefit of walking
C) communicating its CSR commitment
D) showing the quality of materials used
E) communicating the popularity of hiking boots
29) To the extent that a country sells more goods and services abroad than it buys, there
will be:
A) a greater demand for its currency
B) a surplus production of goods and services
C) a scarcity of goods and services within the country
D) a need for revaluation of its currency
E) time for fluctuating its currency
30) The practice of registering a particular domain name for the express purpose of
reselling it to the company that should rightfully use it is called:
A) gray market
B) piracy
C) copyright violation
D) cybersquatting
E) patent violation
31) The United States’ growing trade deficit reflects a number of factors which exclude:
A) increased imports from China
B) a seemingly insatiable consumer demand for imported goods
C) the enormous cost of military operations in the Middle East
D) the services trade surplus
E) record goods sales to developing countries
32) Based on 2011 rankings of Fortune Global 500 companies, the world’s most
valuable car company is:
A) GM
B) Daimler AG
C) Toyota
D) Ford
E) Chrysler
33) Reference to one’s own cultural values or self-reference criterion (SRC) can create a
cultural myopia. It can consciously or unconsciously create considerable problems for
marketing professionals. Using Walt Disney’s decision to build a theme park in France,
address the problem, following a systematic framework.
34) The term “m-commerce” is used to describe:
A) the use of Internet in commerce
B) the use of web.com in commerce
C) the use of credit cards in commerce
D) the use of money in commerce
E) the use of cell phones in commerce
35) Honda has invested $550 million in building an assembly plant in Greensburg,
Indiana; IKEA spent nearly $2 billion to open stores in Russia; and South Korea’s LG
Electronics purchased a 58% stake in Zenith Electronics. All of these are examples of:
A) acquisition
B) licensing
C) franchising
D) FDI
E) exporting
36) The Organization for Economic Cooperation and Development (OECD) is
comprised of:
A) the 30 high-income countries
B) countries that believe in market-allocation economic systems
C) pluralistic democracies
D) countries that demonstrate progress toward economic reform
E) All of the above statements are applicable
37) The vice presidents of finance and marketing of a cosmetic company were traveling
around the world to estimate the market potential for their products. They came to a
busy metropolitan area in India and noticed that most of the women were not using
mascara and false eyelashes. The vice president of finance said, “There is no evidence
of any market for our products and let us not waste time.” However the vice president
of marketing remarked, “We have a great opportunity to market our products.” What is
meant by this, and how will you suggest testing the instinct of either vice president?
38) List and briefly describe the forces affecting local integration and global marketing.
39) Companies use corporate advertising; image advertising, and advocacy advertising
from time to time. How are these advertising methods used and what are are the
circumstances under which they are used?
40) Leaders of global companies are facing the resistance to globalization in many
countries. How should the executives handle the situation?
41) If a Lexus car is priced in U.S. dollars and sold at the dollar converted price in
Indian rupees, what sorts of problems can be expected? What is the difference between
ethnocentric, polycentric and geocentric pricing?
42) What are the differences between “product-communication extension” and “product
extension-communication adaptation” as strategies?