1) An express warranty is a written guarantee that assures the buyer that he or she is
getting what he or she has paid for or that provides recourse in case a product’s
performance falls short of expectations, in an express manner.
2) GATT (General Agreement on Tariffs and Trade) itself had no enforcement power,
and the losing party in a dispute was entitled to ignore the ruling.
3) The economic growth has reduced resistance that might otherwise have developed in
response to the entry of foreign firms into domestic economies.
4) In emerging countries, journalists may themselves become targets if they criticize the
rich or powerful.
5) As a sales promotion technique, couponing is equally popular in Malaysia and the
United States.
6) Compared with other marketing promotion techniques, sampling is more likely to
result in actual product trial.
7) Executives at Guatemala’s Pollo Campero SA knew how to spot a market entry
opportunity by observing passengers flying to the United States from Guatemala City
and San Salvador who often carried packages of the company’s spicy chicken on board
the planes.
8) Volkswagen, Peugeot, Chrysler, and other global automakers have established
manufacturing operations in China since they consider it to be an incipient market.
9) Global brands are symbols of cultural ideals, and as such, marketers can use global
consumer culture positioning (GCCP) to communicate a brand’s global identity.
10) Price can be used as a competitive weapon to gain or maintain market position.
11) Studies conducted during the 1970s and 1980s indicated that the “made in the USA”
image lost ground to the “made in Japan” image.
12) The United States ranks number one among nations in terms of both per capita
income and in terms of income adjusted for purchasing power for the year 2009.
13) Industry observers expect the popularity of home shopping to decrease during next
few years as interactive television technology is introduced into more households.
14) According to a recent “digital opportunity index” published by the United Nations,
South Korea leads the world in providing its citizens with access to information and
communications technologies (ICT).
15) Monsanto and the German pharmaceutical company, Bayer AG, entered a joint
venture in order to have subsidiaries in Japan.
16) Starbucks had to close its small coffee cafe in Beijing’s Forbidden City in 2007
bowing to criticism that the present of a Western brand near the former imperial palace
was disrespectful.
17) EDI links with vendors to enable retailers to improve inventory management and
restock hot-selling products in a timely, cost-effective manner.
18) Which of the following is the best organization structure for global marketing?
A) international division structure
B) matrix
C) geographic structure
D) worldwide product division structure
E) There is no single “best” structure for global marketing
19) Which approach to global retail expansion involves “greenfield” investment using a
company’s own financial resources to build a new store from the ground up?
A) chain acquisition
B) organic growth
C) franchise
D) joint venture
E) own-label focus
20) Social couponing is one of the hottest sales promotion trends today. This refers to:
A) sampling
B) Groupons
C) sweepstakes
D) freestanding inserts
E) personal selling
21) The fastest-growing sector of world trade includes:
A) travel and entertainment
B) accounting and legal services
C) royalties and license fees
D) engineering services
E) all of the above
22) Which form of organization design is capable of integrating geographic knowledge,
product knowledge, functional competencies, and customer knowledge?
A) matrix structure
B) international division structure
C) geographic structure
D) worldwide product division structure
E) regional management center
23) Which country is the only country classified as an emerging market among the
high-income countries by influential stock market indexes?
A) United States
B) South Korea
C) Britain
D) Italy
E) Malaysia
24) In Saudi Arabia, the Communication and Information Technology Commission
(CITC) was ready to restrict BlackBerry services citing security concerns since the
location of RIM (Research in Motion) servers were in Canada.
25) There is nothing inherently “good” or “bad” about any color of the spectrum and all
associations and perceptions regarding color arise from culture. Which of the following
statements is not true:
A) Red is a popular color in most parts of the world
B) Red color is associated with “active,” “vibrant,” and “emotional”
C) Red color is preferred in many countries since it is the color of blood
D) Red color is highly preferred in some African countries
E) Red color is tied to the traditions of viticulture and winemaking
26) Hundreds of small companies such as Martin-Logan and Mark Levinson compete in
the high-end audiophile segment of the consumer electronics industry. If analyzed in
terms of Porter’s generic strategies framework, such companies might be said to be
pursuing competitive advantage via:
A) cost leadership
B) differentiation
C) cost focus
D) focused differentiation
E) consumer differentiation
27) Licensing as a market entry mode has several disadvantages and opportunity costs,
which do not include:
A) limited market control
B) agreement may have short life
C) leveraging and exploiting by licensee
D) similar product or technology development by licensee
E) adaptations by licensee to fit local tastes
28) Luxury good marketers found a new way to combat gray market imports into the
United States. In March 1995, the U.S. Supreme Court let stand an appeals court ruling
prohibiting a discount drugstore chain from selling Givenchy perfume without
permission. The distinctive packaging of the perfume is also protected by the U.S.
Copyright law. The ruling implies that:
A) Givenchy can only be sold in copyrighted packages
B) Costco and Wal-Mart will no longer be able to sell Givenchy
C) Costco and Wal-Mart will be able to sell Givenchy with authorization
D) gray marketers will be able to market with authorization
E) discount drugstores cannot market a product resembling Givenchy’s perfumes
29) In the global watch industry, the success of the Swatch brand resulted in a
manufacturing renaissance for Switzerland. In the strategic framework known as
hypercompetition, Swatch’s success is an example of interactions in which arena?
A) cost/quality
B) timing and know how
C) entry barriers
D) deep pockets
E) sporting events
30) When managers at Matsushita realized that cost advantages in TV production were
often fleeting, they added quality and reliability advantages, thus establishing:
A) loose bricks
B) a “double diamond”
C) attribute diversity
D) layers of advantage
E) buyer power
31) In 2005, representatives from several wine regions in the United States and the EU
signed a Joint Declaration to Protect Wine Place & Origin. In addition, a Wine Accord
signed by the United States and EU bans the:
A) use of alcohol in public places
B) purchase of wine from country of origin
C) misuse of 16 place names by marketers of wine products that do not originate in
those places
D) misuse of labels which does not include the origin of ingredients
E) use of word “champagne” on wine made in the United States
32) The management of a large manufacturer located in Mexico decided to improve
productivity by investing a large sum of money. Vendors from different countries
showed interest in getting involved. One such international manager of an American
company reached Mexico without knowing who to contact. Finally, he contacted the
Commercial Attach at the American embassy. Realizing that the international manager
had not done his homework, he advised him about business in Latin America. His
advice included all of the following except:
A) business cannot be done in Mexico as in the States
B) several contacts are important before talking business
C) price is only one of the many things that is taken into consideration
D) people are very proud of their Spanish blood as well as liberation from Spain
E) talk about their history and Spanish origin
33) Due to political upheaval in the Middle East, in spring 2011, Procter & Gamble was
forced to briefly close plants in Egypt that supply products for South Africa.
34) Despite the fact that the American team advanced to the semi-finals in South Africa,
the game is much more popular in other parts of the world. There is an effort to make
soccer popular in the United States, and many fashion brands are interesting in
marketing their products which pertain to soccer and other sports. Considering this
aspect which of the following statements is incorrect:
A) In the United States, 2010 World Cup merchandise such as T-shirts was available at
Wal-Mart
B) FIFA is the only global marketer seeking revenue growth by boosting soccer’s
popularity in America
C) Yves Saint Laurent designer was selling merchandise with soccer related embossed
emblems
D) The fall 2010 collection of designer clothes included FIFA Hertiage Tees with logos
on shirts
E) FIFA has chosen Total Apparel Group (TAG) to boost soccer’s visibility and
popularity among Americans
35) The highest level in the pyramid of hierarchy of Preferential Trade Agreements
consists of:
A) free trade area
B) customs union
C) common market
D) European Union
E) economic union
36) A company that engages in global marketing:
A) pursues a “one size fits all” strategy by creating identical products for homogeneous
markets
B) customizes special products for each world country or region
C) creates both standardized and localized products
D) nurtures an ethnocentric management orientation
E) uses localized products only
37) Alfred Zeien, former chairman of Gillette, once noted that his company’s Parker Pen
unit does not have to develop a special model for Malaysia and Singapore because
shoppers worldwide seek the same things when buying a gift that will serve the
recipient as a status symbol. This insight relates to which level of Maslow’s hierarchy of
needs?
A) physiological
B) safety
C) social
D) esteem
E) self-actualization
38) Only Sony can use the “Walkman” name on its line of personal stereos. This is
because:
A) Sony has a patent on the Walkman
B) “Walkman” is a registered Sony trademark
C) Sony has copyrighted the Walkman name
D) Sony’s trade secrets are protected by international law
E) Sony has an international business license
39) Which of the following generic strategies best captures the way Harley-Davidson
has achieved competitive advantage in the global motorcycle industry?
A) cost leadership
B) differentiation
C) cost focus
D) focused differentiation
E) cost differentiation
40) Which pricing strategy has the advantage of being simple to calculate but has the
disadvantage of ignoring demand and competitive conditions?
A) gray marketing
B) skimming
C) penetration
D) market holding
E) cost-based
41) The export and import process can entail red tape and bureaucratic delays. In an
effort to facilitate exports, countries are designating certain areas as:
A) import control zones
B) special tariff zones
C) global business zones
D) free trade zones
E) duty free zones
42) Which of the following is true about Japanese keiretsu?
A) Toyota is a vertical keiretsu, Mitsubishi is a horizontal keiretsu
B) Toyota is a horizontal keiretsu, Mitsubishi is a vertical keiretsu
C) Toyota and Mitsubishi are both horizontal keiretsu
D) Toyota and Mitsubishi are both vertical keiretsu
E) none of the above
43) Interactive television (ITV) allows viewers to see the ad in its entirety by pressing a
remote button; to order products from home-shopping channels; or choose different
camera angles, such as in sports events. Comments by James Pennefather, brand
manager for Smirnoff, UK, based on comparison of traditional TV ads to ITV features
included all of the following except:
A) “it allows viewers to interact with programming”
B) “it is a lot more unproven”
C) “it needs further testing”
D) “it is a calculated risk”
E) “it may or may not succeed”
44) Boeing developed the wide-bodied aircraft, the 777, with about ________ of the
work subcontracted out to Mitsubishi, Fuji, and Kawasaki.
A) 50%
B) 25%
C) 20%
D) 60%
E) 75%
45) The United Nations designates 50 countries in the bottom ranks of the low-income
category named as:
A) Low-income countries
B) Lower-middle-income countries
C) BRIC countries
D) Developing countries
E) LDCs (least-developed countries)
46) Which of the following types of duties would be imposed on a company whose
home-country government provided export subsidies?
A) ad valorem duty
B) countervailing duty
C) antidumping duty
D) specific duty
E) customs duty
47) Celeste Atkinson is a lifestyle and entertainment manager for Audi, and her job is to
create buzz by ensuring that vehicles such as the Audi A8L and the S8 sports sedan
figure in paparazzi photos. This is referred to as:
A) lifestyle placement
B) blockbuster placement
C) promotion placement
D) product placement
E) photo placement
48) The diversity of cultures around the world is also reflected in languages and
communication. When KFC translated its slogan “Finger Licking Good” it became “Eat
your fingers” in Chinese; similarly “Pepsi is for Generations” became “your
grandparents will come out of the grave to drink Pepsi.” Studies showing how linguists
have divided the study of spoken or verbal language demonstrates how verbal and
non-verbal communication can have an impact on marketing around the world.
49) Using McDonald’s as an example, show how effective global marketing can be
successfully achieved.
50) Why is “Cloud Computing” referred to as the next-generation computing?
Considering the rapid changes that have taken place in technology, what is next on the
horizon which will have an impact on global businesses?
51) What is convergence? What kind of challenges does it present?
52) Applying Hofstede’s typology, show how Power Distance and Gender
Differentiation can influence the marketing of products and services in different
countries.
53) After evaluating the identified segments, decisions have to be made whether to
pursue a particular opportunity or not. Assuming the decision is made to proceed, an
appropriate targeting strategy must be developed. Explain the basic categories of target
marketing strategies and how they can be implemented.
54) Michael E. Porter, a leading theorist of competitive strategy, developed a five forces
model to explain competition in an industry. List these forces and describe the impact of
the threat of new entrants.
55) London’s Sunday Times reported that Mecca-Cola has become the drink which has
come to be seen as “politically preferable” to Pepsi or Coke in many Muslim countries.
Also, Danish products were boycotted in many Islamic countries in protest of an
offensive cartoon that was printed in Danish newspapers. Considering these two
examples, show how religion can have an impact on marketing.
56) Global competition intensifies the need for effective MIS and business intelligence
that are accessible throughout the company. How can IT provide valuable tools in in
fulfilling this need as well as conducting global marketing research?