The terminology used to describe the new forms of cooperation strategies varies widely
and the phrases used include all of the following except:
A) collaborative agreements.
B) strategic alliances.
C) global strategic partnerships.
D) strategic international alliances.
E) Greenfield operations.
Which of the following statements does not reflect the changes that have taken place in
Russia?
A) Russian shoppers spend billions each year on luxury goods, tourism, and foreign real
estate.
B) Affluent Russians can shop at boutiques that offer Versace, Burberry, Bulgari, and
other exclusive brands.
C) The Kremlin limits foreign investment in strategic industries such as oil.
D) In March 2014, Putin angered the West by annexing Crimea, a region that had been
considered part of Ukraine.
E) Faced with a financial crisis and a test of his political will, Putin responded by
blaming the protestors for Russia’s problems.
Prahalad and Hammond have identified several assumptions and misconceptions about
the “bottom of the pyramid” (BOP) that need to be corrected. All of the following
mistaken assumptions are correct except:
A) The poor are too concerned with fulfilling basic needs to “waste” money on
nonessential goods.
B) The goods sold in developing markets are so expensive that there is no room for a
new market entrant to make a profit.
C) The poor have no money.
D) People in BOP markets cannot use advanced technology.
E) Global companies that target BOP markets will be criticized for exploiting the poor.
The World Trade Organization, which came into existence on January 1, 1995, is the
successor of another organization with the abbreviation:
A) DSB.
B) GATT.
C) FTAA.
D) NAFTA.
E) ASEAN.
Governmental actions that discourage imports and block markets include all of the
following except:
A) tariffs.
B) free trade zones
C) subsidies.
D) tax incentives.
E) duties.
Although it is certainly possible for European consumers to browse Amazon.com’s U.S.
site, they prefer a direct link to a site with a local domain name. All of the following are
possible reasons for such behavior except:
A) the Web site of choice will be one that quotes prices in euros.
B) the Web site of choice will be that which offers a product selection tailored to local
tastes.
C) the preference will be for the Web site which ships from local distribution points.
D) due to price fluctuations the preference will be for the Web site that quotes prices in
U.S. dollars.
E) the preference will be for sites that are in their own language.
Suppose that World Corp. signs a contract to build a lumber processing plant in Siberia.
If World Corp. signs a second contract agreeing to take partial payment for the plant in
the form of lumber products produced at the plant, it is engaging in:
A) barter.
B) switch trading.
C) offset.
D) compensation trading.
E) a hybrid countertrade arrangement.
For consumer products, qualitative research is especially well suited to:
A) get close to the consumer.
B) describe the cultural context of consumer behavior.
C) identify core brand equity.
D) identify what people really feel.
E) all of the above
Anyone undertaking a market research project should understand that the first step is:
A) setting the budget.
B) determining the methodology to use.
C) deciding who will see the final report.
D) defining the problem.
E) determining the information requirement.
The advantages that a regional management center can offer include all of the following
except:
A) pan-regional decision making.
B) coordinated regional planning.
C) considerable cost saving.
D) coordinated control.
E) coordinated decision making.
Coke’s worldwide success is based on:
A) adaptation of the marketing mix.
B) standardization of the marketing mix.
C) selected elements of the marketing mix.
D) using local sales force and vending machines.
E) using existing local infrastructure.
Chance events play a role in shaping the competitive environment. Chance events are
occurrences which include all of the following except:
A) major technological breakthroughs.
B) wars and their aftermath.
C) oil crisis.
D) currency fluctuations.
E) annual business meeting.
An important managerial task in global marketing is learning to recognize the extent to
which it is possible to extend marketing plans as well as the extent to which adaptation
is desired. The way a company addresses this task is a reflection of the company’s:
A) market penetration.
B) market diversification.
C) global marketing strategy.
D) product development.
E) product standardization.
Which of the following is not one of Clayton Christensen’s principles of disruptive
innovation?
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) E-commerce activities can be divided into three categories.
Although environmental scanning is a vital source of information, research has shown
that headquarters executives of global companies obtain as much as two-thirds of the
information they need from:
A) government publications.
B) professional publications.
C) trade publications.
D) census data.
E) personal sources.
Which of the following is an appropriate guideline for companies selecting independent
distributors in international markets?
A) Select distributors; don’t let them select you.
B) Look for distributors capable of developing markets.
C) Treat local distributors as long-term partners.
D) Maintain control over marketing strategy from day one.
E) All of the above are appropriate guidelines.
Myanmar is considered as one of the emerging markets open for business. All of the
following facts pertain to Myanmar except:
A) Myanmar is a low-income country in Southeast Asia.
B) Myanmar has a population of 65 million people.
C) Myanmar is one of the countries considered as “Stans.”
D) Myanmar’s citizens elected a president.
E) Only one quarter of Myanmar’s population has access to electricity.
BMW and Porsche have developed Apple Watch apps that enable drivers to remotely
check many items within their cars which includes all of the following except:
A) information about services.
B) information about pricing.
C) help in booking hotel rooms.
D) help in restaurant reservation.
E) help recharging the car’s batteries.
Which of the following receives a fee for bringing together an exporter and a buyer in
another country?
A) foreign purchasing agent
B) export broker
C) export merchant
D) export management company
E) freight forwarder
The possible arrangements for handling exports include all of the following except:
A) as a part-time activity performed by domestic employees.
B) through an export partner affiliated with the domestic marketing structure that takes
possession of the goods before they leave the country.
C) as a low-cost arrangement requiring no additional personnel.
D) through an export department within an international division.
E) for multidivisional companies, each of the preceding options is available.
If the manufacturer of a sophisticated new consumer electronics product determines that
many target consumers qualify as “innovators” and “early adopters” with relatively
inelastic demand curves, the company should use the ________ pricing strategy.
A) gray market
B) skimming
C) penetration
D) market holding
E) cost-based
Ads based on a(n)________ appeal depend on logic and speak to the audience’s
intellect.
A) a rational
B) an advertising
C) an emotional
D) a localized
E) a melodramatic
Which of the following product category/company pairings best illustrates the concept
of “product cultures”?
A) earth-moving equipment/Caterpillar
B) personal hygiene/Procter & Gamble
C) coffee bars/Starbucks
D) batteries/Duracell
E) automobiles/Ford
________ refers to some type of advantage that a company enjoys by virtue of the fact
that it has experience in more than one country.
A) Transferability
B) Capability
C) Accountability
D) Leverage
E) Flexibility
“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 a Web browser.
C) it is installed in the computer’s hard drive.
D) computer files can be accessed remotely.
E) archives are stored on massive remote servers.
In Chinese markets, Nike had a problem using the “Just Do It” attitude which was found
not to be appropriate. Finally, Nike decided to use Chinese athletes in their promotion.
This type of adaptation was needed due to:
A) the Chinese do not wear running shoes.
B) ingrained Chinese values which respect authority.
C) Chinese athletes use Nike shoes.
D) “Just do it” in Chinese has a negative connotation.
E) parents do not want their children to see such ads.
A nontariff barrier (NTB) includes all of the following except:
A) quotas.
B) discriminatory procurement policies.
C) restrictive administrative policies.
D) restrictive technical regulations.
E) ad valorem duty.
Today Microsoft lags behind new industry entrants in high-growth, consumer-oriented
areas such as search and social networking. Which of the principles of disruptive
innovation does this fact pertain to?
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 disabilities.
The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all the
players to undertake all of the following except:
A) develop new products.
B) improve existing products.
C) lower costs and prices.
D) develop new technologies.
E) change the rules of engagement.
Global automakers are targeting the U.S. market with SUVs. All of the following SUVs
are assembled or manufactured in the listed country except:
A) Porsche in Germany.
B) Honda in Japan.
C) Volkswagen in Slovakia.
D) Kia in India.
E) Mercedes-Benz in the United States.
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.
As a company’s initial international business involvement becomes too much for a
single manager or export department to handle, the next step is typically to establish
a(n):
A) matrix structure.
B) international division structure.
C) geographic structure.
D) worldwide product division structure.
E) regional management center.
When Walmart entered the German market, ________ were already entrenched.
A) Specialty retailers
B) Discount retailers
C) Hard discounters
D) Hypermarkets
E) Supermarkets