One of the best examples of exceptions to the traditional international product cycle
concept can be found in America’s continuing dominance in the area of:
A.automobile production.
B.home entertainment.
C.computer design.
D.textiles.
The global marketing manager will do all of the following EXCEPT which one in order
to achieve synergistic efficiency.
A.Borrow as much money as possible from foreign bankers so as to spread risk
B.Synchronize strategic moves in various countries
C.Standardize products and services
D.Coordinate activities and timing of new product entries
What does the Disney example illustrate about marketing?
A.That you can do anything in a new culture if the price is low enough.
B.Local culture must be understood and adapted to in order to be successful.
C.The French will buy anything if it is from the U.S.
D.The brand name does not matter if you produce movies, also.
Experience curve pricing has been PRIMARILY adopted by firms entering an existing
market in the:
A.embryonic stage.
B.growth stage.
C.decline stage.
D.maturity stage.
The lack of an effective trade bloc has particularly hurt which country?
A.Brazil
B.Israel
C.Paraguay
D.Uruguay
How does macrosegmentation help firms?
A.It helps market research by collecting data on the potential customers in each of the
countries belonging to the selected cluster.
B.It helps by screening out countries that do not present good market opportunities.
C.It is useful for the firm with single product line, since it offers general insights.
D.Helps by identifying countries that might be responsive to a customized marketing
strategy.
The “ultimate” expression of network theory would have company employees attached
to headquarters only by computer links to form a(n):
A.hypercompetition unit.
B.virtual corporation.
C.matrix organization.
D.international matrix.
Clarke Shoe Corporation has watched its Russian market struggle to solve problems
associated with the shortage of hard currency. To maintain its market presence, the firm:
A.may seek tariff hikes.
B.may turn to countertrade.
C.may resort to price cuts.
D.may offer to pay more for Russian goods.
The creation of a particular place for a product or service in the prospect’s mind is the
goal of:
A.product positioning.
B.market segmentation.
C.generic market development.
D.market localization.
In an emerging market environment the emphasis is usually on which aspect of
marketing?
A.Marketing development
B.Raw materials marketing
C.Market share and positioning
D.Marketing infrastructure
The ability to understand and evaluate real and imagined obstacles to standardization is
fundamental to:
A.domestic management.
B.transnational management.
C.foreign entry management.
D.local management.
According to some researchers, which country is NOT considered a “climber”?
A.West Germany
B.Brazil
C.South Korea
D.Mexico
An important requirement for successful franchising is:
A.the standardization of products and services.
B.the use of a set fee structure.
C.the requirement for franchisees to bear the total cost of local advertising.
D.the inability of local franchisees to make adaptations desired by their local markets.
When a company groups or clusters countries that are more homogenous, in general
market characteristics, it is in which stage of global segmentation?
A.Microsegmentation
B.Cluster analysis
C.Localization
D.Macrosegmentation
In low context countries, contracts serve as a verbal expression of a final agreement
whose integrity is legally enforceable. Written contracts, by contrast, exhibit much less
finality in such high context countries as:
A.the United States.
B.Australia.
C.Japan.
D.New Zealand.
Prior to test marketing and/or entry into emerging and developing markets, the global
marketer is well advised to:
A.dramatically increase advertising expenditure.
B.conduct market research on leading users and markets in other countries.
C.launch a major reverse engineering program.
D.dramatically increase sales expenditure.
The fact that advertising-to-sales ratios differ widely across nations within industries, is
MOST damaging to the use of which of the following methods of budgeting for
advertising?
A.Objective-task
B.Percentage-of-sales
C.All-you-can-afford
D.Competitive parity
Honda Accord is an example of:
A.ingredient brands.
B.master brands.
C.endorsement brands.
D.sub-brands.
Trade discounts, cooperative advertising, and sales support are examples of:
A.publicity.
B.point-of-purchase promotions.
C.trade promotions.
D.public relations.
In some of its foreign markets, Hyundai Corporation finances local plant construction
and the training of local management. The firm is involved in:
A.licensing.
B.franchising.
C.turnkey contract.
D.contract manufacturing.
When a company manufactures and sells in more than one country, the same product
may be sold in different markets at widely different prices. This situation provides an
opportunity for:
A.a global skimming price.
B.turnkey selling.
C.pipeline control.
D.the emergence of gray trade.
How can a global network become a key source of competitive advantage and new
possibilities?
A.By treating global integration as a centralized command over an army of exporters.
B.The marketing manager should spend all his time on the road, cajoling, persuading
and sharing.
C.By providing total leadership from central headquarters.
D.By allowing local know-how and motivation to impact the member companies and
the network as a whole.
For many industries free trade and unrestricted travel have created
A.homogeneous groups of customers.
B.heterogeneous markets.
C.culture-bound channels.
D.localized marketing.
A firm is most likely to opt for an FDI strategy when:
A.it has strong domestic country-specific advantages.
B.transportation costs to foreign markets are low.
C.strong foreign country-specific advantages exist.
D.good foreign middlemen are cheap and easily available.
Cadbury, Ltd. has been frustrated in its attempts to discover good data prior to its
planned entry into several emerging and developing local markets. The firm will
probably scale back its entry plans and use its initial entry countries/markets as:
A.test markets.
B.leading markets.
C.distribution centers.
D.adaptation centers.
Complete factories, ready for operation, may be built by firms from developed
countries for customers in less-developed countries and marketed as a:
A.turnkey project.
B.final assembly.
C.subsidiary.
D.satellite facility.
Political risks are likely to be most significant in:
A.emerging markets.
B.saturated markets.
C.new growth markets.
D.mature markets.
Which of the following countries has a preponderance of small wholesalers?
A.Turkey
B.Australia
C.Japan
D.Israel
The typical Western firm entering NDC markets is MOST likely to:
A.employ penetration pricing.
B.exploit a small niche market.
C.emphasize a skimming policy.
D.avoid any effort to develop the market generically.
If a company’s strength is not firm-specific, then its competitive advantage is usually:
A.less imitable.
B.less vulnerable to competition.
C.less sustainable.
D.not subject to change.
The America-First Corporation is attempting to identify the members of the strategic
group it would confront in the Russian market. This group would consist of firms
whose resources and choice of target markets would:
A.mark them as potential allies.
B.make them follow similar strategies.
C.remove them from competitive concern.
D.assist the firm’s entry.
Why do conflicts arise in global channel agreements?
A.Most manufacturers have antagonistic attitude toward middlemen.
B.Channels from different countries have different views of proper conflict resolution
methods.
C.The middlemen are not willing to forgo immediate individual gratification for the
benefit of a harmonious relationship in the longer run.
D.Unlike the United States, legal proceedings in many foreign countries are resorted to
rather quickly.
What did the German beer companies do to promote their products at the 2006 World
Cup tournament?
A.They competed directly with Anheuser-Busch for consumers’ attention.
B.They did not compete because it cost too much.
C.They attempted a variation of ambush marketing.
D.They resorted to illegal means of promoting their products.
Due to the ongoing reform of China’s foreign trade system and the WTO entry, the
government-controlled _____ have lost their monopoly to the mushrooming local
trading companies and the industrial firms.
A.advertising agencies
B.trading companies
C.multinational companies
D.retail companies