All of following statement about sales subsidiaries are true EXCEPT:
A.it involves relatively low levels of capital investment.
B.it is fundamentally similar to a wholly owned manufacturing subsidiary.
C.it involves taking control of the marketing in the country.
D.it manages distribution and marketing of the product in the local market.
Which of the following countries held the lead in global integration through the early
1990s?
A.The United States
B.Japan
C.Germany
D.Taiwan
Transportation costs, tariffs/duties, special taxes, and exchange rate fluctuations
typically result in:
A.price escalations overseas.
B.price volatility overseas.
C.price stability overseas.
D.price deflation overseas.
The final selection of a country to enter should NEVER be made until managers have
acquired:
A.favorable tariff treatment.
B.direct experience in the country.
C.favorable exchange rates.
D.a fully executed deed to an acceptable plant site.
In order to market romance novels in Africa, which of the following had to be done as
shown by marketing research?
A.The price had to be much cheaper.
B.The Prince Charming had to be always blond and blue-eyed.
C.The names of the characters had to be more Western.
D.The cover of the books had to have American scenes of the West.
The Post Cereal Corporation routinely assembles a representative sample of potential
users to react to and/or evaluate features of proposed new products. What is this
technique called?
A.Consumer surveys
B.Focus groups
C.Purchase research groups
D.Opinion councils or panels
Why did Amazon.com want to fill orders in-house?
A.To control customer satisfaction better.
B.To save money on trucking and rail transport.
C.To have a better image for the short-run.
D.To have lower inventory costs.
According to Gannon, which of the following provides the most accurate metaphor for
the American culture?
A.The house
B.A garden
C.The opera
D.Football
Regardless of the culture involved, the “how” of business will be primarily decided by:
A.customers.
B.manufacturers.
C.middlemen.
D.media.
Mars, the American-based confectionery maker, used “Pedigree by Pal” to prepare the
way for global Pedigree to replace local Pal dog food. This is an example of:
A.fade-in/fade-out.
B.summary axing.
C.endorsement branding.
D.dual branding.
The practice of using the same marketing ideas in different countries is called:
A.transferable marketing.
B.one-tier marketing.
C.multinational marketing.
D.unilateral marketing.
Exxon Corporation has just shipped several orders to its foreign customers. In order to
ensure payment, the firm will only provide the shipping documents needed by the buyer
in order to take possession of the goods after their payment has been received. Exxon is
protecting its interests by controlling the:
A.bills of lading.
B.sales receipt.
C.transportation bill.
D.portage bill.
To evaluate the globalization potential of a local brand, the “brand fit” checklist is
helpful. Which of the following is NOT part of the first three questions on this
checklist?
A.Does the name make sense outside the source country?
B.Does the brand compete with the firm’s existing global brands?
C.If there is a country association, is the effect positive?
D.Is the name legally available in other countries?
Typically, export departments:
A.lack independent authority in product decisions.
B.are full-fledged profit-and-loss centers.
C.are strategic business units.
D.function as freestanding businesses.
In which stage of the sales presentation are cultural differences MOST pronounced?
A.Attention
B.Getting the customer interested
C.Handling objections
D.Manipulating objections
Unlike mature markets, success in developing and newly democratized countries often
requires the assistance of:
A.foreign media specialists.
B.international agencies.
C.trading companies.
D.keiretsus.
Given the intense global competition in many markets, there is an evidence of:
A.worsening perceptions of American quality.
B.greatly improved perceptions of Japanese quality.
C.worsening perceptions of German quality.
D.a convergence of quality perceptions.
The export pricing considerations facing an exporter are:
A.the level of transfer prices.
B.FOB pricing and CIF pricing.
C.currency exchange risk exposure and credit risks.
D.multinational coordination policies.
The Chinese government controls many aspects of advertising to the consumer. Which
of the following is NOT one of these controls?
A.Number of TV watching hours
B.Censorship of content
C.Comparison advertising is not allowed
D.Superlatives cannot be used
To determine the arm’s length transfer price, which type of analysis is good to use?
A.Breakdown analysis
B.Functional analysis
C.Arm’s length analysis
D.Micro-price analysis
In country markets where government regulations or the company’s lack of market
knowledge would force the use of unwanted joint ventures, an international marketer
may seek to protect its know-how by:
A.franchising arrangements.
B.unbundling.
C.licensing arrangements.
D.R & D alliances.
The America-First Corporation has established a worldwide network of wholly-owned,
locally-based organizations to handle the foreign distribution and marketing of the
products it produces domestically for foreign export. The firm is making use of:
A.joint ventures.
B.distribution alliances.
C.wholly owned manufacturing subsidiaries.
D.sales subsidiaries.
There are several equity gains for companies using global brands. Which of the
following factors favors the use of global brands?
A.Gray trade
B.Local customers
C.Location economies
D.Scale economies
Apple Corporation typically hires agents to help with its foreign operations. Which of
the following BEST describes what an agent does?
A.Manages sales and administration and is paid through fees and commissions
B.Shares the technology with the exporter
C.Has an equity stake in the exporting firm, so shares in the profit
D.Has no employees of its own, but just contracts out its labor
Southeast Asia trading blocs have great potential for use by global marketers as a basis
for:
A.differentiated marketing.
B.pan-regional marketing.
C.adaptive marketing.
D.heterogeneous marketing.
Which of the following criticisms can be applied to weaken Friedman’s Flat World
theory?
A.The so-called BRIC countries (Brazil, Russia, India, and China) are representative of
the new global situation.
B.Large and established Western multinationals are slowly losing their power.
C.Several business activities continue to be local and regional.
D.Global forces have created a need for companies to shift from a top-down
organization to a horizontal collaborative framework.
Since most countries do not allow foreigners to work on legal questions, most
international marketers provide for this need by hiring:
A.agents.
B.brokers.
C.professional negotiators.
D.local lawyers
Nordstrom Corporation is not concerned about the fact that Japanese tariff and nontariff
barriers have created a “dualistic” market in which only a small “import niche” would
be willing to pay the higher prices it must charge. The firm feels that this niche will be
“price-insensitive” and very profitable since their purchase will be driven by a desire
for:
A.quality.
B.status.
C.functionality.
D.widespread availability.
Only products the consumer perceives as relevant or suitable will be included in their:
A.purchase set.
B.shopping set.
C.evoked set.
D.satisfaction set.
According to the 1981 Dunning study of comparative advantage, what advantage did
the U.S. have?
A.Technology of all kinds
B.Transportation equipment
C.Food products
D.Mechanical engineering
Kodak Corporation is preparing to enter the Japanese camera market. The sophisticated
buyers of this leading market are MOST likely to evaluate the firm’s entry by
employing the:
A.cost/benefit decision rule.
B.compensatory decision rule.
C.hierarchical decision rule.
D.evoked set decision rule.