To identify market opportunities for a given product (or service), the international
marketer usually starts off with a large pool of candidate cities.
In international marketing, trade barriers to service marketers tend to be much more
cumbersome than physical products.
Colgate-Palmolive views per capita purchasing power as a major driver
behind market opportunities.
The Internet is not helping companies to create global brands.
Global pricing contract (GPCs) are demanded by governments.
The coordination of the management of customer accounts across national boundaries is
called as global action management.
Intrafirm trade makes trade statistics more complex to interpret because of trade
transactions taking place between affiliated companies within the same corporate
system, transcending national boundaries.
Transition economies are those that are moving from very poor to more developed.
In intermodal transportation, only one type of transportation is employed.
The requirements for effective market segmentation in the domestic environment
are significantly different than those of the international environment.
The Roper Consulting Valuescope study on lifestyle segmentation is based on the
following global values segments EXCEPT:
a. achievers.
b. traditionals.
c. power seekers.
d. nurturers.
e. hedonists.
When import duties are paid, the _________________ duty is a specified amount
of the per unit weight or other quantity of the merchandise.
a. ad valorem
b. specific
c. compound
d. nontariff
e. import
Translation errors include:
a. simple carelessness.
b. multiple-meaning words.
c. idioms.
d. all of the above.
e. none of the above.
When marketers use a(n) _________________ segment, they focus on local
segments that differ from country to country.
a. unique/diverse
b. universal
c. combination
d. customized
e. international
The first step in doing international market segmentation is deciding:
a. which criteria to use in the task.
b. which criteria to fund.
c. which customers must be evaluated.
d. how best to spend research funds.
e. none of the above.
__________________ (as a form of market-based pricing) basically dictates that
the company charges the price that any buyer outside the company would pay (as
if the transaction occurred between two unrelated entities).
a. Local-currency price stability (LCPS) pricing
b. Pricing-to-market (PTM)
c. Arm’s length pricing
d. Countertrade pricing
e. Nonmarket-based pricing
A ___________________ is where unique local competition is nurturing product and
service standards to be adopted by the rest of the world over time.
a. lead market
b. slow market
c. backward market
d. grey market
e. black market
The legal system that holds that law was established by God and a ‘natural law’
embodies all justice is represented by:
a. Common law.
b. Code (written) law.
c. Islamic law.
d. Germanic Confederation law.
e. Napoleonic law.
Legal issues facing a company affect:
a. pricing decisions.
b. packaging decisions.
c. product decisions.
d. all of the above.
e. none of the above.
One alternative to the test market is the _____________________.
a. thought panel
b. laboratory test market
c. internet exposure technique
d. preferred patron experiment
e. use of break-even analysis
In global logistics and distribution, Coca-Cola’s success relies largely on its global
distribution arm, ______________________, the world’s largest bottler group.
a. Coca-Cola Enterprises
b. Coca-Cola Network
c. Coca-Cola Web
d. Coca-Cola Team
e. Coca-Cola Trucking Co.
Markets can be classified in four types of countries based on their respective market
attractiveness. Hong Kong and Singapore would fall into which of the types listed
below (where the purpose would be to gather intelligence and establish a network)?
a. platform countries.
b. emerging countries.
c. maturing and established countries.
d. growth countries.
e. none of the above.
To overcome the problems of expropriation, confiscation, and even nationalization,
many companies are now adopting a policy of ___________________ where the
company gradually turns over management and operational responsibilities as well as
ownership to local companies over time.
a. retaliation
b. boycott
c. sanction
d. domestication
e. profit sharing
With respect to sales and sales management, the entry method into a market is also
called the ____________________________.
a. zone process
b. level of migration
c. level of expatriation
d. level of complexity
e. level of integration
According to the textbook, which of the following famous business thinkers
characterized logistics as being ‘the darkest continent of business?’
a. Philip Kotler.
b. Stephen Covey.
c. Michael E. Porter.
d. Peter Drucker.
e. Tom Peters.
Lack of political stability and continuity is usually a characteristic of which of the
following systems?
a. single party
b. dual party
c. multiple party
d. bi-cameral system
e. communist
When comparing the product mix in the company’s host and home markets, all of
the following are possible scenarios EXCEPT:
a. an extension of the domestic line.
b. an extension of a joint venture or strategic alliance.
c. a subset of the home market’s product line.
d. a mixture of local and nonlocal product lines.
e. a completely localized product line.
Which of the following is a principle of international trade?
a. German workers will not work without Union representation.
b. International trade hurts many countries since it is basically unfair to
developing nations.
c. International trade increases worldwide production by specialization.
d. Exchange rates are determined by the Hague Convention.
e. Bribery drives up prices in world trade.
INCOTERMS 2000 which went into effect from January 1, 2000 and is an acronym
for ____________________________, are the internationally accepted standard
definitions for the terms of sale by the International Chamber of Commerce.
a. Industrial Commercial Terms
b. Insurance Commercial Terms
c. Irrevocable Commercial Terms
d. International Commercial Terms
e. none of the above
In Spanish, five different words can be used for the word ‘tires’ (cauchos, cubiertas,
gomas, llantas, and neumaticos). Obviously, this might present problems in
advertising. This would be an example of which of the following types of translation
errors?
a. simple carelessness.
b. idioms.
c. local slang.
d. multiple-meaning words.
e. incorrect grammar.
__________________ sectors of the economy are transactions that arise outside the
legitimate sector of a country’s economy.
a. Gray and black
b. Gray and white
c. Gray and blue
d. Gray and green
e. Gray and yellow
According to the text, ____________________ of the world trade is managed one way
or another by MNCs.
a. one-third
b. two-thirds
c. one-fourths
d. two-fourths
e. three-fourths
___________________ refers to the inflow of raw materials, parts, and supplies
in and through the firm.
Real time management:
•can allow companies to make better decisions.
•will cause even greater problems if information is not shared.
•has been made possible with breakthroughs in information technology.
•is too expensive to be truly useful.
•a, b and c are all correct.
•
Briefly, explain the concept of licensing in a foreign market. In addition, cite the
benefits and drawbacks of licensing. Be specific in your responses.
With respect to budget forms that can be used in advertising, the ________________
method simply sets the overall advertising budget as a percentage of sales.
With which country does the U.S. have the largest trade deficit?
Germany
Japan
Canada
India
China
To cover the incremental costs of doing business in a foreign market, the final
foreign retail price will often be much higher than the domestic retail price.
This is called price _________________.