Partitioning a given market into similar customer groupings for which uniform
marketing strategies can be used is called:
A.homogenization.
B.market division.
C.sub-marketing.
D.market segmentation.
The America-First Corporation has pled guilty to dumping charges in some of its
markets. The MOST likely punishment for the firm will be:
A.the enforcement of countervailing duties.
B.expropriation.
C.confiscation of assets.
D.confiscation of the goods in question.
Identify an advantage of using a focus group for exploratory research.
A.It is highly expensive.
B.It can reach local pockets of the total market.
C.Paying respondents inhibits the expression of negative feelings.
D.Moderators are usually specialized in certain products and customers.
Gains realized from spreading activities across multiple product lines or businesses are
referred to as:
A.economics of scope.
B.advantages of sourcing.
C.economies of scale.
D.duplication advantages.
US Air and British Airways share reservation systems for complementary routing. This
arrangement is an example of a:
A.slotting arrangement.
B.lease-hold arrangement.
C.piggybacking arrangement.
D.transportation contract.
Joe Samples owns a small wholesaling company that specializes in small, frequent
deliveries of a variety of products which are price-marked and placed on special display
units rented by the firm’s customers. Joe’s firm is an example of a:
A.full-service wholesaler.
B.rack jobber.
C.brokerage house.
D.freight forwarder.
The positioning theme is unified and some alternative creative concepts supporting that
position are spelled out, but actual execution may differ between markets under a
strategy of:
A.global prototypes.
B.pattern standardization.
C.content specialization.
D.message segmentation.
Global brands are:
A.those that are available in the major regions of the world and are strong players in
each market region.
B.well-known product brands that have different names in different parts of the world.
C.the ones that have a limited reach in a few local markets, often domestic only.
D.lesser-known product brands that have different names in some parts of the world.
Which of the following countries prefer “low-think” and “low-feel” advertising?
A.Argentina
B.Belgium
C.Italy
D.Canada
Product positioning is of the MOST importance in which stage of the PLC?
A.Growth
B.Maturity
C.Introduction
D.Decline
The Snuggle Corporation has developed several brands it plans to sell throughout
Europe through the use of a standardized marketing mix. The firm is planning to
introduce:
A.universal brands.
B.Euro-brands.
C.niche brands.
D.retreat brands.
The theory of comparative advantage is extended by Porter’s concept of:
A.the international product cycle.
B.the circular flow of innovation.
C.the diamond of national advantage.
D.economic Darwinism.
The rate of diffusion varies between countries as a result of differences in all of the
following EXCEPT:
A.cosmopolitanism.
B.geographic mobility.
C.proportion of women in the workforce.
D.size of the population.
All of the following tends to be true for foreign entrants in a global market EXCEPT:
A.foreign entrants tend to be the most direct competitors of a globalizing firm.
B.foreign companies can often be analyzed as a separate strategic group.
C.the similarity of their strategic situation that tends to suggest similar strategies.
D.foreign companies from inside a trading area have a disadvantage over other foreign
competitors.
The MOST important factor in the acceptance of global directives by local managers is:
A.the selection of appropriate management incentives.
B.the selection of appropriate management penalties.
C.strong headquarters support.
D.the observation of “due process.”
Several of the Asian countries and Israel have achieved NIE status by their:
A.natural resources.
B.low labor costs.
C.technological expertise.
D.production efficiencies.
Research generally indicates that standardization:
A.enhances both sales growth and ROI.
B.is most successful in slowly growing markets.
C.enhances ROI at the expense of sales growth.
D.enhances sales growth, but not ROI.
Which of the following cultures is most similar to the United States with regard to
Hofstede’s masculine versus feminine/uncertainty avoidance dimensions?
A.Japan
B.Australia
C.Norway
D.France
Which of the following is NOT an important responsibility assumed by global account
managers?
A.The coordination of orders from the customer’s various locations.
B.The task of negotiating uniform prices.
C.Creating efficient advertising campaigns in all countries.
D.The coordination of all firm communications to various customer locations.
Initially, Hong Kong served as the natural point of entry to the China because of:
A.its political stability.
B.its size.
C.the old ties.
D.the British rule.
The provision of a complete “package,” ready for customer use or operation at delivery
is the goal of:
A.final assembly sales.
B.systems selling.
C.on-site production.
D.site development selling.
The America-First Corporation frequently grants the use of its brand names and
know-how to selected foreign nationals in return for a fee and royalty payments. The
firm is making use of:
A.wholly owned subsidiaries.
B.foreign direct investment.
C.exportation.
D.licensing.
The Diet-Rite Corporation attempts to fight gray trade by discouraging its authorized
dealers from disposing of excess stocks by selling to gray trade dealers. Diet-Rite is
attempting to deal with the problem by:
A.strategic attack.
B.dealer interference.
C.supply interference.
D.demand interference.
The Celenese Corporation is currently involved in compiling estimates of actual market
size and market potential for its “short list” of candidates for potential entry. The firm’s
present focus would indicate that it is involved in which of the following stages of the
entry evaluation process?
A.country identification
B.final selection
C.preliminary screening.
D.in-depth screening.
Firms preparing to enter global marketing for the first time are MOST likely to alter the
organization by creating a(n):
A.geographical/regional structure.
B.international division.
C.global product division.
D.export department.
Which of the following is MOST akin to selling a generic brand?
A.Franchising
B.Direct exporting
C.Turnkey projects
D.Original equipment manufacturing
The America-First Corporation has entered into an alliance with a potential foreign
competitor. The agreement would be BEST described as a(n):
A.international strategic alliance.
B.joint venture.
C.franchise program.
D.licensing agreement.
Toyota Corporation has just completed building a factory in Ukraine which will
produce some of its products. In partial payment for this plant, Toyota has agreed to
purchase 10 percent of this plant’s output. This deal is an example of:
A.barter.
B.a counterpurchase deal.
C.a compensation deal.
D.a product buy-back deal.
According to BCG growth share matrix, the _____ are products with small shares in
slow-growth markets and should get little or no support, perhaps be dropped.
A.Stars
B.Pling
C.Cows
D.Dogs
The oldest form of countertrade is:
A.barter.
B.compensation deals.
C.counterpurchase.
D.buy-backs.
Which of the following geographic areas has the highest manufacturing costs?
A.Mexico
B.Europe
C.United States
D.Australia
Samples, regardless of size, may provide useless information if they are:
A.random.
B.quantitative.
C.used for qualitative research.
D.unrepresentative.
The U.S. Republican National Party has introduced infomercials, which are 30-minute
commercials explaining its ideas in depth, and providing an 800 number for feedback
into several Canadian markets. The organization is employing:
A.telemarketing.
B.direct response television.
C.trade promotions.
D.cross-marketing.
The Fridgeaire Corporation typically enjoys a high level of marketing standardization
and strong local resources in its foreign markets. Which of the following pricing
strategies is the firm MOST likely to employ to fight the emergence of gray trade in its
products?
A.Economic controls
B.Informal coordination
C.Centralization
D.Formalization
In globalization, an early question is whether firm-specific advantages are:
A.accountable.
B.cashable.
C.transferable.
D.achievable.
When is nonadaptation of the local culture appropriate?
_____ markets are primarily composed of the newly democratized post-communist
nations, while the term _____ countries is typically applied to all other nations
characterized by low per capita income levels. BOTH types of markets are plagued by a
severe lack of _____.
The _____ negotiator starts with the easily agreed-upon smaller details and works up,
while the _____ negotiator first wants to agree on the overall framework of the
agreement.
The Everlast Corporation is preparing its first global advertising budget. Briefly
evaluate the firm’s alternatives. Which approach is MOST preferable? Why?
Many firms are comfortable with the use of the percentage-of-sales approach that may
be traditional in domestic markets. Although percentage-of-sales is popular among
firms from most countries, it is not a very useful method for setting global advertising
budgets. Even if total worldwide revenues can be used as a base, it is not clear what the
appropriate percentage would be. Which country’s industry average should be used as a
starting point?
While the _____ remains the most common form of equity-based strategic alliance, in
recent years _____, _____, and _____ alliances have provided rapidly-growing,
non-equity based alternatives to the traditional approach.
Briefly describe the role of publicity in the firm’s promotional program. What
advantages and disadvantages are associated with its use?
Tesoro Petroleum Corporation employs global and local advertising agencies to
operationalize its global strategy. The firm feels that it can ensure the success of its
global efforts by maintaining control of advertising objectives and budgets. Describe
how this strategy works.
The Hilton Corporation is among the leading service providers in the world. The firm
desires to enter foreign markets in a way that will allow it maximum control, provide
for local adaptation where necessary, and make possible the use of local capital to
minimize political risk. Hilton is MOST likely to favor _____ as its primary mode of
entry.
The H & M Corporation has a large number of foreign distributors as members of its
global distribution network. How will its channel management problems differ from
those encountered in its domestic market? How should such problems be handled?
The New Zee Corporation is considering the use of standardized markups as the core of
its geocentric pricing policy. What problem is the firm MOST likely to face?
The Jet Blue Corporation is preparing to globalize the marketing of its service business.
What are the major components of the firm’s service “product”? What special problems
will the firm face in marketing its services?
The process of evaluating candidates for foreign entry is divided into the stages of
____________________, ____________________, ___________________, and
____________________.
Explain on what basis products are positioned in the Middle East.
K-Mart, the American retailing giant, routinely contracts with independent
manufacturers, to produce products to be sold under the K-Mart and Sears family of
brands. Which entry strategy is being used by K-Mart’s foreign suppliers?
Hofstede classifies countries according to their position along four basic “cultural
dimensions” including: _____, _____, _____, and _____.
ARF is an extension of the ASEAN bloc to include _____.
The five major globalization drivers are ____________________,
____________________, ____________________, and ____________________ and,
_______________________.