In arm’s-length prices, a firm uses the market mechanism as a cue for setting transfer
prices.
Strategic alliances between strong and weak partners often work because of the
synergy and learning that can take place between mentor and subordinate.
One of the most fundamental determinates of the exchange rate is purchasing power
places.
Over the Internet, any piece of electronically represented intellectual property can be
instantly copied anywhere in the world.
Country of origin (COO) effects have been shown to be unstable over time.
Cross-sectional regression analysis do not produce market size estimates.
The extent to which a foreign company changes dollar prices of its products in the
U.S. market as a result of exchange rate fluctuations is called exchange rate pass-
through.
Billboards can be effective in reaching both rich and poor consumers in emerging
markets.
The Stopford-Wells international structural stages model shows the relationship
between the MNCs’ networks and their overseas productivity.
In the 1960s, the United States began to experience sequential balance of payments
deficits.
With respect to organizational forms, the matrix structure explicitly recognizes the
multidimensional nature of global strategic decision making.
Cultures may be defined by national borders.
Which of the following degrees of involvement would probably be in use when
piggybacking and selling through chains are used by the firm?
a. limited foreign involvement and visibility
b. local management and sales force
c. expatriate management and local sales force (mixed)
d. heavy to complete expatriate sales force
e. maximum global control and world wide ownership
Which of the following are among the best sources for finding new product ideas?
a. company, customers, competition, and collaborators.
b. trade magazines, television, and the internet.
c. government statistics, demographic charts, and psychological profiles.
d. reverse engineering, industrial spying, and out-of-date patents.
e. rumors, stories, and intuition.
Typical B2B procurement systems rely on _______________ that emphasize the
lowest bids on a global basis.
a. promotions
b. selling
c. manufacturing
d. auctions
e. production
Responding to changes in the market and competitive environments by moving forward
in a ________________ manner anticipates changes and then formulates strategies.
a. proactive
b. deductive
c. constructive
d. reactive
e. participative
Currencies of many _____________________ are pegged (or fixed) to one of the
major currencies or to a basket of major currencies?
a. regional countries
b. developed countries
c. emerging markets
d. developing countries
e. none of the above
As a profile of a twenty-first century country manager, _________________
is in charge of large and/or strategic markets. Prime responsibilities include handling
government relations and integrating acquisitions and strategic alliances.
a. the trader
b. the power broker
c. the builder
d. the ambassador
e. the cabinet member
The OECD is an acronym _______________________________________.
a. Organization for Economic Cooperation & Deregulation
b. Organization for Economic Cooperation & Development
c. Organization for Economic Cooperation & Datamation
d. Organization for Economic Cooperation & Distribution
e. Organization for Economic Cooperation & Demographics
When considering the currency pass-through phenomenon, all of the following
factors give an indication as to the appropriate action EXCEPT:
a. the customer’s price sensitivity.
b. government actions.
c. the impact of dollar appreciation on the firm’s cost structure.
d. the impact of dollar depreciation on the firm’s cost structure.
e. the amount of competition in the export market.
From a transaction-cost analysis perspective, market failure typically happens when
transaction-specific assets become _________________ and therefore more high-
control situations are needed.
a. optional
b. valuable
c. expendable
d. less-valuable
e. weaker
The acronym GAM stands for:
a. global application management.
b. global action management.
c. global arts management.
d. global account management.
e. none of the above.
Asking the question ‘Does the consumer have physical and/or economic access to
the product/service?’ is an indication of which stage of consumption processes
(as influenced by culture)?
a. buying behavior.
b. consumption characteristics.
c. disposal.
d. access.
e. acceleration.
_________________ exporting occurs when a manufacturer or exporter sells directly
to an importer or buyer located in a foreign market.
a. Direct
b. Indirect
c. Parallel
d. Synchronized
e. Dual
The extent to which a foreign company changes dollar prices of its products in the
U.S. market as a result of exchange rate fluctuations is called:
a. hedging.
b. exchange rate pass-through.
c. a target exchange rate.
d. factoring.
e. inflation-proofing.
Unlike the United States where customers visit car dealers, a majority of cars are sold
by door-to-door salespeople in _________________.
a. India.
b. Pakistan.
c. Japan.
d. Ireland.
e. Mongolia.
When data is collected specifically for the purpose of the research study, it is called:
a. public information.
b. primary data.
c. unrestricted information.
d. secondary data.
e. used information.
Value-based segmentation schemes are not always ________________.
a. profitable
b. collectable
c. actionable
d. measurable
e. none of the above
There are six steps to follow in conducting global market research. The first step
is to:
a. develop the research design.
b. define the research problem.
c. determine information needs.
d. collect the data (secondary and primary).
e. analyze the data and interpret the results.
In 2011, an estimated _______________ American jobs depended on international trade
and export expansion.
a. 1 million
b. 8 million
c. 10 million
d. 15 million
e. 20 million
In 2011, the total logistics cost represented about 8.5 percent of the GDP, or $1 trillion
in the _________________.
a. U.S.
b. Ireland
c. Portugal
d. Belgium
e. Romania
One common problem with using the analogy method of determining market size
is:
a. cost.
language problems.
consumption patterns are not comparable across countries due to strong cultural
disparities.
different monetary units.
there be more men than women in one of the cultures.
________________ refers to a community’s set of beliefs that relate to a reality that
cannot be verified empirically.
India’s average growth rate in GDP has been over:
3 percent
5 percent
7 percent
9 percent
10 percent
_________________ transportation refers to the seamless transfer of goods from one
mode of transport to another and vice versa without the hassle of unpacking and
repackaging.
________________ primarily refers to the technologies that are used to produce,
distribute, and consume goods and services within a society.
Comment on how you perceive the marketing of services on a global basis to be
different from marketing tangible goods. Think about the difficulties that might be
present with marketing services.
The world marketplace is shrinking and changing. One of the vehicles that has been
instrumental in this change is the General Agreement on Tariffs and Trade (GATT).
Explain what GATT is and how it has affected international business.
Explain and discuss some of the guidelines for managing and implementing successful
global account management (GAM) and customer relationship management (CRM)
programs.
Not all United States sales methods or systems can automatically be exported abroad.
Considering the information provided by research on different cultural dimensions, why
might it be difficult to adopt a U.S.-style commission system for salespeople in such
countries as Japan or Mexico. Be sure to remember how these two countries might rank
on the five cultural dimension scales.
Discuss the major reasons why international marketers implement international market
segmentation.
Explain the role of the free trade zone in modern trade. Explain the free trade zone’s
relationship and benefit to global logistics.