Global Marketing Management, 8e (Keegan)
Chapter 5 Global Customers
1) Similarities exist among countries that are in the same stage of economic development.
2) The World Bank classifies countries as: eastern, central, and western.
3) The six largest rapidly-growing emerging markets in the world are referred to as BRIC-EN.
4) Turkey is one of the six largest rapidly-growing emerging markets in the world.
5) Middle-income economies are often referred to as developed countries.
6) The EU consists of 27 member countries, but it operates as a single market.
7) Though the EU has adopted a common currency, barriers to the movement of people, goods,
and money within the EU continue to exist.
8) The objective of the EU is to harmonize national laws so that goods, services, people, and
money can flow freely across national borders.
9) The Treaty of Maastricht led to cooperation among EU members in critical areas such as
internal affairs and defense policy.
10) The Treaty of Maastricht failed to bring about a monetary union among the members of the
EU.
11) The United Kingdom has not adopted the euro as its currency.
12) Parallel importing is a product development strategy that is commonly used by marketers in
the European community.
13) The deregulation of national broadcasting monopolies has affected the promotional strategies
of marketers in the European community.
14) Foreign investors have been entering Russia mainly due to its increasingly democratic
political leadership that fervently promotes free media.
15) Costa Rica and the United States share the biggest trading relationship between any two
nations in the world.
16) Land prices in Japan are among the lowest in the world.
17) The major barriers to entry in Japan are the nontariff barriers of custom and tradition,
practice, and preference.
18) Income within India is highly polarized with a considerable part of the population living
close to or below the poverty line.
19) India has the largest Muslim population in the world.
20) Indonesia is the second “I” in the BRIC-IT group of emerging markets.
21) Latin American reforms show a broad shift away from the policy of protectionism toward
recognition of the benefits of participating fully in the global economy.
22) Chile’s economic reforms mostly lean toward nationalization instead of privatization.
23) Brazil is the largest country and economy in Latin America.
24) The Arab Spring refers to a series of protests and demonstrations that began in 2010 in the
Middle East.
25) Business in the Middle East is primarily driven by the price of steel.
26) The central problem faced by transitioning economies and low-income countries is the
shortage of goods and services.
27) The upside of the value equation is that when a company’s perceived value is high, it can
charge more than the competition for the same product.
28) The bottom line on the value equation is that you can succeed in a market only if you have
perceived value that is equal to or lesser than that of your competitors.
29) The relative advantage of a product, with regard to the rate at which innovations are adopted,
refers to the extent to which a product is consistent with existing values and past experiences of
adopters.
30) Interaction effect refers to the process through which individuals who have adopted an
innovation influence others.
31) The six largest rapidly-growing emerging markets in the world are referred to as ________.
A) G8
B) G20
C) BRIC-IT
D) NAFTA
32) The World Bank had developed a classification system whereby economies are divided into
groups according to their ________.
A) purchasing power parity (PPP)
B) gross domestic product (GDP)
C) human development index (HDI)
D) gross national income (GNI)
33) The European Union (EU) consists of ________ countries.
A) 27
B) 50
C) 45
D) 40
34) Which of the following statements is true of the EU market?
A) The EU is an example of a preferential trade area.
B) The Treaty of Versailles established the base for cooperation among the EU members.
C) All members of the EU have adopted a common currency.
D) The EU is economically bigger than the United States.
35) Which of the following seminal documents established the base for cooperation among the
members of the EU?
A) The Treaty of Lausanne
B) The Treaty of Greenville
C) The Treaty of Maastricht
D) The Treaty of Versailles
36) Which of the following statements is true of the Russian economy?
A) Russia has a technologically competent manufacturing base with the latest machinery.
B) Russia has a highly democratic political leadership that fervently promotes free media.
C) Russia’s middle class has been slow to accept foreign goods, services, and brands.
D) Russia has an economy that is largely dependent on oil revenues.
37) Which of the following statements is true of the North American market?
A) The U.S. is the home country of more top global brands than any other country in the world.
B) Canada has a purely capitalist economy but with an outdated manufacturing base and
unskilled labor force.
C) The North American Free Trade Agreement was signed by the U.S., Canada, and Costa Rica.
D) All the three countries that signed the NAFTA have adopted a common currency called the
dollar.
38) Which of the following statements is true of the Mexican economy?
A) Since the formation of EFTA, Mexico has been modernizing its infrastructure.
B) Immigrant workers from Mexico fill the need for low-cost labor in the U.S.
C) Over 80 percent of Mexico’s trade is with Canada.
D) Americans have invested more in Mexico than any other foreign land.
39) ________ refer to plants in Mexico where companies can import materials duty free,
assemble them using inexpensive local labor, and export them to the U.S. paying duty only on
the value added in Mexico.
A) Company stores
B) Black corporations
C) Maquiladora shops
D) Factory farms
40) Which of the following is a characteristic of the Asia-Pacific market that makes it one of the
hottest spots for marketers?
A) enormous population size
B) high product ownership levels
C) monetary union between countries
D) removal of trade barriers between countries
41) Which of the following countries is one of the five economic “tigers” of East Asia?
A) Indonesia
B) Malaysia
C) Thailand
D) Taiwan
42) Which of the following statements is true of the Chinese economy?
A) The United Kingdom is China’s largest trading partner.
B) The Chinese economy has been converted to a communist controlled system from a free-
market system.
C) The Chinese economy started growing tremendously during the Mao era.
D) The Chinese are the biggest global supplier of consumer goods.
43) Which of the following statements is true about the regional and cultural differences within
China?
A) The interior regions in China have highly developed distribution and logistics facilities which
attract marketers.
B) There are several important gender variances that marketers need to be aware of while
operating in China.
C) The majority of Chinese consumers are wary of advertisements and are more receptive to
other means of promotions.
D) Cultural homogeneity throughout the country enables marketers to package products without
localizing them.
44) Which of the following statements is true of the Japanese market?
A) A crucial factor that marketers need to consider while operating in Japan is its low population
density.
B) Buying or renting space for business operations is cheap in Japan.
C) Countless visits and socializing are necessary to build trust with distributors in Japan.
D) Japan is an individualistic country that emphasizes the individual rather than the group.
45) Which of the following best describes the cultural values of a traditional Asian?
A) resentment of authority
B) control by “guilt” and conscience
C) personal responsibility
D) extended family ties
46) Which of the following best describes the marketing values of a traditional Asian?
A) environmentalism
B) personal choice and self-expression through brand
C) belief in “understatement” of wealth
D) confidence in technology
47) Which of the following statements is true of the economies of Australia and New Zealand?
A) There are restrictions in the free movement of people between the two countries.
B) There are trade barriers and border restrictions between the two countries.
C) There is a major challenge facing marketers in Australia regarding high marketing costs for
distributing goods internationally.
D) There has been an increase in the relative wealth of New Zealand due to an increase in prices
for agricultural commodities.
48) Which of the following characteristics of Latin American countries discourages global
corporations from entering their markets?
A) wide income disparity between the rich and the poor
B) inclination toward the policy of protectionism
C) low potential for establishing regional production
D) increasing tariffs within subregional trading groups
49) Which of the following statements is true about the business scenario in the Middle East?
A) Business decisions are usually made by correspondence.
B) Well-connected businesspeople generally progress faster.
C) Business in the Middle East is driven by the price of gold.
D) Arab businessmen are known for never entertaining any sort of haggling.
50) Which of the following statements is true about the economies of Africa?
A) South Africa’s main export is oil.
B) Nigeria is an upper-middle income country.
C) Nigeria and South Africa, account for over two-thirds of sub-Saharan African GDP.
D) South Africa is the largest country in Africa, and has a lower-middle income economy.
51) Which of the following statements is true about customer value?
A) The customer value equation is represented by B = V/P, where B = benefits, V = value, and P
= price.
B) Value can always be increased for a customer by increasing the price of a product or service.
C) A company can succeed in a market only if its perceived value is equal to, and not lesser than
or greater than, its competitors.
D) A company that has high perceived value can charge more than its competitor for the same
product.
52) According to Rogers’ diffusion theory, customers engage in research activities to seek out
additional information about a product during the ________ of the adoption process.
A) awareness stage
B) interest stage
C) evaluation stage
D) adoption stage
53) Sarah comes across an online ad promoting a new deodorant that is priced much lower than
the one she regularly uses. She goes to a nearby supermarket and uses a free sample pack to
evaluate the deodorant. According to Rogers’ diffusion theory, Sarah is in the ________ stage of
the adoption process.
A) awareness
B) interest
C) trial
D) adoption
54) As a characteristic of innovation, ________ refers to whether a product can be tried and used
on a limited basis or in smaller quantities without great expense.
A) divisibility
B) complexity
C) communicability
D) compatibility
55) ________ tend to include people who are the most influential in their communities, have
high social status, and are in favorable financial positions?
A) Innovators
B) Early adopters
C) Late majority
D) Laggards
56) Differentiate between the cultural and marketing values of Westerners and Asians.
57) Describe the adoption process as explained by the diffusion theory.