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According to the forecast regarding online retail sales among select European countries
by the year 2018 Germany will be ranked at the top in the region.
"Export selling" involves tailoring various elements of the marketing mix to global
market requirements.
Robust economic growth and rising incomes mean that consumers in China, India, and
other emerging markets can buy cell phones as status symbols.
In Japan, intimate scenes between men and women are in bad taste, and in Saudi
Arabia, such ads are outlawed.
"Hypercompetition" is a term that describes a business environment of escalating
rivalry characterized by rapid product innovation and short product life cycles.
Google's Chrome operating system, which has been described as "a new computing
paradigm," is designed to exploit the opportunities of cloud computing.
As Emirates and other middle eastern carriers penetrate more deeply into the world's
largest aviation market, they are becoming known for very high-quality in-flight
service.
Direct marketing does not work well as a global marketing tool because it is not well
suited to the task of addressing cultural differences among consumers.
Jack Welch encountered resistance at GE and said that, "The lower you are in the
organization, the less clear it is that globalization is great."
In global marketing research, it is important to establish scalar equivalence when
obtaining information from different countries.
A country's currency would be overvalued if the Big Mac price (converted to dollars) is
lower than the U.S. price.
After convening worldwide employee conferences to study women's shaving
preferences, Schick-Wilkinson Sword introduced a shaving system for women that
features a replaceable blade cartridge.
Ads in a European print campaign for Boeing shared basic design elements, but the
copy and the visual elements were localized on a country-by-country basis. This is an
example of pattern advertising.
Apple's retail stores reinforce the brand's hip, cool image.
The final step in the 6-step sales presentation plan is closing the sale.
Myanmar people are very similar to Japanese in some ways.
The Subaru nameplate is synonymous with the company's Symmetrical All-Wheel
Drive and Partial Zero Emissions Vehicle (PZEV) engineering.
In 2008, the United States enacted a country-of-origin labeling (COOL) law. The law
requires supermarkets and other food retailers to display information that identifies the
country that meat, poultry, and certain other food products come from.
The Fly American Act is an example of a nontariff barrier.
Direct sensory perception provides a vital background for the information that comes
from human and documentary sources.
France is leading in the rankings showing expenditures for outdoor advertising as
percentage of total ad spending.
CARICOM's main objective has been to achieve a deepening of economic integration
by means of a Caribbean common market.
A strengthening of the home-country currency swings exchange rates in a favorable
direction.
In recent times, trade has replaced capital movements as the driving force of the world
economy.
Ideally, GDP and other measures of national income converted to U.S. dollars should be
calculated on the basis of purchasing power parities or through direct comparisons of
actual prices for a given product.
There is a tendency to overstate the size and short-term attractiveness of individual
country markets, especially when estimates are based primarily on demographic data
such as income and population.
To succeed in global markets, firms can now rely exclusively on the technological
superiority or core competence that brought them past success.
A distributor with good contacts is the best one to select in terms of generating quick
sales and revenues.
Many companies that are active in the 19 nations of the euro zone are adjusting to the
new cross-border transparency of prices.
Since market maturity can be different from country to country, consumer sampling and
coupons are appropriate for mature markets.
McDonald's global marketing chief, staged a competition that included agencies from
all over the world. "i'm lovin' it" tagline was devised by a(n) ________ agency.
A) Egyptian
B) American
C) Turkish
D) Chinese
E) German
A characteristic of a low-context culture which is prevalent in the United States,
Switzerland, and Germany is that:
A) less information is contained in verbal communication.
B) major emphasis is on a person's values and position in society.
C) the messages are explicit and specific.
D) a person's word is his or her bond.
E) negotiations are long and protracted.
Where in the axis that differentiates between retailers does IKEA fall?
A) quadrant A
B) quadrant B
C) quadrant C
D) quadrant D
E) quadrant E
The scandal about finding horse DNA in frozen beef burgers sold in supermarkets in
Ireland became a big issue. However, the fact remains that 60,000 tons of horse meat
were sold in Europe in 2012. Other facts about horse meat include all of the following
except:
A) in Europe, horse meat is available from a variety of suppliers.
B) it is legal to produce horse meat in the United States.
C) horses are shipped from the United States to Mexico and Canada for slaughter.
D) Italy imports 50 million pounds of horse meat annually from Ireland.
E) horse meat is lean and high in iron and other nutrients.
Implementation of the Central American Free Trade Agreement with the United States
created a free trade area known as DR-CAFTA that includes all SICA members except:
A) Honduras.
B) Guatemala.
C) Nicaragua.
D) Panama.
E) Costa Rica.
The decision by Toyota executives to introduce the Sienna minivan in the U.S. market
was based on their study of a(n) ________ market.
A) existing
B) latent
C) parallel
D) incipient
E) global
One of the basic elements of sociologist Everett Roger's Diffusion theory is the concept
of an "adoption process." The first step in this adoption process is:
A) interest.
B) evaluation.
C) trial.
D) adoption.
E) awareness.
Which of the following is the largest retailer in the world in terms of annual sales
according to the top five global retailers, 2012?
A) Sears
B) Metro
C) Kmart
D) Carrefour
E) Walmart
The president of an American company was interested in dealing with a company in
Saudi Arabia. The Saudi CEO made it clear at the outset that the credentials in the
documents have less credibility than personal trust and confidence. This shows that the
Saudi Arabian culture is a high-context culture.
Broadband offers companies the telecommunication capability to do all of the following
except:
A) streaming audio.
B) streaming video.
C) streaming media.
D) streaming sales.
E) compressed video.
A company adopting a(n) ________ approach to worldwide PR activities gives the
host-country practitioner maximum leeway to incorporate local customs and practices
into the PR effort.
A) ethnocentric
B) regiocentric
C) local
D) polycentric
E) publicity
As apparent from the 2014 rankings of Fortune magazine's global 500 companies,
Volkswagen is trying to unseat ________, the world's most valuable car company.
A) GM
B) Daimler AG
C) Toyota
D) Ford
E) Chrysler
The original six members of the ASEAN (Association of Southeast Asian Nations)
included all of the following countries except:
A) Singapore.
B) Thailand.
C) India.
D) Philippines.
E) Brunei.
The significance of tobacco advertising is highlighted by the fact that ________ million
people die each year as a direct result of consuming tobacco products.
A) two
B) three
C) four
D) five
E) six
In which country are global marketers likely to encounter the most restrictions on
advertising?
A) the United States
B) Japan
C) Saudi Arabia
D) Russia
E) Germany
According to David Whitwam, former CEO of Whirlpool, one must create an
organization whose people are:
A) adept at exchanging ideas, processes, and symptoms.
B) absolutely free of the "not-invented here" syndrome.
C) constantly working together to identify best global opportunities.
D) working together to solve the biggest global problems.
E) able to adapt to systems across borders.
Campbell is the world's largest soup company, commanding about 80% of the U.S.
canned soup market. However, the company has a presence in only 6% of the world's
soup markets. Russians eat 32 billion servings of soup each year, and the Chinese
consume 300 billion! By contrast, Americans eat 15 billion servings each year. Sensing
a huge opportunity, Campbell has dispatched teams to observe Russian and Chinese
habits. This type of interpretation and decision is based on:
A) demand pattern analysis.
B) income elastic analysis.
C) time series displacement.
D) polycentrism.
E) comparative analysis.
If an American businessperson pays a Russian customs agent a $20 cash "processing
fee" to avoid delay in leaving Russia, the businessperson has violated the Foreign
Corrupt Practices Act (FCPA).
Germany's Bayer Group was fined millions of dollars to settle a lawsuit alleging it had
conspired with Archer Daniels Midland and other global companies to set prices for an
enzyme used in animal feeds. What was the issue in this lawsuit?
A) price skimming
B) market penetration
C) price bundling
D) price fixing
E) dumping
Because advertising is often designed to add ________ value to a product or brand, it
plays a more important communications role in marketing consumer products than it
does for marketing industrial products.
A) social
B) monetary
C) cultural
D) psychological
E) emotional
Which type of countertrade arrangement is required by governments seeking to reduce
the budgetary impact of expenditures for defense or telecommunications?
A) barter
B) switch trading
C) offset
D) compensation trading
E) none of the above
Which of the following isnot the way U.S. auto mass producers operate?
A) greater labor content
B) less mechanization
C) less flexible mechanization
D) divide employees in discrete specialties
E) lack of employee teamwork
Which of the following would constitute a copyright violation?
A) manufacturing and selling illegal videocassette copies of "Spiderman 2"
B) manufacturing and selling illegal copies of Levi "501" jeans
C) printing and selling illegal copies of Harry Potter books
D) A, B, and C are copyright violations.
E) A and B are copyright violations.
Which of the following refers to a system of farm subsidies in Europe?
A) CVD
B) FSC
C) CAP
D) HTS
E) NTR
When John Brooks, a defender on the U.S. men's national soccer team, scored the
winning goal against Ghana late in a first-round game of the Fdration Internationale de
Football Association (FIFA) 2014 World Cup at Arena Amazonia, nearly 16 million
American TV viewers were tuned in. Considering this statement, which of the
following statements is incorrect?
A) The record-setting television audience for World Cup 2014 provided evidence of
soccer's growing popularity in the United States.
B) The victory in Brazil was especially sweet because Ghana's Black Stars was the
team that had defeated the Americans in a second-round game at the 2010 World Cup in
South Africa.
C) Ghana had ended Team USA's hopes in the 2006 World Cup in Germany.
D) The U.S. team lost to Portugal in the game that attracted nearly 25 million American
TV viewers.
E) FIFA has chosen Total Apparel Group (TAG) to boost soccer's visibility and
popularity among Americans.
The unit of analysis can be a single country or region; however, for all market-entry
decisions ________ data are not required.
A) specific city
B) statewide
C) provincial
D) district wise
E) country wide
All of the following stores are categorized as 'superstores" except:
A) Toys "R" Us.
B) Home Depot.
C) IKEA.
D) Babies "R" Us.
E) The Body Shop.
After the research effort has zeroed in on potential markets, marketers should:
A) work on understanding the target market environment.
B) modify methods used for marketing research.
C) identify products that can be marketed.
D) make decisions concerning product design.
E) plan a personal visit.
________ is an independent marketing intermediary that acts as the export department
for two or more manufacturers whose product lines do not compete with each other.
A) Export commission
B) Manufacturer's export agent
C) Cooperative exporter
D) Freight forwarders
E) Export Management Company
Which of the following is true about Japanese keiretsu?
A) Toyota is a vertical keiretsu, Mitsubishi is a horizontal keiretsu.
B) Toyota is a horizontalkeiretsu, Mitsubishi is a vertical keiretsu.
C) Toyota and Mitsubishi are both horizontal keiretsu.
D) Toyota and Mitsubishi are both vertical keiretsu.
E) none of the above
Suppose you have a friend from India who is a lifelong vegetarian and who does not
like McDonald's because the company sells hamburgers in many countries. Which of
the following describes your friend?
A) "vegetarianism" represents a value, "dislike McDonald's" represents an attitude
B) "vegetarianism" represents an attitude, "dislike McDonald's" represents a value
C) "vegetarianism" and "dislike McDonald's" both represent an attitude
D) "vegetarianism" represents a value, "dislike McDonald's" represents a belief
E) "vegetarianism" and "dislike McDonald's" both represent values
Celeste Atkinson is a lifestyle and entertainment manager for Audi, and her job is to
create buzz by ensuring that vehicles such as the Audi A8L and the S8 sports sedan
figure in paparazzi photos. This is referred to as:
A) lifestyle placement.
B) blockbuster placement.
C) promotion placement.
D) product placement.
E) photo placement.
The success of CFM International (the strategic partnership between GE and Snecma)
can be attributed to which of the following?
A) compatibility of the partners
B) capability of the partners
C) commitment of the partners
D) personal chemistry between executives
E) all of the above
Authors Michael Czinkota and Ilka Ronkainen identified four specific environmental
factors that may require international research efforts to be conducted differently than
domestic research. Describe those factors to outline the differences.
The Komatsu/Caterpillar saga illustrates the fact that global competitive battles can be
shaped by factors other than the pursuit of generic strategies. Explain this statement
giving examples and impact on competitive strategies.
What are the secondary sources of data and how do these sources differ from primary
sources? Give examples of sources from which secondary data can be obtained.
Coca-Cola has developed several branded drink products for sale only in Japan,
including a noncarbonated ginseng-flavored beverage. Using this as an example, outline
the differences between a local brand and a global brand, combination branding,
communication-branding, and brand extensions.
The Strategic/Consultative Selling Model has gained wide acceptance in the United
States. Briefly describe what the model consists of and how it can serve as a checklist
for sales personnel.
What is hypercompetition? Briefly discuss conditions under which hypercompetition
takes place.
According to various statistics, South Korea leads the world in providing its citizens
with access to information and communications technologies. Discuss how South Korea
could lead the world in technology and why the United States has taken a relatively
slow start, particularly in spreading the broadband technology.
Demographic changes can create opportunities for marketing innovation. Justify this
statement using examples.
Recently "Call Centers" have mushroomed in countries like India, China, and
Philippines due to the outsourcing by many Western countries. What are the benefits
and disadvantages to this method to the company that is outsourcing? What factors
should be taken into account when deciding to outsource?
Governments in Japan, Singapore, South Korea, and China have supported exports for
years which have tremendously helped their economies. Since exporting is a very
important component of a country's business strategy, many government programs are
offered that support exports. Describe ways by which governments can support exports.
In 2010, dozens of Bangladeshis were killed in two separate fires in factories that made
clothing for western clients such as JCPenney and Gap. In November 2012, 112
garment workers were killed when a fire broke out at Tazreen Fashions, a clothing
manufacturer in Dhaka, Bangladesh. What are the implications of these tragic
incidences on the export by a country dependent on exports?
How do chance events play a role in shaping the competitive environment?
For years, Coca-Cola Corporation did not enter India since the government wanted
some kind of disclosure of their trade secrets. Why are trade secrets so important and
what happens if a licensee or a government gains access to the licensor's trade secret?
Assume that the market segment is judged to be large enough, and the strong
competitors are either absent or deemed to be vulnerable, then is it safe to enter the
country?
Describe how Red Bull's creator trusted his entrepreneurial instincts instead of relying
on traditional marketing research to make it so globally successful.
Why does NAFTA create a free trade area as opposed to a customs union or a common
market? Explain the difference by giving examples.
Explain the reasons behind the failure of the visionary strategy of Volkswagen from
becoming the number one automaker in the world.
According to experts, mastering the Japanese market is considered to be a very difficult
task. However, with the lucrative market in Japan, it is imperative to understand the
intricacies in order to be successful in business. What are some of the factors that need
to be considered by corporations that would like to conduct business in Japan?
