1) Nestle asked suppliers to find a type of glue to make the clicking sound louder when
consumers snap open a tube of Smarties brand chocolate candies.
2) A commitment to the marketing concept and a desire to serve as a problem solver
when helping customers is part of a sales representative’s personal selling philosophy.
3) Publicity is similar to advertising in that companies pay the media for placement of
stories and news items.
4) The allure of the Latin American market has been its considerable size and huge
resource base.
5) In 2005, the U.S. Commerce Department determined that wooden bedroom furniture
from China was being dumped, that is, sold less than fair value. Tariffs ranging from
1% to more than 200% was imposed.
6) The Vatican City uses the euro although it is not a part of the European Union.
7) The four tigersSingapore, South Korea, Taiwan and Hong Konglearned from the
Japanese experience and built strong export-based economies of their own.
8) The only costs in licensing are the signing agreement and policing its
implementation.
9) The alliance between GE and Snecma got off to a strong start due to the personal
chemistry between the top two executives of respective companies in spite of the
differing views regarding governance, management, and organization.
10) That Wal-Mart pulled out of Germany and South Korea is an example of
unsuccessful cross-border retailing initiatives.
11) Brand equity is an example of a tangible product attribute.
12) Greece exports very little, and its economy is only one-tenth the size of Germany.
13) Organic growth occurs when a company uses its own resources to open a store on a
greenfield site.
14) A preferential trade agreement is a mechanism that confirms special treatment on
select trading partners, thereby at times discriminating against other trading partners.
15) When utilizing the services of a local independent distributor, management is well
advised to treat the distributor as a temporary market-entry vehicle.
16) Greece is not the only European country that is in economic crisis. All of the
following countries are facing problems in that region except:
A) Ireland
B) Spain
C) Italy
D) Portugal
E) Greece
17) Thomas Burke, an executive at Saatchi & Saatchi, is quoted as saying ________ are
“the most powerful form of advertising ever created.”
A) corporate advocacy ads
B) infomercials
C) banner ads on the Internet
D) direct mail campaigns
E) catalog sales
18) Amazon.com, the leading Internet bookseller, allows users to purchase books, CDs,
and other products online. Amazon.com is primarily a ________ site:
A) promotion
B) content
C) transaction
D) execution
E) cyber
19) Global automakers are targeting the U.S. market with SUVs. All of the following
SUVs are assembled or manufactured in the listed country except:
A) Porsche in Germany
B) Honda in Japan
C) Volkswagen in Slovakia
D) Kia in India
E) Mercedes-Benz in the United States
20) Giving business cards with the left hand in Malaysia, showing soles of shoes to a
host in Saudi Arabia, and winking one eye in India are all considered impolite
interpersonal communication due to the fact that:
A) in Middle Eastern countries it is customary to take off shoes at the door
B) it is difficult to notice when one winks eyes since there are many people in India
C) people pick up nonverbal cues and understand intuitively without being told
D) these actions distract people from hearing at meetings
E) people are not aware of Western ways of doing business
21) The most important preferential trading arrangements in Latin America do not
include:
A) SICA.
B) the Andean Community
C) CARICOM
D) Mercosur
E) BRIC
22) Which of the following would not be taken into account by a company using an
ethnocentric approach to pricing decisions?
A) the possibility of implementing a penetration strategy
B) profitable price points that could be tied to local sourcing as opposed to
home-country sourcing
C) integration of price with other marketing mix elements
D) factors unique to individual country markets
E) none of the above would be taken into account by a company using ethnocentric
pricing
23) In July 2001, the euro’s value relative to the dollar was about 1.00 = $0.85. By
November 2009, the euro had strengthened to 1.00 = $1.48. In February 2012, one euro
was equal to $1.33. All other things being equal, if a European-based global company
wants to preserve margins for goods exported to the U.S. market, the company should:
A) raise prices in dollars
B) switch to cost-based pricing
C) adopt a policy of market penetration pricing
D) reduce prices in dollars
E) use skimming pricing
24) Global marketers should take note of the fact that almost half of the world’s
population is located in:
A) low-income countries
B) lower-middle income countries
C) upper-middle income countries
D) high-income countries
E) higher-middle income countries
25) Dell’s factories can assemble a complete PC in 3 minutes. With a build-to-order
strategy at the heart of its business model, Dell’s sales staff maintains close ties with
customers. This approach represents which aspect of the Porter’s five forces model?
A) rivalry among competitors
B) bargaining power of buyers
C) threat of substitute products
D) threat of new entrants
E) bargaining power of suppliers
26) Within the eurozone, “price transparency” means that buyers will be able to
comparison shop easily because goods are priced in euros as opposed to marks, francs,
or lira.
27) Francisco Martnez is CFO of Comercial Mexicana SA, a retail chain in Mexico.
Commenting on Wal-Mart’s entry into Mexico, Mr. Martnez notes, “I buy 20,000 plastic
toys, and Wal-Mart buys 20 million. Who do you think gets them cheaper?” Which
strategic principles are evident in this comment?
A) Wal-Mart’s buyer power and cost leadership
B) Wal-Mart’s barriers to entry and differentiation
C) Wal-Mart’s loose bricks and switching costs
D) Wal-Mart’s focused differentiation and supplier power
E) Wal-Mart’s discount policies for customers
28) When company management decides that it is unwilling to follow the “conventional
wisdom” and instead finds a new way to gain competitive advantage, it might be said to
be:
A) searching for loose bricks
B) changing the rules of engagement
C) collaborating
D) building layers of advantage
E) innovating
29) The Uniform Commercial Code (UCC) is fully adopted by all U.S. states except:
A) Virginia
B) North Dakota
C) Wisconsin
D) Louisiana
E) Montana
30) All of the listed advantages are for “Extension or Ethnocentric” pricing strategy
except:
A) it does not respond to the competitive and market conditions of each national market
B) it calls for the per-unit price of an item to be same all over the world
C) it is extremely simple since it does not require information on market condition
D) it does not require competitive conditions for implementation
E) the importer must absorb freight and import duties
31) A company stands a better chance of having an international arbitration award
upheld if its home-country government has signed:
A) the Paris Convention
B) the Prague Convention
C) the New York Convention
D) the Vienna Convention
E) the Geneva Convention
32) Which of the following consumer products companies experienced a major product
failure in Europe due to inadequate test marketing?
A) Procter & Gamble
B) Colgate
C) Kao
D) Unilever
E) Seagram
33) In developing countries, globalization’s opponents accuse companies of:
A) undermining local cultures
B) placing intellectual property rights ahead of human rights
C) promoting unhealthy diets and unsafe food technologies
D) pursuing unsustainable consumption
E) all of the above
34) Which of the following is true about the Triad?
A) Triad countries account for approximately one-third of world income and one- third
of world population
B) Triad countries account for approximately 75% of world income as measured by
GNP
C) Triad countries are those in which consumer products, industrial products, and the
services sector each contribute one-third to GDP
D) Triad countries account for approximately 25% of world income as measured by
GNP
E) Triad countries account for approximately 50% of world income as measured by the
World Bank
35) Suppose that World Corp. signs a contract to build a lumber processing plant in
Siberia. If World Corp. signs a second contract agreeing to take partial payment for the
plant in the form of lumber products produced at the plant, it is engaging in:
A) barter
B) switch trading
C) offset
D) compensation trading
E) a hybrid countertrade arrangement
36) In the language of global marketing, ________ is the phrase used to describe
advertising that represents a middle ground between 100% standardization and 100%
localization.
A) ‘stereotype advertising”
B) “template advertising”
C) “cookie-cutter advertising”
D) “compromise advertising”
E) “pattern advertising”
37) Maslow’s hierarchy is applicable to global marketing because it can help explain
how:
A) basic human needs can drive the development of global products
B) ‘self-actualization” is the highest-order need in Japan as well as Western nations
C) status needs in different countries can only be fulfilled with localized products
D) “luxury badging” is irrelevant to companies marketing in Asia
E) Asians differ from Westerners in their basic physiological needs
38) If a company sells products in export markets at prices that are below fair market
value and that can harm producers in the export market, that company may be accused
of:
A) market skimming
B) using offsets
C) pursuing artificially high margins
D) dumping
E) gray marketing
39) Which of the following categories best describes the approach of Britain’s Marks &
Spencer to global retailing?
A) few product categories, own-label focus
B) few product categories, manufacturer brand focus
C) many product categories, own-label focus
D) many product categories, manufacturer brand focus
E) none of the above
40) When British entrepreneur Richard Branson established the first Virgin Megastore
in Japan, he established a joint venture with the Marui retailing chain. Judging by the
approach Branson used, he and his management team must have viewed Japan as:
A) culturally close and easy to enter
B) culturally distant and easy to enter
C) culturally close and difficult to enter
D) culturally distant and difficult to enter
E) culturally difficult and easy to enter
41) For consumer products, qualitative research is especially well suited to:
A) get close to the consumer
B) describe the cultural context of consumer behavior
C) identify core brand equity
D) identify what people really feel
E) all of the above
42) An approach to competitive advantage that exploits weaknesses in competitors’
narrow-focus strategies is called a ________ strategy.
A) loose bricks
B) collaboration
C) layers of advantage
D) supplier power
E) generic
43) Located in The Hague, the International Court of Justice (ICJ) is the judicial arm of
the:
A) United States
B) European Union
C) United Nations
D) Netherlands
E) United Kingdom
44) The decision to enter one or more particular markets outside the home country
depends on all of the mentioned factors except:
A) company’s resources
B) company’s age
C) company’s managerial mind-set
D) nature of opportunities
E) threats
45) The international standard by which letters of credit (L/Cs) are interpreted is known
as the ________ 500.
A) UCP
B) NTR
C) FSC
D) NTB
E) HTS
46) The flagship model is evident in the strategies of all but one of the following
businesses.
A) Ford
B) Volkswagen
C) IKEA
D) Benetton
E) Microsoft
47) Which of the following has an American woman as the chief executive?
A) Nissan Motor (Japan)
B) Pearson PLC (Great Britain)
C) Ford Motor Company (USA)
D) Pharmacia Corporation (USA)
E) Atlas Copco AB (Sweden)
48) Until recently, visitors to Web sites for most luxury goods purveyors were not given
the opportunity to buy. The reason behind this was:
A) luxury goods purveyors did not like to use online promotions
B) luxury goods purveyors strive to create a shopping experience
C) global audience do not go online for luxury goods
D) luxury goods purveyors prefer sending information on iPad
E) luxury goods are purchased by rich people who do not shop online
49) 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
50) According to the hypercompetition model of competitive advantage, which of the
following allows the firm to create an entirely new product or market?
A) know-how advantage
B) timing advantage
C) outflanking
D) switching costs
E) countermoves
51) What do Ford Motor Company, Coca-Cola, Nike, and McDonald’s all have in
common?
A) They are all consumer packaged-goods companies
B) They all have foreign CEOs
C) They have all received a great deal of negative publicity in recent years
D) They all rely exclusively on TV advertising
E) They spend more in advertising in foreign markets than home markets
52) What issues must be considered in selecting an advertising agency for global
advertising?
53) Food is a product category most likely to exhibit cultural sensitivity. Using Heinz
ketchup as an example, discuss how the company has used its advertising taking into
account cultural sensitivities in different parts of the world.
54) What are the major differences between global, foreign, and local consumer culture
positioning? Why are these differences significant? Give examples of how companies
are trying to lure customers using these positioning strategies.
55) The newly independent countries of the former Soviet Union present an interesting
situation: income is declining, and there is considerable economic hardship. The
potential for disruption is certainly high. Are they problem cases, or are they attractive
opportunities with good potential for moving out of the low-income category?
56) The Internet’s powerful capabilities and increasing importance have resulted in a
backlash that manifests itself in various ways. Giving examples, explain how this
statement can be true.
57) Hofstede considers culture as “the collective programming of the mind,” which
makes it necessary to look at the attitudes, beliefs, and values. Giving an example of a
country, explain how these attributes are so important.
58) Governmental actions at times are designed to discourage imports and block market
access. Why do governments want to curtail imports? Explain some of the barriers that
are placed to discourage imports.
59) The Strategic/Consultative Selling Model has gained wide acceptance in the United
States. Describe briefly what the model consists of and how it can serve as a checklist
for sales personnel.
60) Japanese keiretsu is considered to be a strong cooperative strategy that will have an
impact in global marketing. Describe what it is and how it can affect U.S. businesses.