Michael Porter’s generic strategy framework is derived from the basic types of
competitive advantage and the scope of the target market served.
If government restrictions prevent 100 percent ownership by foreign companies, the
investing company will have to settle for a majority or minority equity stake.
Coca-Cola had to delay launching its Powerade sports drink in Europe due to the lack
of uniform food safety laws in the European Union.
A company which is ethnocentric will expand geographically.
Marketing model drivers are key elements or factors required for a business to take root
and grow in a particular country market environment.
In China, McDonald’s is careful not to advertise prices with multiple occurrences of the
number 4 since, in Cantonese, the pronunciation of the word “four” sounds similar to
that of the word death.
In 1948, a Bell Labs researcher named Claude Shannon wrote a technical report in
which he proposed that all information media could be encoded in binary digits, or bits.
A company that is ethnocentric in its approach to PR will not extend home-country PR
activities into host countries.
By 2030, 30 percent of the U.S. population will be 65 years or older versus 13 percent
today.
India is the world’s fastest growing cell phone market with the industry expanding at a
rate of 50% annually with 5 million new subscribers added every month. This is an
indication of continued private-sector growth.
In Chinese, the word beef connotes manliness, strength, and skill. Television
commercials for the Quarter Pounder have sex appeal
As per the listings of the 2015 Index of Economic Freedom by the Heritage Foundation,
there is a high correlation between the degree of economic freedom and the extent to
which a nation’s mixed economy is market-oriented.
The TRIPs agreement requires signatory countries to protect against acquisition,
disclosure, or use of trade secrets “in a manner contrary to honest commercial
practices.”
TRUE
Companies may move from licensing or joint venture strategies to ownership in order to
achieve faster expansion in a market, greater control, and/or higher profits.
A free trade area represents the most fully developed form of preferential trade
agreement among nations.
Cadbury has trademarked the color purple for its chocolate confectionary packaging.
A joint venture with a local partner represents a more extensive form of strategy that is
similar to exporting and licensing.
A marketer of fine French cognac offers a fancy cigar ashtray to persons who correctly
solve a crossword puzzle and mail it in. This is an example of a trade promotion.
Two countries that score low in uncertainty avoidance are:
A) Austria and Belgium.
B) Japan and Hong Kong.
C) United States and Switzerland
D) Denmark and Finland.
E) Ireland and Italy.
Colgate’s Total is a new toothpaste brand whose formulation, imagery, and consumer
appeal were designed from the beginning to translate across national boundaries. Which
strategy did Colgate use with Total?
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product innovation
Joseph Quinlan, chief marketing strategist at Bank of America, estimated that about 25
percent of U.S. merchandise exports represent shipments by American companies to
their foreign affiliates and subsidiaries. This situation underscores the importance of
________ in global marketing.
A) dumping
B) gray marketing
C) transfer pricing
D) price skimming
E) price fixing
Linguists have divided the study of languages into four main areas. The system of word
formation is referred to as:
A) syntax.
B) phonology.
C) morphology.
D) semantics.
E) semiotics.
Islamic law is a comprehensive code based in part on:
A) Anglo-Saxon common law.
B) Roman law and the Napoleonic Code.
C) the Uniform Commercial Code.
D) the Koran.
E) the French Civil Code.
Example of a “brand symbol” includes all of the following except:
A) date of manufacture on Coca-Cola cans.
B) the wave that appears on red Coke cans and bottle labels.
C) non-word marks such as the Nike swoosh.
D) three-pronged Mercedes star.
E) McDonald’s golden arches.
Which of the following assumptions does not belong in a list of characteristics of lean
production?
A) labor is more costly than machines
B) set up time can be reduced
C) minimize inventory to cut costs and wastage
D) maximize backwards integration
E) inspection to prevent defective production
Which two companies are sourcing product components from small-scale enterprises,
which in turn are helping preserve old-growth forests as well as economic opportunities
in Brazil?
A) Ford Motor Company and Armani
B) Daimler AG and Hermes
C) General Motors and Hugo Boss
D) Volkswagen and Coach
E) Coca-Cola and Nestl
Diageo PLC, V&S Vin & Spirit AB, and Seagram and other marketers know that
Russians consume a great deal of vodka. This type of market segmentation can be
classified as:
A) demographic.
B) behavioral.
C) psychographic.
D) occupational.
E) benefit.
The corporate development team at Virgin evaluates more than a dozen proposals each
day from outside and within the company. When assessing new-product ideas, they look
for all of the following except:
A) synergy with existing Virgin products.
B) pricing and return on investment.
C) marketing opportunities.
D) if the idea “uses or abuses” the Virgin brand.
E) aesthetic attributes of competitors products.
Which of the following is not a characteristic of global strategic partnership?
A) Participants maintain independence outside the framework of alliance.
B) Participants share benefits of the alliance.
C) Participants share control over the performance of the assigned tasks.
D) Participants make ongoing contributions in technology, products, and other areas.
E) Participants agree not to compete in areas unrelated to the alliance.
The differences between lean producers and U.S. mass producers is in the way they deal
with all of the following groups except:
A) dealers.
B) distributors.
C) customers.
D) suppliers.
E) managers.
A ________ company possesses a critical marketing advantage with respect to
marketing communications.
A) domestic
B) local
C) global
D) glocal
E) multinational
Which of the following is not a critical issue for a company whose management intends
to engage in e-commerce?
A) privacy
B) credit card fraud in developing countries
C) ensuring that logos and other brand identity elements are consistent with local
preferences
D) ensuring a company’s computer system supports only a particular language
E) the availability of hot spots for Wi-Fi
Procter & Gamble’s introduction of All-Temperature Cheer laundry detergent in Japan
was a flop at first. The problem was that Japanese women wash clothes in cold
water”either tap water or leftover bath water’so they don’t care about all-temperature
washing (which is a big selling point in the United States). Also, Cheer was first
introduced in Japan at a time when the market for fabric softeners in Japan was rapidly
expanding. However, when Japanese housewives added lots of fabric softener to the
water, Cheer didn’t produce many suds (Americans don’t use as much fabric softener).
P&G reformulated the product so it wouldn’t be affected by fabric softeners, and ads for
Cheer in Japan pledged superior cleaning in cold water, not all temperatures. Which of
the following might have helped P&G avoid the initial problems with Cheer?
A) Maslow’s hierarchy
B) high vs. low context culture
C) diffusion of innovation
D) self-reference criterion
E) polycentric orientation
Today, the success of Honda and Toyota in world markets is primarily due to:
A) exporting cars from factories in Japan.
B) reporting cars are made in the USA.
C) exporting cars from Japan to European countries.
D) assembling cars in Japan and Europe.
E) manufacturing cars in the Americas, Asia, and Europe.
The Ministry of International Trade and Industry (MITI) has helped devise export
strategies for companies in:
A) Singapore.
B) South Korea.
C) Taiwan.
D) Hong Kong.
E) Japan.
In addition to ‘selling” their vision, top management at both Whirlpool and GE face the
formidable task of building:
A) their company stature.
B) physical layout and design.
C) a cadre of globally oriented managers.
D) a cadre of loyal customers.
E) access to distribution channels.
The majority of the world’s population is included in the following economic category:
A) high-income countries.
B) upper-middle-income countries.
C) lower-middle-income countries.
D) low-income countries.
E) lower-upper-income countries.
An Internet site’s address on the World Wide Web is:
A) HTML.
B) HTTP.
C) URL.
D) WWW.
E) HTTPS.
A key word(s) in conducting business in the Middle East is:
A) Arab Spring.
B) connection.
C) discrimination.
D) male dominance.
E) haggling.
A formal legal document that gives an inventor the exclusive right to make, use, and
sell an invention for a specified period of time is known as a:
A) patent.
B) copyright.
C) trademark.
D) trade secret.
E) trade dress.
According to strategy expert Richard D’Aveni, the actions taken by Swatch in the global
watch industry illustrate hypercompetitive dynamic maneuvering in which arena?
A) cost/quality
B) timing and know-how
C) entry barriers
D) deep pockets
E) Olympics
Demographic segmentation is based on measurable characteristics of populations which
includes all of the following examples except:
A) Asia is home to 500 million consumers aged 16 and younger.
B) India has more than half of the population younger than 25.
C) Consumers that buy Porsches would like to be noticed.
D) The United States is home to 28.4 million foreign-born residents with combined
income of $ 233 billion.
E) In the EU, the number of consumers aged 16 and under is rapidly approaching
consumers aged 60.
Product and market opportunities in a postindustrial society are more heavily dependent
upon new products and innovations than in industrial societies. An example of this
would be:
A) Nestl marketing Bono brand cookies in Brazil.
B) Coca-Cola Company developing a beverage Vintago in low-income countries.
C) New e-commerce markets for interactive forms of electronic communication.
D) Hermes creating handbags called Amazonia.
E) India’s Suzlon Energy using wind-driven turbines.
Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the
high-end audiophile segment of the consumer electronics industry. If analyzed in terms
of Porter’s generic strategies framework, such companies might be said to be pursuing
competitive advantage via:
A) cost leadership.
B) differentiation.
C) cost focus.
D) focused differentiation.
E) consumer differentiation.
The town of Impruneta in the Italian province of Florence, is a source of high-quality
terracotta; the high iron content of the area’s clay means that the finished pieces can
withstand temperatures as low as 20 degrees Fahrenheit. Many artisan pieces are rolled
by hand, including those imported in the United States by Seibert & Rice. This is an
example of ________ resources available for competitive advantage of a business.
A) knowledge
B) physical
C) human
D) infrastructure
E) capital
Which of the following currently owns a 70 percent stake in Skoda, the Czech
automaker?
A) GM
B) Volkswagen
C) Ford
D) DaimlerChrysler
E) Renault
The direct exchange of goods or services between parties in lieu of monetary payment
is known as:
A) barter.
B) switch trading.
C) offset.
D) compensation trading.
E) counterpurchase.
________ is the most important aspect of a company’s international orientation.
A) Experience
B) Commitment
C) Dynamism
D) Confidence