When entering foreign markets, Samsonite Corporation typically targets the
quality-conscious niche. The firm, which enjoys a strong brand image, typically prices
above its local and foreign rivals. Samsonite apparently accepts the validity of the:
A.price-quality relationship.
B.price-volume relationship.
C.price-elasticity effect.
D.price-quantity effect.
How can standardization help enhance customer preference?
A.Customer gets the advantage of a product that is customized as per the local
preference.
B.Customer gets the advantage of unique products that are available only in his/her
country market.
C.Seeing attractive ads for the same product at home and in a foreign country reinforces
a customer’s purchase decision.
D.Standardization allows the firm to target all the market segments correctly.
Whenever possible, the America-First Corporation attempts to minimize custom
payments while maximizing its ability to “tailor” its offerings to specific foreign
markets by shipping partially processed goods to small factories located in specially
designated customs-free depots located near the final distributions of those products.
The firm is making maximum use of:
A.free-trade zones.
B.wholly-owned sales subsidiaries.
C.maquiladoras
D.freight forwarders.
India, China, Russia, and the United States are best described as:
A.homogeneous cultures.
B.monolithic cultures.
C.capitalistic and neo-capitalistic cultures.
D.multicultural countries.
The switch to a resource-based strategy is most consistent with:
A.the externalization concept.
B.the value chain concept.
C.the benchmarking concept.
D.the just-in-time concept.
All of the following are sources of disadvantages associated with standardization
EXCEPT:
A.the existence of strong local competitors.
B.the lack of uniqueness.
C.the growth of global communications and travel.
D.the existence of strong trade barriers.
Which of the following is the MOST important marketing advantage associated with
local production?
A.The ability to adapt products to local customer preferences.
B.The ability to avoid tariffs.
C.The ability to reduce transportation costs and customs fees.
D.The ability to meet local content requirements.
The research by Simon Anholt identifies six dimensions that together summarize the
image of a country. All of the following are dimensions identified by him EXCEPT:
A.exports.
B.governance.
C.tourism.
D.gray trade.
General information, such as that contained in the United Nation’s annual compilation
of world economic and social data, is MOST useful during which of the following
phases of attractiveness evaluation?
A.Final selection
B.Country identification
C.Preliminary screening
D.In-depth screening
In his book The World is Flat, Thomas Friedman identifies ten “flatteners” that have
helped make the global world flat. List any five of these.
The _____ condition refers to the shape of the sales response curve to increased
marketing expenditures.
A.marginal sales
B.increasing returns
C.circle map
D.initial latency
The LooneyToons Corporation has followed the “3M Model” in developing its
European markets. The firm began by creating business teams which, with increasing
service demands, are likely to be replaced by:
A.European Business Centers.
B.European Service Modules.
C.European Service Teams.
D.European Business Teams.
Global account managers dealing with smaller customers and individual buyers who
buy globally are MOST likely to emphasize:
A.small time marketing.
B.the creation of “special client services.”
C.the avoidance of pricing arbitrage possibilities.
D.spreading program awareness through the system.
Under which condition a company should lean toward a diversification strategy?
A.Low growth rate and low demand stability.
B.The competitive lag is long.
C.When entry barriers are high, and need for control is high.
D.When marginal sales are increasing.
Which of the following brands is generally recognized as the world’s best-known brand
and is thought to have the most effective global brand managers?
A.McDonald’s
B.Honda
C.Coca-Cola
D.Kodak
The RC Corporation has been frustrated in its attempts to export to India by its inability
to attract one of the country’s major wholesalers. The firm’s problem is a result of the
fact that Indian wholesalers operate as:
A.unionized labor.
B.monopsonists.
C.oligopolists.
D.clearing houses.
Nike and Reebok were the main competitors for sneakers in the international market in
the 1980’s, but lost some of their share by which other sneaker brand in the 1990s?
A.Puma
B.Adidas
C.Pony
D.U.S. Keds
A useful suggestion while doing business in the Middle East is:
A.dress casually; it is a sign of respect.
B.small talk should be avoided by all means.
C.refrain from slang; even casual profanity is unacceptable.
D.speak loudly to appear assertive and make a point.
Which of the following strategic considerations is LEAST important to the success of a
global advertising campaign?
A.The product’s brand name should be the same, or at least similar, in all markets.
B.The product’s appeal should be uniform across markets.
C.Product positioning should be uniform across markets.
D.Market segments should be identical across markets.
The maturity of the North American market and the large geographical area covered
makes _____ natural.
A.market segmentation
B.uniform pricing
C.product standardization
D.standardized commercials
According to current opinion, the “ideal” means of managing global marketing efforts
would be BEST achieved through a(n):
A.export department.
B.horizontal network.
C.transnational organization.
D.matrix organization.
When discussing Anti-American sentiment, the opinions of foreign countries such as
Britain, France, Germany, and Spain
A.were low in 2002, high in 2003, and low in 2005.
B.were high in 2002, low in 2003, and high in 2005.
C.were low in 2002, high in 2003, and high in 2005.
D.remained low throughout due to the American attack on Iraq.
When a company changes a name of its product(s) to be the same and appeal to a
worldwide audience it is called a:
A.leading brand.
B.international brand.
C.global brand.
D.exceptional brand.
The IBM Corporation routinely checks the organizational structure of competitors
operating in a potential market in order to estimate their strength. The firm can
generally expect a greater competitive threat from:
A.local competitors.
B.global competitors.
C.international firms.
D.multinational firms.
The America-First Corporation is preparing to finalize its sales estimates for several
potential foreign markets. Overall, to accomplish this final step, the firm must:
A.estimate how it will perform against other foreign competitors in local markets.
B.estimate the “import market.”
C.assess the impact of tariff and non-tariff barriers.
D.identify domestic competitors.
Based on Hofstede’s classification, Japan and northern Europe are both:
A.low on power distance.
B.high context societies.
C.high risk tolerance societies.
D.low on individualism.
The Beamer Corporation has several large multinational customers. The firm is MOST
likely to provide for the global servicing of such accounts by organizing:
A.functional support groups.
B.global account managers.
C.matrix management units.
D.a customer service subsidiary.
How has technology changed the nature of global marketing?
A.It has reduced pressure on companies to compete in several markets.
B.It has reduced the pressure to proliferate new products by safe guarding technical
competencies.
C.It has raised the ante of global participation in so many industries.
D.It has raised companies’ ability to protect the integrity of their unique products.
Global advertising:
A.can be the basis for savings in media buying.
B.is usually not as impressive as local messages.
C.has been harmed by advances in global communications and credit.
D.has little impact upon buying activity.
America is perceived as materialistic by many countries as a result of its traditional
stance with regard to:
A.diversity.
B.regulation.
C.decentralization.
D.religion.
Which of the following types of barriers to entry is MOST heavily dependent upon
consumer perceptions?
A.Tariff barriers
B.Governmental regulations
C.Embargoes
D.Natural barriers
Which of the following type of markets tends to be characterized by recent major
political changes, weak infrastructure, difficulty with market-based exchanges, few
distribution alternatives, and risk of payment default?
A.Mature markets
B.Emerging markets
C.High-growth markets
D.Declining markets
The America-First Corporation is recognized as one of the world’s leading practitioners
of market segmentation. The first is widely recognized as among the best at dividing
markets into segments and producing products tailored to the individual desires of each.
How will this expertise help–or hurt–the firm as it enters global marketing?
Under the ____________________ approach to sales forecasting, the forecast is created
from estimates provided by industry experts and knowledgeable channel members.
A firm that is seeking to gain the fastest possible penetration of a foreign market and a
degree of control of that venture is likely to favor the use of the _____ approach to
foreign direct investment over a more traditional _____ investment.
According to the ____________________ phenomenon, an innovating country often
becomes an importer of products it had originally invented with the passage of time.
The America-First Corporation is preparing to enter the Japanese market. To lead this
effort, the firm has selected Sarah Jane Wilson, a 35 year-old executive whose drive and
no-nonsense style allowed her to attain Vice-President status faster than anyone in the
firm’s history. Sarah Jane is expected to bring the same aggressive style and rapid
decision-making ability to her new post that accompanied her meteoric domestic rise.
Critique the firm’s choice.
XYZ Corporation firmly believes that its potential customers make purchases in order
to satisfy specific desires. Regardless of the specific market it seeks to serve, XYZ must
identify the _____ of the products it sells.
According to the most recent research, people tend to judge global brands different
from local brands. Three dimensions stand out. What are they?
The America-First Corporation believes that its competitors often engage in all forms of
“dumping.” Explain the firm’s charges. How might America-First respond?
Ralph Lauren Corporation is interested in minimizing transportation time in its foreign
trade activities. If the firm is interested in faster transportation, it is likely to emphasize
the use of _____.
Pfizer Corporation aggressively fights gray trade to prevent the damage it may do to its
global activities. The practice of gray trade can erode _____, strain _____, lead to
_____, and complicate _____.
Market segmentation in Latin America is often based on the simple distinction between
_____ combined with age and income level.
The America-First Corporation was one of the innovators of videotape recorders and
compact disc technology. Now, however, the firm no longer produces or sells either
product. How is this phenomenon traditionally explained? Is this pattern, which is not
uncommon, inevitable?
The components of Hall’s “silent language” include: _____, _____, _____, _____, and
_____.
In order to compete with Europe’s EU and Latin America’s MERCOSUR, ASEAN
members created a free trade agreement called _____.
The ability of a marketer to provide an unexpected technical feature or superior
personal service may greatly improve customer satisfaction through the impact of a
_____
In its efforts to identify NIEs, the LG Corporation is finding that many of these markets
are affiliated with a trade bloc. Why would new growth markets find these trade bloc
associations useful?
Yamaha Corporation would like to protect itself against losses from currency
fluctuations. The firm may accomplish this through _____ activities implemented
through the buying and/or selling of _____ or negotiating _____ with the help of
financial intermediaries.
Southwest Airlines Corporation (a U.S. company) is preparing to move aggressively
into global advertising. Based on its domestic experience, the firm believes that its
global advertising effort will be a major key to success. What differences should
Southwest understand about this advertising arena?
The Hudson Bay Corporation began its foreign marketing efforts, as most firms do,
through exporting. The firm progressed quickly to a geographical/regional organization,
but continued to search for a better approach. At present, a matrix form of organization
is used. Briefly describe this approach and outline the future direction Hudson Bay may
take.