1) Analyzed in terms of Porter’s five forces model, online music file sharing services
represent a threat to the music industry in the form of a substitute product.
2) In a Common Market there are no internal barriers to trade, and it allows for free
movement of factors of production such as labor and capital.
3) In Germany, expenditures for newspaper advertising are greater than those for
television advertising.
4) Microsoft and Intel are two companies that illustrate the concept of “bargaining
power of suppliers” in Porter’s five forces model of industry competition.
5) A company hoping to protect its trade secrets from being stolen by a foreign
company can seek relief under the TRIPs agreement if both companies do business in
GATT signatory countries.
6) A Customs Union represents the most fully developed form of preferential trade
agreement among nations.
7) Patents and trademarks that are registered in the United States are protected in all
countries of the world.
8) Expo 2010 in Shanghai, China was the biggest expo in the world, which was
mounted at an expense of $55 billion.
9) In China, only about 1% of the population currently owns a credit card. Thus Visa is
targeting persons with a monthly salary equivalent to $300 or more.
10) In Japan, consumers pay for online purchases at convenience stores (konbini).
11) In many parts of the world, sales of unauthorized videos of Hollywood movies cost
the movie studios billions of dollars. When illegal copies of movies are made, what
form of intellectual property has been wrongly appropriated?
A) patent
B) copyright
C) trademark
D) trade secrets
E) down loading
12) Sony’s PlayStation 3 (PS3) has a powerful chip that provides new levels of realism;
PS3 also contains a Blu-Ray DVD player. However, the less complex, less expensive
Nintendo Wii has been outselling Sony’s game system by a margin of 3-to-1. Based on
D’Aveni’s model this is reflective of:
A) cost/quality
B) timing and know how
C) entry barriers
D) loose bricks
E) deep pockets
13) The ________ framework was developed by Professor Richard D’Aveni to describe
a business environment in which no form of competitive advantage can be sustained for
long because of escalating and accelerating competitive forces.
A) five forces model
B) generic strategies
C) strategic intent
D) hypercompetition
E) factor conditions
14) Sweden applies a system to certain categories of imported agricultural products
which is referred to as:
A) temporary surcharges
B) ad valorem duty
C) variable import levies
D) specific duty
E) countervailing duty
15) Statements that illustrate the success of global marketing include all of the
following except:
A) the Coca-Cola company supports its Coke brand by utilizing global and local
marketing mix
B) Apple is synonymous with cutting-edge innovation and high-tech design
C) Italys Benetton utilizes marketing as a knee-jerk reaction to world marketing needs
D) the backbone of Caterpillars global success is its network of dealers
E) Germany’s reputation for engineering and manufacturing provides a competitive
advantage
16) The advertising promise that captures the reason that people buy products is known
as:
A) creative strategy
B) the advertising appeal
C) the selling proposition
D) the creative execution
E) the big idea
17) Gerber’s woes in France illustrate some of the disadvantages of which market entry
strategy?
A) joint ventures
B) licensing
C) 100% ownership
D) exporting
E) franchising
18) The advantages that a regional management center can offer a company includes all
of the following except:
A) pan-regional decision making
B) coordinated regional planning
C) considerable cost saving
D) coordinated control
E) coordinated decision making
19) Based on the size of the market in U.S. dollars, the leading consumer products are:
A) cell phones
B) bottled water
C) cigarettes
D) video games
E) recorded music
20) Which of the following is not an advantage of using sales promotions?
A) provides a tangible incentive to buyers
B) provides accountability to marketing managers
C) enables company to build its database
D) builds long-term brand awareness
E) develops relationship with customers
21) According to Prahalad and Hamel, a core competence has all of the following
characteristics except:
A) potential access to a wide variety of markets
B) a significant contribution to perceived customer benefits
C) it is easy for competitors to imitate
D) benefits to customers
E) it is difficult for competitors to imitate
22) In order to prevent a licensor-competitor from gaining unilateral benefit, licensing
agreements should provide for:
A) contract manufacturing
B) franchising
C) cross licensing
D) strategic decision-making
E) adaptation for local tastes
23) A company with headquarters in the United States and operational units in the
Netherlands, France, Italy, and Spain would be well advised to consider establishing
a(n):
A) matrix structure
B) international division structure
C) geographic structure
D) worldwide product division structure
E) regional management center
24) Which of the following is a disadvantage of using an expatriate sales force?
A) superior product and company knowledge
B) capability to institute the acceptable practices
C) follow policies of the home office
D) enhanced promotion prospects
E) maintaining is very expensive
25) Product problems initially made headlines in 2008 regarding a turbine blade
manufactured by Suzlon and financed by John Deere. All of the following problems
were encountered by Suzlon except:
A) wind energy cracked a turbine blade and broke off a tower in Illinois
B) cracks were found on more than 60 blades on turbines run by Deere
C) Suzlon was battling product reliability and durability problems
D) Suzlon faced a cash crunch
E) policymakers in many parts of the world supported Suzlon
26) H.F. Iskander, general manager of Chevron’s Kuwait office, stated “Chevron is
pumping oil in different locations all over the world there isn’t a rock we haven’t drilled
through. We centralize all that knowledge at our headquarters, analyze it, sort it out, and
that enables us to solve any oil-drilling problem anywhere.” From the global marketing
point of view this is an example of a global company:
A) that is hungry to exploit natural resources
B) that is trying to be first to explore oil
C) that it is trying to solve world problems
D) that gains leverage through experience transfers
E) that does not have easy access to information
27) 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.
28) As part of their alliance relationship, Northwest Airlines and KLM Royal Dutch set
air fare prices jointly and coordinate flight schedules. Normally, such behavior would
be considered harmful to competition, but the U.S. government has granted the two
airlines special exemptions from laws concerning:
A) intellectual property
B) antitrust
C) jurisdiction
D) licensing
E) arbitration
29) A. Coskun Samli had developed a useful approach to global market segmentation
that compares and contrasts conventional versus unconventional wisdom. An example
of unconventional wisdom is:
A) since per capita income in India is about $1,180, assuming that all Indians have low
incomes
B) assuming that consumers in Europe and Latin America are interested in World Cup
soccer whereas Americans are not
C) assuming that there is a presence of a higher-income middle-class segment in India
D) assuming that the potential Indian customer base for a McDonald’s is larger than the
size of entire developed countries
E) assuming that there is no running water and electricity in India
30) Landor Associates, a company specializing in brand identity and design, recently
determined that ________ has the number one brand-awareness and esteem position in
the United States, number two in Japan, and number six in Europe.
A) McDonald’s
B) Toyota
C) Sony
D) Pepsi
E) Coke
31) Which of the following is not an element of Rugman and D’Cruz’s flagship model?
A) key suppliers
B) key customers
C) key consumers
D) selected competitors
E) focused differentiation
32) Web sites can be classified by purpose as represented by the term:
A) matrix sites
B) international sites
C) geographic sites
D) promotion sites
E) regional sites
33) Jollibee operates some 1,500 restaurant locations in Philippines, more than
McDonald’s. Even Jollibee’s marketing vice president concedes that McDonald’s
provided the basic blueprint for their restaurants. However, at Jollibee, sweet and spicy
flavors predominate in the burgers and chicken dishes, and their menu offerings are
much more varied than competitors. This is an example of which component of
competitive innovation?
A) collaboration
B) layers of advantage
C) loose bricks
D) generic
E) supplier power
34) Ironically, Motorola, a key player in the cell phone business, could have been first
to market with a cell phone camera.
35) BMW Assist and BMW Teleservices are using telematics system, which provides
all of the following benefits except:
A) access to a wide range of information and services
B) information about pricing
C) help in booking hotel rooms
D) help in restaurant reservation
E) help in downloading music
36) The markets of Central and Eastern Europe present interesting opportunities and
offer attractive locations for low-cost manufacturing due to:
A) their location being close to the sea
B) the cultural similarities
C) wage rates being lower than in Spain, Portugal and Greece
D) strict laws and regulations
E) prohibitive tariffs and export restrictions
37) Coca-Cola Company’s global marketing leadership position is based in part on its
ability to put Coke “within an arm’s reach of desire”; in other words, it is the ability to
create:
A) place utility
B) time utility
C) form utility
D) information utility
E) all of the above
38) Together, innovators and early adopters make up about ________ of the potential
market for a new product.
A) 16.0%
B) 26.0%
C) 34.0%
D) 46.0%
E) 13.5%
39) Which of the following correctly reflects marketing expert David Arnold’s
recommendations for companies engaged in global market research?
A) use multiple indicators
B) develop customized measures specific to an industry or product
C) conduct comparative assessments in neighboring countries
D) observation should be weighted more heavily than statements of purchase intention
E) all of the above
40) The Swatch Group markets watches in all price ranges, from the Swatch brand at
the low end to luxury brands such as Longines, Blancpain, and Breguet. Which target
market strategy does this illustrate?
A) standardized global marketing
B) concentrated global marketing
C) differentiated global marketing
D) psychographic global marketing
E) none of the above
41) Building a prospect base is typically part of which step of the strategic/consultative
selling model?
A) development of a customer strategy
B) development of a personal selling philosophy
C) development of a product strategy
D) development of a relationship strategy
E) development of a presentation strategy
42) In Malaysia and Saudi Arabia, it is common to see that restaurants have signs
declaring that all food is “Halal.” Also, it is seen that courts handle marriages, divorces,
distribution of family assets, and business practices by the “Sharia.” What are these
tenets and how do they have an impact on international business.
43) The highest GNI per capita in the South African Development Community was
found in ________.
A) Botswana
B) Angola
C) Malawi
D) Seychelles
E) South Africa
44) In every industry, companies are embedded in a(n) ________, which has a cost
structure associated with it that dictates the margins needed to achieve profitability.
A) innovator’s dilemma
B) transaction
C) URL
D) value network
E) digital network
45) Which company ranks number one in terms of worldwide ad spending for the year
2009?
A) General Motors
B) Philip Morris
C) Unilever
D) Procter & Gamble
E) Coca-Cola
46) The disadvantages of joint venturing can include all of the following except:
A) Joint venture partners must share rewards as well as risks
B) Joint ventures allow partners to achieve synergy
C) Joint ventures can have the potential for conflict between partners
D) A dynamic joint venture partner can evolve into a strong competitor
E) A company incurs very significant costs by joint venturing
47) What is m-commerce, and what are some of the technological innovations that fall
under this type of commerce?
48) Grey China Advertising agency gathers a wealth of information about attitudes and
buying patterns of the Chinese in its Grey China Base Annual Consumer Study. Recent
findings point to growing concerns about the future, Westernization of grocery
purchases, growing market saturation, increasingly discerning customers and a rise in
consumer willingness to try new products. These data can be very inconsistent since
conflicting findings were reported by different agencies. For example, data gathered by
Euromonitor International estimates soft-drink consumption at 23 billion liters in China,
while Coca- Cola’s in-house marketing research team places the figure at 39 billion
liters. Similar differences were noted in other data published by different agencies.
What is the best approach in such situations so that finite decisions can be made? What
are the differences between latent and incipient markets?
49) The table below is taken from the Big Mac Index. After reviewing it, answer the
questions listed below.
What is meant by PPP? According to this table, which is the most overvalued and
undervalued currency? Fill the last column showing under or over valuation of local
currencies. Give reasons for your answer. What is the primary drawback of this index?
How can this be used?
50) After establishing that the organizational matrix is appropriate for a business, what
should management expect as to the integration of basic competencies on a worldwide
basis?
51) In 2006, there was a big controversy in the United States after a British company,
Peninsular & Oriental Steam Navigation, was acquired by Dubai Ports World. This
controversy clearly outlined some of the challenges in the global marketplace. Using
this as an example, discuss the challenges that confront a global marketplace.
52) A number of factors must be taken into account when determining the extent to
which the promotions must be localized. List and describe those factors giving
examples.
53) 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?
54) Explain the differences between “Product Adaptation-Communication Extension”
and “Product-Communication Adaptation” strategies.