Which of the following did 3M have to do with its organization structure in order to
take advantage of its European operations?
A.It created small export departments for each European country.
B.It had the product managers report to the pan-European head office.
C.It shifted to full-fledged Europe-wide business units.
D.It withdrew all its brand managers.
Strategic alliances are similar to licensing arrangements in all of the following ways
EXCEPT:
A.SAs are based on the sharing of vital information, assets, and technology between the
partners.
B.SAs replace royalty and fee payments to one partner with active participation in the
alliance by both partners.
C.SAs carry the risk of loss of proprietary know-how.
D.SAs represent collaboration between potential competitors.
In order to establish the EU, it was necessary to do all of the following EXCEPT:
A.scrap tariff barriers and customs duties.
B.harmonize product standards.
C.abolish border controls and create a common passport.
D.establish a common broadcasting station.
The offering of a firm’s know-how or other intangible assets to a foreign company for a
fee, royalty, and/or other type of payment is called:
A.dissipation.
B.licensing.
C.repatriation.
D.leasing.
Due to differences in preferences, tastes, and habits, a foreign firm may be forced to
develop strategies designed to compete with domestic producers of market-specific:
A.initiations.
B.substitutes.
C.reproductions.
D.counterfeits.
According to the text, a stable price needs to fulfill the following requirement in Fair
Trade.
A.Production and living costs, which is an essential requirement for farmers to escape
from poverty.
B.A price that is set by the department of agriculture for staple foods.
C.A price that can be dependant on market conditions.
D.A price that needs to be updated each quarter after FDA (Food & Drug
Administration) meetings.
Marriott Corporation is developing a questionnaire for its foreign markets using its
domestic instruments as a guide. In order to avoid potential language problems, the
proposed questionnaire should be:
A.written in English, only.
B.translated in each market’s language.
C.back-translated to assure clarity.
D.sampled.
All of the following are advantages of standardization EXCEPT:
A.scale/scope economies.
B.improved quality.
C.enhanced customer preferences.
D.enhanced uniqueness.
The purchase of insurance against losses because of currency fluctuations is called:
A.hedging.
B.swapping.
C.price controls.
D.transfer pricing.
Having established themselves as leading shareholders domestically, global brands
expand in a(n) _____ into foreign markets.
A.waterfall type of strategy
B.gray trade type of strategy
C.knockoff type of strategy
D.hierarchical manner
There are several reasons why brands are important. Which of the following statements
regarding brands is true?
A.Consistency in a brand is not that important.
B.In the short run a weak brand can survive via strong promotion, but in the long run
the actual product or service quality will lose out.
C.Brands offer emotional satisfaction in addition to the functional satisfaction from a
reliable product or service.
D.Customers do not rely on brand names.
Briefly review the strategic implications of global advertising revealed by global
statistics relevant to the prevalence and use of advertising media. Why is such
information important?
Brand equity is basically the added value that a strong brand offers to the customer and
to the firm. The major asset categories include all of the following EXCEPT:
A.brand name awareness.
B.brand extensions.
C.perceived quality.
D.brand associations.
What type of approach to entering foreign markets is wise for most companies?
A.A fast approach that surprises competition.
B.A sequential approach for financial and managerial reasons.
C.A slow approach that enables managers to learn.
D.A less expensive approach so prices can stay low.
According to the text, the enhanced ability of global advertising to trigger buyer action
is PRIMARILY the result of:
A.the increased amount of money spent on global advertising.
B.improved production efficiency.
C.a major increase in the number of global ad agencies.
D.enhanced global communication.
Certain Japanese companies have not fared well against international competition
because:
A.the Japanese market does not encourage global competition.
B.Japanese markets have been long protected by various tariff barriers, which still
continue.
C.Japanese markets were protected by tariff and non-tariff barrier, resulting in some
sluggish industries.
D.there is seldom fierce rivalry among Japanese firms, especially electronic companies.
The Clinton-Kerry Corporation desires to enter the international market, but has few
resources to support its efforts. Which of the following strategic postures is the firm
MOST likely to favor?
A.Protected
B.Control
C.Incremental
D.Fragmented
Because of limited _____, born globals tend to rely on advanced communications
technologies to reach their customers in different countries.
A.organizational and managerial resources
B.technological know-how
C.managerial experience
D.political support
All of the following statements about the North American market are true EXCEPT:
A.it consists of the U.S., Canada, and Mexico.
B.it is a very open market.
C.it is highly diverse.
D.it has a high per capita income.
The America-First Corporation desires to maintain more control over the use of its
products, procedures, brand names, and technology than can be realized through
straight licensing. Since the firm cannot afford to make direct investments abroad, it is
MOST likely to employ:
A.OEM agreements.
B.franchising.
C.exporting.
D.turn-key sales.
Generally, Latin America and South Africa have attained rapid growth in consumer
demand as a result of a more even distribution of wealth created by their:
A.natural resources.
B.low labor costs.
C.technological expertise.
D.production efficiencies.
The physical surroundings in which a service is delivered is called the:
A.service arena.
B.customer arena.
C.servicescape.
D.qualityscape.
Those channel intermediaries who specialize in selling to retailers or industrial users are
called:
A.manufacturers.
B.gray traders.
C.wholesalers.
D.facilitators.
All of the following are advantages associated with the use of export management
companies (EMCs) EXCEPT
A.the EMC is knowledgeable about markets with which its clients are unfamiliar.
B.the client firm can avoid the overhead costs and administrative burdens of managing
their own export affairs.
C.the client firm gains a wealth of marketing skill and know-how at no cost to itself.
D.the EMC serves as the client firm’s “export department.”
The distribution system in Japan is characterized by:
A.heavy reliance on large distribution centers.
B.extensive fragmentation.
C.traditional, impersonal services.
D.extremely short channels.
The added value that a strong brand offers to the customer and to the firm is described
as its:
A.revenue potential.
B.monetized net worth.
C.brand equity.
D.portfolio profit.
Mitsubishi Corporation would like to market its cars in China. The firm, facing tariffs
of up to 200 percent on its products, will probably opt for entering the Chinese market
by:
A.exporting.
B.joint ventures.
C.direct investment.
D.importing.
All of the following are methods for establishing a global direct marketing strategy
EXCEPT:
A.cross-marketing.
B.do-it-yourself.
C.marketing intermediaries.
D.strategic alliances.
In some countries bribes are often attempted at the local customs office where goods are
received from foreign countries. Why is bribing so common at this point in the
distribution of the products?
A.Some tariffs are just too high for the local business people
B.This is the point where the government intervenes.
C.Tariff rates are often decided by the local customs officials at this point.
D.The customs officials don’t get paid much, usually.
_____ are firms that from the outset view the world as one market.
A.Born global firms
B.World firms
C.United firms
D.Gradual firms
Collectively, transportation charges, sales taxes, and brokerage fees are called:
A.market makers.
B.tariffs.
C.transaction costs.
D.trade barriers.