1
In developing countries, which will be most prevalent?
(A)
Labor-intensive manufacturing methods
(B)
Capital-intensive manufacturing methods
(C)
Cost-intensive manufacturing methods
(D)
Sophisticated automated machinery
2
In 1997, a multilateral anti-bribery pact was signed under the auspices of the
(A)
(B)
(C)
(D)
3
Starbucks had been very successful in the United States. As Starbucks considered entering
into the Mexican market, they were concerned because, unlike Americans, Mexicans rarely
drank coffee. They wondered if Starbucks could create Mexican demand for coffee, and
they questioned whether their upscale coffee shop format would offer a service experience
attractive to Mexican consumers. Starbucks was concerned about differences in
_____________ in Mexico.
(A)
ability to buy
(B)
consumer behavior
(C)
per capita income
(D)
Maslow’s hierarchy of needs
4
The traditionally wine-drinking French are drinking more beer, and the beer-drinking
Germans are drinking more wine. Japan, traditionally a fish-eating country, is consuming
more beef. The Swiss prefer French cheese to their traditional Swiss varieties. These
examples are evidence of ________.
(A)
global warming
(B)
universalism in purchasing power parity
(C)
similarity in gross national product
(D)
a convergence in global consumption patterns
5
Meghanna is trying to decide whether her company should enter into Turkey or Brazil. She
is having trouble determining which is the better market based on available household
disposable income (income available after regular household expenditures are paid). Since
market prices are different in each country, regular household expenditure costs will differ
across markets—but she is not sure by how much. Her boss suggests that she compare the
____________ between the two countries, sinc
(A)
per capita income
(B)
purchasing power parity
(C)
accounting practices
(D)
gross national product
6
Much of the income earned in developing countries is never reported to the authorities.
This income is earned in the _____________.
(A)
parallel universe
(B)
domestication sector
(C)
informal economy
(D)
ubiquitous market
7
Ahmet Kirca, a college student, is employed by a textile company in Istanbul, Turkey during
the summer. The company that he works for is not registered with the government. The
company does not pay taxes to the government. Ahmet does not report his income on his
annual tax return. Ahmet is working in the ___________.
(A)
parallel universe
(B)
domestication section
(C)
ubiquitous market
(D)
informal economy
8
Some cultures emphasize self-actualization before materialism. In many developing
countries, consumers may deprive themselves of food in order to buy refrigerators to
establish their social status and fulfill their self esteem. Therefore, there is a debate about
the cross-cultural applicability of ___________.
(A)
consumers’ ability to buy
(B)
per capita income
(C)
purchasing power parity
(D)
Maslow’s hierarchy of needs.
9
Should we target French housewives or French working women? Should we develop a
different marketing mix for Brazilian teens than the one we developed for Brazilian adults?
These questions concern the firm’s ___________ strategy.
(A)
cosmopolitan
(B)
segmentation
(C)
financial
(D)
None of the above
10
Within the upper class in Cairo, Egypt, there is a large group of young people who are
included to purchase global brands to enhance their self-image of being sophisticated and
modern. They could be described as a __________ segment.
(A)
cosmopolitan
(B)
poor
(C)
matrix
(D)
limitless
Answer:
(A)
cosmopolitan
11
MBA students across the world have several things in common. They are young, affluent,
mobile, well-educated, and fluent in English. Because of these similar demographic and
lifestyle similarities, some international marketers argue that the MBA segment is a
_________ segment.
(A)
limitless
(B)
Maslovian
(C)
heterogeneous
(D)
global
Answer:
(D)
global
12
Bribing of foreign officials by U.S. citizens was outlawed by the
(A)
Overseas Bribery Act
(B)
Patriots Act
(C)
U.S. Foreign Corrupt Practices Act
(D)
There is no such law
Answer:
(C)
U.S. Foreign Corrupt Practices Act
13
Bribery is more common in __________ countries.
(A)
high-power-distance
(B)
developed
(C)
masculine
(D)
feminine
Answer:
(A)
high-power-distance
Answer:
(B)
segmentation
14
Negotiations between buyers and suppliers from different parts of the world are difficult
due to
(A)
differences in exchange rates
(B)
cultural differences
(C)
differences in GDP
(D)
political pressure
15
Negotiations between which of the following pairs of countries would be most difficult?
(A)
United States and Britain
(B)
United States and Canada
(C)
United States and China
(D)
China and Japan
16
Chinese businesses seek to establish close relationships with foreign firms based on
(A)
cost-performance criteria
(B)
multilateral agreements
(C)
clear, legal contracts
(D)
mutual loyalty
17
What are Russian and Chinese negotiations likely to have in common?
(A)
Emotional outbursts
(B)
An apparent irreverence of time
(C)
Both a and b
(D)
None of the above
18
National global buyers search the world for products
(A)
that are produced in a single country
(B)
for use in a single country
(C)
for use all over the world
(D)
Both a and b
19
Buyers who search the world for products for use throughout their global operations are
called __________ buyers.
(A)
national global
(B)
domestic global
(C)
world
(D)
multinational global
20
The practice of assigning special account executives and service teams to large global
buyers is called __________ management.
(A)
global account
(B)
global asset
(C)
national account
(D)
special delivery
21
Eligibility screens for government contracts
(A)
require firms to implement various government requirements that relate to assisting local
business
(B)
require firms to identify the final key decision makers
(C)
weed out smaller or not serious firms
(D)
involve numerous bureaucratic procedures that the firm must properly address
22
Linkage screens for government contracts
(A)
require firms to implement various government requirements that relate to assisting local
business
(B)
require firms to identify the final key decision makers
(C)
weed out smaller or not serious firms
(D)
involve numerous bureaucratic procedures that the firm must properly address
23
Bribery is giving away something valuable to an individual in a position of trust to
(A)
influence his or her judgment
(B)
get reelected
(C)
do his or her job
(D)
Both b and c
24
When Toys R Us entered into China, they targeted their marketing mix toward children
because this was the strategy they employed in the U.S. market. This is an example of
using a ___________ segmentation strategy.
(A)
cosmopolitan
(B)
Maslovian
(C)
just-like-us
(D)
None of the above
25
Raytheon seeks to source its purchases of electric component parts from countries where
the expected performance of the components far exceeds the cost of the components. From
this description, the __________ criterion is critical in Raytheon’s electric component
buying decision.
(A)
cost-performance
(B)
performance parity
(C)
performance ratio
(D)
cost-plus
26
The Dell distributor in Indonesia learns that a shipment of imported Dell computers is
sitting unprocessed at the customs office. At the customs office, he pays 10 ringit to the
customs official to get the imports processed and released that day. This is an example of
__________.
(A)
a bureaucratic payment
(B)
an expediting payment
(C)
a linkage payment
(D)
a procedural payment
27
Explorasis, an American company, pays their Swiss lawyer US$1 million and asks them to
give the money to a Russian general. They hope that the US$1 million will encourage the
Russian general to choose their contract bid. Explorasis has _________________.
(A)
violated the Foreign Corrupt Practices Act
(B)
not violated the Foreign Corrupt Practices Act
(C)
violated the Overseas Bribery Act
(D)
not violated the Overseas Bribery Act
28
To influence the buying decision of the Egyptian general, an American manager at
Lockheed-Martin transferred US$1 million into his Swiss bank account. The manager
___________.
(A)
violated the Foreign Corrupt Practices Act
(B)
did not violate the Foreign Corrupt Practices Act
(C)
successfully passed the linkage screen
(D)
B and C are correct
29
In poor countries, the income earned by poor people often is not reported, and they are
said to participate in the ^___^ sector of the economy.
30
In a business to business transaction, when the objective of the manufacturer is to
maximize profit, the critical buying criteria will focus on the performance of the product
purchased versus its cost. This is known as the ^___^ criteria.
31
Buyers who search the world for products that are to be used in a single country are known
as ^___^.
32
The first stage in a bidding process in which governments seek to weed out not–so-serious
firms or firms that are too small to handle the contract is known as the ^___^ screen.
33
The final step in the bidding process in which firms are required to identify the final, key
decision makers and meet their needs is known as the ^___^ screen.
34
The practice of giving something of value to an individual in a position of trust to influence
their judgment or behavior is known as ^___^.
35
The law that forbids U.S. citizens from bribing foreign government employees and
politicians is called the ^___^.
36
To influence the buying decision of the Indian general, Airbus transferred 1 million Euros
into his Swiss bank account. This is an example of _______.
(A)
bribery
(B)
an expediting payment
(C)
a linkage payment
(D)
All of the above
37
The Turkish Iznik Tile company sends the Egyptian education minister and his family on a
one-week cruise throughout the Mediterranean in the hope that the minister will choose
the Iznik Tile company as the tile supplier for three new university locations in Cairo. This
is an example of _________.
(A)
bribery
(B)
an expediting payment
(C)
a linkage payment
(D)
All of the above
38
Glazers Liquors purchases new alcoholic beverage brands in markets all over the world and
distributes it throughout the United States. This description reveals that Glazers Liquors is
a _______ global buyer.
(A)
multinational
(B)
schizophrenic
(C)
national
(D)
cost-performance
39
McDonald’s Big Mac, sold in markets all over the world, consists of two all beef patties,
purchased from Spain; special sauce, purchased from the U.S.; lettuce, purchased from
Holland; cheese, purchased from New Zealand; pickles, purchased from the U.S.; onions
and sesame seeds, purchased from Mexico; and wheat, sugar, and oil, purchased from
Brazil. From this description, McDonald’s appears to be a __________ global buyer.
(A)
multinational
(B)
schizophrenic
(C)
national
(D)
cost-performance
40
Texas Instruments assigns special account executives and service teams to handle the
needs of valuable but demanding global buyers. Texas Instruments practices
___________.
(A)
international mission techniques
(B)
global account management
(C)
a strict screening process
(D)
multinational domestication
41
The Indian government purchased 100 airplanes from Boeing. This is an example of
___________.
(A)
a facilitating payment
(B)
an expediting payment
(C)
government procurement
(D)
domestication
42
The Russian government asks bidders on a contract to submit a US$150,000 fee with their
bid to weed out firms that are not serious about the contract or are too small to handle the
contract. This is an example of a governmental _________ screen that is common during
government purchases in developing countries.
(A)
eligibility
(B)
procedural
(C)
linkage
(D)
influence
43
To be considered as a supplier to the Bolivian government, a company must follow
numerous bureaucratic procedures and fill out numerous long forms. This is an example of
a governmental ___________ screen that is common during government purchases in
developing countries.
(A)
eligibility
(B)
procedural
(C)
competitive
(D)
influence
44
During the bidding process with the Brazilian government, American computer giant, Dell,
had to explain how local Brazilian firms would participate in the production of the
computers Dell wanted to sell to the Brazilian government. Dell argued that local Brazilian
companies would supply component parts and assemble the computers. In Brazil, Dell was
negotiating the _____ screen that is common in developing countries.
(A)
eligibility
(B)
procedural
(C)
linkage
(D)
influence
45
When considering which foreign construction company would be awarded a contract for
India’s new highway project, the Indian government weighed each bidding company’s
experience, reputation, and cultural sensitivity in addition to the price. In this example, the
Indian government is executing the ________ screen that is common during government
purchases in developing countries.
(A)
eligibility
(B)
influence
(C)
linkage
(D)
competitive
46
Raytheon is preparing to sell radar equipment to the Taiwanese government. A Raytheon
saleswoman recognizes that a certain general will be particularly influential in the
government’s buying decision-making process. She meets with the general to ensure that
Raytheon’s sales proposal will meet his needs and expectations. The Raytheon saleswoman
is striving to make sure that her company successfully proceeds through the _______
screen that is common during government purchases in developing cou
(A)
influence
(B)
eligibility
(C)
procedural
(D)
linkage
Answer:
(A)
influence
47
If a U.S. electronics company pays a customs official US$20 to speed up the clearance of
their shipment of US$1 million of goods through customs, it is ________.
(A)
a violation of the American Overseas Bribery Act
(B)
not a violation of the American Overseas Bribery Act
(C)
a violation of the U.S. Foreign Corrupt Practices Act
(D)
not a violation of the U.S. Foreign Corrupt Practices Act
(D)
not a violation of the U.S. Foreign Corrupt Practices Act
48
According to the Foreign Corrupt Practices Act (FCPA), U.S. firms are allowed to make
^___^ payments, small sums paid to civil servants to do their job.
Answer:
expediting
49
The U.S. FCPA forbids foreign citizens from bribing U.S. officials.
(A)
True
(B)
False
Answer:
50
In Saudi Arabia, the husband usually decides which packaged food products to buy.
Answer:
(A)
True
(B)
False
51
Global market segments are transnational consumer segments based on age, social class,
and lifestyle rather than national culture.
(A)
True
(B)
False
52
Global segments are based on differences in national culture.
(A)
True
(B)
False
53
Urban populations in developing countries are usually richer and more accessible than rural
populations.
(A)
True
(B)
False
54
Global segments may be based on lifestyles.
(A)
True
(B)
False
55
Rural populations in China are currently uninteresting to MNCs due to their relative
poverty.
(A)
True
(B)
False
56
Country of manufacture is the most important factor influencing a business buyer’s
decision.
(A)
True
(B)
False
57
Scarcity of labor is never a problem in developing countries.
(A)
True
(B)
False
58
Capital-intensive manufacturing methods are more common than labor-intensive
manufacturing methods in Norway and Germany.
(A)
True
(B)
False
59
When entering a national market, global marketers must choose between targeting the rich
and targeting the poor.
(A)
True
(B)
False
60
Maslow’s hierarchy of needs is universally applicable in spite of cross-cultural differences.
(A)
True
(B)
False
61
China spends a larger percent of its national income on food than does the United States.
(A)
True
(B)
False
62
Expediting payments are allowed under the U.S. FCPA.
(A)
True
(B)
False
63
Expediting payments are forbidden under the British Bribery Act.
(A)
True
(B)
False
64
Consumption patterns vary greatly from one country to another due to great variations in
consumers’ abilities and motivations to buy.
(A)
True
(B)
False
65
Total value of all imports into the country is the most important indicator of the wealth of
the country.
(A)
True
(B)
False
66
An important indicator of total consumer potential of a country is the total imports into the
country.
(A)
True
(B)
False
67
The Geni Index measures the degree of income inequality in an economy.
(A)
True
(B)
False
68
Purchasing power parity takes into account the national differences in product prices and
hence is a better indicator of purchasing power of the consumers than is PCI.
(A)
True
(B)
False
69
The IMF suggests using PCI statistics because they take into account differences in product
prices.
(A)
True
(B)
False
70
Global marketers realistically can only target the upper 10 percent of the population in
developing countries.
(A)
True
(B)
False
71
Informal sectors contribute to the economy by paying high levels of taxes.
(A)
True
(B)
False
72
Diaspora markets are a phenomenon arising from world migration.
(A)
True
(B)
False
73
Cosmopolitans is a psychographic segment.
(A)
True
(B)
False
74
To understand a consumer market, global marketers must understand
(A)
the consumer’s ability to buy
(B)
consumer needs
(C)
consumer behavior
(D)
All of the above
75
An important indicator of total consumer potential of a country is the
(A)
size of the upper class
(B)
gross national product
(C)
total imports into the country
(D)
total exports from the country
76
The Geni Index is a measure of ______________ in an economy.
(A)
cultural variance
(B)
importance of imports
(C)
inequality
(D)
rate of growth
77
When workers do not report their income to the government, they are said to participate in
the __________ sector of the economy.
(A)
formal
(B)
semi-formal
(C)
informal
(D)
casual
78
____________ are more common in emerging markets than developed countries.
(A)
Global segments
(B)
Just-like-us segments
(C)
Undaunted strivers
(D)
None of the above
79
Which is most likely to prove to be a global segment?
(A)
Newlyweds
(B)
Housewives
(C)
MBA students
(D)
Retirees
80
Global segments may be based on
(A)
age
(B)
social class
(C)
lifestyle
(D)
All of the above
81
Global segments may be based on
(A)
age
(B)
country groupings
(C)
regional associations
(D)
differences in national consumption
82
When meeting for the first time, a salesperson will customarily present a prospective client
with a small gift in
(A)
Latin America
(B)
the Arab world
(C)
Japan
(D)
All of the above
83
For business buyers the main factor influencing the purchase decision is the
(A)
cost of the product.
(B)
performance of the product
(C)
cost-performance criterion
(D)
social and cultural factors
84
Governments of developing countries encourage bribery because it helps to boost per
capita income.
(A)
True
(B)
False
85
Influence screens require firms to identify key decision makers and meet their needs.
(A)
True
(B)
False
86
Translation problems and attitudes towards negotiations make cross-cultural negotiations
very challenging.
(A)
True
(B)
False
87
Psychographics is a form of segmentation based on both demographics and consumer
attitudes.
(A)
True
(B)
False
88
Russian negotiators can surprise Americans by their emotional outbursts.
(A)
True
(B)
False
89
Psychographics is a classification of people according to their attitudes and aspirations,
worldviews and other psychological criteria.
(A)
True
(B)
False
90
National global buyers search the world for products but use those products in only one
country.
(A)
True
(B)
False
91
The IMF designates any household with an income of $8000 a year as middle class.
(A)
True
(B)
False
92
Multinational global buyers search the world for products but use those products in only
one country.
(A)
True
(B)
False
93
The World Health Organization is an example of a global buyer.
(A)
True
(B)
False
94
All countries in the WTO have agreed to open government contracts to foreign bidders.
(A)
True
(B)
False
95
Governments use eligibility screens to weed out small firms and not serious firms during
the bidding process.
(A)
True
(B)
False
96
If a country has a surplus of labor, then
(A)
high labor rates are likely
(B)
labor-intensive methods of manufacturing are appropriate
(C)
sophisticated high-technology machinery will be commonly used
(D)
None of the above