1
Which of the following refers to biases concerning the quality of foreign products?
(A)
Consumer ethnocentrism
(B)
Stable animosity
(C)
Situational animosity
(D)
None of the above
2
A privately owned Indian pharmaceutical firm is planning a dodger strategy. Its owners
should
(A)
(B)
(C)
(D)
3
A privately owned Brazilian steel firm is planning a contender strategy. Its owners should
(A)
identify MNCs that might want to buy their company
(B)
identify foreign countries with many Brazilian immigrants
(C)
identify foreign countries with many South American immigrants
(D)
consider taking the company public to raise funds
4
A privately owned Brazilian steel firm is planning a dodger strategy. Its owners should
(A)
identify foreign countries with many Brazilian immigrants
(B)
identify foreign countries with many south American immigrants
(C)
consider taking the company public to raise funds
(D)
identify MNCs that might want to buy their company
5
A privately owned Thai chemical firm is planning a contender strategy. Its owners should
(A)
consider taking the company public to raise funds
(B)
identify foreign countries with many Thai immigrants
(C)
identify foreign countries with many Asian immigrants
(D)
identify MNCs that might want to buy their company
6
A privately owned Thai chemical firm is planning a dodger strategy. Its owners should
(A)
identify MNCs that might want to buy their company
(B)
consider taking the company public to raise funds
(C)
identify foreign countries with many Thai immigrants
(D)
All of the above
7
Taberet is a family-owned company in Germany. As such it is
(A)
unusual
(B)
allowed to participate in cartels
(C)
forced to think short-term
(D)
None of the above
8
Taberet is a family-owned company in Germany. As such it is
(A)
required to join a cartel.
(B)
not forced to think short-term.
(C)
unusual.
(D)
All of the above
9
A major U.S.-based pharmaceutical MNC is planning a merger with a major German-based
pharmaceutical MNC. The takeover is likely to be more difficult legally in
(A)
the USA
(B)
the EU
(C)
neither country because laws are similar in both countries
(D)
neither country because the target is an MNC
10
A privately owned Indian pharmaceutical firm is planning a contender strategy. Its owners
should
(A)
(B)
(C)
(D)
11
A producer of traditional Lebanese foods is planning to export to the United States and will
be targeting Lebanese and other Arabs living in America. The firm is pursuing a(n)
(A)
defender strategy
(B)
extender strategy
(C)
contender strategy
(D)
ethnic acquisition strategy
12
A distributor of Indian films is planning to export to the United States and will be targeting
Indians living in America. The firm is pursuing a(n)
(A)
ethnic dodger strategy
(B)
ethnic contender strategy
(C)
defender strategy
(D)
extender strategy
13
When consumers are biased against foreign products because they believe that buying
imported goods results in job loss locally, this is called
(A)
consumer animosity
(B)
situational animosity
(C)
consumer ethnocentrism
(D)
social protection reflex
14
Consumer animosity refers to the belief that
(A)
foreign made products are usually lower quality than domestically produced products
(B)
foreign made products are always lower quality than domestically produced products
(C)
foreign products should not be purchased because doing so takes jobs away from locals
(D)
None of the above
15
Steel is an industry that requires heavy financial investment and enjoys substantial
economies of scale. Which strategy might be appropriate for a South Korean steel
producer?
(A)
Extender
(B)
Defender
(C)
Indicator
(D)
Dodger
16
Pharmaceuticals is an industry with high R&D costs and relatively similar consumer needs
worldwide. Which strategy might be appropriate for an Indonesian pharmaceutical firm?
(A)
Extender
(B)
Dodger
(C)
Defender
(D)
Coordinator
17
Steel is an industry that requires heavy financial investment and enjoys substantial
economies of scale. Which strategy might be appropriate for an Indian steel producer?
(A)
Contender
(B)
Defender
(C)
Subsidizer
(D)
Extender
18
Pharmaceuticals is an industry with high R&D costs and relatively similar consumer needs
worldwide. Which strategy might be appropriate for a Greek pharmaceutical firm?
(A)
Dodger
(B)
Defender
(C)
Extender
(D)
All of the above
19
A producer of Mexican wines is planning to export to the United States and will be targeting
Mexicans living in America. The firm is pursuing a(n)
(A)
defender strategy
(B)
extender strategy
(C)
contender strategy
(D)
dodger strategy
20
A producer of Chinese herbal medicines is planning to export to the United States and will
be targeting Chinese living in America. The firm is pursuing a(n)
(A)
extender strategy
(B)
defender strategy
(C)
contender strategy
(D)
ethnic dodger strategy
21
A major European chemical company is planning a merger with a major U.S.-based
chemical company. The merger is likely to prove more difficult legally in
(A)
Japan
(B)
USA
(C)
EU
(D)
There will be no differences among these regions
22
Ato Corporation, a member of a Japanese horizontal keiretsu, has been experiencing poor
sales and no profits for three years. What can it expect?
(A)
Ato will survive because the Japanese market is relatively uncompetitive
(B)
The keiretsu bank will restrict credit to Ato
(C)
Japan will allow it to cartel with competitors
(D)
None of the above
23
^___^ refers to the practice in which a firm uses profits from one country where it
operates to subsidize competitive actions in another country.
24
When a local firm focuses on leveraging its knowledge of local tastes and customs as well
as good relationships with local distributors and suppliers to compete with large
multinational companies, they are said to adopt a(n) ^___^ strategy.
25
When a firm focuses on expanding into foreign markets similar to their own, using
successful practices and competencies that they have already developed in their home
market, they are said to adopt a(n) ^___^ strategy.
26
^___^ occurs when governments decide to sell state-owned enterprises or their assets to
private firms or individuals.
27
A large competitor in an emerging market that operates in many industries and is
geographically focused called a(n) ^___^.
28
The belief that buying imported products results in job loss and consequently hardship at
home is called ^___^.
29
A buyer’s political objections to purchasing products from a specific foreign country is
called ^___^.
30
When consumers harbor political objections to purchasing products from a specific foreign
country due to difficult historical relations between their country and the other country,
this is called ^___^.
31
A major U.S. manufacturer of tractors has opened a plant in Russia. Russia suffers from a
negative country-of-origin perception in both Russia and the EU. What should the U.S. firm
expect?
(A)
Russian buyers will only buy imported tractors
(B)
Buyers will associate the firm’s Made–in-Russia tractors with the U.S. brand. So there will be no
negative country-of-origin effect
(C)
The firm will probably have to lower prices to offset a negative country-of-origin effect
(D)
The firm will need to lower prices only if a promotional campaign against consumer animosity
isn’t successful
32
Mexican wine suffers from poor perceptions of quality in the European market. To compete
in Europe, Mexican wine producers should
(A)
launch a promotional campaign to address consumer ethnocentrism
(B)
launch a promotional campaign to address consumer animosity
(C)
lower prices in Europe
(D)
All of the above
33
A salesperson from a Turkish textile firm discovered that some Italian buyers wouldn’t buy
the Turkish product because it would put Italians out of work. The Turkish firm is suffering
from
(A)
a negative country-of-origin effect
(B)
a positive country-of-origin effect
(C)
consumer animosity
(D)
consumer ethnocentrism
34
Ato Corporation, a member of a Japanese horizontal keiretsu, has been experiencing poor
sales and no profits for three years. What can it expect?
(A)
Ato will survive because the Japanese market is relatively uncompetitive
(B)
The keiretsu bank will continue to support the ailing firm
(C)
Japan will allow Ato to cartel with competitors
(D)
A hostile takeover of Ato is likely
35
Indopharm is a state-owned pharmaceutical firm in Indonesia. Indonesia has lifted quotas
that previously protected its domestic pharmaceutical market. Indopharm must now
compete in a climate of
(A)
privatization
(B)
market liberalization
(C)
national trade coordination
(D)
global trade coordination
36
Afritelecom is a state-owned enterprise in a sub-Saharan African country. Forty-nine
percent of Afritelecom has recently been sold to a local business group. This is an example
of
(A)
a cartel arrangement
(B)
expropriation
(C)
privatization
(D)
a private extension policy
37
Cathay Corporation produces packaged foods and is a member of a Thai business group.
Which other business is the group most likely to be involved in?
(A)
Grocery stores
(B)
Steel
(C)
Software design
(D)
It is impossible to tell
38
Indimart, a chain of supermarkets, is a member of an Indian business group. Which other
business is the group most likely to be involved in?
(A)
Computers
(B)
Packaged foods
(C)
Airlines
(D)
It is impossible to tell
39
Argentin-tech is a software design company and is a member of an Argentine business
group. Which other business is the group most likely to be involved in?
(A)
Computers
(B)
Steel
(C)
Packaged foods
(D)
It is impossible to tell
40
A salesperson from an Indian software firm discovered that some American buyers
wouldn’t buy the Indian product because it would put Americans out of work. The Indian
firm is suffering from
(A)
a negative country-of-origin effect
(B)
a positive country-of-origin effect
(C)
consumer animosity
(D)
consumer ethnocentrism
41
A salesperson from a Chinese textile firm discovered that some American buyers wouldn’t
buy the Chinese product because it would put Americans out of work. The Chinese firm is
suffering from
(A)
a negative country-of-origin effect
(B)
a positive country-of-origin effect
(C)
consumer ethnocentrism
(D)
consumer animosity
42
When consumers harbor political objections to purchasing products from a specific foreign
country in response to a current economic or political event, this is called ^___^.
43
When BIC attacked Scripto in the United States, Scripto rapidly counterparried in France.
(A)
True
(B)
False
44
Business groups in developing countries are currently going through a process of
privatization.
(A)
True
(B)
False
45
Some business groups are evolving by restructuring around their strongest businesses and
expanding into foreign markets.
(A)
True
(B)
False
46
Country of origin denotes the country with which a firm is associated—typically its home
country.
(A)
True
(B)
False
47
Carpets from Iran enjoy a positive country-of-origin effect.
(A)
True
(B)
False
48
Strong global brands can easily overcome a negative country-of-origin bias.
(A)
True
(B)
False
49
A country-of-origin bias is only observed among buyers of consumer goods and not among
buyers of industrial goods.
(A)
True
(B)
False
50
Consumer ethnocentrism refers to the belief that foreign-made products are usually lower
quality than domestically produced products.
(A)
True
(B)
False
51
Aerospace is an example of a global industry.
(A)
True
(B)
False
52
Business groups are typically publicly owned companies and have a presence in one or two
related industries.
(A)
True
(B)
False
53
State owned enterprises were established to generate large profits to fund government
operations.
(A)
True
(B)
False
54
The keiretsus system forced member companies to be highly efficient and profitable, and
loss-making companies were closed down.
(A)
True
(B)
False
55
Counterparry refers to responding to a competitive attack in one country by attacking that
competitor in another county.
(A)
True
(B)
False
56
Identifying actual and potential global competitors and selecting an overall posture
towards those competitors is called a globally coordinated counterparry.
(A)
True
(B)
False
57
Multinational companies have a better understanding of local culture and are more
effective in addressing consumer needs than local competitors.
(A)
True
(B)
False
58
An extender strategy focuses on expanding into foreign markets similar to a firm’s
domestic market.
(A)
True
(B)
False
59
A dodger strategy focuses on developing new marketing and product strategies to stay
ahead of competition.
(A)
True
(B)
False
60
For many years, European governments allowed their firms to engage in cartel behavior
outlawed in the United States.
(A)
True
(B)
False
61
Due to the horizontal keiretsus system, most industries in Japan only have one or two
major competitors.
(A)
True
(B)
False
62
In the Japanese horizontal keiretsus system, the keiretsu bank helps out members in times
of trouble.
(A)
True
(B)
False
63
Cross-country subsidization refers to
(A)
using profits in one country to subsidize prices in another
(B)
subsidiaries operating independently of each other
(C)
national governments providing subsidies to local companies
(D)
national governments providing subsidies to foreign investors
64
A global product rollout is an example of a
(A)
cross-country subsidization
(B)
multidomestic strategy
(C)
globally coordinated move
(D)
counterparry
65
In developing countries, governments may limit competition by
(A)
market liberalization
(B)
licensing local production
(C)
anti-trust laws
(D)
All of the above
66
Business groups emerged as the major local competitors in
(A)
the United States
(B)
Europe
(C)
Japan
(D)
developing countries
67
State-owned enterprises may enjoy certain advantages over private-sector firms in
developing countries including
(A)
privatization
(B)
ancillary agendas
(C)
protection against bankruptcy
(D)
freedom from government interference
68
Privatization occurs when
(A)
governments acquire privately held firms
(B)
privately held firms go public
(C)
SOEs are sold to private-sector firms
(D)
None of the above
69
Business groups are characterized by their
(A)
monopolistic position
(B)
financial core
(C)
global presence
(D)
public ownership
70
Identify the business group from the following list of companies:
(A)
Pepsi
(B)
General Motors
(C)
Xerox
(D)
Tata
71
In response to the MNC threat, business groups are
(A)
restructuring around their strongest business and expanding into foreign markets
(B)
expanding horizontally
(C)
lobbying governments to provide them with more subsidies
(D)
None of the above
72
As a nation, France is renowned for
(A)
carpets
(B)
perfumes
(C)
design
(D)
engineering quality
73
Similar to __________, business groups have a financial core.
(A)
Japanese keiretsus
(B)
SOEs
(C)
multinational corporations
(D)
start-ups
74
Horizontal keirestus are common phenomena in which country?
(A)
China
(B)
Vietnam
(C)
Mexico
(D)
Japan
75
In Europe, anti-trust laws are established primarily to
(A)
protect consumers
(B)
guarantee fairness among competitors
(C)
lower prices and keep competitors out
(D)
All of the above
76
A local firm often enjoys which advantage over a multinational corporation?
(A)
Larger size
(B)
Global brands
(C)
Better knowledge of local markets
(D)
Easier access to credit
77
A multinational corporation usually enjoys which advantage over a local firm?
(A)
Ability to utilize cross-country subsidization
(B)
Easier access to credit
(C)
Larger size
(D)
All of the above
78
A defender strategy is one in which
(A)
a company expands into similar foreign markets
(B)
companies seek out niches under-served by their competitors
(C)
a firm avoids competition by finding a way to cooperate with competition
(D)
None of the above
79
Local competitors possess an advantage over global competitors because they
(A)
have a better access to sources of finance
(B)
have greater worldwide experience in product development
(C)
understand the local culture and have established relationships with local distributors
(D)
All of the above
80
Televisa’s decision to enter foreign markets and target Spanish speaking audiences is an
example of a(n) __________ strategy.
(A)
contender
(B)
dodger
(C)
defender
(D)
extender
81
A contender strategy is one in which
(A)
a company expands into similar foreign markets
(B)
a company focuses on leveraging local assets
(C)
companies seek out niches under-served by their competitors
(D)
companies avoid competition by finding a way to cooperate with competition
82
The United States established anti-trust laws to
(A)
encourage monopolies
(B)
drive competitors out of the markets
(C)
create large corporations
(D)
discourage monopolies and encourage competition
83
Heinz’s ABC brand of soy sauce in Indonesia lost market share to the local Bango brand
because
(A)
of consumer animosity
(B)
of consumer ethnocentrism
(C)
Bango better understood the local market
(D)
Unilever bought the Bango brand and added it to its extensive distribution system
84
Which of the following would enjoy a positive country-of-origin effect?
(A)
Wine from France
(B)
Automobiles from Mexico
(C)
Perfume from Korea
(D)
Vodka from England