1) According to a columnist, Jon Pareles, with the new millennium the Internet
swallowed culture whole and delivered it back cheaper, faster, and smaller to everyone
who can get online.
2) In Michael Porter’s model, “buyers” refers to manufacturers (e.g., GM) and retailers
(e.g. Wal-Mart), rather than consumers.
3) Potential export problems include packaging, government red tape, warehousing,
advertising, and trade restrictions.
4) China offsets its trade surpluses with an outflow of capital, while the United States
offsets its trade deficit with an inflow of capital.
5) In the United States, Levi Strauss & Company is under price pressure due to stiff
competition from Wrangler and Lee brands marketed by VF Corporation.
6) Some of the world’s most memorable advertising campaigns originate from “big”
ideas with an unlimited number of new executions. Such a campaign is said to have
“legs.”
7) Ethnocentric companies that conduct business outside the home country adhere to
the notion that the products that succeed in the home country are superior.
8) When making a decision about market entry timing, a company’s management team
should understand that the first-mover always becomes the market leader.
9) When creating global advertising, it is important to remember that the “advertising
appeal” should be based on the agency’s understanding of the target audience’s buying
motives.
10) Kodak has easily made the transition from industry leadership in chemical-based
photography to industry leadership in digital photography.
11) Western advertising agencies still find markets such as China and Japan to be very
complex, as Asian agencies find it just as difficult to establish local agency presence in
Western markets.
12) Dieter Zietsche, sales chief at Germany’s Mercedes-Benz, once said that, in setting
prices, “We know what the customer wants, and he will have to pay for it.” This is an
example of an ethnocentric pricing policy.
13) Germany’s DHL tried to enter the U.S. package-delivery market in 2003; to achieve
scale, DHL acquired Airborne Express. However they could not compete with
entrenched incumbents FedEx and UPS. This is an example of incorrect position and
product mix.
14) Fifty years ago, Kikkoman brand soy sauce was unknown in the United States. The
company used sampling and even today continues to make extensive use of shopper
marketing as a communication tool.
15) ASEAN’s goal is to strengthen intra-regional trade relationships so members do not
have to trade with China.
16) Robert Noyce and Jack Kilby are pioneers in the digital revolution. What
contribution did they make?
A) They invented the transistor
B) They invented the spreadsheet
C) They invented the first digital computer
D) They invented the silicon chip
E) They invented the Internet
17) Pfizer, Merck, Novartis, and other pharmaceutical companies have little choice but
to engage in global marketing since:
A) there is little demand for their products in home countries
B) their research centers are located overseas
C) no single market is large enough to recover costs incurred in research
D) there is more demand overseas for their products
E) technology is not available in home countries
18) Arrange the following in order from lowest to highest level of economic integration.
A) customs unioneconomic unionfree trade areacommon market
B) economic unioncustoms unioncommon marketfree trade area
C) common marketfree trade areaeconomic unioncustoms union
D) free trade areacustoms unioncommon marketeconomic union
E) common marketeconomic unioncustoms unionfree trade area
19) Potential markets can be subdivided into:
A) latent and parallel markets
B) existing and incipient markets
C) latent and incipient markets
D) existing and latent markets
E) incipient and existing markets
20) Adopter categories are classifications of individuals within a market on the basis of
their innovativeness. Recently Apple introduced the iPhone for which people waited in
long lines before the doors opened. According to experts these 2.5% of people who
bought the iPhone are categorized as:
A) early adopters
B) innovators
C) early majority
D) late majority
E) laggards
21) If a marketing manager plans to enter the newly industrializing countries (NICs) or
other Asia markets with a product that has proved to be successful in the home market,
the product’s diffusion processes are likely to be:
A) negligible since consumers will take time to assess the relative advantage
B) much slower than in the home market
C) much faster than in the home market
D) similar to that in the home market
E) less compatible in the Asian market
22) In the mid-1980s, Apple Computer lost tens of billions of dollars by not using:
A) joint ventures
B) licensing
C) 100% ownership
D) exporting
E) global strategic alliances
23) Which of the following criteria should marketers use when assessing opportunity in
global target markets?
A) current size of the segment
B) anticipated growth potential
C) competition
D) compatibility with company’s overall objectives
E) all of the above
24) Mitsubishi Heavy Industries Ltd. and other Japanese companies manufacture
airplanes under license to U.S. firms and also work as subcontractors for aircraft parts
and systems. This type of effort is known as:
A) searching for loose bricks
B) collaborating
C) building of layers of advantage
D) changing the rules of engagement
E) innovating
25) Tools that can be used for collecting primary data include:
A) survey research and interviews
B) consumer panels and observation
C) focus groups and survey research
D) interviews and observation
E) all of the above
26) Which of the following is true about etic and emic approaches to country analysis?
A) The etic and emic approaches are identical
B) An emic approach studies a culture from within; etic analysis is “from the outside”
C) An emic approach studies a culture “from the outside”; etic analysis studies a culture
from within
D) The emic/etic distinction is not useful in cultural studies
E) The emic/etic approaches cannot be applied to Asian countries
27) The power distance dimension reflects the degree of trust among members of
society. Thus, the higher the power distance (PDI) the:
A) greater is uncertainty avoidance
B) lower is the level of trust
C) higher is tolerance for ambiguity
D) greater is male dominance
E) lower is the harmony
28) The U.S. Justice Department objected to a recent patent license agreement between
S.C. Johnson & Sons and Bayer AG. The antitrust unit at the Justice department
objected to:
A) the duration of the license
B) the amount of royalties Johnson agreed to pay
C) Bayer’s attempts to circumvent FDA policies
D) the exclusive nature of the license agreement
E) the hostile arrangement between Bayer and Johnson
29) Devaluation can result from government action or an economic crisis. In August
1998, the Russian economy imploded. As a result all of the following listed events
happened except:
A) the ruble plunged in value
B) the government defaulted on on its foreign debt obligation
C) many Russians faced wage cuts and layoffs
D) Russia’s economy did not recover from the impact
E) savings were wiped out as banks collapsed
30) Consten, a French company, had exclusive rights to import and distribute German
Grundig’s electronic products into France. One of the competitors started bringing
“parallel imports” into France illegally, importing Grundig product bought from a
foreign supplier. Which of the following does not represent an action taken by different
legal bodies?
A) Consten’s complaint was upheld by two French courts
B) The Paris Court of Appeals suspended the judgment of the French courts
C) The Paris Court of Appeal’s judgment was based on pending a ruling by the
European Commission
D) The European Commission ruled against Consten on the grounds that territorial
protection proved to be damaging to the Common Market
E) The European Commission ruled that German Grundig was in violation of the laws
of the Common Market
31) Which of the following is not an appropriate guideline for companies selecting
independent distributors in international markets?
A) Select distributorsdon’t let them select you
B) Look for distributors capable of developing markets
C) Give local distributors control over marketing strategy
D) Treat local distributors as long-term partners
E) All of the above are appropriate guidelines
32) Harley-Davidson has applied for federal protection of an unusual form of
intellectual property; the ‘soul-pleasing rumble” produced by its motorcycles. What type
of protection is Harley-Davidson seeking?
A) copyright
B) trademark
C) license
D) patent
E) trade dress
33) Dry soup mixes that have long been popular in Europe are marketed as sauces or
dips in the U.S. This is an example of the ________ strategy.
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product invention
34) The marketers of Corona beer achieved great success in the U.S. market by:
A) retaining the bottle design originally used in Mexico
B) hiring Hispanic movie stars as endorsers
C) distributing Corona in returnable bottles
D) changing the brewing recipe to conform to American palates
E) having the label in Spanish language
35) In Mexico City, only 55-60% of the population owns a telephone. The number
drops to less than 50% in Guadalajara and Monterey, and 35% or lower in other cities.
This will complicate the task of market researchers hoping to use a telephone survey to
obtain a ________ of the Mexican population.
A) probability sample
B) convenience sample
C) secondary sample
D) focus group sample
E) quota sample
36) The Ministry of International Trade and Industry (MITI) has helped devise export
strategies for companies in:
A) Singapore
B) South Korea
C) Taiwan
D) Hong Kong
E) Japan
37) The choice between demonstration, slice-of-life, straight sell, and other advertising
forms is a matter of:
A) the creative strategy
B) the advertising appeal
C) the selling proposition
D) the creative execution
E) the big idea
38) The enlargement of the EU has impacted marketing strategies in the eurozone
countries by:
A) making it difficult to export food products from one country to another
B) increasing the cost of production since the euro replaced local currency
C) shifting products from one market to another in the event of shortages
D) reduced tariffs and quotas for products imported from non-EU members
E) having less flexibility in the placement of factories
39) Pursuing alternative sources of energy, such as wind and solar power, is important
due to the fact that:
A) people in developing countries are more conscious about the environment
B) global marketers are more interested in publicizing environmental issues
C) it is easy to develop solar power in many parts of the world
D) heavy reliance on fossil fuels contributes to global warming
E) people worldwide can afford to buy power generated from wind and solar
40) After four years of product development, Procter & Gamble recently introduced a
new, improved disposable diaper. Pampers Rash Guard diapers are designed to prevent
diaper rash and represent the first time a company has made a medical claim for its
diapers. What kind of innovation do the new diapers represent?
A) platform-based innovation
B) dynamically continuous innovation
C) discontinuous innovation
D) continuous innovation
E) none of the above
41) In a socially responsible firm, employees perform all of the following except:
A) conduct business in an ethical manner
B) pursue goals and policies that are in society’s best interest
C) guided by moral principles
D) distinguish between right and wrong
E) develop their own core ideologies on moral principles
42) In advertising, a(n) ________ is an agent who chooses graphics, pictures, type
styles, and other visual elements and has general responsibility for the overall look of
an advertisement.
A) art director
B) copywriter
C) IMC manager
D) PR practitioner
E) stylist
43) Marjorie Scardino is chief executive of:
A) Nissan Motor (Japan)
B) Pearson PLC (Great Britain)
C) Ford Motor Company (USA)
D) Pharmacia Corporation (USA)
E) Atlas Copco AB (Sweden)
44) If company managers decide to set the export price for a particular product at an
amount equivalent to the home-country price, they would be using which approach to
pricing?
A) ethnocentric
B) polycentric
C) regiocentric
D) geocentric
E) extension pricing
45) What are the distinguishing features between Centrally Planned Socialism and
Centrally Planned Capitalism? Give examples of countries which follow these systems.
46) Why would any firm, whether global or otherwise, seek to collaborate with another
firm, be it local or foreign?
47) What factors should managers take into account in developing new products for
international markets? What are the consequences for not adequately testing new
products?
48) One of the issues facing advertisers is which medium or media to use when
communicating with global target markets. Discuss how these media differ from
country to country, giving examples.
49) Porsche relies on currency hedging rather than price increases to boost pretax
profits on sales of its automobiles. What is the advantage of doing this, and how does
hedging work?
50) What are the issues and problems related to sales promotion in different parts of the
world?
51) What does the phrase factor condition refer to? How can these factors be inherited
or created? Describe Porter’s categories of factor conditions.
52) Giving examples, show how sampling can be an effective sales promotion
technique.
53) There are considerable differences and similarities among world cultures. This
makes the task of the global marketer much more difficult. Giving examples, show
what factors have to be taken into account when planning marketing strategy for
different parts of the world.