In mature markets, the primary distribution problem is typically related to:
A.the lack of a sophisticated distribution system.
B.the difficulty and expense of gaining access to an appropriate channel.
C.poor transportation facilities.
D.the lack of efficient communication systems.
Before 1997, many European and American firms found it the easiest to enter the
Chinese market through:
A.the World Trade Organization.
B.Hong Kong trading companies.
C.the Free Port of Nanking.
D.the Pacific Rim Common Market.
Which of the following companies is involved in a major international trade fair that
brings together computer hardware and software makers from all over the world?
A.New England Auto Show
B.CES
C.Hannover Messe
D.CeBIT
Sealand Corporation was among the first to establish a global network to serve its
global customers. The firm has found that its efficient network now is a powerful factor
attracting more customers. Sealand’s global network:
A.has become an FSA.
B.is locally irrelevant.
C.undermines local managers’ authority.
D.is a win-lose proposition for the headquarters and the subsidiaries.
According to the text, in order to succeed in high-context cultures, a salesperson must
typically:
A.exhibit aggression.
B.establish personal worth.
C.exhibit self-confidence.
D.be physically attractive.
Globalizing marketing involves all of the following EXCEPT:
A.global coordination of marketing activities.
B.some degree of marketing standardization.
C.a degree of uniformity in the marketing mix.
D.customization of products as per local preference.
What did Heineken find about local beer preferences when competitive analysis was
undertaken?
A.People are very loyal to local brands.
B.Customers preferred Heineken, two to one, in most markets.
C.Local brands were easy to compete against because Heineken had such a large
advertising budget.
D.If the price was lower, people would usually switch brands.
Maxell Corporation is preparing to enter its first foreign market and desires to quickly
identify the product features of the most successful products as inexpensively as
possible. The firm should consider the use of:
A.Delphi teams who use the products.
B.direct observation of product use.
C.sophisticated interviewing techniques.
D.mail questionnaires.
Product innovation and high technology are characteristics of which market?
A.Emerging markets
B.New growth markets
C.Saturated markets
D.Mature markets
Anti-globalization critics charge that the standardization promoted by global brands has
stifled diversity. This charge is best described by which of the following?
A.No logo
B.No space
C.No choice
D.No local control
In which of the following areas is knowledge derived from domestic marketing LEAST
helpful to the global marketer?
A.Pricing
B.Product positioning
C.Market segmentation
D.Advertising
Benny Hill Corporation has just shifted to an SBU form of global organization. The
leadership of the firm’s new marketing structure will probably be entrusted to:
A.the president of the firm.
B.a committee composed of local marketing managers.
C.a management matrix.
D.a global marketing director.
The buyer must arrange for shipment and insurance if the goods are sold:
A.F.O.B.
B.C.I.F.
C.E.M.C.
D.C.O.D.
Which of the following forms of strategic alliance is MOST similar to OEM
arrangements?
A.distribution alliances.
B.R & D alliances.
C.manufacturing alliances.
D.piggyback alliances.
Toshiba Corporation produces and sells a line of high-price, high-tech products.
Because of the high risk and high cost of purchase, its customers are likely to:
A.engage in impulse purchase.
B.engage in low-involvement search.
C.avoid purchase.
D.engage in time consuming search.
The increase in terrorist and anti-globalization activities has:
A.rendered global economic and political data useless.
B.reduced the predictive value of historical data.
C.had little impact upon free capital movement.
D.changed global economic rules and regulations overnight.
Promotional activities aimed at channel intermediaries are called:
A.point-of-purchase promotions.
B.trade promotions.
C.in-store promotions.
D.publicity.
The fundamental aim of business strategy is to create and maintain:
A.lower prices.
B.efficient channels.
C.a competitive advantage.
D.production efficiency.
The America-First Corporation enjoys internationally known brands and a reputation
for impeccable service. The firm has decided to expand its firm-specific advantages into
the international arena. What problems are likely to be encountered? How can the firm
meet these challenges?
For years, the “Big Three” of American automobile manufacturers produced engines
and other components for American Motors. GM, Chrysler, and Ford used such orders
to “take up” excess capacity and American Motors was relieved of the need to make
plant investments it could not afford. This arrangement was an early example of a(n):
A.R & D alliance.
B.distribution alliance.
C.piggyback alliance.
D.manufacturing alliance.
The forecasting method by which a time series of sales data covering past periods is
extended in the future is called:
A.regression-based forecasting.
B.extrapolation.
C.the Delphi method.
D.the jury pooling approach.
American negotiators typically place least emphasis upon the _____ portion of the
negotiation process.
A.nontask sounding.
B.task-related exchange of information.
C.persuasion.
D.conclusion and agreement.
The America-First Corporation is preparing to “go global” by simultaneously entering
several foreign markets. To be successful, the firm must understand:
A.its competitive advantages in these markets.
B.global compensation.
C.import/export laws.
D.electronic communication.
Nex-tel Corporation, a major innovator and producer of technology-intensive products,
sees major marketing opportunities in Russia and China.
The firm’s brand image is part of:
A.the generic benefits.
B.the core service.
C.the formal service package.
D.the augmented service.
The Winston-Salem Corporation is preparing to introduce vending machines into
several of the emerging markets it serves. The firm hopes to use this approach to
distribute its soft drink, candy, and tobacco products in areas in which traditional
convenience stores are not available. The success of this strategy will depend upon the
firm’s ability to:
A.overcome exchange rate fluctuations.
B.assist in the growth of consumer income.
C.change traditional lifestyles.
D.avoid import duties.
Advertising is an unusually important medium in the United States, partly as a result of:
A.the size of the population.
B.the cultural diversity.
C.religion variations.
D.different dialects.
After the 1981 Dunning study of comparative advantage, the advantage in _____ has
moved from Japan to other Asian countries.
A.technology
B.transportation equipment
C.food products
D.textiles
The competitive parity approach to budgeting for advertising is MOST appropriate
when:
A.global competition does not exist.
B.products are priced for market penetration.
C.the major global competitors are from the same country.
D.no industry average is available.
The range between maximum and minimum prices within which all local prices in a
trading area must fall is called:
A.a price corridor.
B.turnkey range.
C.pipeline price range.
D.gray trade perimeters.
Subcontracting less critical activities is referred to as:
A.outsourcing.
B.insourcing.
C.offshoring.
D.in-forming.
Bolivia, Columbia, Ecuador, Venezuela, and now Peru comprise which of the following
foreign trade agreements?
A.ANCOM
B.LAIA
C.MERCOSUR
D.NAFTA
The process by which we form judgments about others is termed:
A.discrimination.
B.self-referencing.
C.prejudice.
D.perceptual bias.
Daimler-Chrysler Corporation has not been able to crack the Japanese market. The firm
has decided to sell its Japanese holdings to a competitor and reallocate those funds to
European markets in which it is more comfortable. The firm is following a(n):
A.niche strategy.
B.market retreat strategy.
C.enclave strategy.
D.cash-cow strategy.
Which of the following activities distinguishes global distribution from global logistics?
A.The management of global transportation activities.
B.The management of global storage.
C.The management of global pricing.
D.The management of channels within a country.
Briefly define culture and explain its role in society. How is culture a “learned”
behavior? Why would members of “high”- and “low-context” cultures have difficulty
interacting?
P&G was successful in Europe with their product called VIZIR by using a novel
organizational innovation called a _____.
Consumer search is generally considered _____ for such purchases as automobiles and
other consumer durables, and _____ for purchases such as convenience goods and
habitual purchases.
The America-First Corporation is considering a move into foreign trade. The firm is a
newcomer to foreign trade and is not quite sure how to begin. How would you advise
the firm to begin the process of identifying potential countries for entry?
Public relations attempts to create and maintain a favorable attitude toward the
corporation among all of the firm’s _____.
Discuss the impact of anti-American sentiment post the attack on Iraq in March 2003.
Why was this relevant to globalization?
Chevron Corporation has found that one of the most difficult tasks the firm has faced in
its global marketing efforts has been convincing country managers to accept,
implement, and support the global strategies produced by headquarters. The firm has
exhausted its “bag” of incentives and penalties to little or no effect. How can Chevron
solve this problem?
Barclays Corporation is concerned that extensive, and expensive, adaptation of its
domestic/global marketing mix may be required to successfully enter NIE markets.
Evaluate this concern.
The Perot Corporation believes that the mere fact that it is an American firm will give it
an edge in NIE markets. Do you agree or not?
What are the issues facing managers in global management?
To date, most small global direct marketers utilize _____ to enter new foreign markets.
Panasonic Corporation is attempting to identify specific target segments within the
countries it has decided to enter. The firm is engaged in _____.
The Givenchy Corporation, a major global marketer of high-fashion clothing, is
preparing to launch its line of mix-n-match sportswear to the Southeast Asia market. In
spite of its success in Latin America, why might the firm experience problems in
Southeast Asia?
_____ can be defined as the transportation and storage activities required to transfer the
physical product from manufacturing plants and warehousing facilities in different
countries to the various local market countries.
The Foster Brewing Corporation has determined to globalize. Briefly outline the three
major tasks that face the firm in attempting to implement this strategy.
Starbucks Corporation is especially careful in its selection of retailers in foreign
markets. What “special” characteristics of the retail segment of the channel justify this
focus? What practical considerations flow from them?
The Best Buy Corporation attempts to use the “gap” model to assess service quality.
How will this model be used?
The Hurst Corporation views its global network as its primary FSA and sees the
linkages between all components of its global network as the true source of the firm’s
competitive advantage. Hurst has apparently accepted the _____.