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Every commercial transaction is based on a contract of sale, and the trade terms in that
contract specify the exact point at which the ownership of merchandise is transferred
from the seller to the buyer and which party in the transactions pays which cost.
In global marketing research, the results of a nonprobability sample can be projected
with statistical reliability.
The MEA can act as an export distributor or as an export commission representative.
However, the MEA does not perform the functions of an export department, and the
scope of market activities is usually limited to a few countries.
The ability to speak at least one other foreign language is one difference between
managers born and raised in the United States and those born and raised elsewhere.
Prior to the economic crisis of 1997-1998, the South Korea's "chaebol" had become
bloated and heavily in debt.
In general, the greater the distance between the product source and the target market,
the greater the time delay for delivery and the lower the transportation cost.
Starbucks founder and Chairman Howard Schultz and his management team have used
a variety of market-entry approaches, direct ownership, licensing, and franchising"to
create an empire of more than 21,000 coffee cafs in 65 countries.
If a foreign company is taken over by the host country government, and some form of
compensation is paid, "confiscation" has occurred.
An exporter that is new to a particular market would do well to choose a middleman
with a reputation for "cherry picking" products.
Music is an aesthetic component of all cultures and is accepted as a form of artistic
expression and a source of entertainment.
Sustaining technologies enable something to be done that was previously deemed
impossible.
Ethnocentric companies are likely to use an expatriate sales force in countries at all
levels of economic development.
The first step in the guidelines to help newcomers in choosing a channel intermediary is
to let the distributors select the business.
Before retiring at the end of 2008, Unilever Group Chief Executive Patrick Cescau
wanted to reconnect the company with its heritage of sustainability and concern for the
environment. This and other values reflect Unilever's philosophy of "doing well by
doing good."
Although IBM tried to regain its position by creating its first PC, it was slow to
recognize the growing demand for laptops.
India leads the world in terms of watching the most television; daily viewership is 5
hours, 39 minutes each day.
The World Bank has developed a four-category classification system for stages of
marketing development which uses per capita gross national income (GNI) as a base.
To fight counterfeiting, the "Disney Magical Journey" promotion was keyed to mail-in
hologram stickers on imitation Disney products.
Perceptions and attitudes about a product's origins can be positive or negative. On the
positive side, "German" is synonymous with style.
According to the top brand rankings, Microsoft is the world's most valuable brand.
One of the first-mover disadvantages is that a late-mover competitor may reap benefit
from the investments made in marketing and establishing in a particular country.
Product differentiation and brand loyalty "raise the bar" for would-be industry entrants
who would be required to make minimal investments in research or advertising.
France has a fragmented shop system that consisted of small, specialized stores such as
the boulangerie and charcuterie; which became a part of France's national heritage.
The U.S.-style "I'll do whatever it takes to get your business" has proven to be a
successful selling approach throughout the world.
From the point of view of the marketer, sales promotion provides accountability.
If a foreign company is taken over by the host country government, and some form of
compensation is paid, "expropriation" has occurred.
Walmart's international expansion in the mid-1990s coincided with disappointing
financial results in its home market.
Because the Internet is global, no single country controls it.
The Harmonized Tariff System (HTS) has eliminated virtually all problems associated
with assigning tariff classifications to new products.
When marketers refer to "fast-food culture", or "credit-card culture" they are referring
to a cosmopolitan culture which is comprised of various segments of the population
which are interconnected.
Which of the following is not an advantage of using sales promotions?
A) provides a tangible incentive to buyers
B) provides accountability to marketing managers
C) enables company to build its database
D) builds long-term brand awareness
E) develops relationship with customers
The most general term for the global phenomenon involving reciprocal business
interactions between parties in various countries is known as:
A) switch trading.
B) barter.
C) offset.
D) compensation trading.
E) countertrade.
According to Michael Porter's research on the competitive advantage of nations, human,
physical, knowledge, capital, and infrastructure resources are all components of a
country's:
A) factor conditions.
B) demand conditions.
C) strategy, structure, and rivalry.
D) related and supporting industries.
E) global conditions.
When managers at Matsushita realized that cost advantages in TV production were
often fleeting, they added quality and reliability advantages, thus establishing:
A) loose bricks.
B) a "double diamond."
C) attribute diversity.
D) layers of advantage.
E) buyer power.
The markets of Central and Eastern Europe present interesting opportunities and offer
attractive opportunities for low-cost manufacturing due to:
A) their location being close to the sea.
B) the cultural similarities.
C) wage rates being lower than in Spain, Portugal and Greece.
D) strict laws and regulations.
E) prohibitive tariffs and export restrictions.
When the Coca-Cola Company was developing its new Dasani bottled water brand,
linguists helped guide the naming process. For example, the recurring "a" was chosen
because it has a soothing sound. In linguistics, issues pertaining to letters and sounds
are a matter of:
A) syntax.
B) synonym.
C) phonology.
D) semiotics.
E) semantics.
Which automaker was described as using an ethnocentric approach to setting prices in
the United States?
A) Toyota
B) Nissan
C) Volkswagen
D) Mercedes
E) Lexus
Which of the following pioneers of the digital revolution developed URL, http, and
HTML, thus paving the way for the World Wide Web?
A) Robert Noyce and Jack Kilby
B) Vincent Atanasoff and Clifford Berry
C) Vint Serf and Bob Kahn
D) Steve Jobs and Steve Wozniak
E) Tim Berners-Lee
When Tag Heuer, a marketer of luxury watches, takes out newspaper ads urging
consumers to purchase Tag Heuer products from authorized dealers only, the company
is most likely attempting to combat the ________ problem.
A) countertrade
B) market holding
C) price escalation
D) gray market
E) market skimming
Comparing and contrasting the diffusion of innovations in Western countries and in
Asia, one can say that:
A) the process occurs in an identical manner in both regions.
B) in Asia, the adoption process begins more slowly but ramps up more rapidly than it
does in Western countries.
C) in Western countries, the adoption process begins more slowly but ramps up more
rapidly than it does in Asia.
D) the diffusion of innovation framework is applicable in the West but not in Asia.
E) the diffusion of innovation framework is applicable in Asia but not in the West.
The five original members of the Central American Integration System did not include:
A) El Salvador.
B) Honduras.
C) Guatemala.
D) Nicaragua.
E) Venezuela.
The unauthorized publication or reproduction of copyrighted work is referred to as:
A) associative counterfeit.
B) imitation.
C) mistake.
D) trade secrets.
E) piracy.
According to Euromonitor International, the global market for foods that offer health
benefits is currently worth about $________ billion in annual sales.
A) 300
B) 400
C) 500
D) 600
E) 700.
The universal concerns for global companies established by the United Nations Global
Compact consist of the following three dimensions:
A) factor conditions, demand conditions, industry conditions.
B) human rights, animal rights, and the environment.
C) content domain, human conditions and animal rights.
D) human rights, labor, and the environment.
E) content domains, animal rights, and labor.
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.
In many parts of the world, McDonald's utilizes TV advertising that shows parents
interacting with their happy children. Such advertising utilizes:
A) rational appeals.
B) emotional appeals.
C) SRC appeals.
D) melodramatic appeals.
E) localized appeal.
________ builds upon the elimination of internal tariff barriers, the establishment of
common external barriers, and the free flow of factors.
A) European Union
B) Economic union
C) Customs union
D) Free trade area
E) Common market
Intel achieved success by using the "Intel Inside" advertising campaign and logo that
appears on many brands of PCs. This is an example of a barrier to entry classified as:
A) new capacity.
B) product differentiation.
C) competitor response.
D) new approaches to customer needs.
E) distribution channels.
Boeing has reorganized its commercial transport design and manufacturing engineers
from functional lines into a matrix organization. This new design is expected to have all
of the following benefits except:
A) lower costs and quick updates.
B) facilitate problem solving.
C) unite engineering and manufacturing processes.
D) provide customer contacts.
E) enhance product consistency.
Walmart's exit from the German market was due, in part, to the fact that German
shoppers could find lower prices at stores known as:
A) All-in-one stores.
B) Dollar stores.
C) Discount sores.
D) Hard discounters.
E) Fresh & Easy stores.
Bluetooth mobile communication technology has all of the following advantages over
Wi-Fi except one:
A) Bluetooth is well suited for use with cell phones.
B) Bluetooth works over shorter distances than Wi-Fi.
C) Bluetooth consumes less power than Wi-Fi.
D) Bluetooth can handle data as well as voice.
E) Bluetooth technology has been incorporated into automobiles.
A marketer of fine French cognac offers fancy cigar ashtrays as prizes to consumers
who correctly solve a crossword puzzle. Which of the following most accurately
describes this offer?
A) price promotion
B) non-price promotion
C) trade sales promotion
D) sweepstakes promotion
E) sampling
Environmental issues and challenges faced by a company which is in the initial stages
of implementing a personal selling strategy include all of the following except:
A) political risks.
B) regulatory hurdles.
C) product innovation.
D) currency fluctuations.
E) market unknowns.
In India, consumers do not like to be locked in to long-term contracts, and Apple
distributes its iPhone exclusively through stores operated by Airtel, an Indian carrier,
and Vodaphone. This pricing is an example of:
A) gray market.
B) price bundling.
C) market skimming.
D) razors and blades.
E) cost-based.
Two automakers that have joined the race to bring low-cost cars to the emerging Indian
market are:
A) Mercedes and Lexus.
B) Toyota and Ford.
C) Tata and Nissan.
D) Tata and Toyota.
E) Nissan and Toyota.
Channel decisions are important because:
A) commitments are flexible.
B) relationships change with time.
C) it is expensive to terminate.
D) issues can be solved by arbitration.
E) local laws do not protect agreements.
In developing countries, globalization's opponents accuse companies of:
A) undermining local cultures.
B) placing intellectual property rights ahead of human rights.
C) promoting unhealthy diets and unsafe food technologies.
D) pursuing unsustainable consumption.
E) all of the above
The German civil-law tradition prevails in all of the following countries except:
A) Poland.
B) Hungary.
C) Czech Republic.
D) Scandinavia.
E) Germany.
BMW advertises its cars as the "ultimate driving machine" which is described as
positioning based on:
A) high touch.
B) use/user.
C) attribute/benefit.
D) competition.
E) quality/price.
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
The so-called "China Triangle" includes:
A) Hong Kong, Republic of China, and Singapore
B) Republic of China, Taiwan, and Hong Kong
C) Republic of China, Taiwan, and South Korea
D) Taiwan, Hong Kong, and Republic of China
E) Singapore, China, and Republic of China
A recent global campaign for IKEA, the Swedish home furnishings retailer, positioned
houses as homes as a place for love, memories, and laughter. This is a classic example
of:
A) emotional appeal.
B) rational appeal.
C) selling proposition.
D) advertising appeal.
E) creative appeal.
Statements that illustrate the success of global marketing include all of the following
except:
A) the Coca-Cola Company supports its Coke brand by utilizing global and local
marketing mix.
B) Apple is synonymous with cutting-edge innovation and high-tech design.
C) Italy's Benetton utilizes marketing as a knee-jerk reaction to world marketing needs.
D) the backbone of Caterpillar's global success is its network of dealers.
E) Germany's reputation for engineering and manufacturing provides a competitive
advantage.
Which set of documents generally represents the minimum documentation required to
clear a shipment through customs?
A) packing list, commercial invoice
B) bill of exchange, commercial invoice
C) certificate of origin, bill of exchange
D) packing list, insurance certificate
E) letter of credit, commercial invoice
After establishing that the organizational matrix is appropriate for a business, what
should management expect as to the integration of basic competencies on a worldwide
basis?
List and describe the forces affecting local integration and global marketing.
Compared with other forms of marketing communication, sampling is more likely to
result in actual trials of the product. Explain this by giving examples of possible types
of sampling.
Why do some critics refer to GATT as the "General Agreement to Talk and Talk" and
how does its successor, WTO, provide a better forum for trade agreements?
Japanese keiretsu is considered to be a strong cooperative strategy that will have an
impact in global marketing. Describe what it is and how it can affect U.S. businesses.
What are some of the pitfalls in assessing market potential and choosing target markets
or segments?
What are some of the challenges faced by marketers in relation to the newly formed
smaller countries? Explain giving examples.
