Which of the following assumes greater importance after a firm has committed
resources to operations in a foreign market?
A.Tariff barriers
B.Exit barriers
C.Local content regulations
D.Embargoes
In keeping with its global “politically correct” policy, the ads that reached rural Latin
American markets by the Benetton Corporation featured women and minorities in
positions of power and influence. The poor performance of these ads is a result of the
firm’s failure to understand:
A.local media.
B.the tradition of procrastination.
C.the power of religion to define morality.
D.the machismo culture.
ITT Corporation uses a structure that serves to reinforce ties at the top levels of the
organization. These structures create “umbrellas” for operational coordination and
integration. ITT, among other companies, is using what form of organization structure?
A.Coordinating staff
B.Coordinating committees
C.Matrix meetings
D.Boards of directors
The America-First Corporation has entered some foreign markets by selling unbranded
products and component parts to local companies who resell the goods under their own
brand name. In these markets, the firm is engaged in:
A.franchising.
B.original equipment manufacturing.
C.foreign direct investment
D.establishing wholly owned subsidiaries.
The _____ generally follows the pattern of the product life cycle, even though the
decline stage may not be included.
A.brand cycle
B.brand hierarchy
C.brand equity
D.brand position
Until 1994, the administration of the export controls of most Western countries was
done by:
A.Comecon.
B.COCOM.
C.ECCOM.
D.ADCOM.
The Merger Corporation has just formed a consortium with European firms to exploit
EU opportunities. The firm is following a(n):
A.niche strategy.
B.market retreat strategy.
C.enclave strategy.
D.pan-European strategy.
The global applicability of a service depends on the _____ through which the service is
offered in foreign markets.
A.market size
B.purchasing power
C.financial resources
D.infrastructure
The New Growth Markets include all of the following EXCEPT which one?
A.Southeast Asia
B.Latin America
C.Central Africa
D.South Africa
According to some researchers, which country is mapped the highest on the “think”
axis?
A.Australia
B.Germany
C.U.S.
D.Belgium
What does a focus strategy do for a company?
A.Spillover effects are contained.
B.Product lines are quite different.
C.Diverse advertising copy is needed.
D.The market position can be fortified.
Which of the following Latin American markets as on 2002 had the highest GDP?
A.Argentina
B.Chile
C.Brazil
D.Mexico
Which of the following statements does NOT describe the functions typically served by
brands for the customer in any market?
A.As a guide to evaluating the product or service.
B.As an icon in its own right, with emotional impact that affirms affinity and
self-perception.
C.As a social statement, offering recognition among peers.
D.As a political statement, confirming the consumer’s political affiliations.
Which of the following sources of customer satisfaction tend to be taken for granted,
more or less, in mature markets?
A.Functional performance
B.After-sales service
C.Warranties
D.Personal attention
The John Deere Corporation occasionally offers cooperative advertising deals to
motivate its foreign dealers. The firm is employing:
A.publicity.
B.point-of-purchase promotions.
C.public relations.
D.trade promotions.
Levi Strauss, the jeans maker, weaves into its fabric a microscopic fiber pattern visible
only under a special light. This is an attempt to stop:
A.variance.
B.knockoffs.
C.gray trade.
D.customization.
Which of the following is a characteristic of born global firms?
A.They rely on advanced communications technologies to reach their customers.
B.They have vast organizational and managerial resources.
C.They are typically found in consumer markets.
D.They rely on FDI for most of their expansion abroad.
Hard-hitting advertising campaigns designed to convince consumers of the superiority
of the unique selling propositions of particular brands are MOST likely to be used in:
A.declining markets.
B.new growth markets.
C.emerging markets.
D.mature markets.
The “vicious circle” that prohibits economically weak nations from creating/joining
trade blocs that may improve their lot is best illustrated by the plight of:
A.several African nations.
B.Canada.
C.several South American countries.
D.several Latin American countries.
What creates an obstacle to a focused distribution effort and affects service levels
negatively in China?
A.There are many trade laws governing distribution channels.
B.The distribution channels are highly fragmented.
C.The distribution system is complex and costly, and the consumer is very demanding.
D.Many of the distribution channels are controlled by the government.
Annual growth rates for the _____ typically ranged between 5 and 10 percent,
significantly above the 2 to 4 percent growth rates of the mature economies
A.East European region
B.Southeast Asian region
C.East African region
D.South American region
A U.S. Corporation is seeking an Asian headquarters that combines market access with
a modern infrastructure and reasonably familiar culture. The firm is likely to join many
of its global rivals in:
A.Hong Kong.
B.Australia.
C.China.
D.Eastern Russia.
Brown and Root Corporation prices its global products by employing a global standard
plus a markup that is variable across its country markets. The firm is using:
A.geocentric pricing.
B.ethnocentric pricing.
C.polycentric pricing.
D.pricing stabilization.
One of the major goals of a knowledge-based organization would be to develop:
A.product advantages.
B.firm-specific advantages.
C.trade barriers.
D.transferred advantages.
What is the first step of brand equity valuation?
A.Calculate the appropriate discount rate as a function of the brand viability score.
B.Estimate the future potential of the brand by deriving a “viability score,” which
indicates the long-term competitiveness of the brand.
C.Estimate intangible earnings in each market as brand revenue less operating costs,
taxes, and cost of capital employed.
D.Identify the relevant markets or market segments where the brand is sold.
Brown and Root Corporation traditionally prefers foreign markets that have low current
levels of penetration in spite of the problems often posed by weak marketing
infrastructures, relatively unsophisticated consumers, weak purchasing power, and high
tariffs. The firm believes that the absence of strong domestic competitors is an
especially attractive feature of the:
A.mature markets.
B.saturated markets.
C.new growth markets.
D.emerging markets.
Jonathon Peters is one of BMX Corporation’s local marketing managers. Jonathon
reports to two superiors, the global product head for the product he markets and the
country manager for all products in that market. It looks as if BMX employs:
A.a transnational organization.
B.a matrix organization.
C.export departments.
D.geographical/regional units.
Levi Corporation routinely sells components, products, and supplies produced in
domestic plants to its foreign subsidiaries. The prices charged for the goods involved in
such transactions would be BEST described as:
A.transfer prices.
B.dumping prices.
C.skimming prices.
D.penetration prices.
The emergence of an integrated global strategy has LARGELY been a result of the
successful approach to global markets accomplished by managers from which country?
A.Germany
B.The United States
C.Japan
D.Taiwan
_____ means that the audience will take control away from the channel intermediary.
A.Redevelopment
B.Remediation
C.Disintegration
D.Disintermediation
According to the text, one of the advantages of familiar local brands is:
A.customization.
B.innovation.
C.benchmarking.
D.brand extension.
The ability of well-known brand names to get a premium price, relative to their lesser
known (or generic) competitors, is an example of:
A.a promotional monopoly
B.the impact of slotting fees.
C.a natural barrier.
D.distribution inequity.
Which of the following is one simple truth about buyer behavior in all markets?
A.Buyers are always brand conscious.
B.Buyers are always price sensitive.
C.Buyers are always influenced by their peers.
D.Buyers are always goal oriented.