1) At companies with a global orientation, the best person for top executive positions is
generally considered to be a person born in the headquarters country.
2) In 2010, annual sales of camera-equipped cell phones passed the 1 billion unit mark.
3) When MCI Communications first entered Latin America, it utilized expatriate
Americans despite the high cost of doing so.
4) The Swatch Group is the world’s second largest watchmaker. This shows that in the
low-cost segment, brands compete on price and value.
5) Today, market capitalism is widely practiced around the world, most notably in North
America and the European Union.
6) The phonetic pronunciation of the numerical sequence 8282 means “hurry up” in
Korean.
7) The Customs Trade Partnership Against Terrorism (C-TPAT) recognizes that U.S.
Customs and Border Protection (CBP) is responsible for screening import cargo
transactions.
8) The “layers of advantage” approach to global competitive innovation is based on
using know-how developed by other companies.
9) The concentration of income in the high-income and large-population countries
means that a company can be “global” by targeting buyers in 10 or fewer countries.
10) Apple’s failure to license its technology in the pre-Windows era arguably cost the
company tens of billions of dollars.
11) A European company that focuses its attention on Europe can be considered to have
regiocentric orientation.
12) Intel’s focus on designing complex, expensive microprocessors for PCs enabled
competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic
intent model of competitive advantage, this is an example of “loose bricks.”
13) The digital revolution rendered Sony’s core competencies in analog audio
technology obsolete.
14) Sometimes it is preferable to market to a particular age group rather than a
mind-set; in such an instance psychographic studies can help marketers arrive at a
deeper understanding of consumer behavior than is possible with traditional
segmentation variables.
15) Nationalization, expropriation, and confiscation are approved by international law
as a legitimate exercise of government power as long as the act satisfies a “public
purpose.”
16) Duty drawback refers to refunds of duties paid on imports that are processed or
incorporated into other goods and then reexported.
17) Aesthetic elements that are attractive, appealing, and in good taste are perceived as
decent and accepted universally.
18) The skimming pricing strategy is appropriate in the mature phase of the product life
cycle.
19) Ethnocentric companies are likely to use an expatriate sales force in countries at all
levels of economic development.
20) By definition, secondary data is data gathered from country markets that rank as
‘secondary” in terms of income and population figures.
21) A proposed merger between two Swiss-based global pharmaceutical companies,
Ciba-Geigy AG and Sandoz AG, would be subject to review by regulators from which
of the following?
A) European Commission
B) UN Conference on International Trade Law
C) International Chamber of Commerce
D) International Court of Justice
E) none of the above
22) In India, only about 10% of men who shave use Gillette razors. Worldwide, 50% of
male shavers use Gillette products. To achieve greater penetration in India, Gillette
rolled out a no-frills brand that costs 15 rupeesabout 34 cents. The Gillette Guard has a
lighter handle that is cheaper to produce. It also lacks the lubrication strip found in
Gillette’s more expensive razors, and replacement blades cost only 5 rupees (11 cents).
This use of data and process are described as:
A) demand pattern analysis
B) income elastic analysis
C) factor analysis
D) market estimation by analogy
E) multidimensional scaling
23) According to the innovator’s dilemma:
A) the computing power of a microprocessor doubles every 18 months
B) markets that don’t exist can’t be analyzed
C) well-managed companies that listen and respond to needs of established customers
may miss opportunities to innovate
D) regulation of e-commerce activities will increase at a rate that is directly
proportional to the growth of e-commerce revenues
E) innovations are copied soon after they are discovered
24) Which of the following is not a common-law country?
A) India
B) Pakistan
C) Malaysia
D) Korea
E) Singapore
25) The introduction of the euro by EU resulted in multifaceted advantages which
include:
A) elimination of costs associated with currency conversion
B) fixed exchange rate worldwide
C) elimination of paper currency and coins
D) withdrawal of French Francs from circulation
E) a choice for using local or European currency
26) In the United States, some people believe that globalization has depressed the
wages of American workers and resulted in the loss of both blue-collar and white-collar
jobs. This is an example of:
A) discrimination
B) domination
C) globaphobia
D) management myopia
E) economic crisis
27) In the study entitled “The Euroconsumer: Marketing Myth or Cultural Certainty?”
the researchers identified four lifestyle groups. The group that represent mainstream
European consumers was labeled as:
A) Successful Idealists
B) Affluent Materialists
C) Young Professionals
D) Trendy Teens
E) Disaffected Survivors
28) Porsche relies on currency hedging rather than price increases in order to:
A) boost pretax profits on sales of its automobiles
B) balance the relative value of the dollar compared to the euro
C) protect all earnings from foreign-exchange movements
D) generate about 45% of its sales in the United States
E) A, B & C
29) Which of the following is 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) Treat local distributors as long-term partners
D) Maintain control over marketing strategy from day one
E) All of the above are appropriate guidelines
30) McDonald’s serves McAloo Tikki Burger in India, McRice Burger in Malaysia,
McOZ Burger in Australia, Kiwi Burger in New Zealand, and McHuevo Burger in
Uruguay and McSamurai Burger in Thailand. These menu variations are examples of:
A) a combination of global and local marketing mix elements
B) a reflection of failure of US menu items in those countries
C) a deviation from successful marketing practices
D) a replacement of standard menu names with fancy names
E) a selection of menu items that can be sold eventually in U.S. markets
31) Suppose you have a friend from India who is a lifelong vegetarian and who does
not like McDonald’s because the company sells hamburgers in many countries. Which
of the following describes your friend?
A) “vegetarianism” represents a value, “dislike McDonald’s” represents an attitude
B) “vegetarianism” represents an attitude, “dislike McDonald’s” represents a value
C) “vegetarianism” and “dislike McDonald’s” both represent an attitude
D) “vegetarianism” represents a value, “dislike McDonald’s” represents a belief
E) “vegetarianism” and “dislike McDonald’s” both represent values
32) According to Porter, the nature of the interaction between potential industry
entrants, buyers, substitute products, suppliers, and rival firms determines:
A) whether or not the government will launch an antitrust investigation
B) the industry’s profit potential in terms of long-run return on invested capital
C) whether a country can generate a balance of payments surplus
D) whether a country can create a comparative advantage in the production of
differentiated products
E) whether a country can generate income by innovation
33) Which of the following is sometimes referred to as a buyer for export or an export
commission house and operates on behalf of a buyer from a foreign country?
A) foreign purchasing agent
B) export broker
C) export merchant
D) export management company
E) freight forwarder
34) Which of the following is not the way U.S. auto mass producers operate?
A) greater labor content
B) less mechanization
C) less flexible mechanization
D) divide employees in discrete specialties
E) lack of employee teamwork
35) Hindus do not eat beef, which means that McDonald’s does not serve hamburgers in
India.
36) McDonald’s success in franchising in global markets can be attributed to several
factors which do not include:
A) a well known global brand name
B) a business system that can be easily replicated
C) local market knowledge
D) cross licensing
E) granting franchisees leeway to tailor menu offerings to suit local tastes
37) Which of the following is an IT tool designed specifically to help retailers work
more closely with vendors on stock replenishment?
A) BOLD
B) ECR
C) data warehouse
D) projection
E) EDI
38) Although it is certainly possible for European consumers to browse Amazon.coms
U.S. site, they prefer a direct link to a site with a local domain name. All of the
following are possible reasons for such behavior except:
A) the Web site of choice will be one that quotes prices in euros
B) the Web site of choice will be that which offers a product selection tailored to local
tastes
C) the preference will be for the Web site which ships from local distribution points
D) due to price fluctuations the preference will be for the Web site that quotes prices in
U.S. dollars
E) the preference will be for sites that are in their own language
39) eBay was a pioneer in a form of online marketing known as:
A) b-to-c
B) b-to-b
C) p-to-p
D) d-to-d
E) c-to-b
40) At the end of 2011, a shake-up was announced in the Fresh & Easy management
ranks with the intent of reorganizing the commercial and marketing units into a single
team. This announcement was made by:
A) Marks & Spencer
B) Tesco
C) Laura Ashley
D) Calvin Klein
E) J.C. Penney
41) Agricultural subsidies and quotas that developed outside the multilateral framework
under GATT remained a divisive issue because:
A) affluent countries protect and subsidize farm production
B) home-market consumers pay lower prices
C) surplus agricultural output is sold abroad at high prices
D) agricultural land became scarce in some countries
E) American farmers did not participate in export
42) Fred Hassan, a native of Pakistan, is chief executive of:
A) Nissan Motor (Japan)
B) Pearson PLC (Great Britain)
C) Ford Motor Company (USA)
D) Schering-Plough (USA)
E) Atlas Copco AB (Sweden)
43) Which of the following digital revolution pioneers created a “network of networks”
that is now known as the Internet?
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
44) 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
45) Targeting the 300 million farmers in India who still use plows harnessed to oxen,
John Deere engineers created a line of relatively inexpensive, no-frills tractors. The
Deere team then realized that the same equipment could be marketed to hobby farmers
and acreage owners in the United States, a segment that they had previously
overlooked. This is an example of ________ strategy.
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product invention
46) Which approach to retail expansion is most appropriate when targeting a country
that management considers both culturally close and easy to enter?
A) organic growth
B) chain acquisition
C) franchise
D) joint venture
E) own-label focus
47) The basis for global marketing expert David Arnold’s framework for screening
intercountry comparisons include:
A) demographic data
B) “top-down” segmentation analysis
C) “bottom-up” segmentation analysis
D) income level
E) population data
48) Which of the following can be defined as a business philosophy that values
two-way communication between a company and individual customers?
A) ECR
B) CRM
C) EDI
D) EPOS
E) BOLD
49) The organization design in which an employee reports to both a country manager
and a functional manager is a(n):
A) matrix structure
B) international division structure
C) geographic structure
D) worldwide product division structure
E) regional management center
50) In a joint venture with Russian manufacturer AvtoVAZ, GM executives were
planning to have a stripped-down reengineered car based on its Opel model. However,
the market research revealed that a “Made-in-Russia” car would only be acceptable if:
A) it has a German name
B) it sported a very low sticker price
C) it has an American name
D) it has a very high sticker price
E) it has a Russian name
51) With the increase in oil prices, many of the Middle Eastern countries will find a
hefty windfall income. Also, with greater involvement of world powers in the Middle
Eastern region, there are certain unprecedented opportunities. What are some of the
marketing issues that should be taken into consideration?
52) Describe how the global marketing strategy is different when compared to that of
single country marketing.
53) Recently “Call Centers” have mushroomed in countries like India, China, and
Philippines due to the outsourcing by many Western countries. What are the benefits
and disadvantages to this method of sourcing? What factors should be taken into
account when deciding to outsource?
54) What are some of the entities that an exporter should be familiar with? Describe and
explain the role played by each of these entities, separating those that have
responsibilities from exporters from those that have no responsibilities from the
exporters.
55) Because of its size and presence in more than 200 countries, the Coca-Cola
Company is often the target of antiglobalization protests. Giving examples, show how
negative publicity affects global marketers?
56) The ultimate threat a foreign government can pose toward a company is seizing
assets. South Korea nationalized Kia, the nation’s number three automaker, in the wake
of the Asian currency crisis. How does this nationalization differ from expropriation
and confiscation?
57) Walt Disney Company has successfully adapted licensing as a market entry mode in
different countries. What are the advantages of using licensing as entry mode?
58) What is psychographic segmentation, and how do marketers use it in targeting
different world markets?