There are many unsolved issues in the Internet. For example, e-commerce is global
but the national laws are mostly transnational.
Any research effort starts off with a precise definition of who the marketer wants to
research.
If a company simply drops the old brand name and immediately replaces it with the
global name, it is called summary axing.
Special Drawing Rights (SDRs) are special account entries on the World Bank books.
The adoption of the euro in the European Union took place in 1990.
Demand for premium quality services expands with increases in consumers’ age.
MNCs cannot use products developed in emerging markets because the quality
standards are too low to be transferred to MNC home markets.
Repatriation is the return of the expatriate employee from overseas.
In the area of international pricing, sellers and buyers usually prefer a quote in their
domestic currency.
A standardized product is not the easiest to sell abroad.
In gray markets, products marketed in low-priced countries are shipped and resold
by unauthorized channels in high-priced markets.
Both capitalistic and socialistic countries in which government planning and
ownership play a major role are also referred to as planned economies.
The bulk of the revenues from some MNCs come from emerging markets.
Today researchers have found that sophisticated analytical tools will compensate for
inaccuracies in problem definition.
Expatriates do not face a long list of difficulties upon returning home.
The U.S. government defines the multinational corporation for statistical purposes as
a company that owns or controls 60 percent or more of the voting securities, or the
equivalent of at least one foreign business enterprise.
The most important factors in determining an optimal mode of transportation for
foreign markets are the value-to-volume ratio, perishability of the product, and:
a. the cost of transportation.
b. intermodal ratio.
c. total cost ratio to inventory and warehousing expense.
d. the cost of insurance.
e. the distance to speed relationship.
Companies from the emerging markets are proving to be surprising challengers to older,
larger MNCs. Which of the following would you recommend as an MNC strategic
response?
a. Invest in growing mass markets of developing countries.
b. Partner with companies from the emerging markets.
c. Buy out smaller rival firms in the emerging markets.
d. Consider developing countries as more than just manufacturing sites.
e. All of the above
In order to ensure a globally consistent sales strategy, a company will likely:
a. conduct sales training on a country-by-country basis.
b. train the sales managers in the headquarters country and send them abroad.
c. bring all employees to the headquarters country for training, then send them
to their home markets.
d. hire professional sales trainers to travel abroad to train employees.
e. none of the above
The salesforce management process starts with setting:
a. objectives and strategy.
b. objectives and manufacturing.
c. objectives and marketing.
d. objectives and operations.
e. objectives and raw material.
When conducting research, several biases may be present. The ___________ bias
is present when the respondent feels a desire to be polite toward the other person.
a. yea-or nay-saying
b. social desirability
c. gender
d. tradition
e. courtesy
Trade controls can be broken into two categories—economic trade controls and:
a. covert trade controls.
b. political trade controls.
c. geophysical trade controls.
d. maritime trade controls.
e. most favored nation trade controls.
The practice of using marketing communications to make products or services seem
more sustainable than they truly are is known as _________
a. Whitewashing
b. Greenwashing
c. Puffery
d. Viral marketing
e. Deceptive marketing
Infomercial marketers now have access to over one-half of Japanese consumers.
Which of the following trends would be most representative or closely associated
with the above fact?
a. growing commercialization and deregulation of mass media.
b. shift from radio and print to TV advertising.
c. rise of global and regional media.
d. growing spread of interactive marketing.
e. improved monitoring.
With respect to balance of payments calculation, when a German tourist visits the
United States and spends money on meals and lodging, it is a(n) ___________ to the
U.S. trade in services balance.
a. debit
b. credit
c. convertible
d. exchange interest factor
e. non-entity
Duty deferral and elimination, lower tariff rates, exchange rate hedging, and a
‘Made in U.S.A.’ designation are all benefits of using a __________________.
a. Maquiladora operation
b. border zone
c. red zone district
d. Foreign Trade Zone
e. Channel Zone
MNCs are being threatened by new champions from the emerging markets. Which of
the following strategies is NOT recommended for them?
a. Continue to use low cost sourcing in emerging markets.
b. Sell only goods developed by home country R&D in emerging markets.
c. Ignore emerging market branding strategies as being too elementary.
d. Do not invest in the mass markets of emerging economies as they will never amount
to much revenue.
e. All of the above are not suggested.
The partnership established by Coca-Cola and Nestle to market ready-to-drink coffees
and teas under the Nescafe and Nestea brand names is an example of which of the
following:
a. strategic alliance.
b. contract manufacturing.
c. licensing.
d. wholly owned subsidiary.
e. exporting.
To encourage improved standards of living among workers, governments
should encourage investment in ______________________ industries.
a. high value added per worker
b. capital intensive
c. labor intensive
d. skill-intensive
e. strength-intensive
___________________ are always eager to experiment with new ideas and products.
a. Early adopters.
b. Early majority.
c. Late majority.
d. Laggards.
e. Prior adopters.
_________________________ provides the U.S. President a free hand and the power
to negotiate trade deals with other governments.
a. Fast-track reciprocal authority
b. Fast-track senate authority
c. Fast-track business authority
d. Fast-track trade authority
e. Slow-track trade authority
The ____________________ was designed to prohibit the payment of any money
or anything of value to foreign officials, foreign political parties, or any candidate for
foreign political office for purposes of obtaining, retaining, or directing business.
a. Sherman Act
b. Clayton Act
c. Federal Trade Commission Act
d. Foreign Corrupt Practices Act
e. Export Trading Company Act
Lead markets represent countries where innovations in particular industries are
prone to take place. All of the following are examples of lead countries EXCEPT:
a. the United States in computer software.
b. Japan in consumer electronics.
c. Germany for industrial control equipment.
d. France for fashion clothing and perfume.
e. Hong Kong for computer hardware.
Describe gray markets. Explain how they develop. Describe your feelings about buying
from a gray market.
______________ forces depend on the nature of customer behavior and the
structure of channels of distribution.
In global logistics and distribution, 3PL stands for:
Discuss the function, purpose, limitations, and benefits of omnibus surveys.
The global logistics manager must understand the specific properties of the different
modes of transportation in order to use them optimally. What are the most important
factors in determining an optimal mode of transportation? List and briefly describe each
of the factors.
_________________ is often described as the most important element that sets
human beings apart from animals.
Another creation of the Bretton Woods Agreement was the International Bank for
Reconstruction and Development, known as:
When sales transactions occur between related entities of the same company,
________________ pricing often occurs.