All of the following companies have used intense personal efforts in advertising,
publicity, and public relations EXCEPT:
A.Compaq Computers.
B.Apple.
C.Virgin Airlines.
D.Microsoft.
Different parts of a global firm’s “value chain” are located in different parts of the world
under which of the following organizational approaches?
A.The matrix organization
B.Export departments
C.Geographical/regional organizations
D.Transnational organizations
Which of the following is the MOST common form of international organization
employed by Japanese firms?
A.Export departments
B.The regional organization
C.The global product division
D.Strategic business units
Emerging markets are characterized by:
A.relatively unsophisticated consumers with weak purchasing power.
B.high levels of product penetration.
C.rapidly developing marketing infrastructure.
D.the best scientific marketing research in the world.
Temple-Inland Corporation often uses OEM arrangements with local retailers to enter
mature markets and, as sales expand, establishes its own distribution system to sell
under its own name. In such markets, the firm is using a(n):
A.transfer distribution system.
B.autonomic distribution system.
C.diversified distribution system.
D.dual distribution system.
In which of the following nations are an unusually large number of people employed in
retailing relative to the population?
A.The United States
B.Japan
C.Germany
D.Great Britain
The America-First Corporation routinely instructs its bank to release the bill of lading
for goods sold to a foreign buyer as soon as it receives payment for the goods. The
buyer will assume title, and the risks of ownership, for the goods:
A.as soon as America-First is paid.
B.as soon as America-First releases the bill of lading.
C.as soon as the bill of lading reaches the buyer’s bank.
D.when the buyer receives the bill of lading.
The first step in globalizing the marketing for a given product or service involves:
A.evaluating local situations in various countries.
B.competing head-to-head.
C.the degree to which industry factors are conducive to globalization.
D.retreating from that market segment.
The typical market-based approach to strategy is most appropriate to which of the
following phases of globalization?
A.The foreign entry phase
B.The global management phase
C.The local marketing phase
D.Both the local marketing and global management phase
The HP Corporation provides “free” consulting to determine a client’s computing needs,
designs a system tailored to those requirements, creates and installs the system,
provides training, and services the system. What is the firm doing?
A.Selling a “hybrid” product.
B.Designing a dumping technique.
C.Engaging in turnkey sales.
D.Attempting to justify price escalation.
In which of the following situations is a firm most likely to establish its own sales force
in a foreign market?
A.When the company starts exporting to a foreign market.
B.Only if telemarketing fails.
C.When the company takes over distribution in the country.
D.When the company has little faith in the foreign market.
Unit costs go down as successively more units of a product are produced according to
the:
A.production effect.
B.experience curve effect.
C.penetration effect.
D.specialization effect.
The America-First Corporation has decided to engage in direct exporting in a way that
will allow the firm the greatest amount of control over its foreign operations. The firm
is MOST likely to employ:
A.foreign agents paid on a commission basis.
B.local distributors who purchase directly from the firm.
C.a keiretsu.
D.sales subsidiaries in its foreign markets.
Producers of bulky, low-unit-value products to be sold abroad are MOST likely to ship
via which one of the following for most of the trip?
A.Air express
B.Tractor-trailer express
C.Rail express
D.Ocean-going vessels
All of the following are current problems in the newly democratized countries of the
former U.S.S.R EXCEPT:
A.unstable currency.
B.overregulation of business.
C.high taxes.
D.rampant corruption.
The typical strategic goal of the local marketer is generic market development in:
A.saturated markets.
B.emerging markets.
C.new growth markets.
D.mature markets.
The telephone system and the convenience of credit cards combined to create which of
the following?
A.Telemarketing
B.Direct response television
C.Interactive television
D.Mail order
Population, age-groups, and number of households form part of:
A.country identification.
B.preliminary screening.
C.in-depth screening.
D.final selection.
The practice of selling products for less than their cost is called:
A.penetration.
B.dumping.
C.skimming.
D.niching.
Which of the following is an advantage of the waterfall strategy?
A.The expansion can take place in an orderly manner.
B.It is an effective strategy in fast-moving markets.
C.It preempts competitive countermoves by sheer speed.
D.It requires high amount of managerial, financial, and other resources.
For the Chinese version of the Harry Potter books the publisher had to make all of the
following alterations EXCEPT:
A.the language.
B.the references to magic and witchcraft.
C.the color of the paper.
D.the size of the book.
Liz Claiborne Corporation is preparing to launch a line of “totally coordinated” fashion
clothing in Southeast Asia. The firm’s strategy is based upon which of the following
characteristics of this market?
A.A desire for individualism
B.Hedonism
C.A desire for harmony
D.A desire for mysticism
Outsourcing is also known as:
A.foreign production.
B.labor cutting.
C.foreign advantage.
D.off-shoring.
Asian countries can serve as _____ for such emerging markets as China and Russia.
China would be best described as a(n):
A.mature market.
B.emerging market.
C.developed country.
D.newly industrialized economy.
Which of the following is MOST likely to be used by governments seeking to protect
the value of their currencies against the threat of inflation?
A.Price controls
B.Transfer pricing
C.Forward contacts
D.Hedging
Most global marketers attempting to “fine tune” their global logistics systems tend to
prefer:
A.centralized solutions.
B.computerized solutions.
C.decentralized solutions.
D.global solutions.
The tremendous variety of retail approaches across countries is primarily a reflection of
diverse:
A.government policies.
B.lifestyles.
C.ownership patterns.
D.exchange rates.
In attempting to enter most of its foreign markets, the Pepsi-Co Corporation routinely
uses free samples, coupons, and point-of-purchase displays to break the habitual choice
of loyal customers. The firm is entering:
A.mature markets.
B.price insensitive markets.
C.declining markets.
D.inelastic markets.
Products with high growth rate and a high market share are termed as _____ by BCG’s
growth share matrix.
A.Cash Cows
B.Plings
C.Stars
D.Question Marks
The Southland Corporation, after some experience in developing countries, has decided
to enter Russia. What factors will distinguish this newly democratized country from
other developing countries? How will these factors affect the firm’s marketing efforts?
What factors will Russia share with other developing countries?
The sale or purchase of a specified amount of foreign currency at a fixed exchange rate
for delivery or settlement on an agreed date in the future, or, under an options contract,
between agreed upon future dates is the basis for a:
A.swapping contract.
B.price control contract.
C.transfer contract.
D.forward contract.
Which of the following pricing approaches involves totaling production and shipping
costs and adding an additional amount for the firm’s markup in order to allow a
reasonable rate of return?
A.Skimming pricing
B.Penetration pricing
C.Cost-plus pricing
D.Systems pricing
_____ is a process by which we form judgments about others, and involves judging
others’ behavior against our own past experiences and our own conception of self.
How different is local marketing for the global manager situated outside his home
country? How does experience in the domestic setting blind the manager to nuances of
the new culture?
The French Corporation believes that pricing is often the key to successful foreign
operations. Which pricing approach would offer the strongest competitive position?
What other major alternative exists?
Vogue Corporation sells to several large multinational buyers and retail chains. Given
the growing importance of such customers, the firm is constantly seeking ways to serve
them better. What can Vogue do to provide more recognition for its best customers?
What are the advantages and disadvantages of this approach?
Markets characterized by the latest product/service technology, strong competition, and
sophisticated/demanding customers are called ____________________ markets.
EMI Corporation is preparing to launch its newest product into several mature foreign
markets. The firm is planning to price its product lower than that charged in either other
foreign markets or at home. How can EMI “justify” this strategy?
Briefly describe the major concerns addressed in the preliminary screening phase and
identify the types of data that are useful in this process. Why is it about Japan that might
cause it to be dismissed from further consideration during this stage of analysis?
Successful standardization of a service is MOST likely to occur after it reaches the
_____ stage of its PLC, and if the necessary _____ exists for its delivery in chosen
foreign markets.
_____ is a learned behavior that serves as the underlying framework that guides an
individual’s perceptions of observed events and personal interactions and the selection
of appropriate responses in social situations.
What is the difference between counterfeits and gray trade?
Samuel Adams Corporation has decided to enter the up-scale, urban areas of Latin
America with its gourmet beers. What should be considered in Latin America in order
for Samuel Adams, Inc. to enter the market and do well?
The America-First Corporation desires more control of its foreign markets than it can
obtain through exporting or joint ventures, but is not prepared to risk the capital
required for foreign-based manufacturing facilities. The firm may gain some control of
distribution and marketing of its products in foreign markets at a reasonable cost by
establishing _________________________.
A marketer attempting to recoup foreign investments quickly, while supporting a
high-status image is MOST likely to prefer a _____ price. If margins and image are
deemed to be less important than affordability and quick access to the mass market, a
_____ price is likely to be used.
A major difficulty in transferring marketing skills abroad is that these factors often
represent _____, skills that reside in people and are not _____ in the product itself.
General Electric Corporation has decided that the time is right to enter the Japanese
market. The firm believes that Japan offers potential for its “value-line” of electronic
appliances, computers, and home entertainment products. Briefly describe the basic
market segments the firm is likely to encounter. Which segment would be MOST
attractive to GE for its initial entry and future growth in Japan?
Where patriotic feelings run strong, _____ are usually favored.
Unlike the majority of sales promotion activities, _____ are directed at channel
intermediaries.
The “four dragons”, the original Asian NIEs, consist of _____, _____, _____, and
_____.
According to Porter’s _____, a nation’s competitive advantage may be based on factor
conditions, demand conditions, related and supporting industries, and/or firm strategy,
structure, and rivalry.
In several of its foreign markets, Timex Corporation is faced with a gray market.
Briefly describe the firm’s problem and outline the conditions that cause it. What
pricing options are available to deal with the gray market problem?