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Ethnocentric pricing responds to the competitive and market conditions of national
market.
"Export price escalation" is the increase in the initial selling price of goods traded
across borders.
Aesthetic elements that are attractive, appealing, and in good taste are perceived as
decent and accepted universally.
Research discovered that even the most experienced exporters express lack of
confidence in their knowledge about shipping arrangements, payment procedures, and
regulations.
IKEA takes a polycentric approach to pricing: While it is company policy to have the
lowest price on comparable products in every market, managers in each country set
their own prices.
According to Steve Case, founder of AOL, the second wave of the Internet revolution
lasting from 2000 to 2014, shifted the focus from building the Internet to building on
top of it.
In surveys about color preferences, 50 percent of respondents indicate white is their
favorite"and it is favored by a wide margin over the next-preferred color, blue.
It will be convenient to do a telephone survey in rural areas in China since, according to
the Ministry of Information Industry reports, 40% of households have at least one
fixed-line telephone.
BMW's slogan "the ultimate driving machine," is an example of an attribute or benefit
which has proven successful in their positioning strategy.
As the ruble's value fell through most of 2014, European firms began to feel the effects.
Cybersquatting is the practice of registering a particular domain name for the express
purpose of reselling it to the company that should rightfully use it.
The six countries in the Gulf Cooperation Council (GCC) hold about 45% of the
world's known oil reserves, but production is only about 18% of world oil output.
Following the economic crisis in Asia, many companies in that region have turned to
direct mail in order to save costs.
Acknowledging that some consumers are intimidated by France's culinary heritage, the
Ministry sponsored a promotion to demonstrate that French cuisine can be relaxed and
laid back.
Although Asian consumers have a reputation for thriftiness, some are reluctant to use
coupons, because doing so might bring shame upon them or their families.
In reality, market capitalism and centrally planned socialism do not exist in "pure"
form.
Differentiated global marketing represents a more ambitious approach than
concentrated target marketing.
Tax incentives, subsidies, export assistance, and free trade zones are common support
provided by governments to firms that engage in exporting.
Overall, Italy's retail sector has pursued very little international expansion; by contrast,
other European supermarket chains such as Tesco (UK), Metro (Germany), and
Carrefour (France) took local products and brands with them as they expanded around
the globe.
Foreign purchasing agents are also referred to as jobbers.
Benetton uses the slogan "United Colors of Benetton" to position itself as a brand
concerned with the unity of humankind. This type of strategy is referred to as GCCP
(global consumer culture positioning).
Penetration prices often mean that the product may be sold at a loss for a certain period
of time.
Standardized print campaigns can be used for industrial products or for
technology-oriented consumer products such as the Apple iPhone and the iPad.
Hedging exchange rate exposure involves establishing an offsetting currency position
such that the loss of one currency position is offset by a corresponding gain in some
other currency.
Apple's wildly successful iPhone comes equipped with a full-blown version of the
company's iOS and Web browser.
The ultimate goal of a free trade agreement is to have standardized duties on goods that
cross borders between the partners.
U.S. companies that wish to achieve maximum growth potential must "go global,"
because 25 percent of world market potential is outside their home country.
The way a product's appeal or proposition is presented is called the 'selling
proposition."
When photographing a couple entering a restaurant or theater, women should be shown
preceding the man in Germany and France.
According to the 2015 Index of Economic Freedom compiled by the Heritage
Foundation, Hong Kong is ranked as having the highest degree of economic freedom.
Nippon Paper Industries was found guilty in a U.S. court of conspiring with other
Japanese companies to raise fax paper prices in the United States.
Des Moines, Iowa-based Meredith Corporation participates in international markets by
means of foreign licensing agreements that are administered by a copyrights and
contracts manager.
The "layers of advantage" approach to global competitive innovation is based on using
know-how developed by other companies.
According to U.S. laws, there is no restriction on remittances of royalties received
abroad based on the commercial negotiation between licensor and licensee.
Governments commonly use activities to support and encourage firms that engage in
exporting. Such activities include all of the following except:
A) tax incentives.
B) subsidies.
C) export assistance.
D) free trade zones.
E) voting rights.
Which of the following arranges export financing payment methods in descending order
starting with the most secure/reliable and ending with the least secure/reliable?
A) sales on open account→cash in advance→documentary credit (L/C)→documentary
collection (draft)
B) documentary credit (L/C)→sales on open account→documentary collection
(draft)→cash in advance
C) documentary collection (draft)→documentary credit (L/C)→cash in advance→sales
on open account
D) cash in advance→documentary credit (L/C)→documentary collection (draft)→sales
on open account
E) none of the above
The big emerging markets (BEMs), include
A) Indonesia, South Korea, & Brazil Mexico.
B) Argentina, South Africa, and Turkey.
C) China, India, and South Korea.
D) Brazil, South Africa, and Turkey.
E) Brazil, Russia, and China.
The allure of the Latin American market has been its:
A) lack of inflation.
B) considerable size.
C) rapid economic growth.
D) low foreign debt.
E) protectionism.
Under the geographical and product division structures, for the company with French
origins, France is:
A) the headquarter country market.
B) simply another geographic market.
C) a special unit of the European market.
D) a divisional market in Europe.
E) a product market in European Union.
As outlined by branding expert Kevin Keller, the benefits of strong brand equity include
all of the following except:
A) greater loyalty.
B) more vulnerability to marketing actions.
C) less vulnerability to marketing crises.
D) more inelastic consumer response to price increases.
E) more elastic consumer response to price decreases.
The international standard by which letters of credit (L/Cs) are interpreted is known as
the ________ 500.
A) UCP
B) NTR
C) FSC
D) NTB
E) HTS
What do Unilever and Procter & Gamble have in common?
A) Revenues at both companies have been hurt by regulations concerning tobacco
advertising and promotion.
B) Both companies utilize extension approaches to advertising.
C) Both companies rank high in terms of non-U.S. ad spending.
D) Both companies use a great deal of corporate advertising.
E) Both companies use the same advertising agency.
A competitive business environment is now characterized by all of the following
characteristics except:
A) unprecedented degrees of turbulence.
B) dynamism.
C) unpredictability.
D) inadaptability.
E) environmental responsiveness.
Which member of the Central American Integration System has both the largest
economy and the largest population?
A) El Salvador
B) Honduras
C) Guatemala
D) Nicaragua
E) Costa Rica
The challenges in bringing the Smart across the Atlantic include all of the following
except:
A) the euro's strength relative to dollar.
B) DaimlerChrysler merger ended.
C) Smart was under the ownership of DaimlerChrysler.
D) Smart was under the ownership of Daimler AG.
E) distribution and promotion critical to a successful U.S. launch.
________ is a form of paid television programming in which a particular product is
demonstrated, explained, and offered for sale to viewers who call a toll-free number
shown on the screen.
A) Teleshopping
B) Infomercials
C) Interactive television
D) Magalog
E) Groupon
When the seller has agreed to deliver the goods to the buyer at the place the buyer
names in the country of import, with all costs, including duties paid is referred to as:
A) DDP.
B) FCA.
C) FAS.
D) FOB.
E) CIF.
The key to successful matrix management is ensuring that managers are able to:
A) adopt a matrix design.
B) adhere to matrix structure.
C) maintain technical systems.
D) resolve conflicts and achieve integration.
E) preserve existing organizational culture.
Which of the following can negatively influence the rate of diffusion of an innovation?
A) substantial relative advantage
B) high compatibility
C) high complexity
D) divisibility
E) high level of communicability
Which of the following does not belong in a list of mass production in an automobile
company such as Ford?
A) changing value chains
B) use of the moving assembly line
C) organized production machinery
D) outsourcing from supplier specialists
E) making each worker productive
According to David Arnold, there are four possible approaches to forecasting by
analogy, which does not include which of the following?
A) Data is available on a comparable product in the same country.
B) Data is available on the same product in a comparable country.
C) Data is available on the same product from a dependent distributor in a neighboring
country.
D) Data is available about a comparable company in the same country.
E) Data is available on the same product in every country.
Pollo Campero, a chicken restaurant chain based in Central America, is using the
following method for expanding operations in the United States:
A) joint ventures.
B) licensing.
C) exporting.
D) franchising.
E) acquisition.
Peppers and Rogers described different steps that are involved in one-to-one marketing.
These steps include all of the following except:
A) identify.
B) differentiate.
C) interact.
D) evaluate.
E) customize.
The term "Expanded Triad" includes all of the following countries or regions except:
A) Japan.
B) United States.
C) Canada.
D) Mexico.
E) Russia.
The trend showing popularity of ethnic or regional foods such as sushi, falafel, or pizza
worldwide is referred to as the ________, which provides an opportunity for marketers
to pursue one or more segments on a global scale.
A) segmentation of markets
B) popularity of segmentation
C) promotion of products and services
D) identification of consumers
E) pluralization of consumption
The U.S. government's most comprehensive source of world trade data is:
A) National Trade Data Base (NTDB).
B) Census Bureau.
C) Bureau of Economic Analysis.
D) Eurostat.
E) Gross Domestic Product (GDP).
Renault and its rivals are racing to offer middle-class consumers a new value
proposition by selling cars for the equivalent of $10,000 or less. On the heels of
Renault's success with Dacia Logan came the $2,500 Nano from India's Tata Motors.
This illustrates that:
A) consumers are looking for low price irrespective of quality.
B) Renault is overcharging for their cars compared to their competitors.
C) higher product development costs are a driving force behind globalization.
D) market success depends on reaching a threshold of acceptable quality for consumers.
E) cars are not very popular in emerging markets like India.
Which of the following is not a step in the Strategic/Consultative Selling model?
A) develop a marketing mix
B) develop a personal selling philosophy
C) develop a product strategy
D) develop a relationship strategy
E) develop a presentation strategy
Francisco Martnez is CFO of Comercial Mexicana SA, a retail chain in Mexico.
Commenting on Walmart's entry into Mexico, Mr. Martnez notes, "I buy 20,000 plastic
toys, and Walmart buys 20 million. Who do you think gets them cheaper?" Which
strategic principles are evident in this comment?
A) Walmart's buyer power and cost leadership
B) Walmart's barriers to entry and differentiation
C) Walmart's loose bricks and switching costs
D) Walmart's focused differentiation and supplier power
E) Walmart's discount policies for customers
Which of the following companies would be most likely to use some form of
countertrade when selling its products in developing countries?
A) Procter & Gamble
B) Bell Helicopter Textron
C) Nokia
D) Mercedes-Benz
E) Coca-Cola
McDonald's developed a vegetarian burger in India. This is an example of:
A) Market Penetration.
B) Market Development.
C) Market Diversification.
D) Product Development.
E) Global Marketing.
The four tigers"Singapore, South Korea, Taiwan, and Hong Kong"learned from the
________ experience and built strong export-based economies of their own.
A) Chinese
B) Indian
C) German
D) American
E) Japanese
A number of factors combine to make Russia an excellent location for an alliance which
do not include:
A) a well-educated workforce.
B) quality is important to Russian consumers.
C) abundance of supplies.
D) potential for economic growth.
E) potential for growth in service sector.
The automobile industry has become fiercely competitive on a global basis. The initial
success of foreign automakers in the United States was due to all of the following
reasons except:
A) reluctance of U.S. manufacturers to design high-quality cars.
B) inability of U.S. manufacturers to manufacture high-quality cars.
C) reluctance of U.S. manufacturers to make inexpensive small cars.
D) bigger cars meant bigger profits for U.S. manufacturers.
E) U.S. manufacturers did not realize drivers' preferences.
Many American car buyers perceive Korean cars as:
A) durable.
B) cheap.
C) reliable.
D) of high quality.
E) good investment.
What are the differences between a patent, trademark, and a copyright? What is meant
by counterfeiting?
London's Sunday Times reported that Mecca-Cola has become the drink which has
come to be seen as "politically preferable" to Pepsi or Coke in many Muslim countries.
Also, Danish products were boycotted in many Islamic countries in protest of an
offensive cartoon that was printed in Danish newspapers. Considering these two
examples, show how religion can have an impact on marketing.
Governmental actions at times are designed to discourage imports and block market
access. Why do governments want to curtail imports? Explain some of the barriers that
are placed to discourage imports.
What issues must be considered in selecting an advertising agency for global
advertising?
Joint ventures are becoming very popular as an entry mode into foreign markets. Why
is this strategy so attractive to companies interested in entering other markets in the
world?
How can political turmoil and other adverse environmental conditions affect global
marketing?
Comment on the current status and future of "Wearable technology."
In December 2012, U.S. President Barack Obama signed the Russia and Moldova
Jackson-Vanik Repeal and Sergei Magnitsky Rule of Law Accountability Act. What
does this law entail and how does it affect Russia-U.S. relations?
Nike provides technical specifications to a subcontractor or local manufacturer for its
products. What is this arrangement called and what are its major benefits and
drawbacks?
What does the phrase factor condition refer to? How can these factors be inherited or
created? Describe Porter's categories of factor conditions.
An executive is undecided whether to rely on in-house or external export
specialists/intermediaries in the home country. He is leaning towards direct
representation in a market. What are the benefits of going forth with direct
representation?
Explain the differences between "product adaptation-communication extension" and
"product-communication adaptation" strategies.
What are some of the issues that need to be addressed when setting up for global
e-commerce?
The currency fluctuations in global markets have a big impact on international
transactions. What actions can be adapted if the domestic currency is strong?
The European Commission recently fined Nintendo nearly $150 million after it was
determined that the video game company had colluded with European distributors to fix
prices. Why is price fixing not considered a good practice? What are different kinds of
price fixings?
