To expand services for countries in monetary difficulties, the IMF created Special
Drawing Rights (SDRs).
Foreign exchange is not the monetary mechanism that allows the transfer of funds
from one nation to another.
The Economist publishes a PPP study every year based on McDonald’s Big Mac
hamburger. This index is called the Big Mac Induction.
The combination export manager (CEM) acts as the import department to a small
importer.
The basic premise of hypercompetition is the Schumpeterian view that the secret to
success is coordination of competition by negotiation, cooperation, and alliance.
Companies should monitor the marketplace’s response to the brand-name change
with marketing research.
Gray marketing is an illegal trade transaction.
At the level of personal selling there is little true international selling.
Backward integration refers to greater ownership and control of the distribution
channel.
In international marketing, a Web site gives service marketers the ability to offer 24
hour service to customers worldwide.
An example of a growth country is China.
All of the following are factors that favor a globalized product strategy EXCEPT:
a. common customer needs.
b. global customers.
c. scale economies.
d. time-to-market.
e. rising strength of the Latin American markets.
In the Internet world, there are many unsolved issues. For example, e-commerce is
global but the national laws are mostly ________________.
a. local
b. regional
c. political
d. religious
e. secular
Edward Hall identified five distinctive types of silent languages that are:
a. space, material possessions, friendship patterns, time, and travel.
b. space, material possessions, friendship patterns, time, and technology.
c. space, material possessions, friendship patterns, time, and computers.
d. space, material possessions, friendship patterns, time, and vacations.
e. space, material possessions, friendship patterns, time, and agreements.
All of the following are language barriers that can be identified as typical international
translation errors EXCEPT:
a. simple carelessness.
b. idioms.
c. local slang.
d. multiple-meaning words.
e. incorrect grammar.
_____________________ means shortening the time to bring new product projects to
the market.
a. Delivery-to-market
b. Orientation-to-market
c. Time-to-market
d. Extension-to-market
e. Perfection-to-market
In the field of advertising, campaigns that were developed with a high-context
culture in mind are likely to be less effective when used in _______________
cultures, and vice versa.
a. high-context.
b. low-context.
c. medium-context.
d. dry-context.
e. hot-context.
___________________ is the most popular way for many companies to become
international.
a. Exporting
b. Importing
c. Licensing
d. Contract manufacturing
e. None of the above
All of the following are examples of international sales strategy issues EXCEPT:
a. sales force skill availability.
b. selling style differences.
c. country image.
d. expatriate recruiting.
e. centralized training.
Global marketing refers to all of the marketing activities except:
a. bi-national efforts.
b. standardization efforts.
c. coordination across markets.
d. global integration.
e. none of the above.
Customers’ _________________ is a key consideration in pricing decisions.
a. location
b. buying power
c. decision power
d. thinking power
e. none of the above
The 2011 Image-Power Green Brands found that in all countries, except
____________, consumers sought out products with less packaging.
a. India
b. China
c. Germany
d. United States
e. United Kingdom
Which of the following organizational structures is most appropriate for the high-tech
company with highly complex products or MNCs with a very diversified product
portfolio?
a. international division
b. cryptic division
c. global product division structure
d. geographic structure
e. matrix structure
When managing distributors in emerging markets, MNCs should:
a. pick partners with extensive local product-market knowledge.
b. choose partners with excellent English-speaking skills.
c. focus on entrepreneurs to build local good-will.
d. only enter markets with a company-owned distributor network.
e. select distributors who are competent working with MNCs.
___________________ includes all long-term investments that do not give the
investors effective control over the investment. Such transactions typically involve
the purchase of stocks or bonds of foreign investors for investment.
a. Current account balance
b. Capital account
c. Trade balance
d. Direct investments
e. Portfolio investment
Manufacturers who plan to add the Internet to their existing international channels
should be aware of two possibilities:
a. replacement effect and international effect.
b. replacement effect and complementary effect.
c. complementary effect and managerial effect.
d. complementary effect and adaptation effect.
e. replacement effect and quality effect.
All of the following are steps to be followed to conduct global market research
EXCEPT:
a. define the research problem(s).
b. develop software to integrate with the Internet databases.
c. determine information needs.
d. collect the data.
e. analyze the data and interpret the results.
Asea Brown Boveri (ABB), the Swiss-Swedish engineering company is an example
of ______________________.
a. local networking
b. regional networking
c. global networking
d. domestic networking
e. high-tech networking
The __________________ procedure uses a product line as a listening post for the
new foreign market to see what product items work best.
a. drop/add matrix
b. ship and shop approach
c. probing and learning approach
d. seal and deal approach
e. push down approach
P&G succeeded in Russia by:
a. using door to door sales reps.
b. direct export to a single large distributor in Moscow.
c. partnering with EU firms that already had a presence in Russia.
d. developing its own distributor network in exchange for exclusivity.
e. none of the above’”Unilever is the dominant player in Russia.
With a __________________, the foreign company agrees to share equity and other
resources with other partners to establish a new entity in the target country.
a. contract manufacturing agreement
b. parallel exporting agreement
c. cooperative exporting agreement
d. export management company
e. joint venture
In international distribution, complementary effect can:
a. expand the overall business.
b. cannibalize existing distribution channels.
c. materialize the overall business.
d. downsize existing distribution channels.
e. none of the above.
Once new product ideas have been identified, the next logical step is to have
the ideas _______________.
a. modeled
b. budgeted
c. screened
d. concept tested
e. test marketed
In the area of multicountry research coordination, the __________________
focuses on the peculiarities of each country.
Under the __________________ design, the company integrates two approaches and
has a dual chain of command.
Explain intra-firm trade. Give an example to illustrate your answer.
Favorable trade policies, deregulation of industry, and common marketing
regulations are examples of __________________ globalization forces.
____________________ refers to coordinating production and distribution
across geographic boundaries.
List and briefly describe the four types of balance of payments measures.
When going abroad most companies start their international expansion with
_______________.
Relate the concepts of interdependency and standardization to one another. Indicate the
strategic implications of the terms.
Brand piracy might cause which outcomes?
revenue losses to the company
price increases by the MNC to identify the goods as genuine
better diffusion of the brand
consumer danger from poor quality fakes
both A and D
Which of the following countries is NOT on the list of top 10 exporters?
Korea
Mexico
China
United States
Both a and b