1) In Hong Kong and Singapore, efficient postal services, highly educated populations,
wide use of credit cards, and high per capita income are attracting the attention of
catalog marketers.
2) An “incipient market” is a market that will emerge if a particular economic,
demographic, political, or sociocultural trend continues in a country.
3) With a free on board (FOB) named port, the responsibility and liability of the seller
ends at the docking point at the port.
4) Global market segmentation is based on the premise that companies should attempt
to identify consumers in different countries who share similar needs and desires.
5) When Carrefour, Tesco, and Wal-Mart set up shop in developing countries, they
provide customers with access to more products but higher prices than were available
previously.
6) Market research is the project-specific, systematic gathering of data and is the
activity that links the consumer, customer, and public to the marketer through
information.
7) Generally speaking, consumers view direct marketing as entailing a higher level of
risk than traditional mass marketing.
8) BMW’s slogan “the ultimate driving machine,” is an example of an attribute or
benefit which has proven successful in their positioning strategy.
9) The political maneuverings of the Russian government create a high level of political
risk.
10) A major disadvantage of a regional center is its cost.
11) Outlet stores are retail operations that allow companies with well-known consumer
brands to dispose of excess inventory, out-of-date merchandise, or factory seconds.
12) ASEAN’s leaders are working to establish a fully integrated, single-market ASEAN
Economic Community by 2015.
13) The way a product’s appeal or proposition is presented is called the “creative
execution.”
14) Consumer products companies typically use advocacy advertising to give the public
reasons to buy their products.
15) A global segment is referred to as “global elite” which includes:
A) people between the ages of 12 and 19
B) affluent, well-traveled persons
C) graying population
D) technology professionals
E) persons having power
16) The country which boasts the worlds fastest average Internet speed is:
A) Russia
B) China
C) South Korea
D) India
E) Japan
17) In an effort to attract assembly operations, Brazil allows certain product
components to be imported at reduced tariff rates. This is an example of:
A) offsets
B) preferential tariffs
C) the effect of the Customs Valuation Code
D) an EMC
E) discriminatory procurement
18) What type of international disputes would be taken before the International Court of
Justice?
A) disputes between two nations
B) disputes between two companies
C) disputes between a company and a nation
D) disputes between a citizen of one country and a company from a different country
E) disputes between profit and non-profit organizations
19) Japan is Coach’s second largest market, representing about 20% of global sales. All
of the following statements are true regarding the market for Coach’s products
compared to that in America except:
A) Japanese consumers are enormously brand-centric
B) Japanese consumers are not as brand loyal as American consumers
C) American women tend to carry two or three brands while their Japanese counterparts
tend to carry as many as five
D) The company’s $500 handbags are especially popular with young women
E) Coach has to work on improving its brand image in Japan
20) The majority of the world’s population is included in the following economic
category:
A) high-income countries
B) upper-middle-income countries
C) lower-middle-income countries
D) low-income countries
E) lower-upper income countries
21) Starbucks is entering India via an alliance with the Tata Group. The next phase will
likely involve opening Starbucks outlets in Tata’s upscale Taj Hotels in India. These are
examples of Market Penetration.
22) The ability to speak foreign languages is one difference between managers born and
raised in the United States and those born and raised elsewhere. Which is true and
reflects the earlier statement?
A) There are 200 million Chinese children studying English
B) There are 24 million American children studying Chinese
C) There are 200 million Indian children studying Chinese
D) Chinese managers study English as much as Chinese
E) There are equal numbers of American and Chinese children studying English
23) A manufacturer attempting to set prices for its products in export markets must
realize that CIF, VAT, and distributor markup all lead to:
A) currency devaluations
B) dumping charges
C) market skimming
D) price escalation
E) market penetration
24) Nintendo was fined nearly $150 million after it was determined that the video game
company had colluded with European distributors. The distributors in countries with
lower retail prices had agreed not to sell to retailers in countries with high prices. This
is a classic example of:
A) price skimming
B) market penetration
C) price bundling
D) price fixing
E) transfer pricing
25) Which of the following does not fit in with the factors that should be considered by
companies forming GSPs?
A) Partners are competitors to each other
B) Harmony is not the most important measure of success
C) All employees and managers must understand where cooperation ends and
competitive compromise begins
D) Learning from partners is critically important
E) none of the above
26) Physical distribution and logistics are concerned with all but one the following.
A) order processing
B) warehousing
C) inventory management
D) transportation
E) designing in-store displays
27) Suppose you are a sales representative for Advanced Micro Devices (AMD) in
Japan. You are trying to convince Toshiba to buy your company’s superfast Opteron
microprocessor for its new laptop computer. Toshiba’s representative seems interested,
but finally does not place an order. Confidentially, the representative tells you that he is
afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD.
Thinking about Intel’s role in this scenario, which of the following element of the five
forces model is evident here?
A) barriers to entry
B) bargaining power of suppliers
C) bargaining power of buyers
D) threat of substitute products
E) threat of new entrants
28) In recent years, the economy of selected countries in ECOWAS has improved
except in:
A) Ivory Coast
B) Ghana
C) Benin
D) Sierra Leone
E) Nigeria
29) 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
30) One writer suggested that some themes are universal and could be used in
advertising around the globe. Examples of this theme include all of the following
except:
A) the desire to be beautiful
B) the desire to be healthy
C) the desire to be free of pain
D) the desire to copy others
E) the love of mother and child
31) Which promotional technique is best suited to a situation in which a company wants
consumers to actually try its product or service at no cost?
A) sampling
B) sweepstakes
C) couponing
D) free-standing inserts
E) personal selling
32) In 2007, the United States and South Korea completed preliminary negotiations to
establish the world’s largest bilateral trade agreement which impacted all of the
following except:
A) reduction of tariffs on 90% of product categories
B) reduction of tariffs boosts exports from the United States
C) a boon for Hyundai, Samsung, LG, and other South Korean industry leaders
D) General motors, Ford, and Chrysler and other U.S. companies stand to benefit
E) reduction of beef quota sold by the United States to Korea
33) Which of the following does not contribute to the establishment of an international
division?
A) top management commitment that justifies an organizational unit headed by a senior
manager
B) complexity of international operations requires unit with authority to make its own
decisions
C) Management recognizes the need for internal specialists
D) Management lacks desire to scan the globe for opportunities and threats
E) Pressure to assemble a staff that will take the responsibility to coordinate
34) In Chinese markets, Nike had a problem using the “Just Do It” attitude which was
not found to be appropriate. Finally, Nike decided to use Chinese athletes in their
promotion. This type of adaptation was needed due to:
A) Chinese do not wear running shoes
B) ingrained Chinese values which respect authority
C) Chinese athletes use Nike shoes
D) “Just do it” in Chinese has a negative connotation
E) parents do not want their children to see such ads
35) When a survey questionnaire in English is translated into Korean for use in South
Korea and then translated back into English to check its accuracy it is described as:
A) incipient translation
B) comparative translation
C) native translation
D) parallel translation
E) back translation
36) The English-speaking CARICOM members in the eastern Caribbean are concerned
with defending their privileged trading position with:
A) Russia
B) China
C) United States
D) United Kingdom
E) Australia
37) According to strategy expert Richard D’Aveni, the actions taken by Swatch in the
global watch industry illustrate hypercompetitive dynamic maneuvering in which
arena?
A) cost/quality
B) timing and know-how
C) entry barriers
D) deep pockets
E) Olympics
38) Global marketing authority Theodore Levitt has noted that many ethnic and
regional foodssushi, for exampleare enjoying popularity in many countries of the world.
This observation is known as:
A) the pluralization of consumption
B) the ethnicitization of consumption
C) the democratization of consumption
D) the sophistication of consumption
E) the domestication of consumption
39) In the six-step presentation plan, the first and last steps are respectively:
A) presentation; demonstration
B) approach; close
C) presentation; negotiation
D) approach; presentation
E) approach; servicing the sale
40) Coca-Cola’s distinctive contour bottle, which is sold in many countries, illustrates
the point that:
A) the packaging strategies can vary by country and region
B) the packaging helps in storing large sizes in refrigerators
C) the packaging strategies do not change by country and region
D) the packaging appeals only to Asian consumers
E) the packaging helps in brand identification
41) The form of economic cooperation that calls for 1> eliminating internal barriers to
trade and 2> establishing common external barriers is known as a(n) ________.
A) Free trade area
B) Economic union
C) Customs union
D) Free trade area
E) Common market