Which of the following correctly characterizes the retailing strategy of Benetton, IKEA,
and Gap?
A) few product categories, own-label focus
B) few product categories, manufacturer brand focus
C) many product categories, own-label focus
D) many product categories, manufacturer brand focus
E) none of the above
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.
Nike produces only a small portion of its output in China, but when the firm refers to
China as a “two-billion-foot market,” it is referring to the fact that:
A) the Chinese do not wear shoes.
B) the Chinese shoe market is very competitive.
C) China can develop its own shoe market.
D) it will take a long time for China to develop future market.
E) China is a potential future market.
As companies recognize and embrace new concepts such as the globalization of “the
coffee culture,” the potential for effective global advertising:
A) decreases.
B) increases.
C) remains the same.
D) becomes evident.
E) is ignored.
What solution did Andersen Consulting provide to the Moscow Bread Company to
solve the problem of stale bread?
A) Deliver the bread frozen.
B) Package the bread in plastic bags.
C) Convert to a paperless office to cut red tape.
D) Deliver the bread sliced rather than in whole loaf form.
E) Use paper packaging for bread.
The basis for global marketing expert David Arnold’s framework for screening
intercountry comparisons include:
A) demographic data.
B) “top-down” segmentation analysis.
C) “bottom-up” segmentation analysis.
D) income level.
E) population data.
In the fast changing, competitive environment, new global realities are emerging, which
include all of the following needs except:
A) to be cost effective.
B) to be customer driven.
C) to deliver best quality.
D) to deliver quickly.
E) to deliver success.
Research in Motion (RIM), a Canadian company which markets BlackBerry
Messenger, is very popular with politicians and business people because it offers
advance encryption that provides data security. This can be a disadvantage for some
countries because:
A) it is too complex to understand.
B) governments use strict control for security reasons.
C) the software can be easily downloaded.
D) the accessibility is very poor.
E) there is competition from local manufacturers.
In Singapore, Coca-Cola wanted to develop an advertisement program. They selected a
group of teenagers and a trained moderator facilitated discussion asking questions
related to brand’s image, advertisement, social trends, TV watching habits, and snack
usage. This type of research is called:
A) survey research.
B) observational studies.
C) comparison studies.
D) focus group research.
E) experimental research.
The form of economic cooperation that calls for countries to eliminate all internal
barriers to trade among themselves even while maintaining independent trade policies
vis–vis third countries is known as a(n):
A) Economic union.
B) Customs union.
C) Free trade area.
D) Common market.
E) None of the above
Boeing developed the wide-bodied aircraft, the 777, with about ________ of the work
subcontracted out to Mitsubishi, Fuji, and Kawasaki.
A) 50%
B) 25%
C) 20%
D) 60%
E) 75%
There are barriers in Japan for global marketers in terms of attitudes as well as laws.
Barriers include all of the followingexcept:
A) any organization wishing to compete in Japan must be committed to providing
top-quality products and services.
B) repeat visits and extended socialization with distributors.
C) goods marketed should have a semblance of western products and services.
D) marketers must master the keiretsu system of tightly knit corporate alliances.
E) trust has to be built before conducting successful business.
The United Nations designates 50 countries in the bottom ranks of the low-income
category named as:
A) Low-income countries.
B) Lower-middle-income countries.
C) BRIC countries.
D) Developing countries.
E) LDCs (least-developed countries).
Germany’s Mittelstand companies have been extremely successful pursuing:
A) cost leadership.
B) differentiation.
C) cost focus.
D) focused differentiation.
E) cost differentiation.
Which of the following is a disadvantage of using an expatriate sales force?
A) inferior product and company knowledge
B) capability to institute the acceptable practices
C) follow policies of the home office
D) enhanced promotion prospects
E) maintaining is very expensive
The Gulf Cooperation Council (GCC) includes all of the following countries except:
A) Kuwait.
B) Saudi Arabia.
C) Iraq.
D) Bahrain.
E) Oman.
In spite of having about 45% of the world’s known oil reserves, Saudi Arabia and other
Middle Eastern countries post current-account deficits, largely because:
A) of poor accounting practices.
B) of vast economic diversification.
C) they must import most of the goods and services.
D) most of the oil is exported.
E) new businesses are being developed.
Which of the following is not identified by Porter as one of the five forces that explains
competition in an industry?
A) threat of new entrants
B) threat of substitute products or services
C) bargaining power of suppliers
D) bargaining power of competitors
E) the competitive rivalry among current members
Engineers at a company in a developing country study an American computer chip
design, copy it, and produce identical chips that are then sold to local computer makers.
What form of intellectual property has been wrongly appropriated?
A) patent
B) copyright
C) trademark
D) trade secrets
E) technological
If the dollar, the yen, or the euro becomes seriously overvalued, a company with a
production capacity in other locations can achieve competitive advantage by:
A) buying different currencies before major fluctuations take place.
B) conducting transactions in different currencies of the world.
C) shifting production among different sites.
D) cutting down production and waiting until the currency rate is reasonable.
E) reducing production and labor force simultaneously.
The Rugman and D’Cruz’s flagship model is evident in the strategies of all but one of
the following businesses:
A) Ford.
B) Volkswagen.
C) IKEA.
D) Benetton.
E) Microsoft.
The English-speaking CARICOM members in the eastern Caribbean are concerned
with defending their privileged trading position with:
A) Russia.
B) China.
C) the United States.
D) the United Kingdom.
E) Australia.
Which of the following is not one of the levels in the Asian version of Maslow’s
hierarchy?
A) physiological
B) safety
C) affiliation
D) admiration
E) self-actualization
The demise of communism as an economic and political system can be explained by all
of the following facts except:
A) communism is not an effective economic system.
B) relatively superior performance of the world’s market economies.
C) communism works when the currency exchange rate is weak.
D) difficult to manage national economies with a single central plan.
E) increased public participation in matters of state.
Due to political upheaval in the Middle East, in spring 2011, Procter & Gamble was
forced to briefly close plants in Egypt that supply products for South Africa.
For decades, the economies of China, the former Soviet Union, and India functioned
according to the tenets of:
A) market capitalism.
B) market socialism.
C) centrally planned socialism.
D) centrally planned capitalism.
E) market capitalism and socialistic capitalism.
Products that belong to the category of “game changers” are considered as ________
innovations.
A) new product
B) line extensions
C) continuous
D) dynamically continuous
E) discontinuous
A few years ago, Philips Electronics developed a new consumer electronics product
called the Digital Compact Cassette player. DCC did more than allow users to record
and playback in a new digital format; DCC was also designed to play the older, analog
cassette tapes that many people own. However, die-hard audio buffs were the only ones
to buy DCC and Philips ultimately discontinued the product. Which of the following
statements based on adopter categories describes this?
A) early adopters bought, but innovators didn’t
B) innovators bought, but early adopters didn’t
C) innovators bought, and everyone else was a laggard
D) early majority bought, but late majority didn’t
E) DCC was a laggard
Bureaucracy is listed as a political risk category by:
A) BERI (Business Environment Risk Intelligence).
B) PRS Group.
C) EIU (Economist Intelligence Unit).
D) WTO (World Trade Organization).
E) OPIC (Overseas Private Investment Corporation).
When company management decides that it is unwilling to follow the “conventional
wisdom” and instead finds a new way to gain competitive advantage, it might be said to
be:
A) searching for loose bricks.
B) changing the rules of engagement.
C) collaborating.
D) building layers of advantage.
E) innovating.
In global markets, Starbucks is a good example of simultaneously executing all of the
growth strategies except:
A) Market penetration.
B) Market development.
C) Product development.
D) Market orientation.
E) Diversification.