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Brazil, China, and India are classified as upper-middle income countries, also known as
industrialized or developing countries.
An express warrantyis a written guarantee that assures the buyer that he or she is getting
what he or she has paid for or that provides recourse in case a product's performance
falls short of expectations.
Mattel toys thought that Barbie would be as popular in Japan as it is in the United
States. This assumption was due to the self-reference criterion (SRC).
A joint venture with a local partner represents a more extensive form of strategy that is
similar to exporting and licensing.
If the terms of the sale are CFR (cost and freight), the seller is responsible for risk or
loss at any point outside the factory.
Industry observers expect the popularity of home shopping to decrease during the next
few years as interactive television technology is introduced into more households.
The equity value of global megabrands such as Coca-Cola and Marlboro runs in the
tens of billions of dollars
A licensed asset may be a brand name, company name, patent, trade secret, or product
formulation
Image advertising is used by global companies to present themselves as famous
corporate citizens in foreign countries.
Google[x], the company's semi-secret research facility, is known as the Moonshot
Laboratory. That's because staff members are working on "moonshot" projects that
represent leading-edge technology leaps.
The South Korean government has recently abandoned the "chaebol"industry structure
in favor of the "keiretsu'structure.
Individually and collectively, Association of Southeast Asian Nations (ASEAN)
countries are active in regional and global trade.
Hypermarkets are a hybrid retailing format combining the discounter, supermarket, and
warehouse club approaches under a single roof.
The Strategic/Consultative Selling Model consists of five interdependent steps, each
with three prescriptions that can serve as a checklist for sales personnel.
Licensing, joint ventures, minority or majority equity stake, and ownership are points
along a continuum of alternative strategies for global market entry and expansion.
Maytag has been called "the Rolls-Royce of washers and dryers," and it can be said that
it has achieved a competitive advantage by means of differentiation.
One of the advantages of a license arrangement is that it can create export market
opportunities and open the door to a high-risk manufacturing relationship.
Despite an unmistakable trend toward using global advertising agencies to support
global marketing efforts, companies with geocentric orientations will adapt to the global
market requirements and select the best agency or agencies accordingly.
Italy recently introduced the Reguzzoni-Versace Law which states that if at least two
stages of production"there are four stages altogether"occur in Italy, a garment can be
labeled "Made in Italy."
Categories such as 'successful idealists" and "affluent materialists" can be used to
describe age segmentation.
China has imposed tariffs as high as 28% on foreign-made auto parts.
Standardized global marketing is analogous to mass marketing in a single country and
is also known as differentiated target marketing.
Indra Nooyi, chair and chief executive of PepsiCo, is among the corporate leaders who
are not native to the headquarters country.
People and organizations that are both able and willing to buy are considered as
markets.
The driving force behind many business acquisitions is globalization.
By combining household information with weekly purchase behavior data, Tesco is able
to tailor promotions to specific customer segments.
Kodak has easily made the transition from industry leadership in chemical-based
photography to industry leadership in digital photography.
Under Economic Union, a doctor or lawyer qualified in one country can practice in
another member country.
When using a "projective technique," the researcher presents close-ended or ambiguous
stimuli to a subject in a focus group.
Trains are more reliable than trucks for transportation of goods.
Leverage from scale economies is limited to manufacturing industries.
The extension strategy where the product remains virtually unchanged but extending it
in markets outside the home country is known as "adaptation strategy."
When making a decision about market entry timing, a company's management team
should understand that the first-mover always becomes the market leader.
Bhutan has relied on a measure besides economic growth referred to as the Gross
National Happiness (GNH).
Background music can be used effectively in broadcast commercials, however, the type
of music appropriate for a commercial in one part of the world may be inappropriate in
another part.
In the Uruguay round of GATT negotiations, many countries took issue with the U.S.
system of laws, in part because historically the U.S. Commerce Department almost
always ruled in favor of the U.S. company that filed the complaint. This was related to
the laws pertaining to:
A) black marketing.
B) market skimming.
C) gray marketing.
D) dumping.
E) licensing.
The availability of the product processed, prepared, in proper condition, and/or ready to
use is referred to as:
A) place utility.
B) price utility.
C) information utility.
D) form utility.
E) product utility.
Sony's U.S. consumer segments include all of the followingexcept:
A) Affluent.
B) Zoomers.
C) SoHo.
D) Gen Y.
E) Fashionists.
For Walt Disney Company, the best mode for going global is by:
A) joint ventures.
B) licensing.
C) 100-percent ownership.
D) exporting.
E) franchising.
The worldview of a company's personnel can be described by all of the following types
of orientation except:
A) Ethnocentric.
B) Geocentric.
C) Technocentric.
D) Polycentric.
E) Regiocentric.
Mercosur or the Common Market of the South resulted from a treaty signed by four
countries: Argentina, Brazil, Paraguay, and Venezuela.
Mexican customers generally carry small coins. To keep prices of shampoo and
detergent below 11 or 12 pesos, Procter & Gamble is using which method of pricing?
A) price bundling
B) target costing
C) cost-plus approach
D) export price costing
E) cost-based pricing
For Starbucks and other companies whose business models include a service
component, it is not recommended that they use one of the following methods for going
global.
A) joint ventures
B) licensing
C) 100-percent ownership
D) exporting
E) franchising
Located in The Hague, the International Court of Justice (ICJ) is the judicial arm of the:
A) United States.
B) European Union.
C) United Nations.
D) Netherlands.
E) United Kingdom.
Which of the following statements is correct?
A) The Paris Convention protects patents, the Berne Convention protects copyrights.
B) The Paris Convention protects copyrights, the Berne Convention protects patents.
C) The Berne Convention and Paris Convention are different names for the same thing.
D) Neither the Berne Convention nor the Paris Convention is concerned with
intellectual property.
E) The International Union for the Protection of Literary and Artistic Property is
different from the Berne Convention.
Which of the following is not true about a personal visit to size up the market firsthand
and begin the development of an actual export-marketing program?
A) Confirm assumptions regarding market potential
B) Contradict assumptions regarding market potential
C) Gather additional data to help make decisions
D) Develop a marketing plan in cooperation with local agents
E) Arrange a face-to-face meeting and avoid going to trade shows
Ford and Mazda have market entry and expansion in a relationship known as:
A) joint venture.
B) licensorship.
C) franchising.
D) contract manufacturing.
E) none of the above
Dry soup mixes that have long been popular in Europe are marketed as sauces or dips in
the United States. This is an example of the ________ strategy.
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product invention
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.
Harley-Davidson has applied for federal protection of an unusual form of intellectual
property; the 'soul-pleasing rumble" produced by its motorcycles. What type of
protection is Harley-Davidson seeking?
A) copyright
B) trademark
C) license
D) patent
E) trade dress
"Intel inside" campaign promoting both the Intel Corporation and its Pentium-brand
processors in conjunction with advertising for various brands of personal computers is
an example of:
A) brand equity.
B) brand symbol.
C) co-branding.
D) brand extension.
E) brand loyalty.
Web sites that provide news and entertainment and support a company's PR efforts are
known as:
A) company sites.
B) transaction sites.
C) promotion sites.
D) content sites.
E) cyber sites.
Which of the following generic strategies best captures the way Harley-Davidson has
achieved competitive advantage in the global motorcycle industry?
A) cost leadership
B) differentiation
C) cost focus
D) focused differentiation
E) cost differentiation
Walmart pulled out of Germany; Best Buy closed several stores in China. These
examples illustrate that it is not possible to export a retail business model that has
proven successful in the domestic market.
In the global watch industry, the success of the Swatch brand resulted in a
manufacturing renaissance for Switzerland. In the strategic framework known as
hypercompetition, Swatch's success is an example of interactions in which arena?
A) cost/quality
B) timing and know how
C) entry barriers
D) deep pockets
E) sporting events
Potential markets can be subdivided into:
A) latent and parallel markets.
B) existing and incipient markets.
C) latent and incipient markets.
D) existing and latent markets.
E) incipient and existing markets.
Which of the following does not contribute to the establishment of an international
division?
A) An organizational unit should be headed by a committed senior manager.
B) Complexity of international operations to make its own decisions.
C) Recognition of the need for internal specialists.
D) A lack of desire by management to scan the globe for opportunities and threats.
E) Assembling a staff that will take the responsibility to coordinate.
When an organization assigns regional or worldwide product responsibility to its
product divisions, there are several advantages except:
A) manufacturing standardization can occur.
B) products can be tailored to local market needs.
C) can result in significant economies.
D) can result in saving development costs.
E) can help in integrating operations.
Inge G. Thulin is chief executive of:
A) Nissan Motor (Japan).
B) 3M (USA).
C) Ford Motor Company (USA).
D) Pharmacia Corporation (USA).
E) Atlas Copco AB (Sweden).
The chief executives of Swiss Swatch Group and Japanese Canon would like to:
A) outsource all of the manufacturing units overseas in order to save money.
B) outsource a majority of the manufacturing functions overseas.
C) retain a majority, if not all, of the manufacturing in their home country.
D) establish "call centers" in developing countries in order to save labor costs.
E) outsource a full line of new products only.
Some wine importers insist on shipping their wines in refrigerated containers to protect
the wines from being damaged by high temperatures. Such importers are creating which
kind of utility?
A) place utility
B) time utility
C) form utility
D) information utility
E) worker utility
The key to maintaining competitive advantage, according to Dr. W.E. Deming is:
A) being committed to constant improvement.
B) being first to market with all products.
C) outsourcing key components.
D) challenging all market leaders.
E) stressing low-price advantage in all areas.
Coca-Cola Company's global marketing leadership position is based in part on its
ability to put Coke "within an arm's reach of desire"; in other words, it is the ability to
create:
A) place utility.
B) time utility.
C) form utility.
D) information utility.
E) all of the above
The feasibility of targeting a particular market segment can be negatively impacted by
various factors. Which of the following is not of those factors?
A) regulatory hurdles.
B) cultural barriers.
C) lack of distribution system.
D) time required to establish business.
E) surplus demand.
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) European Union.
B) Economic union.
C) Customs union.
D) Free trade area.
E) Common market.
If a company's home currency strengthens, it is:
A) a favorable turn of events for the typical exporter.
B) an unfavorable turn of events for the typical exporter.
C) a favorable turn of events since the revenues increase in home currency.
D) an unfavorable turn of events for exporter's home country.
E) neither favorable nor unfavorable turn of events for the typical exporter.
The strategy that identifies a brand as a symbol of a particular global segment is known
as:
A) foreign consumer culture positioning.
B) global consumer culture positioning.
C) local consumer culture positioning.
D) global market positioning.
E) demographic market positioning.
In the United States, the Foreign Corrupt Practices Act (FCPA) is a legacy of the
Watergate scandal during Richard Nixon's presidency. Administered by the Department
of Justice and the Securities and Exchange Commission, the act is concerned with
disclosure and prohibition. What is this law concerned with, and why is it a subject of
criticism by many?
The furniture industry has become one of the fastest-growing sectors of China's
economy. Furniture imports are flooding into the United States from China. This can be
attributed to:
A) the quality of furniture is better than that made in Europe.
B) American tastes in dcor have changed.
C) China's low labor rates translate into reasonable prices for consumers.
D) China can survive tough competition.
E) replacement parts are readily available from China.
What are the issues and problems related to sales promotion in different parts of the
world?
Because of its size and presence in more than 200 countries, the Coca-Cola Company is
often the target of anti-globalization protests. Giving examples, show how negative
publicity affects global marketers.
In Malaysia and Saudi Arabia, it is common to see that restaurants have signs declaring
that all food is "Halal." It is common that courts handle marriages, divorces,
distribution of family assets, and business practices by the "Sharia" law. What are these
tenets and how do they have an impact on international business?
What are the differences between antidumping and countervailing duties? Under what
conditions are these duties imposed?
What are the dimensions of global marketing strategy (GMS) that pertain to marketing
management?
Direct marketing and mass marketing are becoming a very popular method for
communicating with consumers. Giving reasons for their worldwide popularity, show
the differences between direct and mass marketing.
Describe the guidelines that can assist marketing managers in their efforts to establish
global brand leadership.
How do specialty retailers differ from "hypermarkets," 'supercenters," and "convenience
stores"? Why are some businesses called "category killers"?
McDonald's and other fast food restaurants have benefitted tremendously by using
franchising as a mode of entry into different countries. What are the benefits of
franchising and how does it differ from other modes of entry?
Coupons are a favorite promotion tool of consumer packaged goods companies such as
Proctor & Gamble and Unilever. How does the couponing work, and what are the
advantages for using different types of coupons?
Much academic research has been devoted to the impact of culture on advertising.
Researcher Tamotsu Kishii identified seven characteristics that distinguish between
Japanese and American creative strategy. Briefly describe those characteristics.
Big data can be used in collecting information about buyer behavior and the overall
business environment, which is vital in making effective managerial decisions. Giving
reasons illustrate how this can be accomplished.
As a company's international business grows, the need for having international
divisions becomes evident. Explain how an international division structure works and
what factors contribute to the establishment of an international division.
Authors Prahalad and Hammond have identified several assumptions and
misconceptions about the "bottom of the pyramid" (BOP). Explain these assumptions,
giving examples.
At Whirlpool, North American operations are organized in a matrix structure. What is
the key to successful matrix management?
What are the differences between "product-communication extension" and "product
extension-communication adaptation" as strategies?
Dell's rise to a leading position in the global PC industry was based on Michael Dell's
decision to bypass conventional channels by selling direct and by customizing
computers. Discuss the importance of channel innovation, giving examples of
piggyback marketing in emerging markets.
