1) An ad valorem duty is expressed as a percentage of the value of goods.
2) In “geocentric pricing” approach, a company fixes a single price worldwide and
allows subsidiaries or local distributors to make independent pricing decisions.
3) Because “keiretsu” relationships are crossing the Pacific and directly affecting the
American market, U.S. companies have reason to be concerned.
4) “Export price escalation” is the increase in the initial selling price of goods traded
across borders.
5) Michael Porter’s four generic strategies for achieving competitive advantage are
product differentiation, price leadership, promotion power, and distribution efficiency.
6) Price can be used as a strategic variable to achieve specific goals, including ROI,
profit, and rapid recovery of product development costs.
7) With per capita GNI of $10,150, Venezuela is classified as an upper-middle-income
country.
8) The United Nations Conference on International Trade Law (UNCITRAL) has also
been a significant force in the area of arbitration.
9) Foreign direct investment figures reflect investment flows out of the home country as
companies invest in or acquire plants, equipment, or other assets.
10) “McDonaldization of culture,” a term coined by Geert Hofstede, refers to the wide
spread of McDonald’s restaurants in the world and its adverse impact on global culture.
11) The requirement that all restaurants declare that the meat is “halal” is based on
Islamic Laws.
12) Some foreign companies reduce earnings by making loans to U.S. affiliates rather
than using direct investment to finance U.S. activities. This is known as “earnings
stripping.”
13) In companies where a polycentric management orientation prevails, host-country
nationals will be used in most selling situations with the exception of high-tech
products sold in developed countries.
14) The virtual corporation will seem to be a single entity with vast capabilities but will
really be the result of numerous collaborations assembled only when needed.
15) When Carrefour, Tesco, or Wal-Mart set up shop in developing countries, they
provide customers with access to more products and lower prices than were available
previously. This is an example of global retailing.
16) Dell Computer recently rerouted some of its call center jobs back to the United
States after complaints from key business customers that Indian tech support workers
were offering scripted responses and having difficulty answering complex problems.
17) One of the Corporate Social Responsibility (CSR) initiatives by IKEA’s primary
carpet supplier in India is to monitor subcontractors to ensure that they do not employ
children.
18) Repeat visits, extended socialization with distributors, and mastering the keiretsu
system are all essential for being successful in Japanese markets.
19) Due to the trend toward convergence, many product standards that remain on the
books have been harmonized.
20) Several years ago, the DMBB agency created a single-country psychographic
profile that includes segment labels such as “Cossacks” and “kuptsy.” What country
does the survey cover?
A) India
B) Japan
C) Russia
D) China
E) Vietnam
21) Some of Body Shop’s recent advertising has emphasized the difference between the
company’s principles and those of “mainstream” cosmetics companies on such issues as
animal testing. As described here, Body Shop’s ads illustrate positioning by ________.
A) competition
B) niche
C) quality/price
D) attribute/benefit
E) culture
22) Sales representatives in which Japanese industry cultivate close, long-term relations
with customers by selling door-to-door?
A) consumer electronics
B) pharmaceuticals
C) automobiles
D) soft drinks
E) groceries
23) The Big Mac Index shows that the price of Big Mac in China converted from the
local currency, yuan, to be $2.18, whereas its price in the United States is $3.73. This
shows that:
A) the Big Mac is more popular in China than in the United States
B) the Big Mac is less expensive in the United States than in China
C) the Chinese yuan is overvalued when compared to US $
D) the Chinese yuan is undervalued against the US $
E) beef is less expensive in China than in the United States
24) “Containerization” refers to a company’s:
A) designing attractive product packaging that will help a product ‘sell itself”
B) use of computer technology to keep a lid on (“contain”) distribution costs
C) use of refrigerated warehouses for perishable products
D) use of standard-sized shipping boxes that can be transported in various ways
E) method of shipment by using oval size steel containers to fit different commodities
25) NAFTA creates a free trade area in North America. However, Mexican avocado
growers:
A) cannot hire illegal immigrants
B) can only ship avocados to the U.S. in winter months
C) have no quotas for the quantity of avocados shipped to the U.S
D) cannot impose tariffs of their own
E) none of the above
26) “Successful GSPs create win-win situations, where participants pursue objectives
on the basis of mutual advantage.” When applied to global strategic partnerships, this
statement indicates the importance of which factor?
A) mission
B) strategy
C) governance
D) culture
E) organization
27) Which of the following is true of advertising for the Heineken and Foster’s brands
in the United States?
A) Both Heineken and Foster’s utilize the GCCP strategy
B) Both Heineken and Foster’s utilize the FCCP strategy
C) Heineken utilizes the GCCP strategy; Foster’s utilizes the FCCP strategy
D) Heineken utilizes the FCCP strategy; Foster’s utilizes the GCCP strategy
E) Heineken utilizes the LCCP strategy; Foster’s utilizes the GCCP strategy
28) ________ is the term that refers to the merging of different industries such as
computers, photography, and motion pictures.
A) Value networks
B) Convergence
C) Disruptive technology
D) Telematics
E) Agnostic marketing
29) Caterpillar’s attention was focused elsewhere when Komatsu made its first
international entry into the Eastern European Market. Based on the strategic intent
framework, this is an example of:
A) changing the rules
B) collaborating
C) comparative advantage
D) layers of advantage
E) loose bricks
30) In the 1990s, Philips Electronics developed a new consumer electronics product
called the Digital Compact Cassette player. DCC allowed 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. This latter feature reflects which of the following characteristics
of innovations?
A) relative advantage
B) communicability
C) compatibility
D) complexity
E) divisibility
31) Which of the following statements is not an example of local products or brands?
A) Coca-Cola developed several branded drink products for Japan
B) Coca-Cola markets Kinely brand bottled water in India
C) BMW uses “the ultimate driving machine” slogan in India
D) Diageo PLC markets Gordon’s Edge, a gin-based ready-to-drink beverage in the
United Kingdom
E) Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan
32) Which of the following statements most accurately describes the extent to which
GM and Toyota outsource components?
A) GM and Toyota each outsource approximately 50% of their components
B) Toyota outsources about 50% of its components; GM outsources about 75%
C) GM outsources about 50% of its components; Toyota outsources about 75%
D) Neither GM nor Toyota outsources a significant proportion of its components
E) GM and Toyota each outsource approximately 25% of their components
33) Hackers attacked the PlayStation online gaming network, thereby comprising user
data in which country?
A) Japan
B) United States
C) Germany
D) Great Britain
E) China
34) A broadband communication system is one that has sufficient capacity to carry
simultaneously which of the following?
A) multiple voice
B) data
C) video
D) music
E) all of the above
35) According to a 1991 report by McKinsey & Co., problems of alliances between
Western and Japanese firms were related to all of the following factors except:
A) objective levels of performance
B) a feeling of mutual disillusionment
C) difference in expectations
D) balance between partners
E) frictional loss
36) Gillette markets its flagship MACH3 razor in more than 100 countries around the
world. The MACH3 is available virtually everywhere that consumers shop for
personal-care products; because of its advanced 3-blade design, the MACH3 typically
costs more than other wet-shaving systems. Which generic strategy is evident in
Gillette’s global marketing effort of MACH3?
A) cost leadership
B) differentiation
C) cost focus
D) focused differentiation
E) consumer focus
37) A company that is ________ in its approach to public relations will extend
home-country PR activities into host countries.
A) regiocentric
B) polycentric
C) ethnocentric
D) domestic
E) hostile
38) Starbucks is building on its loyalty card and rewards program in the United States
with a smartphone app that enables customers to pay for purchases electronically. The
app displays a bar code that the barista can scan. This is an example of:
A) Market Penetration
B) Market Development
C) Market Diversification
D) Product Development
E) Global Marketing
39) The international marketing manager of an office furniture company ordered a
research report on global telecommunications equipment sales. The report noted that, in
the early 1990s, AT&T was awarded a $4 billion contract to provide communication
network products and services in Saudi Arabia. The manager took this as a cue to put
Saudi Arabia on her information agenda, reasoning that office furniture sales would
increase as the country’s telephone system was improved. As described here, the
marketing manager is viewing Saudi Arabia as a(n):
A) latent market
B) incipient market
C) cluster market
D) existing market
E) primary market
40) “Discussion and consensus must be the norms. Partners must be viewed as equals.”
When applied to global strategic partnerships, this statement indicates the importance of
which factor?
A) mission
B) strategy
C) governance
D) culture
E) organization
41) Ford Motor Company (United States) has a 50-50 joint venture to build Ford
Fiestas with:
A) Toyota (Japan)
B) Shanghai Automotive Industry (China)
C) BMW (Germany)
D) Mahindra & Mahindra (India)
E) Mazda (Japan)
42) If a commodity raw material comes from Africa, gets refined in Asia, then shipped
to South America for finishing, and finally transported to the Middle East and then sold
around the worldthis represents a similar process used for products marketed by:
A) Exxon
B) McDonald’s
C) Caterpillar
D) IKEA
E) Sears
43) 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
44) Which company ranks number one in terms of ad spending in Europe (2009)?
A) General Motors
B) Philip Morris
C) Unilever
D) Procter & Gamble
E) Coca-Cola
45) By definition, a ________ requires a large amount of learning on the part of users
and typically creates new markets and consumption patterns.
A) continuous innovation
B) dynamically continuous innovation
C) discontinuous innovation
D) platform-based innovation
E) new and improved innovation
46) Before Ben & Jerry’s launched their ice cream in the United Kingdom, the company
conducted extensive research to determine whether the package design was appropriate.
The research indicated that British consumers perceived the colors differently than U.S.
consumers. The package design was changed accordingly. This type of strategy can be
defined as:
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) product-communication adaptation
E) product invention
47) How do chance events play a role in shaping the competitive environment?
48) 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?
49) What is “global marketing” and how does it differ from “regular marketing”?
Giving examples of at least one major corporation, explain these differences.
50) There have been considerable changes that have taken effect since Porter presented
his theories. One such impact is due to the tremendous technological advancement. In
light of these changes, examine what potential impact technology has on some of his
theories.
51) What are the dimensions of global marketing strategy (GMS) that pertain to
marketing management? Explain in detail giving examples.
52) Discuss what makes the use of sales promotion so effective and popular. Describe
different types of sales promotions.
53) What are the secondary sources of data and how do these sources differ from
primary sources? Give examples of sources from which secondary data can be obtained.