FDI in services is controlled by U.S. firms.
One of the problems with a multiple party governmental system is a lack of
political stability and continuity.
Clan cultures do not stress cohesiveness, participation, and teamwork.
Countries normally do not benefit from international trade.
Emerging markets are not a tempting target for MNCs.
The IMF does not promote exchange stability to maintain orderly exchange
arrangements among members.
In international distribution, replacement effect does not cannibalize existing
distribution channels.
The project GLOBE stands for Global Law and Organizational Behavior
Effectiveness.
The capstone of a company’s global marketing activities is its strategic marketing plan.
The goal of market segmentation is to ensure profit for all product categories and
promote customization to meet customer needs.
Foreign exchange refers to the exchange of one country’s money for that of
another country.
To combat hyperinflation, governments occasionally impose price controls.
Most firms do not rely heavily on the expertise of an advertising agency.
A common market and a monetary union are basically the same thing.
All of the following are tasks of the average salesperson EXCEPT:
a. take orders.
b. deliver products.
c. repair products.
d. educate consumers.
e. provide technical knowledge.
Variation in customer needs is the primary reason for ____________________.
a. market segmentation.
b. product segmentation.
c. country segmentation.
d. quality segmentation.
e. sales segmentation.
One should be concerned about choosing a local agency for marketing research
because:
a. local agencies understand cultural nuance better
b. they might lack the expertise for state-of-the art research
c. they may not be trustworthy with secrets
d. local agencies are relatively inexpensive
e. both b and c
If the researcher uses ____________________ to study relationships between
countries, they assume that there exists a relationship between a response variable
(Y) and one or more so-called predictor variables (X).
a. the mean
b. the median
c. cluster analysis
d. Latin square design analysis
e. regression analysis
If a company begins its foreign sales by exporting through merchant distributors and
then purchases a foreign sales subsidiary and locates product warehouses abroad, this
would be a form of _____________________ integration.
a. vertical
b. horizontal
c. forward
d. backward
e. dual
____________________ is leveraging cross-border differences in needs and wants
of the firm’s target customers.
a. Customization
b. Standardization
c. Proliferation
d. Expansion
e. Synthesizing
______________________ means that the company sets up its own
export organization within the company and relies on a middleman based in a
foreign market (foreign distributor).
a. Licensing
b. Parallel exporting
c. Cooperative exporting
d. Direct exporting
e. Indirect exporting
The Internet and Intranet facilitate __________________________.
a. parallel delivery.
b. cheap delivery.
c. expensive delivery.
d. forward-time delivery.
e. on-time delivery.
In Mexico, the free trade zone program (also called the in-bond or twin-plant
program) is called the _____________________________.
a. Maquiladora operation or industry
b. border zone
c. red zone district
d. Foreign Trade Zone
e. Channel Zone
In general, the rate of adoption of new products (in foreign markets) is driven by
individual differences, personal influences, and:
a. fashion.
b. trends.
c. cash on hand.
d. product characteristics.
e. promotion characteristics.
In 2008, which of the following auto brands was ranked number one in the global
auto industry?
a. BMW
b. Mercedes
c. GM
d. Ford
e. Toyota
In international marketing, a firm’s global brand structure is shaped by the following
three types of factors:
a. firm-based drivers, product-market derivers, and the manufacturing dynamics.
b. firm-based drivers, hi-tech derivers, and Web dynamics.
c. firm-based drivers, product-market derivers, and market dynamics.
d. firm-based drivers, product-market derivers, Internet dynamics.
e. none of the above
Marketing executives should have a thorough understanding of not only the availability
of various resources but also emerging consumer and societal needs on a
____________________.
a. cluster basis
b. local basis
c. global basis
d. regional basis
e. none of the above
Rapid scale-up of new champions:
a. doesn’t occur because capital is in short supply.
b. can be done by absorbing smaller rivals.
c. is achieved by investing more than smaller rivals.
d. both b and c
e. can only be done with the help of outside loans from such as the World Bank.
With electronic tracking technology, shippers are able to quickly react to any
disruption in the shipments because the shipper knows where exactly the goods are
in real time and:
a. labor can be adjusted accordingly.
b. the alternative means can be quickly mobilized should problems develop.
c. costs can always be evaluated.
d. losses are rare.
e. customer service is now at a premium.
All of the following are members of the G-7 (Group of Seven) EXCEPT:
a. Canada
b. Ireland
c. Germany
d. United States
e. Italy
Markets can be classified in four types of countries based on their respective market
attractiveness. Vietnam and the Philippines would fall into which of the types listed
below (where the purpose would be to build up an initial presence such as through a
liaison office)?
a. platform countries.
b. emerging countries.
c. maturing and established countries.
d. growth countries.
e. none of the above.
Comparability might also be hindered by the lack of ___________________.
This refers to the degree to which similar activities or products in different countries
fulfill similar functions.
a. conceptual equivalence
b. functional factors
c. functional equivalence
d. lumping of data
e. comparison equivalence
_________________ was founded in 1949 to stop the flow of Western technology
to the Soviet Union. Australia, Japan, and the NATO countries (except Ireland) are
members.
a. The NATO alliance
b. The Western bloc
c. The Eastern bloc
d. The G-7 (Group of Seven)
e. COCOM (The Coordinating Committee for Multilateral Controls)
As a type of outsourcing, _____________________ is when a company
buys major components from independent suppliers overseas.
a. domestic in-house sourcing
b. offshore subsidiary sourcing
c. a domestic purchasing arrangement
d. offshore outsourcing (offshore sourcing)
e. export management company
Porsche and Saab maintain their competitive strengths in the high-power sports car
enthusiast category by following a(n) ___________________ strategy.
a. product differentiation
b. cost leader
c. price leader
d. innovator
e. niche
Which of the following would NOT be one of the five key product characteristics
that contribute to its acceptance?
a. low service maintenance.
b. relative advantage.
c. compatibility.
d. complexity.
e. trialability.
Pick three (3) of the options available to exporters when it comes to terms of payment.
Explain each of the options available based on your choice.
_______________ by a government is an outright takeover of a business’s assets
without compensation.
Toyota’s new strategy is to de-Japanize its business and make the ________ market its
major corporate priority.
U.S.
Germany
England
Indonesia
none of the above
List the steps in the global market entry decision process. Which of the steps is
probably the most important in the overall success of the foreign venture? Justify your
answer.
If payment on a transaction is to be made immediately, the purchaser has no choice
other than to buy foreign exchange on ________________________.
______________ float allows for a limited amount of government intervention to
soften sudden swings in the value of a currency.
China’s average growth rate in GDP has been over:
2 percent
4 percent
6 percent
8 percent
9 percent
Explain what is meant by the concept of a liaison office and why some firms prefer to
use this technique to enter markets.