The concentration of wealth in a handful of industrialized countries has significant
implications for global marketers. After segmenting in terms of a single demographic
variable”income” a company can reach the most affluent markets which does not
include:
A) half of the EU nations
B) all of North America
C) Canada and Mexico
D) 90 percent of the world’s population
E) Japan.
An irrevocable letter of credit transfers the payment obligation for an export deal from
the buyer to the buyer’s:
A) in-house export organization.
B) bank.
C) freight forwarder.
D) credit union.
E) checking account.
A number of explanations have been offered for the low level of U.S. exports relative to
other countries. All of the following can be considered as reasons for low level of
exports except:
A) limited ambition by many American business owners.
B) lack of knowledge of market opportunities abroad.
C) perceived lack of necessary resources.
D) marketing to home-country users is easier than exporting.
E) a strong U.S. dollar translates into less affordable prices in export markets.
The words that are the spoken or written communication elements in advertisements are
known as:
A) copy.
B) manuscript.
C) idea.
D) script.
E) writings.
Which of the following transportation modes ranks lowest in capability?
A) truck
B) railroad
C) Internet
D) air
E) water
The power distance dimension reflects the degree of trust among members of society.
Thus, the higher the power distance (PDI) the:
A) greater is uncertainty avoidance.
B) lower is the level of trust.
C) higher is tolerance for ambiguity.
D) greater is male dominance.
E) lower is the harmony.
Procter & Gamble has identified a group of consumers in Europe who are willing to pay
premium prices for pet food that will improve the health of their pets. This is an
example of ________ segmentation.
A) demographic
B) psychographic
C) ethnic
D) behavioral
E) benefit
When introduced in the late 1970s, the VCR created new patterns of consumer
behavior. For example, assuming the user could learn to set the timer, he or she could
tape programs to watch at a later time. DVD, a playback only video system, was
introduced in the late 1990s. DVD discs contain full-length movies with digital sound
in a format that resembles conventional music compact discs. Which of the following
most accurately describes the respective degree of newness of these two global
products?
A) The VCR is a discontinuous innovation; the DVD is a dynamically continuous
innovation.
B) The VCR is a dynamically continuous innovation; the DVD is a discontinuous
innovation.
C) The VCR and DVD are both dynamically continuous innovations.
D) The VCR and DVD are both discontinuous innovations.
E) The VCR and DVD are both continuous innovations.
The country which has the highest rates of value added tax (VAT) in the European
Union is:
A) Germany.
B) Italy.
C) France.
D) Denmark.
E) Switzerland.
eBay was a pioneer in a form of online marketing known as:
A) b-to-c.
B) b-to-b.
C) p-to-p.
D) d-to-d.
E) c-to-b.
The specialty retailing industry, as well as the fast-food industry, favors ________ for
global growth.
A) licensing
B) investment
C) franchising
D) joint ventures
E) strategic alliances
Which of the following statement is not true related to the African Growth and
Opportunities Act (AGOA)?
A) The theme of the AGOA is “Trade, not Aid.”
B) It is designed to help African nations that help neighboring countries in need.
C) The law is designed to support African nations that make significant progress toward
economic liberalization.
D) African companies will find it easier to gain access to financing from the U.S.
Export-Import Bank.
E) AGOA represents a formal step toward a U.S.-Africa free trade area.
Claude Shannon’s technical report led to his pioneer work for which he is regarded as
the inventor of the:
A) transistor.
B) spreadsheet.
C) information theory.
D) silicon chip.
E) Internet.
Which of the following is the best organization structure for global marketing?
A) international division structure
B) matrix
C) geographic structure
D) worldwide product division structure
E) There is no single “best” structure.
Key characteristics of the Anglo Saxon model market system consists of private
ownership and:
A) ‘social partners” orientation.
B) inflexible employment policies.
C) free enterprise economy.
D) mix of state ownership.
E) generous social safety net.
A key player in the cell phone business who could have been first to market with a cell
phone camera is:
A) Ericsson.
B) Samsung.
C) Motorola.
D) Sprint.
E) AT&T.
After the aftermath of the tragedy involving fire in garment factories in Bangladesh,
Walmart implemented a “zero-tolerance policy.” The Workers Rights Consortium, the
International Labor Organization and other groups monitoring labor issues are stepping
up pressure on companies that participate in the global garment supply chain due to the
following reasons, except:
A) retailers pay lip service to concerns about factory safety.
B) retailers continue to focus on low prices.
C) those auditing facilities are audited by BSCI’s qualified engineers.
D) the buyers and consumer are willing to pay more for garments.
E) retailers do not provide funds for fire safety training.
Representatives of the apparel, footwear, furniture, and textile industries in many
countries are deeply concerned about the impact that increased trade with ________
will have on these sectors.
A) Hong Kong
B) China
C) Italy
D) India
E) Bangladesh
If an American tourist in Tokyo pays more in dollars for the same amount of yen that
she bought last week, then:
A) a Japanese tourist in San Francisco pays more in yen for the same amount of dollars
that she bought the week before.
B) the dollar has depreciated relative to the yen.
C) the yen has depreciated relative to the dollar.
D) the dollar has appreciated relative to the yen.
E) the dollar and yen both remained same in value.
One study of adult involvement in household tasks revealed greater similarities between
the United Kingdom and the United States compared with France, Belgium, and French
Canada. Thus, the United States and United Kingdom were “twins” based on common
language. This study is an example of:
A) market latency.
B) conjoint analysis.
C) factor analysis.
D) multidimensional scaling.
E) cluster analysis.
Taiwan’s Acer prospered by following founder Stan Shih’s strategy of approaching the
world computer market from the periphery. By the time Acer was ready to target the
United States in earnest, it was already the number one PC brand in key countries in
Latin America, Southeast Asia, and the Middle East. This is an example of which
component of competitive innovation?
A) collaboration
B) layers of advantage
C) loose bricks
D) generic
E) supplier power
The characteristics of home demand for a firm’s products or services include all of the
following except:
A) the composition of home demand.
B) the size of the home demand.
C) pattern of the growth of the home demand.
D) means by which the home demand pushes or pulls foreign markets.
E) the size of the competitors share of the home demand.
Netflix knows, for example, that twenty-something males have viewing habits that
many people would associate with 70-year-old females, and vice versa.
One Friday a few years ago, the Big Mac Index suggested that the yen was overvalued
relative to the dollar by 70%. When currency markets opened on the following Monday,
anyone using the Big Mac Index would conclude that the yen was only 20% overvalued
relative to the dollar. What is the most likely explanation for this?
A) Japan’s Central Bank acted to prop up the yen.
B) Inflation in Japan suddenly spiked upward.
C) McDonald’s headquarters stopped hedging.
D) McDonald’s Japan reduced the yen price of a Big Mac.
E) McDonald’s Japan increased the yen price of a Big Mac.
According to a recent study of European industrial exporters, companies that utilized
independent distributors would be most likely to utilize:
A) ethnocentric pricing.
B) polycentric pricing.
C) regiocentric pricing.
D) geocentric pricing.
E) extension pricing.
The Advanced Photo System (APS) created by Kodak and its partners combines
traditional chemical photo processing with digital technology. One benefit of the system
is that shutterbugs can choose three different print sizes. The APS would best be
described as a:
A) continuous innovation.
B) dynamically continuous innovation.
C) discontinuous innovation.
D) platform-based innovation.
E) new and improved innovation.
The term “m-commerce” is used to describe the use of:
A) Internet in commerce.
B) web.com in commerce.
C) credit cards in commerce.
D) money in commerce.
E) cell phones in commerce.
The world’s best-known cosmetics companies are setting their sights on a lucrative new
market segment: the emerging middle classes in countries such as Brazil, Russia, India,
and China. However, these companies have to understand:
A) that women’s preferences for cosmetics are same in all countries.
B) that Chinese consumers are not willing to invest in beauty products.
C) what beauty means to Chinese women.
D) that working Indian women currently prefer only local brands.
E) cosmetics are preferred mostly by the top end of the market in China.
The music industry’s use of big data shows how information about buyer behavior and
the overall business environment is vital to effective managerial decision making. All of
the factors listed below facilitate decision making for music industry except:
A) Musicians can interact with fans via social networks.
B) Big data allows record executives and band managers to find patterns and discern
market trends.
C) Big data allows executives to see what factors “move the needle” across a variety of
metrics.
D) Data analytics permit record company executives to overlay information about an
artist’s appearance on a TV show.
E) Big data helps in increasing revenues from paid downloads.
An express warranty is a written guarantee that assures the buyer that he or she:
A) is getting what he or she desired.
B) will be able to get express response if any defects are found.
C) is getting what he or she has paid for.
D) will be able to contact the manufacturer whenever needed.
E) has limited time for filling out information required by the manufacturer.
________ can also be thought of as an asset representing the value created by the
relationship between the brand and its customers over time.
A) Brand extensions
B) Co-branding
C) Brand image
D) Brand equity
E) Brand loyalty
Brazilian Carlos Ghosn is chief executive of:
A) Nissan Motor (Japan).
B) Pearson PLC (Great Britain).
C) Ford Motor Company (USA).
D) Pharmacia Corporation (USA).
E) Atlas Copco AB (Sweden).
American Apparel is building a global brand on the positioning “Made in Downtown
LA.”
Which of the following does not contribute to price escalation in global marketing?
A) shipping and insurance charges
B) value added taxes (VAT)
C) different Incoterms as incentives
D) duties and tariffs
E) fluctuating exchange rates