The sale in one country market generates demand in another country. This phenomenon
is best described as:
A.demand spillover.
B.counterfeit.
C.brand extension.
D.gray trade.
Which of the following is often used to identify potential distributors in a new foreign
market?
A.Global publicity
B.Global public relations
C.International trade fairs
D.Cross-marketing
Differentiate between global and local brands with examples.
The development of high-technology areas such as Silicon Valley south of San
Francisco can be best explained by:
A.international product cycle.
B.new trade theory.
C.cycle of innovation.
D.circular flow of innovation.
According to the _____, a country can become efficient in the production of goods in
which it starts with little or no comparative advantage.
A.international product cycle
B.new trade theory
C.cycle of innovation
D.circular flow of innovation
Unforeseen shifts in customer preferences, potential channel conflict, uncertainty about
advertising effectiveness, and competitors’ price cuts are managerial headaches during:
A.the foreign entry phase.
B.the local marketing phase.
C.both foreign entry and local marketing phases.
D.the global management phase.
One of the factors influencing the choice of brand in the U.S. is:
A.risk reduction.
B.achievement.
C.feel good.
D.recognition.
The major advantage derived from establishing an FDI through an acquisition rather
than by a greenfield investment is derived from the fact that an acquisition:
A.is always less expensive.
B.allows faster penetration of the local market.
C.is not subject to political instability risks.
D.is typically easier to finance.
Hall’s “silent language” is composed of all of the following factors EXCEPT:
A.time.
B.space.
C.gesticulation.
D.material possessions.
Which of the following methods of budgeting for advertising is accomplished by
multiplying last year’s sales by some advertising-to-sales ratio?
A.Competitive parity
B.Percentage-of-sales
C.Objective-task
D.All-you-can-afford
The scarcity of comprehensive and accurate postal and/or telephone listings in some
foreign countries makes it difficult to construct an appropriate:
A.sampling frame.
B.questionnaire.
C.focus group.
D.causal link.
The MOST important cost savings from global marketing are usually the gains realized
from avoiding unnecessary:
A.tariffs.
B.duplication.
C.economies of scale.
D.economies of scope.
Parmalat Corporation desires to take advantage of its globally known brands by using
them to facilitate the introduction of new (and unrelated) products to their line. The firm
is considering a strategy of:
A.brand proliferation.
B.brand equity.
C.brand hierarchy.
D.brand extension.
The underlying framework that guides an individual’s perceptions of observed events
and personal interactions, and the selection of appropriate responses in social situations
is:
A.psychology.
B.sociology.
C.linguistics.
D.culture.
The First-American Corporation has decided to enter Europe as an OEM supplier to
domestic firms. The firm is following a(n):
A.niche strategy.
B.pan-European strategy.
C.enclave strategy.
D.market retreat strategy.
The America-First Corporation often engages in exporting parts and components to its
foreign-based units. The firm’s action would be BEST described as:
A.intra-organizational transfers.
B.joint ventures.
C.franchise agreements.
D.licensing agreements.
The America-First Corporation strongly believes that its customers should not be
saddled with the need to arrange for shipment and insurance for the goods they
purchase. Accordingly, the firm is MOST likely to quote its prices:
A.F.O.B.
B.C.I.F.
C.E.M.C.
D.C.O.D.
The network theory is, in many ways, an extension of earlier networks such as:
A.Japanese keiretsus.
B.U.S. matrix organizations.
C.German polycentric organizations.
D.Scandinavian ethnocentric organizations.
Which of the following statements about tariffs is (are) incorrect?
A.Tariffs are intended to make the entry of foreign goods into “local” markets more
difficult.
B.Examples of tariffs on products are slow customs procedures, special product tests for
imports, and bureaucratic inertia in processing import licenses.
C.The inclusion of local content may lead to lower tariffsor the waiver of tariffs
completely.
D.”Screwdriver assembly plants” may be used to avoid high tariffs.
The America-First Corporation is attempting to estimate the portion of industry sales it
can reasonably expect in each of several potential markets. The firm is engaged in
estimating:
A.market growth.
B.market interdependence.
C.market share.
D.market size.
The Harley-Davidson Corporation would like to sell its new fuel-efficient motorcycle in
China, and wants to offer a lower priced version to ward off “me-to” imitators. Which
of the following methods would be the BEST approach to keep costs/prices down?
A.Offer credit installment options.
B.Protect the design through copyrights.
C.Offer less after-the-sale service.
D.Enter into a joint venture with a local partner.
Market share dominance is of primary importance to the firm operating in a(n):
A.emerging market.
B.declining market.
C.high-growth market.
D.mature market.
Which of the following is most consistent with the concept of the learning
organization?
A.International product cycle
B.Diamond of national advantage
C.New trade theory
D.Circular flow of innovation
Perceived globality of a brand:
A.involves a sense of loss in the large cosmopolitan world.
B.adds a cachet of esteem and prestige.
C.is consistently associated with high product quality, across a few countries, and
across specific product categories.
D.is associated strongly with excessive consumerism and greed.
The first stage of the consumer research process is:
A.sampling.
B.questionnaire construction.
C.problem definition.
D.research design.
As international trade expands and its management requires more time and resources,
the firm may seek to divide the international division into trade regions and create a(n):
A.export department.
B.international division.
C.strategic business unit.
D.geographical/regional structure.
The First Canadian Trading Corporation is preparing an advertising campaign for its
entry into South Korea. The campaign, which will focus on the larger cities, will
PROBABLY emphasize _____ medium.
A.radio
B.Internet
C.print
D.outdoor
In relation to political risk, where the risk index is high, _____________ becomes
necessary, with any proposed strategy tested against alternative political developments.
A.scenario planning
B.preliminary screening
C.innovation
D.research
In order to take possession of goods processed through customs, a foreign buyer must
present shipping documents and pay any duty assessed. The documents are referred to
as:
A.the title of ownership.
B.the bill for shipping.
C.the sales receipt.
D.the bill of lading.
The MOST basic requirement for fair trade certification is a guarantee on the part of the
multinational buyer to
A.engage in environmentally sustainable practices.
B.pay a reasonable price for the supplies from a producer.
C.promote healthy working conditions.
D.discourage local competition.
Mont Blanc, a global marketer of high-priced luxury goods, is considering entry into
the Southeast Asia market. Its efforts may be aided by the region’s “If you’ve got it,
flaunt it” maxim since very little stigma is attached to hedonic pleasures in their:
A.Buddhist credos.
B.Catholicism.
C.Confucianism.
D.Protestantism.
Buyers’ product and service needs and preferences vary considerably. The reason for the
variation lies in:
A.rational consideration only.
B.advanced marketing skills.
C.consciously recognized factors only.
D.locational and cultural factors.
Western markets tend to be analyzed in terms of:
A.Social factors
B.Cultural factors
C.Individual consumer
D.Political behavior
Assume that Neiman-Marcus Corporation wants to launch its gourmet foods in urban
upscale areas of Latin America. How should N-M seek to ensure adequate distribution?
_____ is a form of indirect promotion which seeks to create and maintain worldwide
goodwill toward the corporation.
The America-First Corporation is concerned with maintaining control over its foreign
operations. Briefly describe the three alternative means of organizing the local
marketing effort with respect to risk and control.
While _____ are characterized by low levels of product penetration, a weak marketing
infrastructure, relatively unsophisticated consumers with weak purchasing power, and
weak domestic competitors, _____ show greater purchasing power and more
demanding customers.
The America-First Corporation insists that executives about to receive foreign
assignments receive instruction in Hall’s “silent languages.” Briefly discuss the basic
content of the firm’s course and evaluate the impact/importance of each of the silent
languages. Why should the dangers of self-referencing be stressed?
Differentiate global public relations from publicity. Why are stakeholders important?
Coca-Cola Corporation does not hesitate to be the first to enter new industrialized
markets even in the face of high tariff barriers or considerable political risks. It may
believe that those markets offer good future prospects. The firm is hoping to gain _____
Yamaha Corporation, a producer of world class racing motorcycles, has decided to
underwrite several major races to feature its entries in several biking categories. At the
opening race of the season, Evel Knievel will introduce one of the firm’s new bikes in a
“comeback” effort at setting a new world motorcycle jump record. How would
Yamaha’s promotional strategy be BEST described?
New growth markets are also called _____.
In a marketing context, OEM is similar to selling a(n) _____ brand, which means
letting another firm put its name on the product.
What is the major concern facing a marketer trying to coordinate a global sales effort?
What factors influence this problem?
Firms which opt for either the pure export mode or foreign direct investment are
practicing the strategy of _____.
The traditional justification for a country’s exports is the principle of _____
advantage-which may be derived from either _____ or _____ advantages.
Marketing research that seeks to establish a link between a decision variable and a
result measure is called _____ research.
Generally, it is believed that statistical methods of sales forecasting are more accurate
than judgmental approaches. Briefly examine the two most widely used statistical
forecasting methods to assess the validity of this belief for international marketing.
