1) Licensing is a contractual agreement whereby one company (the licensor) makes a
legally protected asset available to another company (the licensee) in exchange for
royalties, license fees, or some other form of compensation.
2) “Mecca Cola” and “Qibla Cola” are brand names given to Coca-Cola for effective
marketing in Muslim countries.
3) As a component of abstract (as opposed to physical) culture, many forms of music
exhibit the same “think global, act local” paradox that is at the heart of global
marketing.
4) In Brazil, where the inflation rate was high during the late 1980s, individual unit
pricing rather than shelf pricing became the norm.
5) Volkswagen Auto Group of America markets both the VW and Audi nameplates in
the United States. The VW brand has been hampered by perceptions of hit-and-miss
quality.
6) The thirty nations that belong to the OECD, who believe in market-allocation
economic systems and pluralistic democracy, addressed the vexing problem of bribery
by requiring members to cooperate when pursuing bribery allegations.
7) A major difference between the flagship model and Porter’s is that Porter’s is based
on the notion of corporate individualism and individual business transactions.
8) Gray color is associated with high quality and expensive in the United States,
whereas it is considered inexpensive in China and Japan.
9) Industrial growth patterns generally reveal consumption patterns, which in turn can
be helpful in knowing production patterns that can be used in assessing market
opportunities.
10) According to D’Aveni, in today’s business environment, short product life cycles,
short product design cycles, new technologies, and globalization undermine market
stability; thereby an acceleration of competitive forces takes place.
11) If a potential Latin American customer insists on giving you a tour of the
architectural highlights of his city prior to discussing business, it s a clue that you are
doing business in a high-context culture.
12) In 2008, the largest merger and acquisition deal in the pharmaceutical industry,
Roche’s acquisition of Genentech, is an example of an equity stake.
13) Sony entered into a strategic partnership with Samsung in order to produce
flat-panel TV screens due to the high product development costs.
14) Subway chains in India had to educate consumers about the benefits of the
company’s sandwiches since Indians normally did not consume buns.
15) Harley-Davidson’s motorcycles competitive advantage is based in part on its “Made
in the USA” positioning.
16) Even in the face of such tough and growing competition, Adidas still enjoys high
brand loyalty among older Europeans. The company recruits young people and pays
them to wear Adidas shoes in public. This is an example of:
A) local advertising
B) pattern advertising
C) global advertising
D) advocacy advertising
E) image advertising
17) The new country that joined the EU on January 01, 2011 is:
A) Slovakia
B) Estonia
C) Bulgaria
D) Slovenia
E) Cyprus
18) A ban on billboards in Brazil meant they have to come down, and in addition,
transit ads on buses and taxis were not allowed. Denied access to traditional outdoor
advertising, companies devised a number of alternative ways to communicate with
prospective customers. These ways included all of the following except:
A) Citibank used the color blue in much of its advertising
B) ads were placed indoors in elevators
C) ads were placed in rest rooms and other indoor traffic areas
D) ads were placed on buses
E) ads were placed using social media or online channels
19) A duty that represents a certain percentage of the value of a particular product is
a(n):
A) specific duty
B) ad valorem duty
C) BTN duty
D) ‘schedule B” duty
E) antidumping duty
20) ________ represent(s) the cumulative added value of a company’s investment in the
marketing of a brand over time.
A) Brand extensions
B) Co-branding
C) Brand image
D) Brand equity
E) Brand loyalty
21) Coca-Cola achieved success in the Japanese market primarily by:
A) standardization of marketing mix elements
B) global localization
C) vending machine operations
D) selecting market mix options
E) homogenization
22) For a country like Slovenia to enhance its image abroad is a very different matter
than for China.
23) CRM tools allow companies such as Credit Suisse, AT&T , Hewlett-Packard and
others to determine:
A) warranty of products sold to consumers
B) amount paid by consumers in different countries
C) which customers are most valuable
D) the use of credit cards for payment
E) the use of laptop computers by customers
24) The essence of marketing worldwide is to surpass the competition in creating
perceived value, which can be represented as:
A) Value = Price/Benefits
B) Value = Benefits/Price
C) Value = Benefits x Price
D) Value = Benefits – Price
E) Value = Benefits + Price
25) Which of the following is true about the innovation diffusion process in Asia?
A) Japan has a high-context culture with a relatively homogeneous population
B) Because risk avoidance is a cultural value, there are fewer innovators in Asia than in
the United States
C) Once innovators in Asia have tried a product, early adopters and the early majority
quickly follow suit
D) After a new product has achieved success in one Asian market, it is likely to be
adopted in other Asian markets at an even faster rate
E) all of the above are true
26) When the subheads and body copy of an advertisement are localized, not simply
translated, is an example of:
A) local advertising
B) global advertising
C) pattern advertising
D) advocacy advertising
E) stereotype advertising
27) When consumers have difficulty in verbalizing their perceptions, and there are
different alternative brands of toothpaste, what is the best method of judging them in
terms of similarity?
A) cluster analysis
B) MDS
C) dependence techniques
D) factor loading
E) focus group
28) Order processing, warehousing, and inventory management are all functions
pertaining to:
A) a polycentric orientation
B) physical distribution and logistics
C) sales promotion
D) personal selling
E) chain acquisition
29) Porsche AG uses the label “Top Guns” to describe one segment of its customers,
namely those who care about power and control and who expect to be noticed. Such a
profile would be based on which type of segmentation?
A) demographic
B) occupational
C) psychographic
D) behavioral
E) gender
30) 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
31) 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
32) In October 2011, the United States Congress finally ratified the long-delayed free
trade areas with South Korea, Panama, and Colombia.
33) Low-income countries have a GNI per capita of less than $996. The general
characteristics shared by countries at this income level include all of the following
except:
A) high literacy rates
B) high birth rates
C) heavy reliance on foreign aid
D) political unrest
E) high agricultural population
34) A market ________ pricing strategy calls for setting price levels that are low
enough to quickly build market share.
A) gray marketing
B) skimming
C) penetration
D) market holding
E) cost-based
35) Upper-middle-income countries, also known as industrializing or developing
countries, are those with GNI per capita ranging from:
A) $996 to $3,945
B) $3,946 to $12,195
C) $12,196 or higher
D) less than $995
E) no correct answer
36) Which promotional mix element is most closely associated with activities designed
to foster goodwill and understanding with various constituents both inside and outside
the company?
A) personal selling
B) advertising
C) public relations
D) sales promotion
E) publicity
37) Other international personal selling approaches that fall somewhere between sales
agents and full-time employee teams include all of the following except:
A) exclusive license arrangements
B) contract manufacturing or production
C) management-only agreements
D) franchising
E) joint ventures
38) The retail environment in developing countries presents challenges for marketing
nonperishable items. In Mexico, Proctor & Gamble, Unilever, Colgate-Palmolive, and
other global consumer product companies use ________ for their products:
A) door-to-door selling
B) buy-in-bulk selling
C) mom-and-pop stores
D) franchised stores
E) manufacturer-owned stores
39) If an American businessperson pays a Russian customs agent a $20 cash
“processing fee” to avoid delay in leaving Russia, the American has violated the
Foreign Corrupt Practices Act (FCPA).
40) The general characteristics shared by low-income countries do not include:
A) high birth rates
B) low literacy rates
C) concentration in Africa south of the Sahara
D) heavy reliance on foreign aid
E) lack of genuine market opportunities
41) In addition to ‘selling” their visions, top management at both Whirlpool and GE face
the formidable task of building:
A) their company stature
B) physical layout and design
C) a cadre of globally oriented managers
D) a cadre of loyal customers
E) access to distribution channels
42) Argentina provides a good example of how a country can emerge from an economic
crisis as a stronger global competitor. An example of emergency measures implemented
by Argentina include:
A) Argentina reduced the duties on consumer goods
B) Argentina devalued its currency for exports and capital transactions
C) Argentina added tariffs on imported wines
D) Argentina adopted the U.S. dollar as official currency
E) Argentina added tariffs on wine produced within the country
43) Germany’s Mittelstand companies have been extremely successful pursuing
________.
A) cost leadership
B) differentiation
C) cost focus
D) focused differentiation
E) cost differentiation
44) Which country or region offers direct marketers the advantage of a well-developed
mailing list industry?
A) United States
B) Japan
C) Western Europe
D) Latin America
E) South Korea
45) Around the world, various brands of personal computers are sold with Pentium
processors. This fact is often used as a selling point, with advertising that proclaims
“Intel Inside.” Which branding concept does such advertising reflect?
A) brand equity
B) co-branding
C) brand image
D) brand extension
E) tiered branding
46) Which personal computer company began life as a b-to-b marketer and then began
marketing direct to the home PC market?
A) Hewlett-Packard
B) Compaq
C) Dell
D) Acer
E) Sony
47) Colgate’s Total is a new toothpaste brand whose formulation, imagery, and
consumer appeal were designed from the beginning to translate across national
boundaries. Which strategy did Colgate use with Total?
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product innovation
48) Export marketing does not require:
A) an understanding of the target market environment
B) the use of marketing research
C) identification of market potential
D) a selling approach
E) any decisions concerning product design
49) Which of the following currently owns a 70% stake in Skoda, the Czech
automaker?
A) GM
B) Volkswagen
C) Ford
D) DaimlerChrysler
E) Renault
50) Any company doing business outside the home country should first carefully study
the ________ in the target country.
A) political culture
B) nationalization
C) political risk
D) jurisdiction
E) sovereignty
51) Jaguar produced so few cars that it couldn’t get volume discounts from components
suppliers. Jaguar managers sometimes could not even determine the “fair” price for a
particular part. In terms of Porter’s competitive forces framework, Jaguar’s strategic
disadvantage stemmed from low:
A) buyer power
B) supplier power
C) threat of new entrants
D) threat of substitute products
E) access to distribution channels
52) Which of the following is not true of secondary data about global markets?
A) It was not gathered specifically for the research project at hand
B) It is often so expensive that small companies can’t afford to use it
C) It can be accessed quickly
D) A great deal is available from government agencies
E) It cannot be retrieved online
53) Which of the following would not be used by an exporter with a weak
home-country currency?
A) Expand product line and add more costly features
B) Speed repatriation of foreign-earned income
C) Buy advertising, insurance, and other services in home-country market
D) Shift sourcing outside home-country market
E) Exploit marketing opportunities in all markets
54) A person who assumes that his or her home country is superior to the rest of the
world is said to have:
A) ethnocentric orientation
B) polycentric orientation
C) regiocentric orientation
D) geocentric orientation
E) no correct answer
55) An export administrator, Beth Dorrell, notes, “A commodity raw material from
Africa can be refined in Asia, then shipped to South America to be incorporated into a
component of a final product that is produced in the Middle East and then sold around
the world. In light of this statement, describe supply chain, value chain, and logistics.
List and briefly describe the most important distribution activities.
56) Authors Prahalad and Hammond have identified several assumptions and
misconceptions about the “bottom of the pyramid” (BOP). Explain these assumptions,
giving examples.
57) The form and substance of a company’s response to global market opportunities
depend greatly on management’s assumptions or beliefs. What is meant by this
statement?
58) A global company that has the ability to successfully transform a domestic
campaign into a worldwide one or to create a new global campaign from the ground up,
possesses a critical marketing advantage. Explain this statement in light of the global
advertising.
59) Maslow’s needs hierarchy provides a useful framework for understanding how and
why local products and brands can be extended beyond home-country borders. How can
needs hierarchy be used in global marketing?
60) Global marketing does not necessarily mean operating everywhere since there are
forces affecting global integration and global marketing. Justify this statement using
examples based on the world economic trends.
61) The ultimate test of an organization’s understanding of the power and importance of
public relations occurs during a time of environmental turbulence. In light of this
statement, explain the importance of public relations and show how it differs around the
world.
62) The formation and enlargement of the European Union have wide everlasting
impact on marketing strategies and marketing mix. Discuss this giving examples from
member nations.
63) What is meant by e-commerce? How can the e-commerce activities be classified?
64) McDonald’s organizational design integrates the international division and
geographical structures. How does the geographical and product division structure work
in a global context?