1) NAFTA ensures that any product for sale in the U.S., Mexico, and Canada bearing a
certificate of origin qualifies for tariff reduction.
2) If government restrictions prevent majority or 100-percent ownership by foreign
companies, the investing company will have to settle for a minority equity stake.
3) McDonald’s “I’m lovin’ it” and De Beers “A diamond is forever” are themes which
are good examples of global advertising.
4) An organization that engages in global marketing focuses its resources and
competencies on global market opportunities and threats.
5) Movements such as “the Arab Spring” have forced some of the regional leaders to
make economic and political concessions.
6) As the NBAs Chinese site illustrates, it is enough to simply translate a Web site from
the home-country
language into other languages.
7) According to Roger’s diffusion theory, most customers will not purchase expensive
products without the “hands-on” experience marketers call “trial.”
8) According to a speech given by President Barack Obama, in many ways we can
measure America’s bottom line by looking at Caterpillar’s bottom line.
9) A civil-law country is one in which the legal system reflects the structural concepts
and principles of the Roman Empire in the sixth century.
10) If a market researcher would like to know how much the typical Nigerian consumer
spends on soft drinks, the information can be obtained from GNP or GDP.
11) Procter & Gamble encountered strict price controls in Venezuela in the late 1980s.
This showed that when selective controls are imposed, foreign companies are more
vulnerable to control than local ones.
12) If suppliers have enough leverage over industry firms, they can raise prices high
enough to significantly influence the profitability of their organizational customers.
13) The ultimate goal of a free trade agreement is to have standardized duties on goods
that cross borders between the partners.
14) Which of the following can negatively influence the rate of diffusion of an
innovation?
A) substantial relative advantage
B) high compatibility
C) high complexity
D) divisibility
E) high level of communicability
15) Despite the impact of the driving forces, several restraining forces may slow a
company’s efforts to engage in global marketing. These restraining forces may include
all of the following except:
A) management myopia
B) national controls
C) opposition to globalization
D) newcomers from emerging markets
E) organizational culture
16) Rugman and D’Cruz have developed an alternative framework to Porter’s five
forces model. The framework, based on business networks, is called:
A) the differentiation model
B) strategic intent
C) the flagship model
D) the hypercompetition model
E) the Rugman & D’Cruz model
17) Saab markets two luxury car models, both prized by drivers for their “quirkiness.”
About 30% of Saab’s sales come from the USA, with most of the rest from Western
Europe. Which strategy does Saab appear to be using?
A) country concentration/market segment concentration
B) country diversification/market segment concentration
C) country concentration/market segment diversification
D) country diversification/market segment diversification
E) none of the above
18) Sony’s U.S. Consumer segments included all of the following except:
A) Affluent
B) Zoomers
C) SoHo
D) Gen Y
E) Fashionists
19) Which of the following correctly characterizes the retailing strategy shared by Toys
“R” Us and Virgin Megastores?
A) few product categories, own-label focus
B) few product categories, manufacturer brand focus
C) many product categories, own-label focus
D) many product categories, manufacturer brand focus
E) none of the above
20) Which of the following is not identified by Porter as one of the possible types of
barriers to entry in an industry?
A) loose bricks
B) switching costs
C) economies of scale
D) product differentiation
E) access to distribution channels
21) Renault and its rivals are racing to offer middle-class consumers a new value
proposition by selling cars for the equivalent of $10,000 or less. On the heels of
Renaults success with Dacia Logan comes the $2,500 Nano from Indias Tata Motors.
This illustrates that:
A) consumers are looking for low price irrespective of quality
B) Renault is overcharging for their cars compared to their competitors
C) higher product development costs are a driving force behind globalization
D) market success depends on reaching a threshold of acceptable quality for consumers
E) cars are not very popular in emerging markets like India
22) Campbell Soup is making significant inroads into Japan’s $500 million soup market
as time-pressed homemakers place a premium on convenience. This type of consumer
segmentation by Campbell Soup is referred to as:
A) demographic
B) occupational
C) psychographic
D) benefit
E) behavioral
23) When you call United Airlines for a reservation on a toll free number and get a
response from an operator in Mumbai, this is an example of:
A) anti-globalization
B) global marketplace
C) multilingual expression
D) discrimination
E) E-ticketing
24) By definition, ________ feature a narrow but deep merchandise mix and high levels
of service.
A) department stores
B) specialty retailers
C) supermarkets
D) convenience stores
E) discount stores
25) Web sites that provide news and entertainment and support a company’s PR efforts
are known as:
A) company sites
B) transaction sites
C) promotion sites
D) content sites
E) cyber sites
26) Which of the following does not belong in a list of mass production in automobile
company such as Ford?
A) changing value chains
B) use of moving assembly line
C) organized production machinery
D) outsource from supplier specialists
E) each worker was able to do more than craft producers
27) The sale of merchandise in export markets at unfair prices is known as ________.
A) dumping
B) countervailing
C) tariff
D) ad valorem
E) transaction
28) 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
29) Which of the following is arranged starting with the highest level of environmental
sensitivity and ending with the lowest level?
A) food->computers->integrated circuits
B) integrated circuits->food->computers
C) integrated circuits->computers->food
D) computers->food->integrated circuits
E) none of the above
30) If the manufacturer of a sophisticated new consumer electronics product determines
that many target consumers qualify as “innovators” and “early adopters” with relatively
inelastic demand curves, the company should use the ________ pricing strategy:
A) gray market
B) skimming
C) penetration
D) market holding
E) cost-based
31) The cultural environment of a country is best defined by which characteristics?
A) standard of living and stage of economic development
B) production process and standards of measurement
C) attitudes, beliefs, and values
D) degree of nationalism and economic community membership
E) fast food culture and slow food culture
32) Which automaker was described as using an ethnocentric approach to setting prices
in the United States?
A) Toyota
B) Nissan
C) Volkswagen
D) Mercedes
E) Lexus
33) What do Unilever and Procter & Gamble have in common?
A) Revenues at both companies have been hurt by regulations concerning tobacco
advertising and promotion
B) Both companies utilize extension approaches to advertising
C) Both companies rank high in terms of non-U.S. ad spending
D) Both companies use a great deal of corporate advertising
E) Both companies use the same advertising agency
34) When a trained person is recording the items selected in a grocery cart or basket,
the research method is known as:
A) observation
B) survey research
C) focus study
D) secondary data collection
E) personal interviews
35) In contrast to the lean producers, U.S. mass producers typically maintain operations
that involve all of the following except:
A) less mechanization
B) greater labor direct content
C) divide employees with no overlap
D) limited quality control
E) employee teamwork
36) 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 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
37) British entrepreneur Richard Branson has built a global business empire by:
A) relying on brand extension
B) being the first to use smart cards in major markets
C) developing local brands
D) avoiding consumer businesses with established leaders
E) restricting the “Virgin” name only to airlines
38) Which of the following is not a step in the strategic/consultative selling model?
A) develop a marketing mix
B) develop a personal selling philosophy
C) develop a product strategy
D) develop a relationship strategy
E) develop a presentation strategy
39) Disney is hoping to appeal to India’s family-oriented middle-class consumers; the
core themes include “believe in yourself, express yourself, and celebrate your family.”
Disney is also using cable television for its program in a number of local languages and
dialects. This is an example of:
A) capitalizing on astrological beliefs of Indians
B) a first step in introducing U.S. programs in emerging markets
C) attracting families to theme parks in India
D) emphasizing the role of families in emerging markets
E) adapting to cultural differences and going native in emerging markets
40) The world’s most global retailer today in the hypermarket segment is:
A) J.C.Penney
B) Tesco
C) Wal-Mart
D) Carrefour
E) K-Mart
41) Which of the following most accurately describes the state of global public relations
(PR) today?
A) Expenditures on PR are dropping
B) Expenditures on PR are increasing
C) PR practices are standardized worldwide
D) PR is not important in emerging markets like India
E) Foreign investments are increasing
42) A number of multilateral trade agreements have accelerated the pace of global
integration which include:
A) NAFTA
B) GATT
C) WTO
D) EU
E) all of the above
43) The integrated circuit and the concept of binary code permitted the development of
the:
A) transistor
B) radio
C) personal computer
D) smartphone
E) SMS
44) The decision by Toyota executives to introduce the Sienna minivan in the U.S.
market was based on their study of a(n) ________ market.
A) existing
B) latent
C) parallel
D) incipient
E) global
45) The chief executives of Swiss Swatch Group and Japanese Canon would like to:
A) outsource all of the manufacturing units overseas in order to save money
B) outsource a majority of the manufacturing functions overseas
C) retain a majority, if not all, of the manufacturing in their home country
D) establish “call centers” in developing countries in order to save labor costs
E) outsource a full line of new products only
46) The World Trade Organization, which came into existence on January 1, 1995, is
the successor of another organization with the abbreviation:
A) DSB
B) GATT
C) FTAA
D) NAFTA
E) ASEAN
47) Giving examples, show how technology is providing interesting new opportunities
for exploiting linguistics in the name of marketing.
48) What are global retail categories? Describe these categories giving examples.
49) How can observational studies and focus groups be used in marketing research?
What are the different methods by which these studies are conducted?
50) The currency fluctuations in global markets have a big impact on international
transactions. What actions can be adapted if the domestic currency is strong?
51) Nippon Paper Industries was found guilty in a U.S. court of conspiring with other
Japanese companies to raise fax paper prices in the United States under the antitrust
laws. What are the implications of such a law, and how does it affect international
business?
52) Assume that the market segment is judged to be large enough, and the strong
competitors are either absent or deemed to be vulnerable, then is it safe to enter the
country? Justify your answer by giving reasons.
53) Although the ASEAN countries are geographically close, they have historically
been divided in many respects. Elaborate on this statement and highlight the important
economic development of member countries within ASEAN. How does Singapore
represent a special case within the ASEAN nations?