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The Swatch Group is the world's second largest watchmaker. This shows that in the
low-cost segment, brands compete on price and value.
An ad valorem duty is expressed as a percentage of the value of goods.
Dove, a division of Unilever, traditionally targeted men and women with its
Dove-branded skin care products.
In Hellmut Schutte's modified hierarchy to explain the needs and wants of Asian
consumers, the last three levels are affiliation, admiration, and self actualization.
The digital revolution is causing dramatic, desired changes in industry structures.
E-bay pioneered a form of online commerce known as p-to-p or peer-to-peer marketing
whereby individual consumers market products to other individuals.
By producing its ads in France, Revlon obtains effective television commercials at a
much higher cost than it would pay for commercials produced in the United States.
The marginal cost of storing and distributing digitized products"music files, for
example"is practically nothing.
During earlier days, Japanese women almost never used mascara because, by nature,
they have very straight, short and thin lashes. This was observed during a focus group
study.
Selfridge fell victim to various demons and vices and was ousted from the company he
had founded.
Global marketers must determine whether a standardized or an adapted marketing mix
is required to best serve the wants and needs of the consumers.
As the ruble's value fell through most of 2014, Russian consumers rushed to change
rubles to dollars and euros and to buy big-ticket items such as big-screen TVs and
luxury cars.
The elements of the promotion mix are advertising, public relations, personal selling,
process, and sales promotion.
In Sweden, where the government controls two-thirds of all expenditures, resource
allocation is more "market" oriented than "command" oriented.
The failure of partnership between Great Britain's General Electric Company was
blamed in part due to the fact that it was run by engineers.
The "extension versus adaptation" debate is essentially a debate over 'standardized
versus localized" advertising.
Tang drink powder became a $1 billion brand as regional managers in the Middle East
added mango and pineapple flavors.
In countries with high levels of economic development, low incomes limit the range of
promotional tools available. In such countries, free samples and demonstrations are
more likely to be used than coupons or on-pack premiums.
Canada's Imax Corporation is the world's premier provider of large-format motion
picture
projection technology. The company has identified 900 potential markets for new Imax
theaters;
two-thirds of those are global.
In a country and market concentration strategy, a company serves many markets in a
few countries.
For every one yen increase relative to the American dollar, Canon's operating income
declines by 6 billion yen.
McDonald's global marketing strategy is based primarily on local marketing mix
elements.
A fundamental difference between regular marketing and global marketing is the scope
of activities.
The term consumer packaged goods applies to a specific variety of products whose
packaging is designed to protect or contain the product during shipping, at retail
locations, and at the point of use or consumption.
In a massive security breach, North Korean hackers leaked data, memos, and films
stolen from Sony in retaliation for Sony Pictures Entertainment's The Interview.
Relative advantage refers tohow a new product compares with existing products or
methods in the eyes of the competitors.
Arabic ads contain more price information, and are more likely to include comparative
appeals than U.S. ads.
Nestl asked suppliers to find a type of glue to make the clicking sound louder when
consumers snap open a tube of Smarties brand chocolate candies.
Patents and trademarks that are protected in one country are protected in another, so
global marketers must ensure that patents and trademarks are registered.
Although Bangladesh is categorized in the low-income countries, the country has
opportunities, particularly in the garment industry.
In the United States, Levi Strauss & Company has to face competitive behavior since
Wrangler and Lee brands are being marketed by VF Corporation.
Toyota and Honda are two examples of companies that exhibit key characteristics of
transnationality.
According to Roger's diffusion theory, most customers will not purchase expensive
products without the "hands-on" experience marketers call "trial."
India's Tata Motors launched the Nano, a radical new design with a rock-bottom sticker
price of $2,500.
For behavior segmentation, marketers use the 80/20 rule when assessing the consumers'
usage rate, which means that 20% of the company's revenues or profits are accounted
for by 80% of the firm's products or customers.
Which of the following is true about proper use of the term "countertrade"?
A) The term "countertrade" is interchangeable with "offsets."
B) The term "countertrade" is interchangeable with "barter."
C) The term "countertrade" is interchangeable with "counterpurchase."
D) "Countertrade" is a blanket term that refers to several different types of business
transactions.
E) The term "countertrade" is interchangeable with "dumping."
Physical distribution and logistics are concerned with all but one of the following:
A) order processing.
B) warehousing.
C) inventory management.
D) transportation.
E) designing in-store displays.
According to Christensen's five principles of disruptive innovations, the following
statement is not true:
A) companies depend on customers and investors for resources.
B) small markets solve the growth needs of large companies.
C) markets that don't exist can't be analyzed.
D) an organization's capabilities define its disabilities.
E) technology supply may not equal market demand.
Companies that fail to formulate adequate responses to the challenges and opportunities
of globalization will face all of the following consequences except:
A) getting absorbed by visionary enterprises.
B) getting absorbed by dynamic enterprises.
C) becoming locally profitable enterprises.
D) undergoing wrenching transformations.
E) simply disappearing from the business horizon.
Strictly speaking, a (n) ________ is an entry strategy for a single target country in
which the partners share ownership of a newly created business entity.
A) acquisition
B) licensing
C) franchising
D) joint venture
E) exporting
A freighter loaded with 40-foot shipping containers leaves a port in Europe and sails to
New York, where the containers are transferred to railroad cars and transported to the
west coast. At the port of San Francisco, the containers are loaded onto another
freighter bound for Japan. The term that best describes this situation is:
A) intermodal transportation.
B) inventory management.
C) greenfield investment.
D) hypermarketing.
E) containerization.
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.
Which of the following doesnot describe the Toyota Production System (TPS)?
A) jidoka
B) "just-in-time"
C) fixed setup time
D) built-in quality
E) visualizing problems
All of the following activities must be performed when goods cross international
boundaries except:
A) obtaining currency permit, if required.
B) packaging goods for export.
C) using the cost-based pricing method.
D) arranging for ocean freight and preparation.
E) obtaining marine insurance and certificate of the policy.
Before Ben & Jerry's launched their ice cream in the United Kingdom, the company
conducted extensive research to determine whether the package design was appropriate.
The research indicated that British consumers perceived the colors differently than U.S.
consumers. The package design was changed accordingly. This type of strategy can be
defined as:
A) product-communications extension.
B) product extension-communications adaptation.
C) product adaptation-communications extension.
D) product-communication adaptation.
E) product invention.
The new country which joined the EU at the beginning of 2015 is:
A) Slovakia.
B) Lithuania.
C) Latvia.
D) Slovenia.
E) Cyprus.
Dollar stores are classified under:
A) Convenience stores.
B) Specialty retailers.
C) Discount retailers.
D) Hard discounters.
E) Category killers.
Maslow's hierarchy is applicable to global marketing because it can help explain how:
A) basic human needs can drive the development of global products.
B) 'self-actualization" is the highest-order need in Japan as well as Western nations.
C) status needs in different countries can only be fulfilled with localized products.
D) "luxury badging" is irrelevant to companies marketing in Asia.
E) Asians differ from Westerners in their basic physiological needs.
Giving business cards with the left hand in Malaysia, showing soles of shoes to a host
in Saudi Arabia, and winking one eye in India are all considered impolite interpersonal
communication due to the fact that:
A) in Middle Eastern countries it is customary to take off shoes at the door.
B) it is difficult to notice when one winks eyes since there are many people in India.
C) people pick up nonverbal cues and understand intuitively without being told.
D) these actions distract people from hearing at meetings.
E) people are not aware of Western ways of doing business.
Which of the following isnot characteristic of mass marketing?
A) Product benefits do not typically include home delivery.
B) Advertising is used to generate an immediate inquiry or purchase.
C) Repetition of ads is the key to awareness and remembering.
D) The customer perceives relatively little risk.
E) Purchase action is deferred.
According to the authors of the Harvard Business Review article, "Serving the World's
Poor, Profitably," which of the following is a mistaken assumption that global
companies might have about the BOP (bottom of the pyramid)?
A) The poor have no money.
B) The poor are too concerned with fulfilling basic needs to "waste" money on
nonessential goods.
C) People in BOP markets will be criticized for exploiting the poor.
D) People in BOP markets cannot use advanced technology.
E) All of the above are mistaken assumptions discussed by the authors.
According to the Fortune magazine's ranking of the global 500 companies for 2014, the
largest corporation based on revenues is:
A) Exxon Corporation.
B) Toyota Motors.
C) Royal Dutch Shell.
D) General Electric.
E) Walmart stores.
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.
While South Korea is considered as "ready for tomorrow" in terms of Internet speed,
countries which are "below today's applications threshold" include all of the following
except:
A) the United States.
B) Germany.
C) India.
D) Hong Kong.
E) China.
________ represents a market entry strategy whereby one company permits a foreign
company to make use of its patents, know-how, technology, company name, or other
intangible assets in return for a royalty payment.
A) A joint venture
B) One-hundred-percent ownership
C) Licensing
D) Exporting
E) A Global strategic alliance
The Gross Domestic Product (GDP), a measure of a nation's economic activity, is
calculated by all of the following factors except:
A) consumer spending.
B) investment spending.
C) government purchases
D) industry purchases.
E) net exports.
Which of the following correctly states the role of banks in import/export transactions
involving a letter of credit (L/C)?
A) The importer's bank is the advising and/or confirming bank; the exporter's bank is
the issuing bank.
B) The exporter's bank is the advising and/or confirming bank; the importer's bank is
the issuing bank.
C) The exporter's bank is the advising, confirming, and issuing bank.
D) The importer's bank is the advising, confirming, and issuing bank.
E) none of the above
Employee ability is emphasized in a lean production environment. Before being hired,
people seeking jobs with Toyota participate in the Day of Work, an assessment test to
determine who has the right mix of qualities. These qualities include all of the
following except:
A) dexterity.
B) team attitude.
C) problem solving.
D) decision making.
E) team work.
Guidelines which can assist managers in their effort to establish global brand leadership
include all of the following except:
A) create a compelling value proposition for customers.
B) before taking brand overseas, select name, marks and symbols.
C) make a process template available to all managers.
D) assign specific responsibility for managing branding issues.
E) make a process template for international consumers.
Developed under the auspices of the Custom Cooperation Council (now the World
Customs Organization) the system which took effect is referred to as:
A) preferential tariffs.
B) harmonized tariff.
C) BTN duty.
D) specialized tariff.
E) antidumping duty.
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.
Sweden applies a system to certain categories of imported agricultural products referred
to as:
A) temporary surcharges.
B) ad valorem duty.
C) variable import levies.
D) specific duty.
E) countervailing duty.
The enlargement of the EU has impacted marketing strategies in the Eurozone countries
by:
A) making it difficult to export food products from one country to another.
B) increasing the cost of production since the euro replaced local currency.
C) shifting products from one market to another in the event of shortages.
D) reduced tariffs and quotas for products imported from non-EU members.
E) having less flexibility in the placement of factories.
A. Coskun Samli had developed a useful approach to global market segmentation that
compares and contrasts "conventional" versus "unconventional" wisdom. An example
of unconventional wisdom can be identified with one of the following assumptions:
A) Since per capita annual income in India is about $1,420, all Indians have low
income.
B) Consumers in Europe and Latin America are interested in World Cup soccer whereas
Americans are not.
C) There is a presence of a higher-income, middle-class segment in India.
D) The potential customer base for McDonald's in India is greater than in any
developed country.
E) There is no running water and electricity in India.
The world's five largest malls are in Asia.
Which of the following is not recommended by expert David Arnold for companies
engaged in global market research?
A) use multiple indicators
B) develop customized measures specific to an industry or product
C) conduct comparative assessments in neighboring countries
D) observation should be weighted more heavily than statements of purchase intention
E) assess a particular market in isolation
The organization design in which an employee reports to both a country manager and a
functional manager is a(n):
A) matrix structure.
B) international division structure.
C) geographic structure.
D) worldwide product division structure.
E) regional management center.
Joseph Tripodi is Chief Marketing and Commercial Officer of:
A) Gap (United States).
B) Levi's (United States).
C) L'Oreal (France).
D) Coca-Cola (United States).
E) SAP AG (Germany).
