A good example of a global brand name is Microsoft.
Materials management refers to the movement of the firm’s finished products
to its customers, consisting of transportation, warehousing, inventory,
customer service/order entry, and administration.
According to the textbook, factors that impact global pricing decisions include
company, customers, competition, technology.
Local market circumstances do not favor the case of product adaptation.
One of the courses of action that a company can follow when faced with price
controls is to adapt the product line.
Country-image stereotypes cannot hurt a company.
Under strict socialism, the government owns and manages all businesses and no
private ownership is allowed.
Negotiations to establish the postwar (World War II) international monetary system
took place at Bretton Woods, New Hampshire.
Viral marketing involves the selling of disease-causing agents.
Materials management does not include the inflow of raw material, parts, and supplies
through the firm.
Carrefour is a Swiss company.
There is a huge middle-class being developed in Big Emerging Markets (BEMs).
Most nations do not contain different subgroups (subcultures) within their borders.
Treaties and international contracts do not represent formal agreements among nations
or firms.
Because of its affluence, the United States is a typical example of a high-context
culture.
The __________________ form of corporate culture is distinguished by an
embodiment of a long socialization process; strong, power norms; and a
defined set of internalized controls.
a. market based
b. leader based
c. employee based
d. clan based
e. tradition based
Ikea, the Swedish furniture chain, insists that all its stores carry the basic product
line with little room for adaptation to local tastes. If research of the U.S. market
showed that Americans preferred larger beds than their Swedish counterparts, which
of the following strategies would be advisable to Ikea?
a. standardization.
b. new product development.
c. adaptation.
d. withdraw from market.
e. lower prices to encourage attitude change.
Personal selling is predominantly a _________________ activity.
a. psychological
b. ethnic
c. tribal
d. group
e. personal
_______________ is the fastest growing Internet market in Asia.
a. China
b. India
c. Indonesia
d. Hong Kong
e. South Korea
According to the theory of international trade and balance of payments, a surplus or
deficit in a country’s basic balance should be:
a. always weighted toward the deficit side.
b. always weighted toward the surplus side.
c. self correcting.
d. continually out of balance.
e. only brought into balance by government tariff action.
The two most common forms of informal control are human resource development
and _________________.
a. manufacturing
b. production
c. network structure
d. strategic control
e. corporate culture
When making pricing decisions, ______________ set(s) the floor.
a. profits
b. costs
c. demand
d. supply
e. service
In an advertising message, the original slogan was ‘Body by Fisher.’ The translation
in a foreign market was ‘Corpse by Fisher.’ This would be an example of which of
the following types of translation errors?
a. simple carelessness.
b. idioms.
c. local slang.
d. multiple-meaning words.
e. incorrect grammar.
All of the following are examples of market forces EXCEPT:
a. common customer needs.
b. global customers and channels.
c. transferable marketing.
d. experience curves.
e. world brands.
Customization of product has a ______________________ orientation (increase
customer satisfaction by adapting products to the local needs).
a. market-driven
b. service-driven
c. budget-driven
d. promotion-driven
e. product-driven
With respect to properties that an international market segment should ideally possess,
the _________________ property is easily met for the target country when the
researcher examines socioeconomic variables (such as per capita income).
a. identifiable
b. sizable
c. defensible
d. accessible
e. actionable
Adidas, the German sportswear maker, paid a hefty $80 million to $100 million in
cash and services for sponsorship of the 2008 Beijing Summer Olympics. This is an
example of _________________________.
a. event sponsorship
b. sales sponsorship
c. trade shows
d. publicity
e. public relations
Companies that enter via wholly owned subsidiaries are sometimes perceived as a
threat to the culture and/or economic sovereignty of the____________________.
a. host country.
b. home country.
c. buffer country.
d. greenfield country.
e. high-tech country.
To show the increasing power of retailers in today’s business world, the traditional
supply chain that was once powered by the manufacturer has been turned around.
Distribution today is characterized as being ____________ in nature.
a. push
b. pull
c. vertical shove
d. horizontal slant
e. parallelism
When the Wrigley chewing gum company markets its basic products abroad, it keeps
its well-known brands but customizes promotional approaches in individual
countries. Which of the following strategies best describes the strategy that
Wrigley is following?
a. product and communication extension–dual extension
b. product invention
c. product extension–communications adaptation
d. product adaptation–communications extension
e. product and communications adaptation–dual adaptation
In today’s global business, country borders have become increasingly irrelevant. Of all
the forces chipping away at those boundaries, perhaps the most important is the
__________________________.
a. flow of competition
b. flow of power
c. flow of education
d. flow of intellectual capital
e. flow of information
___________________ refers to the inflow of raw materials, parts, and supplies in
and through the firm.
a. Global logistics
b. Physical distribution
c. Materials management
d. Purchasing processes
e. Global distribution
A strengthening of the U.S. dollar relative to the Japanese yen has the effect of:
a. strengthening the Japanese position in the United States.
b. strengthening the U.S. position in Japan.
c. weakening the dollar in Europe.
d. strengthening the yen in Europe.
e. all positions remain unchanged.
The Big Mac Index is published by:
a. The Economist
b. Business Week
c. The Wall Street Journal
d. The New York Times
e. Fortune Magazine
Values tend to be:
a. material bound
b. culture bound
c. language bound
d. time bound
e. none of the above
All of the following are activities that an importer would normally go through in
order to complete the purchase process. Which of the items listed below does not
logically fit?
a. Find a bank in the exporter’s country to handle financial transactions.
b. Establish a letter of credit to smooth the process.
c. Decide on the mode of transfer of goods.
d. Always use an export or import middleman to expedite the process.
e. Check compliance with national laws.
As firms start operating on a global basis, ___________________ need to manage the
shipping of raw materials, components, and supplies among various manufacturing sites
at the most economical and reliable rates.
a. human resource managers
b. logistics managers
c. operations managers
d. outsourcing managers
e. information technology managers
When the case for a transition from a local to a global (or regional) brand name is
made, the firm needs to decide on how to implement the changeover in practice.
Comment on the strategies that might be available for doing this and the considerations
that might steer the manager toward one of the strategies.
How should marketers cope with advertising regulations?
OECD stands for ________________________________________.
Which country consistently achieves the highest growth rates in GDP?
United States
Germany
Japan
Vietnam
China
A _______________________ policy by a host government means that the foreign
company doing business within the country’s borders must gradually turn over
management and operational responsibilities as well as ownership to local companies
over time.
To an extent, the International Monetary Fund served as an _____________________.
International legal bank.
International central bank.
c. International liability bank.
d. International claims bank.
e. None of the above
With respect to brand name changeover strategies, a ________________ strategy
consists of alerting the consumer about an impending brand name change and then
changing the brand name to the global brand name.