1) A global brand has the same name and, in some instances, a similar image and
positioning throughout the world.
2) A call option in foreign currency gives the buyer the right, not the obligation, to sell a
specified number of foreign currency units at a fixed price, up to the option’s expiration
date.
3) In centrally planned socialism economic systems, since demand typically exceeds
supply, the elements of the marketing mix are not used as strategic variables.
4) When utilizing the services of a local independent distributor, management is well
advised to yield control of marketing strategy to the distributor.
5) In Japan, the biggest barrier facing U.S. auto manufacturers is that half the cars that
are sold each year are sold door-to-door.
6) In Asia, Western luxury goods marketers have long relied on independent distributors
such as Hong Kong-based Fairton, whose local market knowledge and networks of
stores are keys to success.
7) Indra Nooyi, chair and chief executive of PepsiCo, is faced with rising commodity
prices and weak demand for carbonated soft drinks internationally.
8) A brand is a complex bundle of images and experiences in the customer’s mind. It is
a promise by a particular company about a particular product.
9) Michael Porter’s generic strategy framework is derived from the basic types of
competitive advantage and the scope of the target market served.
10) In centrally planned socialism economic systems, the state allocates resources,
whereas production resources are privately owned.
11) Nokia and Motorola are among the cell phone marketers that have opened branded
stores in London and Moscow.
12) Germany’s Bayer Group was fined millions of dollars to settle a lawsuit alleging it
had conspired with ArcherDanielsMidland and other global companies to set prices for
an enzyme used in animal feeds. What was the issue in this lawsuit?
A) price skimming
B) market penetration
C) price bundling
D) price fixing
E) dumping
13) The member of the Gulf Cooperation Council (GCC) with the largest economy and
population size is:
A) Bahrain
B) Kuwait
C) Oman
D) Qatar
E) Saudi Arabia
14) “Small markets don’t solve the growth needs of large companies” and “markets that
don’t exist can’t be analyzed” are two principles of disruptive innovation. These
principles are integral to:
A) the five forces model
B) the flagship model
C) strategic intent
D) the innovator’s dilemma
E) the innovator’s dream
15) Which of the following completely eliminates the risk of nonpayment by an
importer or a bank in an international transaction?
A) documentary credit (letter of credit)
B) documentary collection
C) cash in advance
D) sales on open account
E) draft
16) Intel’s focus on designing complex, expensive microprocessors for PCs enabled
competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic
intent model of competitive advantage, this is an example of:
A) building layers of advantage
B) loose bricks
C) changing the rules of engagement
D) collaborating
E) none of the above
17) Which of the following is true of the arbitration framework created by the New
York Convention?
A) Signatory countries can require parties to an arbitration agreement to actually use
arbitration
B) Signatory countries recognize and can enforce arbitration judgments
C) There are limited grounds for appealing arbitration decisions
D) The grounds that are recognized are different than the typical appeals that are
permitted in a court of law
E) all of the above
18) According to Michael Porter’s research on the competitive advantage of nations,
Switzerland’s large synthetic dye industry and the success of the Swiss pharmaceuticals
can be explained in terms of:
A) factor conditions
B) demand conditions
C) strategy, structure, and rivalry
D) related and supporting industries
E) formation of the European Union
19) Nestl, Unilever, GlaxoSmithKline, and Royal Philips Electronics can be considered
transnational companies on the basis of:
A) sales outside the home country to total sales
B) assets outside the home country to total assets
C) employees outside the home country to total employees
D) headquartered in a relatively small home-country market
E) all of the above
20) European consumers have faced a number of food-related issues, including an
outbreak of hoof-and-mouth disease and continuing concerns over mad cow disease. As
a result, many are skeptical about GMOs (genetically-modified organisms) and the
benefits of eating food products that incorporate genetically-engineered ingredients. As
one French citizen noted recently, “We have a very risk-averse society that has been
completely traumatized by food scares.” Thinking about this situation in terms of
Hofstede’s cultural values framework, one might reasonably interpret this remark to
indicate that France ranks relatively high in:
A) Power Distance
B) Short-term Orientation
C) Masculinity
D) Uncertainty Avoidance
E) Individualism
21) Singapore banned the import, manufacture, and sales of chewing gum in the
country since wads of gum were making a mess on sidewalks, buses, and subway trains.
Violators are subject to severe penalties, and before buying a pack consumers must
register their names and addresses. This, according to author William Greider,
demonstrates that Singapore’s government:
A) is harshly autocratic
B) administers a paranoid control over Singaporeans
C) administers a paranoid control over press and politics
D) runs an effective welfare state
E) all of the above
22) The Maastricht Treaty called for:
A) the creation of an Asia Free Trade Area (AFTA)
B) the creation of an economic and monetary union (EMU) in Europe
C) Chile’s acceptance into Mercosur
D) the purchase of CDs and tapes from distributors in Europe
E) the creation of the seven-nation European Free Trade Association (EFTA)
23) When the Coca-Cola Company was developing its new Dasani bottled water brand,
linguists helped guide the naming process. For example, the recurring “a” was chosen
because it has a soothing sound. In linguistics, issues pertaining to letters and sounds
are matter of:
A) syntax
B) semantics
C) phonology
D) semiotics
E) semantics
24) Officially, the EU tariffs on Chinese and Vietnamese shoe imports are known as
________.
A) Countervailing duties
B) Antidumping duties
C) Specific duties
D) Ad valorem duties
E) Temporary surcharges
25) GM executives are looking for a joint venture with AvtoVAZ, the largest carmaker
in:
A) Germany
B) Lithuania
C) Russia
D) Kazakhstan
E) Turkey
26) Generally speaking, which of the following statements is true concerning product
attributes?
A) Tangible product attributes are more important than intangible ones
B) Intangible product attributes are more important than tangible ones
C) Both tangible and intangible product attributes are important
D) Neither tangible nor intangible product attributes are important
E) A product has more attributes than tangible and intangible ones
27) Direct representation, as opposed to representation by independent intermediaries
for exporting in the market country, has several advantages which do not include:
A) facilitates control and communications
B) allows decisions concerning program development and resource allocation
C) benefits when a product is not yet established in a market
D) ensures marketer’s interest and special efforts
E) helps selling products directly to the consumer in the market country
28) One task of the ________ department is to generate nonpaid forms of
communication to foster goodwill among customers and others.
A) sales promotion
B) global marketing
C) headquarters
D) public relations
E) advertising
29) When Tag Heuer, a marketer of luxury watches, takes out newspaper ads urging
consumers to purchase Tag Heuer products from authorized dealers only, the company
is most likely attempting to combat the ________ problem.
A) countertrade
B) market holding
C) price escalation
D) gray market
E) market skimming
30) Starbucks is entering India via an alliance with the Tata Group. Phase one calls for
sourcing coffee beans in India and marketing them at Starbucks stores throughout the
world. This is an example of:
A) Market Penetration
B) Market Development
C) Market Diversification
D) Product Development
E) Regular Marketing
31) When the world’s leaders meet to discuss policy issues, non-governmental
organizations (NGOs):
A) are included in meetings
B) often take advantage of the opportunity to make their voices heard
C) sign final documents
D) provide educational materials
E) are excluded from meetings
32) With the global economic crisis as a backdrop, the first-ever Happiness Congress
was held in:
A) Sweden
B) Austria
C) Spain
D) Italy
E) Greece
33) Tobacco companies in Central Europe face the prospect of tougher marketing and
advertisement regulations due to:
A) the growing concern about health hazards associated with smoking
B) a dislike of global brands crowding out local brands
C) a desire to return to communist-era policies
D) a desire to comply with EU entry requirements
E) the pressure from neighboring countries
34) Which European retailer proved unsuccessful in its cross-border initiatives on New
York’s fashionable Fifth Avenue?
A) Virgin Group
B) Marks & Spencer
C) Carrefour
D) Galeries Lafayette
E) Louis Vuitton
35) Digitas and SBI.Razorfish are:
A) popular Internet auction sites in Japan
B) leading interactive media agencies
C) European companies with highly rated Web sites
D) competing standards for wireless connectivity
E) popular digital media products
36) ________ are online retail operations that allow customers to purchase goods and
services.
A) Promotion sites
B) Matrix sites
C) Transfer sites
D) Transaction sites
E) Content sites
37) To win a contract to supply the United Kingdom with AWACS military aircraft,
Boeing agreed to purchase products from the UK whose value was equivalent to 130%
of the contract. This type of pricing arrangement, which is common when the customer
is a foreign government and the product has military applications, is known as:
A) barter
B) switch trading
C) compensation trading
D) offset
E) dumping
38) An express warranty is a written guarantee that assures the buyer:
A) that he or she is getting what he or she desired
B) that he or she will be able to get express response if any defects are found
C) that he or she is getting what he or she has paid for
D) that he or she will be able to contact the manufacturer whenever needed
E) that he or she has limited time for filling out information required by the
manufacturer
39) According to the Fortune global 500 companies for 2011, the largest corporation
based on revenue is:
A) Exxon Mobil
B) Toyota Motors
C) Wal-Mart stores
D) General Electric
E) Citigroup
40) A number of explanations have been offered for the low level of U.S. exports
relative to other countries. All of the following can be considered as reasons for low
level of exports except:
A) limited ambition by many American business owners
B) lack of knowledge of market opportunities abroad
C) perceived lack of necessary resources
D) marketing to home-country users is easier than exporting
E) a strong U.S. dollar translates into less affordable prices in export markets
41) Which of the following is true about protection of computer software?
A) Copyright laws protect both the actual code and the idea embodied in the code
B) Patent laws protect both the actual code and the idea embodied in the code
C) Patent laws protect the actual code, while copyright laws protect the idea
D) Copyright laws protect the actual code, while patent laws protect the idea
E) License protects both the actual code and the idea embodied in the code
42) The most general term for the global phenomenon involving reciprocal business
interactions between parties in various countries is known as:
A) switch trading
B) barter
C) offset
D) compensation trading
E) countertrade
43) Which of the following product category/company pairings best illustrates the
concept of “product cultures”?
A) earth-moving equipment/Caterpillar
B) personal hygiene/Procter & Gamble
C) coffee bars/Starbucks
D) batteries/Duracell
E) automobiles/Ford
44) The strategy to use joint ventures has several advantages which do not include:
A) risk sharing
B) reduced financial risk
C) reward sharing
D) achieve synergy
E) only way to enter a country or region
45) ________ represent(s) 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) Joint ventures
B) One-hundred-percent ownership
C) Licensing
D) Exporting
E) Global strategic alliances
46) The greatest percentage of world GDP is in the following income group countries:
A) high-income countries
B) upper-middle-income countries
C) lower-middle-income countries
D) low-income countries
E) BRIC countries
47) A vice-president of a shoe company was in India to assess the market. He found that
many people in the southern part of India were walking bare footed. This can be
indicative of either the fact that there is a potential market for shoes or there is no
market for shoes in that part of the world. To formally confirm one instinct or the other
the vice-president should:
A) establish an office to start manufacturing shoes in India
B) give free shoe samples to a selected group of customers
C) conduct research to find the potential and actual customers
D) find out if that is true for other Asian countries
E) give up the idea of doing business in India
48) The success of CFM International (the strategic partnership between GE and
Snecma) can be attributed to which of the following?
A) compatibility of the partners
B) capability of the partners
C) commitment of the partners
D) personal chemistry between executives
E) all of the above
49) McDonald’s operates in over 118 countries; however, 80% of its restaurants are
located in nine countries which does not include the following country market:
A) Australia
B) Brazil
C) Germany
D) India
E) Japan
50) The world economic environment is changing very rapidly and has become
increasingly competitive. In order to achieve success, based on author William Greider’s
analysis, what are the realities that executives and marketers should take into account in
such a dynamic environment?
51) The nature of firm strategy, structure, and rivalry is the final determinant of a
nation’s diamond. What does this statement refer to? How does domestic rivalry differ
from foreign rivalry? Please explain in detail.