1) The United Nations designates 50 countries in the bottom ranks of the low-income
category as least-developed countries (LDCs); the term is sometimes used to indicate a
contrast with developing countries and developed countries.
2) In May 1998, eleven charter members of the eurozone were chosen, which included
Greece.
3) Japanese consumers are avid users of yen-off coupons.
4) An awareness of SRC can help ensure that the research effort is designed with
minimal home-country or second-country bias.
5) Since 2010 there is a formal establishment of a new China/ASEAN Free Trade
Agreement.
6) “Frugal Engineering” and “Reverse Innovation” are some of the terms that GE,
Proctor & Gamble, Siemens, and Unilever are using to describe efforts to penetrate
more deeply into emerging markets.
7) Copywriters are specialists who check advertisements to see that they meet copyright
regulations in different countries.
8) When Apple introduced iPhone in the United States in the summer of 2007 with a
sale price of $599, it used skimming pricing strategy.
9) A trademark gives the inventor of a product the exclusive legal right to make, use,
and sell an invention for a specific period of time.
10) Global localization means that a successful global marketer must have the ability to
think locally and act globally.
11) The process of global market segmentation begins with the choice of one or more
variables to use as a basis for grouping customers.
12) Which of the following ASEAN countries ranks number one in terms of two-way
trade with the United States?
A) Brunei
B) Malaysia
C) Singapore
D) Thailand
E) Vietnam
13) Which of the following arranges export financing payment methods in descending
order starting with the most secure/reliable and ending with the least secure/reliable:
A) sales on open accountcash in advancedocumentary credit (L/C) documentary
collection (draft)
B) documentary credit (L/C)sales on open accountdocumentary collection (draft)cash in
advance
C) documentary collection (draft)documentary credit (L/C)cash in advancesales on
open account
D) cash in advancedocumentary credit (L/C)documentary collection (draft)sales on
open account
E) none of the above
14) As companies recognize and embrace new concepts such as the globalization of
coffee culture, the potential for effective global advertising:
A) decreases
B) increases
C) remains the same
D) becomes evident
E) is ignored
15) Which of the following does not contribute to price escalation in global marketing?
A) shipping and insurance charges
B) value added taxes (VAT)
C) different Incoterms as incentives
D) duties and tariffs
E) fluctuating exchange rates
16) There are barriers in Japan for global marketers in terms of attitudes as well as laws.
Barriers include all of the following except:
A) any organization wishing to compete in Japan must be committed to providing
top-quality products and services
B) repeat visits and extended socialization with distributors
C) goods marketed should have a semblance of western products and services
D) marketers must master the keiretsu system of tightly knit corporate alliances
E) trust has to be built before conducting successful business
17) What do value added taxes (VAT) encourage in countries such as China?
A) They make trademarks and copyrights more valuable
B) They result in cross-border shopping and smuggling
C) They make it harder to bribe officials
D) They protect companies from antitrust scrutiny
E) Global companies refrain from offering bribes
18) Which is the top Interactive Agency based on 2010 Interactive Marketing Revenue?
A) OgilvyInteractive (WPP)
B) SapientNitro (Sapient Corp.)
C) Digitas (Publicis)
D) Razorfish (Publicis)
E) Wunderman (WPP)
19) As of 2010, Gap operated 2,500 stores in the United States and more than 500
stores internationally. The company sources most of its clothing from apparel factories
in Honduras, the Philippines, India, and other low-wage countries. If Gap would like to
open more stores in Japan, primary consideration should include:
A) industry conditions
B) sources of competitive advantage
C) the condition of the apparel market worldwide
D) demand in Japan for U.S. style garments
E) all of the above
20) Hindustan Lever recently developed a hard candy flavored with natural fruit juice
that it sells profitably in India for the equivalent of 1 cent per piece. This is Hindustan
Lever’s first-ever candy product. What strategy is evident here?
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product invention
21) That floppy disks are being dumped in favor of USB mass storage devices can be
attributed to which characteristics of innovation?
A) compatibility
B) relative advantage
C) divisibility
D) communicability
E) complexity
22) Consumers shopping for high-touch products such as fine perfume are generally
energized by ________ motives.
A) emotional
B) rational
C) both emotional and rational
D) neither emotional nor rational
E) high tech
23) According to David Arnold, there are four possible approaches to forecasting by
analogy, which does not include which of the following?
A) Data is available on a comparable product in the same country
B) Data is available on the same product in a comparable country
C) Data is available on the same product from an dependent distributor in a neighboring
country
D) Data is available about a comparable company in the same country
E) Data is available on the same product in every country
24) Which of the following is described as the three R’s of global business: rules, rate
schedules, and regulations?
A) quotas
B) tariffs
C) NTBs
D) NTR
E) duties
25) The world’s best-known cosmetics companies are setting sights on a lucrative new
market segment: the emerging middle classes in countries such as Brazil, Russia, India,
and China. What understandings and factors should be considered by these companies
to be successful in markets in those countries?
26) A vice-president of an American software company introduced himself to a group of
Korean partners and added “you may just call me John.” Although this verbal cue
shows the underlying reality that Americans have a high value on informality and
equality, it needs adaptation due to the reason that:
A) John is not a very popular name in Korea
B) it is difficult to translate John in Korean language
C) customs, hierarchies, and class structure of Korean culture have to be respected
D) Korean culture requires that first and last name be used in addressing guests
E) it is not appropriate to disclose nicknames in business meetings
27) In Southern China, McDonald’s is careful not to advertise prices with multiple
occurrences of the number four because:
A) prices ending in odd numbers are preferred in China
B) there is no number four in the Chinese language
C) the word four is pronounced similar to the word death in Cantonese
D) multiple occurrences are considered as unlucky in China
E) prices are not included on menus in China
28) The universal concerns for global companies established by the United Nations
Global Compact consist of the following three dimensions:
A) factor conditions, demand conditions, industry conditions
B) human rights, animal rights, and the environment
C) content domain, human conditions and animal rights
D) human rights, labor, and the environment
E) content domains, animal rights, and labor
29) The lesson that SRC (Self-Reference Criterion) teaches can be summarized as:
A) a person’s perception of market needs is framed by others cultural experience
B) perceptual blockage and distortion about cultures are hard to reduce
C) unbiased perception is a vital and critical skill in global marketing
D) unconscious reference to one’s cultural values is critical in global marketing
E) prior success and ethnocentrism can override the SRC
30) The Gulf Cooperation Council (GCC) includes all of the following countries
except:
A) Kuwait
B) Saudi Arabia
C) Iraq
D) Bahrain
E) Oman
31) A marketer of breakfast cereals might send researchers to preselected households at
6 a.m. to watch families go about their morning routines
32) Which of the following refers to a system of farm subsidies in Europe?
A) CVD
B) FSC
C) CAP
D) HTS
E) NTR
33) Which of the following is not one of the levels in the Asian version of Maslow’s
hierarchy?
A) physiological
B) safety
C) affiliation
D) admiration
E) self-actualization
34) Which of the following statements is correct?
A) The Paris Convention protects patents, the Berne Convention protects copyrights
B) The Paris Convention protects copyrights, the Berne Convention protects patents
C) The Berne Convention and Paris Convention are different names for the same thing
D) Neither the Berne Convention nor the Paris Convention is concerned with
intellectual property
E) The International Union for the Protection of Literary and Artistic Property is
different from the Berne Convention
35) Which of the following is true about “coffee culture” in England?
A) Starbucks has been unsuccessful in its attempt to change the Brits’ preference for tea
B) American entrepreneurs found success in England with the Seattle Coffee Company
which Starbucks later acquired
C) Starbucks succeeded in England only after changing the company’s name to Seattle
Coffee Company
D) Starbucks-style coffee shops have been a flop because tea culture is too deeply
engrained
E) Starbucks has been successful in England since it started selling beer
36) When the Coca-Cola Company convened focus groups in Europe and Asia to assess
potential market acceptance of a contoured aluminum soft drink can, it was attempting
to collect ________ data.
A) primary
B) secondary
C) incipient
D) quantitative
E) MIS
37) One of the potential drawbacks of a regional management center is that:
A) pan-regional coordination efforts can suffer
B) the cost can be prohibitive
C) the company may lose its “insider” advantage
D) regional management may take a one-sided approach when implementing corporate
objectives
E) there is a lack of coordinated decision making
38) A company in which an ethnocentric orientation prevails is likely to utilize
primarily ________ in its sales force.
A) host-country nationals
B) third-country nationals
C) expatriates
D) agents of any nationality
E) agents of host country
39) Chinese direct-response television has learned that there are many obstacles that
still need to be overcome, which include all of the following except:
A) consumers’ savings rate is very low
B) limited number of private telephones
C) low penetration of credit cards
D) delivery logistics in Beijing
E) delivery logistics in Shanghai
40) Maytag has been called “the Rolls-Royce of washers and dryers.” Maytag markets
Neptune, a high-tech machine, at a substantially higher than regular washer prices. This
is an example of:
A) cost leadership
B) differentiation
C) cost focus
D) focused differentiation
E) consumer focus
41) Which of the following is not a critical issue for a company whose management
intends to engage in e-commerce?
A) privacy
B) credit card fraud in developing countries
C) ensuring that logos and other brand identity elements are consistent with local
preferences
D) ensuring a company’s ASCII system supports a particular language
E) the availability of hot spots for Wi-Fi
42) Unilever hired a promotional marketing firm to pass out Lever 2000 hand wipes in
food courts and petting zoos. This is an example of:
A) point-of-use sampling
B) point-of-sale sampling
C) point-of-dirt sampling
D) point-of-event sampling
E) point-of-work sampling
43) Political and social instability in the Middle Eastern region can primarily be
attributed to:
A) desert conditions and lack of agricultural land
B) cultural differences among nations
C) a wide gap between rich and poor nations due to oil revenues
D) lack of water purification facilities
E) absence of Western corporations
44) Which of the following financing methods would be used by an exporter that enjoys
good relations with a buyer in a well-established market?
A) letter of credit
B) cash in advance
C) sales on open account
D) barter
E) arrival draft
45) A U.S. company that focuses on the countries included in the North American Free
Trade Agreement (NAFTA) has a regiocentric orientation.
46) Examples of effective global marketing by McDonalds include both standardized
and localized marketing mix elements. Which of the following does NOT represent a
localized element?
A) It serves McAloo tikki potato burger in India
B) It uses advertising slogan “Im lovin it”
C) It operates themed dining cars on the Swiss national rail system
D) It has home delivery service in India
E) It has slang nicknames such as MakDo in Philippines and McDo in France
47) Chance events play a role in shaping the competitive environment. Chance events
are occurrences which include all but one of the following:
A) major technological breakthroughs
B) wars and their aftermath
C) oil crisis
D) currency fluctuations
E) annual business meeting
48) Many of the fast food operations are entering markets in Middle Eastern countries.
In the United States, breakfast items are very popular and are responsible for a bulk of
profit from sales, primarily through drive-in customers. However, to their dismay,
managers found that there was practically no demand for breakfast items. Firstly, due to
hot weather conditions, people sleep late and wake up late. Secondly, they do not eat
burgers, and sausage or bacon is prohibited food. Also, drive-in business is not popular
since people go to work at different periods of time. Explain the possible reason(s)
behind such a decision and account for its/their failure.
49) Dell’s rise to a leading position in the global PC industry was based on Michael
Dell’s decision to bypass conventional channels by selling direct and by customizing
computers. Discuss the importance of channel innovation, giving examples of
piggyback marketing in emerging markets.
50) Colgate Total toothpaste is positioned as the brand that addresses all aspects of oral
health. Such positioning is very important from the business point of view. How does
positioning help in deciding on a marketing strategy? What are the differences between
using “attribute or benefit” and “quality and price” as positioning strategy?
51) Much academic research has been devoted to the impact of culture on advertising.
Researcher Tamotsu Kishii identified seven characteristics that distinguish between
Japanese and American creative strategy. Briefly describe those characteristics.
52) It is expected that information technology will have a big role in promotions using
innovative methods. Discuss how infomercials, teleshopping, and interactive television
will change the way consumers shop in the near future.
53) There is an ongoing debate between ‘standardization” versus “adaptation” pertaining
to global advertising. Explain how different sides of the arguments fit into the global
context.
54) At Whirlpool, North American operations are organized in matrix form. What is the
key to successful matrix management?