The best way to handle objections is to avoid having them raised. In order to
accomplish this goal, the salesperson should pay extra attention to:
A.appearance.
B.preparation.
C.domination.
D.enthusiasm.
First Southwest Corporation is a heavy user of express mail to transmit contracts to
foreign companies that import its products. The firm utilizes Federal Express and/or
DHL for this purpose. These transnational shippers are operating as:
A.mail brokers.
B.contract agents.
C.freight forwarders
D.maquiladoras.
Sinokor Corporation is concerned about the possibility of losses from exchange rate
fluctuations in several of its foreign markets. Which of the following strategies offers
the SIMPLEST solution to this problem?
A.Negotiate spot exchange rates
B.Apply transfer pricing
C.Quoting prices only in U.S. dollars
D.Ask for FOB quotas
L’Oreal Corporation often pays foreign distributors a fee or commission for the right to
use their distribution systems. The firm is using the strategy of:
A.channel duplications.
B.piggybacking.
C.slotting.
D.shelf piracy.
Due to the great advances in global communications in the last decade, the sprinkler
approach has become:
A.much less resource demanding.
B.much less feasible, economically.
C.less reliant on networking.
D.the best expansion approach.
Promotional activities inside a store are called:
A.point-of-purchase promotions.
B.publicity.
C.public relations.
D.personal selling.
Why are trade associations a good source of information for a company during the
in-depth screening phase?
A.The data are free.
B.In this phase data on specific markets are needed.
C.The data are comparable across countries.
D.The underground economy is included in the data.
Once a problem has been recognized, the consumer is likely to respond by engaging in:
A.immediate purchase.
B.search behavior.
C.denial.
D.low-involvement behavior.
The recognition of a difference between an ideal and an actual state of affairs generates:
A.problem recognition.
B.search.
C.choice.
D.outcomes.
According to the text, budgeting for global advertising typically involves some version
of the:
A.objective-task approach.
B.competitive parity approach.
C.all-you-can-afford approach.
D.percentage-of-sales approach.
Zara, the “poor man’s Armani”, is successful due to all of the following EXCEPT:
A.many separate suppliers who work together.
B.vertical integration.
C.production of its own clothes.
D.just-in-time inventory management.
T.G.I.F Corporation feels that it must have vertical integration in order to control the
quality of its service delivery. The firm is most likely to employ:
A.licensing.
B.foreign direct investment.
C.strategic alliances.
D.exporting.
_____ generates a third of South America’s economic output and is a major consumer of
its exports.
A.Chile
B.Argentina
C.Brazil
D.Peru
Transactions in which all or part of the payment is made in kind rather than cash are
called:
A.countervailing.
B.hedging.
C.countertrade.
D.swaps.
Firms which enter emerging markets through the use of low prices to ensure
affordability, even at the possible cost of extremely low margins and/or the sacrifice of
the most desirable market position, are committed to a policy of:
A.skimming pricing.
B.countertrade.
C.straight barter.
D.penetration pricing.
In countries that enforce high trade barriers, a high price:
A.automatically signals high quality.
B.is the result of price dissipation.
C.never simply signals an imported product.
D.may prove difficult to gain market share.
How will a wholesaler who is too slow to innovate affect the distribution channel?
A.Cost of implementing the latest technology will be saved and will result in overall
cost savings.
B.The wholesaler will be pushed aside by aggressive retailers integrating backward.
C.The functions carried out by the wholesalers will be eliminated.
D.It will simplify the distribution channel.
The _____ agreement, covering all South American nations and Mexico, expanded a
prior free trade agreement into a customs union featuring free flow of goods and a
common tariff rate for nonmembers.
A.ANCOM
B.MERCOSUR
C.LAIA
D.NAFTA
Which of the following measures of income is typically the MOST important in
developing markets?
A.Individual salaries
B.Wages per household
C.Access to foreign or convertible currency
D.The distribution of income
The primary marketing justification for establishing wholly owned subsidiaries in
foreign countries is based on:
A.the improved ability to acquire raw materials.
B.the opportunity to lower manufacturing costs.
C.the opportunity to avoid tariffs.
D.the opportunity to penetrate local markets.
The America-First Corporation would like to take advantage of inexpensive Mexican
labor, but does not want to have to pay the customs duties that would attend shipment
into Mexico. The firm may accomplish its goal by shipping to small Mexican factories
located in the free-trade zones along the Mexican border. Such factories are called:
A.the keiretsu.
B.the maquiladoras.
C.the quesadills.
D.los productaros.
The Caterpillar Corporation expects its local expatriates to develop and maintain
effective contacts with local customers, prospects, and suppliers. This part of the local
manager’s job is directly related to the prominent function of:
A.dual-market management.
B.relationship marketing.
C.response marketing.
D.service marketing.
Which of the following forms of promotion is “free”?
A.Public relations
B.Publicity
C.Point-of-purchase promotions
D.In-store promotions
Nonverbal messages are most important in:
A.high context cultures.
B.low content cultures.
C.low context cultures.
D.high content cultures.
Which of the following pricing strategies for fighting gray trade is based on
standardizing the process of planning and implementing pricing decisions at the local
level?
A.Economic controls
B.Informal coordination
C.Formalization
D.Centralization
Which of the following promotional tools derives its credibility from the fact that it
does not seem to be a promotion?
A.Point-of-purchase promotions
B.In-store promotions
C.Publicity
D.Trade promotions
Which of the following methods for establishing a global direct marketing program is
most likely to be employed by a small company?
A.Do-it-yourself
B.Marketing intermediaries
C.Strategic alliances
D.Cross-marketing
A Japanese auto corporation has decided to make each of its European organizations
responsible for one essential corporate function. The model followed by the firm would
be best described as:
A.the distributed headquarters model.
B.the market specialist model.
C.the fragmentation model.
D.the diversification model.
The entry of foreign firms into a company’s domestic market is a major
_______________ pushing the domestic firm to venture abroad.
A.political concern
B.economic driver
C.management driver
D.competitive driver
If foreign ownership is allowed, service firms with complex services tend to opt for:
A.licensing.
B.exporting.
C.strategic alliances.
D.foreign direct investments.
_____ are basically symbols that identify the maker of a product or provider of a
service.
Dream Works Corporation is a major exporter of movies and music. The firm is
considering entry into China as a means of combating the spread of _____ products
produced in that nation.
One of the early forms of a strategic alliance is called _____ manufacturing. Volvo and
Renault were examples of companies which had this type of arrangement.
Canada is different from the U.S. market due to its more European approach to cultural
identity, old-world customs, and different languages nursed with pride. Because of these
characteristics, the Canadian culture is considered more “_____” than the U.S. culture.
The ____________ is based on the emergence of global ___________ commerce, and
the ability of the _________ to provide a sustainable market even for very obscure
products and services whose sales are low.
Global brands seen as providing _____ than local brands.
_____ means that products, brand names, marketing communications, and distribution
channels are similar across countries to provide demand spillovers and cost efficiencies.
Once a channel system is established, the global marketer must concentrate on _____
and _____ to assure that the advantages gained are maintained.
Cultural, philosophical, and religious traditions combine to make Asians more eager to
achieve a _____ than Westerners.
What are the disadvantages of global brands in the marketplace?
Briefly describe global advertising and compare this approach to that of multidomestic
advertising. How can global advertising be localized?
The approach to analyzing leading brands and their attributes in order to understand
what appeals to customers is called _____.
Lone Star Feed Corporation is attempting to determine the optimal balance between
global standardization and product adaptation. Briefly explain the basic economic
analysis the firm may use. Why is it unlikely that the firm will discover, or use, the
optimal approach?
_____, the publishing of news about the company and its products, is an increasingly
important part of global companies’ promotion function.
Setting the budget for global advertising typically involves some version of the _____
method.
The problems involved with message translation in global advertising transcend simple
linguistic differences to include _____ expressions that are more subtle, and more
difficult to deal with.
A _________________________ is a special form of strategic alliance in which a
domestic firm invests capital to form a new corporate entity with a foreign partner.