More than 90 percent of the world’s trade is denominated in U.S. dollars.
Brand name awareness, perceived quality, and other associations invoked by the
brand name in the customer’s mind can be described as being part of brand
equity.
Some corporate strategy experts believe that in the twenty-first century, the role of the
country manager will be minimal.
Procedures and methods that are followed to conduct global marketing research
are very different from those used to conduct domestic research.
It is estimated that most of the Internet advertising spending will be spent in Japan.
Currently, Britain and France remain the principal opponents of ceding any part of the
sovereignty of the nation-state to any future political union in Europe.
The ‘buy domestic’ policy orientation is not limited to the United States.
The Bretton Woods conference recommended that each nation should not be at liberty
to use its macroeconomic policies for full employment.
Firms using a niche strategy do not focus on highly specialized segments.
The World Bank publishes the World Development Report.
Early market entrants often choose dual extension (product and communication
extension) as a strategy to enter markets with new products.
Exporting is the first mode of foreign entry used by many companies.
If a firm has limited foreign involvement and visibility, a correct choice for them to
use in entering a foreign country would be to develop an expatriate sales force.
Sometimes local brands fight it out with global brands by using GCCP or LCCP.
Exports represent about 4 percent of the U.S. gross domestic product (GDP).
Mass customization is not the major plus of the Web.
Variation in customer needs is the primary motive for market segmentation.
Market globalization forces include the following EXCEPT:
a. converging per capita incomes.
b. global customers and channels.
c. global advertising.
d. rich consumers in emerging markets.
e. manufacturing.
Probably the least effective product design option is:
a. no adaptation’”sell what we already make.
b. to sell our normal products at premium prices.
c. to sell a stripped down version of a normal good.
d. to extend the product life cycle by selling obsolete goods abroad.
e. All of the above are equally effective.
The Free Trade Areas of the Americas (FTAA) was proposed in
__________________.
a. December 1994.
b. December 1995.
c. December 1996.
d. December 1997.
e. December 1998.
Mexico is an attractive location for ____________ intensive assembly.
a. capital
b. labor
c. technology
d. repair
e. service
Selling different sizes of soft drinks in foreign cultures is an example of which
component of culture?
a. material life.
b. social interaction.
c. language.
d. values.
e. education.
To conduct ________________, conflicts between country affiliates are resolved
through mutual discussion of the transfer pricing problems.
a. demand-based pricing
b. negotiated pricing
c. cost-based pricing
d. markup-based pricing
e. target return pricing
The U.S. government defines the multinational company for statistical purposes as
a company that owns or controls ______________ or more of the voting securities, or
the equivalent, of at least one foreign business enterprise.
a. five percent
b. ten percent
c. fifteen percent
d. twenty percent
e. twenty-five percent
All of the following are illustrations of the four generic reasons for forming
strategic alliances EXCEPT:
a. offense.
b. defense.
c. catch-up.
d. remain.
e. restructure.
In global marketing, competitive pressure can also come from _____________ at home.
a. competitors
b. conglomerates
c. groups
d. locals
e. regionals
According to the Stopford and Wells model, as foreign sales expand without an
increase in the firm’s foreign product assortment diversity, the company will most
likely switch to a __________________________ structure.
a. host-country area
b. home-country area
c. global area
d. geographic area
e. local area
All exports from the United States (except to Canada and U.S. territories) require
a(n) _____________________.
a. letter of credit.
b. letter of ownership.
c. letter for transportation permission.
d. export license.
e. social security number.
All of the following are advantages that expatriates have over foreign nationals as
managers of MNCs, EXCEPT:
a. more intelligence.
b. better communication.
c. better understanding of office politics.
d. develops better future managers.
e. better relationships with the home office.
With respect to direct exporting, the primary difference between a foreign sales
subsidiary and a foreign sales branch is that the foreign sales branch:
a. is larger.
b. is smaller.
c. is not a separate legal entity.
d. uses home country managers.
e. does not pay taxes.
All of the following are purposes of the International Monetary Fund (IMF)
EXCEPT:
a. To promote international monetary cooperation through a permanent
institution.
b. To facilitate the expansion and balanced growth of international trade.
c. To develop a world currency by 2010.
d. To promote exchange stability.
e. To give confidence to members by making the general resources of the fund
temporarily available to them under adequate safeguards.
An example of a high uncertainty avoidance country would be:
a. Germany.
b. Britain.
c. United States.
d. Canada.
e. Japan.
Why did Nokia lose market share in China?
Products were outdated
Products were too technical
Local producers appeared with a cheaper, adequate phone
Japan took away their market share
None of the above
Under ___________ exporting, a firm sets up its own export department and sells its
products via a middleman located in the foreign market.
Setting prices in a floating exchange rate world pose unique problems. Comment on
how a company might react to floating exchange rates. What considerations are
probably the most important for the decision maker to consider?
The requirements for effective market segmentation in a domestic marketing context
also apply in international market segmentation. List and briefly describe the properties
that these segments should ideally possess.
What are the two primary types of trade controls? Give a description and an example of
each major type.
Five types of marketing that have led to the evolution of global marketing are domestic
marketing, export marketing, international marketing, _________________, and global
marketing.
multinational marketing
b. consumer marketing
c. gray marketing
d. expansion marketing
e. import marketing
_________________ countries (with respect to market attractiveness) can be used to
gather intelligence and establish a network.
If a company were to go to JETRO (the Japanese External Trade Organization) for
data on exporting to Japan, they would be engaging in a _______________ data
search.