1) Despite trade agreements, attempts to achieve integration in Central America have
been described as uncoordinated, inefficient, and costly. There are still tariffs on
imports of sugar, coffee, and alcoholic beverages.
2) In April 2010, 30,000 barrels of oil leaked from the stricken well belonging to BP.
BP is the oil company that had earlier implemented an ecology-themed corporate
identity campaign under the theme “Beyond Petroleum.”
3) A stakeholder is any group or individual that is affected by, or takes an interest in, the
policies and practices adopted by an organization.
4) E-bay assists large companies such as Disney and IBM in setting up online
‘storefronts” to sell items for fixed prices in addition to conducing b-to-c auctions.
5) Spiraling commodities and raw material costs can put upward or downward pressure
on prices for a variety of goods.
6) Laura Ashley, The Body Shop, Victoria’s Secret, Starbucks, the Disney Store and
Gap are examples of global retail operators that can be classified as specialty retailers
since they offer less variety than department stores.
7) In industrialized countries, a significant portion of national income is the value of
goods and services that would be free in a poor country.
8) During his years as chief executive of GE, Jack Welch discovered that many
employees resisted his ideas about the need to globalize the company.
9) In the United States, Levi Strauss & Company has to face competitive behavior since
J.C.Penney and Sears are both aggressively marketing their own brands.
10) A country with a positive current account balance has a trade deficit; that is, the
outflow of money to pay for imports exceeds the inflow of money for sales of exports.
11) The U.S.-style “I’ll do whatever it takes to get your business” has proven to be a
successful selling approach throughout the world.
12) Which type of countertrade arrangement is required by governments seeking to
reduce the budgetary impact of expenditures for defense or telecommunications?
A) barter
B) switch trading
C) offset
D) compensation trading
E) none of the above
13) According to Michael Porter’s research on the competitive advantage of nations,
human, physical, knowledge, capital, and infrastructure resources are all components of
a country’s:
A) factor conditions
B) demand conditions
C) strategy, structure, and rivalry
D) related and supporting industries
E) global conditions
14) Prior to 2004, Nokia launched different cell phone products in different countries at
different times. Nokia also used different advertising images and messages in different
countries. Which approach to the world marketplace was Nokia using?
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) product-communication adaptation
E) product invention
15) When British entrepreneur Richard Branson established the first Virgin Megastore
in France, he invested a great deal of money to develop a retail space on the famous
Champs-Elyses. Judging by the approach Branson used, he and his management team
must have viewed France as:
A) culturally close and easy to enter
B) culturally distant and easy to enter
C) culturally close and difficult to enter
D) culturally distant and difficult to enter
E) culturally difficult and easy to enter
16) In order to form a free trade area, South Africa has been in discussion with:
A) Swaziland
B) EU
C) Namibia
D) Angola
E) Japan
17) Which of the following environmental factors may require marketers to adjust their
approach to conducting international as opposed to domestic marketing research?
A) Researchers must be prepared for new parameters of doing business
B) Company personnel must come to grips with a new set of culture-based assumptions
about conducting business
C) Research may help reduce psychological overload
D) Researchers may have to broaden the definition of competitors to include
competitive pressures not present in the domestic market
E) all of the above
18) In high-context cultures, time is:
A) monochronic
B) polychronic
C) linear
D) short
E) common
19) Which is not considered as a long-term value?
A) persistence
B) sense of shame
C) thrift
D) ordering relationships
E) search for truth
20) Which of the following most accurately describes the relative length of consumer
and industrial distribution channels?
A) Consumer channels tend to be longer (consist of more intermediaries) than industrial
channels
B) Industrial channels tend to be longer (consist of more intermediaries) than consumer
channels
C) Both consumer and industrial channels tend to be long (consist of several
intermediaries)
D) Both consumer and industrial channels tend to be short (consist of few
intermediaries)
E) Consumer channels tend to be shorter (consist of few intermediaries) than the
industrial channels
21) The concentration of income in the high-income and large-population countries
means that a company can be “global” by targeting buyers in:
A) just 50 countries
B) just 20 countries
C) just 10 or fewer countries
D) just 30 countries
E) none of the above
22) A(n) ________ system allows a company’s business units to submit orders, issue
invoices, and conduct business electronically with other company units as well as
outside companies.
A) Internet
B) Intranet
C) ECR
D) EDI
E) EPOS
23) “Usage rates” and “user status” are important criteria for which segmentation
variable?
A) demographic
B) occupational
C) psychographic
D) behavioral
E) benefit
24) Which of the following is not a characteristic of global strategic alliances?
A) Participants maintain independence outside the framework of alliance
B) Participants share benefits as well as control
C) Participants make ongoing contributions in technology, products, and other areas
D) Participants focus on an individual country market
E) Participants share benefits of the alliance
25) Motorola’s failed Iridium venture was a global satellite telephone network designed
to allow users to make or receive calls anywhere on the globe using handsets that are
somewhat bigger than typical cellular phones. What type of innovation did Iridium
represent?
A) a continuous innovation
B) a dynamically continuous innovation
C) a discontinuous innovation
D) a platform-based innovation
E) none of the above
26) Inventory management is:
A) determining what type of warehouse to manage
B) establishing an inventory channel
C) managing physical distribution of products
D) purchasing products
E) ensuring cost control
27) What happens if a nation has allowed a case against it to be brought before the ICJ
(International Court of Justice?
A) American Arbitration Association can be sought for justice
B) UN Conference on International Trade Law can be approached
C) International Chamber of Commerce will be another source for seeking justice
D) European Court of Justice can be approached if the country is in the European Union
E) The plaintiff nation can seek recourse through the UN Security Council
28) Which of the following is not characteristic of direct marketing?
A) A marketer relinquishes control of product when it is turned over to channel
intermediaries
B) Advertising serves to generate an immediate inquiry or purchase
C) Repetition is used in individual advertisements
D) The customer experiences high perceived risk
E) Direct response advertising is used
29) Which of the following does not describe the Toyota Production System (TPS)?
A) jidoka
B) ‘just-in-time’
C) fixed setup time
D) built-in quality
E) visualizing problems
30) The corporate development team at Virgin evaluates more than a dozen proposals
each day from outside and within the company. When assessing new-product ideas,
they look for all of the following except:
A) synergy with existing Virgin products
B) pricing and return on investment
C) marketing opportunities
D) if the idea “uses or abuses” the Virgin brand
E) aesthetic attributes of competitors products
31) In a recent case, Revlon sued United Overseas Limited (UOL) in U.S. District
Court for the Southern District of New York for breach of contract. UOL countered by
asking the court to dismiss the claim since they are not operating in that area. Revlon
cited the presence of a UOL sign above the entrance to the offices of a New York
company in which UOL had a 50-percent ownership. The court dismissed UOL’s claim.
This is an issue related with:
A) jurisdiction
B) antitrust
C) dilution of equity
D) bribery and corruption
E) intellectual property
32) Which of the following transportation modes ranks lowest in capability?
A) truck
B) railroad
C) Internet
D) air
E) water
33) The form of economic cooperation that calls for countries to eliminate all internal
barriers to trade among themselves even while maintaining independent trade policies
vis–vis third countries is known as a(n) ________.
A) Economic union
B) Customs union
C) Free trade area
D) Common market
E) none of the above
34) One of the distinguishing features of a Centrally Planned Capitalism economic
system is:
A) all production resources are privately owned
B) the state has broad powers to serve the public interest as it sees fit
C) command resource allocation is utilized extensively in a private resource ownership
environment
D) market allocation policies are permitted within an environment of state ownership
E) none of the above
35) Nike recently adopted the slogan “Here I am” for its pan-European clothing
advertising targeting women. The decision to drop the famous “Just do it” tag line was
based on the research indicating that:
A) the famous slogan did not have accurate translation in European languages
B) Europeans do not like tag lines that portray American thinking
C) college-age women in Europe are not as competitive about sports as men are
D) the old slogan conveys superiority of men over women
E) European women want to differentiate themselves from men
36) The following criminal penalties may be imposed for violations of the FCPA’S
(Foreign Corrupt Practices Act) antibribery provisions except:
A) corporations are subject to a fine of up to $2,000,000
B) officers, directors, stockholders, employees, and agents are subject to a fine up to
$100,000
C) fines imposed on individuals can be paid by their employer or principal
D) the fines may be much higher, up to twice the benefit sought by the defendant
E) in addition to fines, there may be imprisonment for up to five years
37) Nike came under fire from critics who alleged poor working conditions in the
factories that make the company’s athletic shoes. This is an example of the demand for:
A) labor unions
B) equal opportunity employment
C) higher wages
D) standards for working conditions
E) corporate social responsibility
38) According to data published by Advertising Age (2010), which of the following is
the largest global advertising organization based on worldwide revenues?
A) WPP Group
B) Interpublic Group
C) Omnicom Group
D) Dentsu Inc.
E) Havas
39) Which of the following environmental characteristics affects use of direct marketing
in Europe?
A) the European Commission’s concern about privacy
B) high postal rates in several European countries
C) industries in Europe are still developing complete mailing lists
D) linguistic, cultural, and regional diversity
E) all of the above
40) A(n) ________ is a company’s private data network, accessible only by authorized
persons inside the organization.
A) EDI
B) internet
C) intranet
D) EPOS
E) ECR
41) ________ occurs when a manufacturer conspires with wholesalers or retailers to
ensure certain retail prices are maintained.
A) Horizontal price fixing
B) Dumping
C) Vertical price fixing
D) Gray marketing
E) Black marketing
42) Restrictive administrative and technical regulations can create barriers to trade
which may take all of the following forms except:
A) antidumping regulations
B) product size regulations
C) safety and health regulations
D) common agricultural policies
E) safety and pollution regulations
43) Japan’s giant Matsushita Electric Company achieved scale economies by exporting
VCRs, televisions, and other consumer electronics products throughout the world from
world-scale factories in Japan. This is an example of the fact that:
A) scale economies were a cornerstone of Japanese success in the 1970s and 1980s
B) leverage from scale economies is not limited to manufacturing
C) a global company can achieve the same economies on a global scale
D) the larger scale of the global company also creates opportunities to improve
corporate staff competence and quality
E) all of the above
44) If a distributor’s margins are based on the “landed” price of an import shipment,
they will be based on:
A) ex-works price
B) transportation costs
C) insurance costs
D) VAT
E) all of the above
45) Which global company has dissolved its matrix structure in order to achieve
“greater speed and efficiency by further focusing and flattening the organization”?
A) Whirlpool
B) Levi Strauss
C) Pearson PLC
D) ABB
E) Gillette
46) Which of the following is not a useful guideline for U.S.-based direct marketers
wishing to reach global customers?
A) Do not treat prospects as though they are Americans
B) Do not automatically assume that a direct-mail campaign that works in one country
will work in another country
C) Do not assume that all Europeans are similar in their tastes and wants
D) Customers should be able to return products to an address in their local country
market
E) Focus on all countries included in the European Union
47) The authors of one study noted that Nestl and other large companies that once had a
polycentric approach to consumer and trade sales promotions have redesigned their
efforts. Based on a study by Kashani and Quelch, identify factors that contribute to
more headquarters involvement in the sales promotions effort.
48) One of the basic elements of Roger’s diffusion theory is the concept of adoption
process which deals with the mental stages through which an individual passes from the
time of his or her first knowledge of an innovation to the time of product adoption or
purchase. Briefly describe these stages given examples of Apples iPhone.
49) What is meant by Comparative Analysis and Market Estimation by Analogy? How
can these be helpful in marketing research?
50) McDonalds, Philips Electronics, 3 M International and many other similar well
known global corporations are operating in Central and Eastern Europe. Some countries
in the region are still recovering from decades of command economies. What makes the
region so attractive for global business corporations?
51) Considering the fact that the “message” is at the heart of advertising, discuss how
creative strategy and different types of appeals can be created in global advertising.
52) Governments in Japan, Singapore, South Korea and China have supported exports
for years which have tremendously helped their economies. Since exporting is a very
important component of a country’s business strategy, many government programs are
offered that support exports. Describe ways by which governments can support exports.
53) Describe the principles developed by Christensen in order to help managers
recognize the innovator’s dilemma and develop appropriate responses to environmental
change.
54) For years, Coca-Cola corporation did not enter India since the government wanted
some kind of disclosure of their trade secrets. Why are the trade secrets so important,
and what happens if a licensee or a government gains access to the licensor’s trade
secret?
55) McDonald’s and other fast food restaurants have benefitted tremendously by using
franchising as a mode of entry into different countries. What are the benefits of
franchising and how does it differ from other modes of entry?
56) Discuss the guidelines submitted by David Arnold pertaining to the importance of
data gathering for market research. Indicate the rationale behind each guideline.