To motivate shopkeepers to stock more of P&G’s products, the company launched a:
A) door-to-door program.
B) retail store program.
C) golden store program.
D) hypermarket program.
E) sole distributor program.
Competitive advertising may impair the effectiveness of the message due to the fact that
it may:
A) not reach the intended recipient.
B) reach the intended recipient but is misunderstood.
C) reach the intended recipient and is understood, but the recipient may fail to take
action.
D) get distorted by noise.
E) only be in one language.
The term magalog is used to describe which communication medium?
A) direct mail
B) Groupons
C) coupons
D) catalogs
E) infomercials
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.
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.
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.
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
When a country like China is experiencing rapid economic growth, policymakers are
likely to:
A) look more favorably on outsiders.
B) look less favorably on outsiders.
C) experience more resistance toward outsiders.
D) feel threatened by outsiders.
E) none of the above
In high-context cultures, time is:
A) monochronic.
B) polychronic.
C) linear.
D) short.
E) common.
One of the advantages of licensing is:
A) licensees have limited control.
B) licensees have considerable autonomy.
C) license agreements have short life.
D) licensees can develop similar products.
E) licensees have considerable leverage.
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
The high level of political risk currently evident in Russia can be attributed in part to:
A) changing of name of the country.
B) changing the national flag.
C) excessive loans from the International Monetary Fund (IMF).
D) participation in the WTO (World Trade Organization).
E) excessively high taxes on business operations.
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.
Export marketing requires all of the following except:
A) an understanding of the target market environment.
B) the use of marketing research.
C) identification of market potential.
D) decisions concerning product design.
E) reaching retail customers.
Which company ranks number one in terms of worldwide ad spending for the year
2013?
A) General Motors
B) Philip Morris
C) Unilever
D) Procter & Gamble
E) Coca-Cola
“Usage rates” and “user status” are important criteria for which segmentation variable?
A) demographic
B) occupational
C) psychographic
D) behavioral
E) benefit
Pursuing alternative sources of energy, such as wind and solar power, is important due
to the fact that:
A) people in developing countries are more conscious about the environment.
B) global marketers are more interested in publicizing environmental issues.
C) it is easy to develop solar power in many parts of the world.
D) heavy reliance on fossil fuels contributes to global warming.
E) people worldwide can afford to buy power generated from wind and solar.
Critics warn that employees of a company that become reliant on an outside supplier for
critical components will:
A) encourage outsourcing
B) become used to value-added components
C) lose expertise and engineering skills
D) use time for developing other skills
E) look for employment with competitors
A company that is ________ in its approach to public relations (PR) will extend
home-country activities into host countries.
A) regiocentric
B) polycentric
C) ethnocentric
D) domestic
E) hostile
According to data published by Advertising Age (2014), 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
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.
Bluetooth is gaining popularity in Europe compared to Wi-Fi due to all but one of the
following advantages:
A) less power consumption.
B) well suited to use with cell phones.
C) works over shorter distances.
D) can be used in automobiles.
E) can be incorporated into home appliances.
Porter’s four generic strategies for achieving competitive advantage are:
A) price determination, cost leadership, product differentiation, distribution savings.
B) cost leadership, product differentiation, cost challenger, product challenger.
C) price leadership, product differentiation, price challenger, cost differentiation.
D) cost leadership, product differentiation, cost focus, focused differentiation.
E) cost leadership, product differentiation, consumer differentiation, focused
differentiation.
As part of their alliance relationship, Northwest Airlines and KLM Royal Dutch set air
fare prices jointly and coordinate flight schedules. Normally, such behavior would be
considered harmful to competition, but the U.S. government has granted the two
airlines special exemptions from laws concerning:
A) intellectual property.
B) antitrust.
C) jurisdiction.
D) licensing.
E) arbitration.
Negotiation requires both customer and the salesperson:
A) to be persistent in their point of view.
B) to be subjected to arm-twisting.
C) to agree to disagree.
D) come away as winners.
E) come away as losers.
Markets of Central and Eastern Europe present interesting opportunities and challenges.
Companies such as 3M International, McDonald’s, Philips Electronics, and Henkel are
moving into the region for all of the following reasons except:
A) that region is an important new source of growth.
B) that the first company to penetrate a country market often emerges as leader.
C) wage rates are much lower than those in Spain, Portugal, and Greece.
D) that region offers attractive locations for low-cost manufacturing.
E) core products and Western brand names need changes are appropriate for business.
To promote its Centrino wireless chip, Intel launched a global ad campaign that features
different combinations of celebrities. These celebrities were chosen because they are
widely recognized in the key world markets. This type of strategy is referred to as:
A) product-communications extension.
B) product extension-communications adaptation.
C) product adaptation-communications extension.
D) product-communication adaptation.
E) product invention.
Arrange the following in order from lowest to highest level of economic integration.
A) customs union→economic union→free trade area→common market
B) economic union→customs union→common market→free trade area
C) common market→free trade area→economic union→customs union
D) free trade area→customs union→common market→economic union
E) common market→economic union→customs union→free trade area
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 of 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.
Based on 2013 projections, the top 10 nations ranked by per capita income does not
include:
A) Switzerland.
B) Qatar.
C) Russia.
D) Norway.
E) Australia.
Three Mexican retailers Famso, Grupo Gigante SA, and Grupo Comercial Chedraui SA
have opened stores in the United States. This is an indication of:
A) U.S. retailers were lagging behind in collecting demographic information.
B) the Mexican retailers provide better products than American stores.
C) the Hispanic American segments represent a great opportunity for marketers.
D) American businesses cannot compete with Mexican retailers.
E) the Mexican retailers would like to compete with businesses like Best Buy and
Circuit City.
Which one of the following nations fall in the lower-middle-income category?
A) Burundi
B) Bangladesh
C) Egypt
D) Venezuela
E) none of the above
Which of the following statements is not correct?
A) Walmart pulled out of Germany and South Korea.
B) Best Buy closed several stores in China.
C) Home Depot pulled out of China.
D) Mattel closed its flagship Barbie store in Shanghai.
E) Tesco shut down Fresh & Easy stores in the United States.
When one of the parties to a barter transaction is not willing to accept the goods
included in the transaction, that party is likely to utilize the services of a:
A) switch trader.
B) Foreign Trade Organization.
C) Foreign Sales Corporation.
D) Mittelstand owner.
E) broker.
Would-be franchisors ask all of the following questions except one before expanding
overseas:
A) How tough is the local competition?
B) Does the government respect trademark and copyrights?
C) Can profits be easily repatriated?
D) Can products be easily counterfeited?
E) Is commercial space available?