1) Based on 2010 sales figures, Carrefour is the largest hypermarket in France.
2) It may be necessary to use inexpensive survey research that sacrifices some elegance
or statistical rigor to achieve results within the constraints of the small market research
budget.
3) “Back translation” is a technique used to ensure that currency conversion is
performed correctly when financial statements of foreign subsidiaries are consolidated
with financial statements at headquarters.
4) Being socially responsible is not only the right thing to do; it can distinguish a
company from its industry peers.
5) Retailers that sell a tightly focused selection of goods at rock-bottom prices are
known as hard discounters.
6) In China, import duties have dropped since the country joined the WTO.
7) The foreign exchange market consists literally of a buyer’s and a seller’s market
where currencies are traded for both spot and future delivery on a continuous basis. The
forward market is for immediate delivery and the spot market is for future delivery.
8) It was found by research that even the most experienced exporters express lack of
confidence in their knowledge about shipping arrangements, payment procedures, and
regulations.
9) Googles Chrome operating system, which has been described as “a new computing
paradigm,” is designed to exploit the opportunities of cloud computing.
10) The U.S. mass producers focus on long-term income and return on investment,
whereas Japanese see the process in terms of the short-term perspective.
11) A freighter loaded with 40-foot shipping containers leaves a port in Europe and sails
to New York, where the containers are transferred to railroad cars and transported to the
West coast. At the port of San Francisco, the containers are loaded onto another
freighter bound for Japan. The term that best describes this situation is:
A) intermodal transportation
B) inventory management
C) greenfield investment
D) hypermarketing
E) containerization
12) One of the basic elements of sociologist Everett Roger’s Diffusion theory is the
concept of an “adoption process.” The first step in this adoption process is:
A) interest
B) evaluation
C) trial
D) adoption
E) awareness
13) Which of the following is not one of the steps in the Strategic/Consultative Selling
Model?
A) develop personal selling philosophy
B) develop relationship strategy
C) develop product strategy
D) develop ethnocentric policy
E) develop customer strategy
14) Which of the following is not characteristic of mass marketing?
A) Product benefits do not typically include home delivery
B) Advertising is used to generate an immediate inquiry or purchase
C) Repetition of ads is the key to awareness and remembering
D) The customer perceives relatively little risk
E) Purchase action is deferred
15) The agreements that allow McDonald’s franchisees around the globe to use
McDonald’s trademarked name and menu items represent, in essence, which form of
market entry?
A) joint ventures
B) franchising
C) 100% ownership
D) exporting
E) acquisition
16) In which of the following forms of export financing does a bank assume a financial
obligation?
A) with an L/C but not a documentary collection
B) with a documentary collection but not an L/C
C) neither an L/C nor a documentary collection requires a bank to assume financial
obligation
D) with either an L/C or a collection letter
E) with both an L/C and a documentary collection
17) Which global marketing expert recommends an organization design based on a
“global superstructure” that views the world in terms of 30 regions?
A) Paul Krugman
B) Kenichi Ohmae
C) Tom Peters
D) Michael Porter
E) Kazuo Inamori
18) 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) the 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) the region offers attractive locations for low-cost manufacturing
E) core products and Western brand names need changes to meet consumer demands
19) Streaming media represents a huge market opportunity for all of the following
except:
A) video game industry
B) online gaming
C) game publishers
D) Internet portals
E) telematics
20) The Washington, D.C.-based Heritage Foundation survey consists of over 175
countries ranked by degree of economic freedom. The key economic variables
considered for this ranking includes all of the following except:
A) taxation policy
B) government consumption of economic output
C) percent foreign ownership
D) banking policy
E) wage and price control
21) When a company must decide on the composition of its foreign sales force, which
alternative is generally the most expensive?
A) expatriates
B) third-country nationals
C) host-country nationals
D) agents of any nationality
E) agents of host country
22) Using averages alone, it is possible to underestimate a market’s potential, for
example, fast-growing, higher-income segments are present both in India and China.
23) In India, consumers do not like to be locked in to long-term contracts, and Apple
distributes its iPhone exclusively through stores operated by Airtel, an India carrier, and
Vodaphone. This is an example of:
A) gray market
B) price bundling
C) market skimming
D) razors and blades
E) cost-based
24) Comparing the traditional formulation of Maslow’s hierarchy with the results of
current research on the consumer needs and motivation in Asia, which of the following
is correct?
A) The lowest 2 levels of the hierarchy are the same in the traditional and Asian
versions
B) The lowest 3 levels of the hierarchy are the same in the traditional and Asian
versions
C) The lowest 4 levels of the hierarchy are the same in the traditional and Asian
versions
D) The five levels in the traditional formulation apply equally in the West and in Asia
E) The highest levels of the hierarchy are the same in the traditional and Asian versions
25) A French winery packs its wine in a 40-foot container that is trucked to a port and
then loaded onto an ocean-going vessel. This is an example of:
A) intermodal transportation
B) inventory control
C) hypermarketing
D) “cherry picking” a product
E) containerization
26) Broadband offers companies the telecommunication capability to do all of the
following except:
A) streaming audio
B) streaming video
C) streaming media
D) streaming sales
E) compressed video
27) Which of the following marketing mix elements was at the heart of the problems
Ford Motor Company and Bridgestone/Firestone faced in 2000?
A) pricing problems
B) distribution problems
C) sales promotion problems
D) public relations problems
E) advertising problems
28) 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) no correct answer
29) Which two companies are sourcing product components from small-scale
enterprises, which in turn are helping preserve old-growth forests as well as economic
opportunities in Brazil?
A) Ford Motor Company and Armani
B) DaimlerAG and Hermes
C) General Motors and Hugo Boss
D) Volkswagen and Coach
E) Coca-Cola and Nestl
30) Indra Nooyi, chairman and chief executive of PepsiCo, is faced with all of the
following except:
A) rising prices for raw materials in the United States
B) a weak demand for carbonated soft drinks in the United States
C) a rapidly growing international division
D) strong snack sales in Mexico and Russia
E) a decrease in sales in the Middle East and Argentina
31) The terminology used to describe the new forms of cooperation strategies varies
widely and the phrases used include all of the following except:
A) collaborative agreements
B) strategic alliances
C) global strategic partnerships
D) strategic international alliances
E) Greenfield operations
32) Peppers and Rogers described different steps that are involved in one-to-one
marketing. These steps include all of the following except:
A) identify
B) differentiate
C) interact
D) evaluate
E) customize
33) In the terminology of the strategic intent framework for competitive advantage, a
firm that establishes advantages in a number of different areas has:
A) attribute diversity
B) marketing breadth
C) comparative advantage
D) layers of advantage
E) a “double diamond”
34) Pollo Campero, a chicken restaurant chain based in Central America, is using the
following method for expanding operations in the United States.
A) joint ventures
B) licensing
C) exporting
D) franchising
E) acquisition
35) All of the following correctly states McDonald’s approach to standardization and
adaptation of the marketing mix except:
A) McDonald’s standardizes some product elements and adapts others
B) McDonald’s standardizes some place elements and adapts others
C) McDonald’s standardizes some promotion elements and adapts others
D) McDonald’s standardizes some price elements and adapts others
E) McDonald’s standardizes all product elements
36) The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all
the players to undertake all of the following except:
A) develop new products
B) improve existing products
C) lower costs and prices
D) develop new technologies
E) change the rules of engagement
37) The “balance of payments” is a record of all economic transactions between the
residents of a country and the rest of the world. It is divided into the current and capital
accounts. Current accounts include all of the following except:
A) balance on goods
B) portfolio investments
C) balance on services
D) goods imports
E) goods exports
38) For Starbucks and other companies whose business models include a service
component, it is not recommended that they use this method for going global.
A) joint ventures
B) licensing
C) 100-percent ownership
D) exporting
E) franchising
39) Unilever, the Anglo-Dutch consumer products company, at one time had 30
different package designs and 48 different formulations for its Rexona deodorant brand.
This is an example of:
A) ethnocentric orientation
B) polycentric orientation
C) regiocentric orientation
D) geocentric orientation
E) transnational orientation
40) Which of the following correctly states the role of banks in import/export
transactions involving a letter of credit (L/C)?
A) The importer’s bank is the advising and/or confirming bank; the exporter’s bank is
the issuing bank
B) The exporter’s bank is the advising and/or confirming bank; the importer’s bank is
the issuing bank
C) The exporter’s bank is the advising, confirming, and issuing bank
D) The importer’s bank is the advising, confirming, and issuing bank
E) none of the above
41) The Indian economy is growing rapidly, and many global businesses are looking
toward moving into India. What types of challenges would global retailers be
confronted with if they plan on going to India?
42) Product placement has reached the world of live theater and opera. The difference
between product placement and other forms of promotion is:
A) ethical concerns are not taken into account
B) viewers are being marketed to subliminally without their consent
C) products are focused showing different angles
D) prominent personalities add a message about the product
E) sponsors are recognized for their contribution
43) In the summer of 2006, it was announced that the company’s Smart car would be
offered for sale in the United States. Which global company was responsible for
bringing the Smart car to market?
A) Swatch
B) Volkswagen
C) Nissan
D) Ford
E) DaimlerChrysler
44) The European Commission has jurisdiction over European-based companies as well
as non-European ones that generate significant revenues in Europe. If Microsoft applies
in Europe, the Commission has a right to all of the following except:
A) it can block a proposed merger
B) it can block a proposed joint venture
C) it can approve with minor modifications
D) it can demand substantial concessions before granting approval
E) it can refer serious matters to the UN Security Council
45) Companies wishing to minimize the cost and effort associated with market research
should start by collecting and analyzing primary data.
46) Cloud-based music services are expected to have a major impact on the mobile
music business. The
reason for their popularity includes all of the following except:
A) they are a hybrid between subscription and online store business
B) this new approach addresses some of the shortcomings of the existing methods
C) they offer users a music locker “in the cloud”
D) music services can be purchased from a variety of mobile devices
E) the pricing schemes for various services are simple
47) Two countries that outrank the others in uncertainty avoidance are:
A) Austria and Belgium
B) Japan and Hong Kong
C) Greece and Portugal
D) Denmark and Finland
E) Ireland and Italy
48) Procter & Gamble’s introduction of All-Temperature Cheer laundry detergent in
Japan was a flop at first. The problem was that Japanese women wash clothes in cold
water either tap water or leftover bath waterso they don’t care about all-temperature
washing (which is a big selling point in the U.S.). Also, Cheer was first introduced in
Japan at a time when the market for fabric softeners in Japan was rapidly expanding.
However, when Japanese housewives added lots of fabric softener to the water, Cheer
didn’t produce many suds (Americans don’t use as much fabric softener). P&G
reformulated the product so it wouldn’t be affected by fabric softeners, and ads for
Cheer in Japan pledged superior cleaning in cold water, not all temperatures. Which of
the following might have helped P&G avoid the initial problems with Cheer?
A) Maslow’s hierarchy
B) high vs. low context culture
C) diffusion of innovation
D) self-reference criterion
E) polycentric orientation
49) The key to maintaining competitive advantage, according to Dr. W.E. Deming as
well as your textbook authors, is:
A) being committed to constant improvement
B) being first to market with all products
C) outsourcing key components
D) challenging all market leaders
E) stressing low-price advantage in all areas
50) As a company’s initial international business involvement becomes too much for a
single manager or export department to handle, the next step is typically to establish
a(n):
A) matrix structure
B) international division structure
C) geographic structure
D) worldwide product division structure
E) regional management center
51) Some firms and lawyers inexperienced in the practice of international commercial
arbitration consider arbitration clauses in a contract as “any other clause.” This can be a
gross misunderstanding of the clauses. Why are these clauses different and so
significant?
52) In addition to the five forces model of industry competition, Michael Porter has
developed a framework of so-called generic business strategies. Explain these generic
strategies, describing their aims and application.
53) Coca-Cola has developed several branded drink products for sale only in Japan,
including a noncarbonated ginseng-flavored beverage. Using this as an example, outline
the differences between local brand and global brand, combination branding,
communication-branding, and brand extensions.
54) Basic issues for companies that sell globally are the composition of the sales force
in terms of nationality. List choices that are available to companies for selecting a sales
force. Outline advantages and disadvantages of each choice.
55) Describe how competitive advantage can be created via strategic intent, giving
examples of successful approaches of competitors.
56) The Coca-Cola Company has convincingly demonstrated that the ability to think
globally and act locally can be a source of competitive advantage. Justify this statement
using examples.
57) What should a U.S. company do if competitors are willing to offer a bribe for
business in a foreign country?
58) Why are Greece, Ireland, Italy, Portugal, and Spain sometimes referred to as the
eurozone’s “peripheral countries”? Discuss each country’s impact on the euro’s survival.
59) Why are alliances between Western companies and Asian competitors so different if
not difficult? What are some of the concerns, and how can those be addressed?