Trade areas in which barriers have recently been dismantled and exchange rates
fluctuate are ESPECIALLY vulnerable to the emergence of:
A.piracy.
B.gray trade.
C.counterfeiting.
D.knockoff products.
The America-First Corporation has decided to enter the European market. While the
firm does not desire to accept the risks that would attend a Russian venture, it does want
to establish a presence in the largest, most prosperous, and stable potential market it can
identify. America-First is MOST likely to target:
A.Austria.
B.France.
C.Unified Germany.
D.Sweden.
Under which of the following terms of shipment does the seller arrange for insurance
and shipment to the buyer?
A.F.O.B.
B.C.I.F.
C.E.M.C.
D.C.O.D.
In _____, payment is made in BOTH goods and cash.
A.barter
B.counterpurchase deals
C.buy-back deals
D.compensation deals
If a company has trouble establishing distribution channels in a foreign country, it has
many options. Which of the following options is probably LEAST desirable, even
though it has been done by some famous companies?
A.Establish a strategic alliance with the local channel members
B.Pay slotting fees to the powerful retailers
C.Sell the products unbranded in an OEM arrangement
D.Establish its own distribution network
Globalization:
A.tends to bring overall improvements in living and working conditions to developing
countries.
B.generates increasing brand diversity.
C.does not result in temporary job losses.
D.leads to long working hours and substandard living conditions.
Burger King has successfully entered Latin America by employing all of the following
EXCEPT:
A.joint ventures.
B.franchise agreements.
C.alliances with other U.S. producer of “support” goods.
D.takeover strategy.
Global advertising is NOT likely to succeed when:
A.images of the brand communicated are identical across markets.
B.desired product features are the same across markets.
C.usage conditions are not different across markets.
D.the logo carries different messages across markets.
(p.325, 327)The Coleman Corporation would like to market its new four-wheel sport
truck in China, but is concerned that the high percent tariff on vehicles would price its
products completely out of the market. How can the firm BEST avoid these tariff
obstacles?
A.Sell through a Hong Kong trading company.
B.Export directly from its American plants.
C.Form a joint venture with a Chinese partner.
D.Sell through the Foreign Exchange Swap Center.
How do authorized intermediaries deal with gray trade?
A.Use advertising and other promotional means to educate potential customers.
B.Sell the product at a much lower price.
C.Use various coding devices.
D.Purchase directly from overseas dealer in any country.
The Palmolive Corporation routinely utilizes country advertising managers to develop
global marketing strategy. The firm is making use of a _____ in this important
functional area.
The America-First Corporation acquires, catalogues, and reformats market segments
and resells on the Internet reports that have been previously published by other research
firms. America-First would be best describes as a(n):
A.market research aggregator.
B.hacker.
C.software pirate.
D.database pirate.
Which of the following is the STRONGEST driver of global marketing?
A.Cost factors
B.Market factors
C.Competitive factors
D.Government factors
Which of the following is a very important factor in the creation of a successful pattern
standardization approach to pan-regional advertising?
A.The creation process must allow open and free exchange.
B.The benefits of globalization must be sacrificed for localization.
C.Local subsidiaries should be involved later in the process.
D.Marketing research is not always required.
Which of the following is a variable typically used in macrosegmentation?
A.Product usage pattern
B.Price sensitivity
C.Sociodemographic data
D.Media usage
Most international trade takes place within:
A.countries.
B.regions.
C.multi-national companies.
D.global marketplaces.
If the brand name suggests a country association, is the effect positive? Is the source
country a leading market or a follower? This is a frequently asked question to estimate
the:
A.brand portfolio.
B.brand fit.
C.brand extension.
D.brand equity.
The role of which of the following is appropriately reduced in collective cultures?
A.Assertion
B.Style consciousness
C.Self-confidence
D.Enthusiasm
Levi-Strauss Corporation, a major marketer of leisure clothing, has decided to enter
several NDC markets. Which of the following factors is probably going to present the
most difficult long-run obstacle to its efforts?
A.Penetration price level
B.Weak, inefficient marketing infrastructure
C.Notion that western products are inferior
D.Stringent export controls
Hyundai Corporation has decided to mark its success in international markets by
creating a full-fledged international division. The new unit is to function as a
freestanding unit and its manager will bear profit-and-loss responsibility. The
international division will operate as a(n):
A.export department.
B.strategic business unit.
C.geographical/regional unit.
D.global product division.
FedEx Corporation has adopted a global marketing structure in which local managers
not only implement global strategies, but are also involved in the formulation of those
strategies, even to the point of initiating global efforts in some cases. The firm is
employing a(n):
A.export department mode of organization.
B.transnational organization.
C.matrix organization.
D.horizontal network.
Campbell’s Soup Corporation is preparing a series of ads targeted at the urban Latin
American family. The ads should:
A.feature detailed product information.
B.feature women as powerful professionals for whom work comes before family.
C.sell the product on image alone.
D.lay stress on individualism.
Which of the following modes of foreign market entry offers the GREATEST amount
of control and risk for the international marketer?
A.Franchising
B.Foreign direct investment
C.Direct exporting
D.Joint ventures
Sears-Roebuck Corporation firmly believes that entering new markets will allow the
firm to gain in capabilities and scope economies from accumulated production and
market experience. As a result of its belief, the firm often enters new markets with
prices that are lower than those currently charged in its domestic market. The firm’s
action is PROBABLY based on acceptance of the:
A.experience curve effect.
B.penetration effect.
C.dumping effect.
D.skimming effect.
The BCG Growth-Share Matrix has become perhaps best known for the evocative
naming of the four categories. Which of the following is one of them?
A.Stars
B.Pling
C.Cats
D.Bull
The use of a brand extension strategy is based on the firm’s attempt to:
A.piggyback upon the reputation of strong local competitors.
B.reduce the size of the firm’s brand portfolio.
C.”trade” on its own reputation in introducing new products.
D.exit unprofitable market segments.
The Body Shoppe Corporation would like to improve the acceptance of and support for
global directives by its local managers. The firm can BEST accomplish this goal by:
A.forcing the global strategy on the local office.
B.selecting appropriate management penalties.
C.involving local managers in formulating global marketing strategies.
D.placing the full weight of headquarters behind the directives.
BMW Corporation often accomplishes a successful entry in mature markets by offering
unexpected technical features. The firm is attempting to provide customer satisfaction
by emphasizing:
A.quality.
B.slotting fees.
C.the surprise quotient.
D.emotional factors.
Unlike other forms of “technology transfers”, ____________ involves the provision of
managerial and capital assistance.
A.a turnkey contract
B.licensing
C.contract manufacturing
D.franchising
Brake-O Corporation, which operates a global chain of brake and warranty repair
shops, is adamant about assuring the uniformity of features, price, packaging, quality,
after-sales support and warranty support. The firm is focusing upon the:
A.generic benefits.
B.basic service package.
C.core service.
D.augmented service.
When a product with a well-developed image uses the same brand name in a different
product category, it is termed as:
A.a brand extension.
B.dual branding.
C.an ingredient brand.
D.a sub brand.
Phelps Dodge Corporation enjoys a strong leadership position in technologyas
evidenced by its many patents. The firm knows little about foreign marketing, however,
and feels that its resources for entry are limited. With which of the following strategic
postures is Phelps Dodge MOST likely to feel comfortable?
A.Protected
B.Fragmented
C.Control
D.Incremental
The social norms can be usefully analyzed by the:
A.Fishbein model.
B.evoked set.
C.mass-market model.
D.elaboration likelihood model.
In China, which of the following would be one of the formidable obstacles to Nabisco
Corporation’s strategy of national roll-outs?
A.Poor advertising media
B.Low-tariffs from rival products
C.Weak infrastructure in the huge country
D.Price controls