Face-to-face interviews are prone to bias because of:
A.focus group analysis.
B.demand characteristics.
C.trade survey.
D.direct observation.
Which of the following entry mode is advisable to open up the doors to Latin America’s
clubby business world?
A.Licensing
B.Direct investment
C.A joint venture
D.A wholly-owned subsidiary
All of the following statements about the problems facing a global marketer seeking to
select foreign countries are true EXCEPT:
A.global databases, international-on-line services, and global research agencies have
solved past data quality and comparability problems.
B.lack of personal familiarity with conditions abroad increases the difficulty of
predicting market potential and prospects dramatically.
C.it is difficult to match company know-how to foreign opportunities.
D.terrorists and antiglobalization activists are inducing volatility in international
financial flows.
What did the British Airways advertisement show the ad agency business about the
adaptation of messages for foreign markets?
A.A good ad will be acceptable in all the countries around the world.
B.Ads will work with a lot of money.
C.Good execution can produce good results without adaptation.
D.Airlines do not need to advertise much at all.
Companies such as Unilever, Colgate-Palmolive, and Procter & Gamble are dominant
global firms PRIMARILY because they benefit from:
A.sourcing advantages.
B.transferable marketing.
C.economies of scope.
D.economies of scale.
International marketers are MOST likely to quote prices:
A.F.O.B.
B.E.M.C.
C.C.I.F.
D.C.O.D.
The Dentsu Corporation desires to create a regional advertising campaign that will
ensure uniform imagery and positioning while allowing local subsidiaries to make
necessary localization modifications. The firm may accomplish this goal by employing:
A.standardized copy.
B.an umbrella theme.
C.globalized content.
D.uniform wording.
The Chinese import-licensing system is primarily under the control of the:
A.World Trade Organization.
B.Ministry of Foreign Trade and Economic Cooperation.
C.Ministry of Customs and Licensing.
D.Import-Export Ministry.
A(n) ____________ is a type of strategic alliance in which partners create an
equity-based new unit.
A.FDI
B.joint venture
C.joint franchise
D.joint license
The FIRST step toward integrating global marketing into an organization usually
involves:
A.the institution of joint committees of regional or country heads.
B.the mergence of permanent coordinating mechanisms.
C.the informal sharing of information regarding similar experiences.
D.the acquisition of a global advertising agency.
Licensing is essentially a form of:
A.exploitation.
B.direct exportation.
C.technology transfer.
D.technology augmentation.
A larger firm interested in global expansion and control over production and marketing
wants to enter an emerging market. Which of the following entry mode would be a
viable option?
A.Exporting
B.Licensing
C.Joint venture
D.Wholly owned subsidiary
Which of the following trends helped direct marketing become an important sales and
promotion channel?
A.The emergence of more credit card use across the world.
B.A larger population in Asia.
C.More babies being born in Europe.
D.Better and better television reception in South America.
The MOST important factor for new product success in new markets is:
A.differences in channel structure.
B.the need for large production capacity.
C.the impact of merger and acquisition strategies.
D.new product superiority.
Which of the following documents is used to control the export of products which could
damage the security and/or technological superiority of the United States?
A.Letters of credit
B.Export licenses
C.Bills of lading
D.Security warrants
Which of the following is a major advantage of the iPod?
A.Low price
B.Freedom to control the environment
C.Ability to appear “geeky”
D.Availability in U.S. only
Barnum and Bailey introduced its new products in Belgium with great fanfare and an
appearance by their CEO. What should the company do now after this initial “grand
opening”?
A.Lower the prices so more people will be impressed.
B.Follow-up with strong support.
C.Reduce their advertising coverage.
D.Cut the budget so prices can be lowered.
The Land’s End Corporation has developed globalized advertising themes for its
products. Voice-overs and visualizations may be changed to avoid language and cultural
problems, or the spot may be re-shot using local spokespersons. The firm is employing:
A.global prototypes.
B.global media.
C.multidomestic messages.
D.decentralized promotion.
The America-First Corporation generates its sales forecasts by attempting to identify
critical independent variables that are thought to influence salesand the relative
influence each might exert. The firm is employing the:
A.Delphi technique.
B.regression technique.
C.extrapolation technique.
D.expert pooling technique.
The Homer Simpson Corporation has just completed a multi-million dollar project
designed to create internal protected systems that are to tie its global network together.
The firm has created a(n):
A.server system.
B.website.
C.information disseminator.
D.intranet.
Which of the following “anti-gray trade” tactics is MOST likely to be used against
counterfeit goods?
A.Strategic attack
B.Dealer interference
C.Supply interference
D.Demand interference
Which of the following is typically the “final” organizational solution to the
development of a truly global strategy for a firm’s product line?
A.The global product division
B.Export departments
C.Geographical/regional units
D.The international division
Which of the following describes the disadvantage of global brands in the marketplace?
A.Capturing the scale economies require skillful top-down coordination.
B.Local subsidiary managers lose motivation.
C.A global brand is an easy target for antiglobalizers and other activists.
D.Global brands are less unique than local brands.
Even in relatively poor emerging markets, the Toyota Corporation typically seeks to
maintain its quality image and provide status satisfactions for its “high-end” target
customers. To accomplish this goal and achieve a quick payback of its investment
through high profit margins, the firm is MOST likely to employ:
A.a skimming price policy.
B.barter agreements.
C.a penetration price policy.
D.countertrade agreements.
Which of the following direct exporting tasks are LEAST directly related to marketing?
A.After sales support
B.Legal issues
C.Pricing issues
D.Transportation/storage issues.
The growing influence of global marketing has spawned a significant _____________
movement encouraged by dissidents, protestors, and environmentalists alike.
A.communist
B.anti-globalization
C.socialist
D.anti-capitalist
During the foreign entry phase the marketing manager is MOST likely to play the role
of:
A.advertising manager.
B.export manager.
C.distribution specialist.
D.inventory specialist.
_____ in wholly owned manufacturing subsidiaries is undertaken to acquire raw
materials, to operate at lower manufacturing costs, to avoid tariff barriers and satisfy
local content requirements, and/or to penetrate local markets.
A.Foreign direct investment
B.Licensing
C.Strategic alliances
D.Joint ventures
Which of the following forms of political risk is most important?
A.General instability
B.Expropriation
C.Operations
D.Finance
When interpreting various cultural manifestations in different countries, the marketer
needs to remember that:
A.culture is often inherited.
B.self-referencing is an objective measure.
C.self-referencing can be misleading.
D.culture is not very different across countries.
Overall, globalization:
A.has decreased the wealth of most people.
B.has resulted in fewer jobs but with higher wages.
C.has caused external and internal upheavals in traditional behaviors and practices.
D.tends to exploit less developed nations.
Black and Decker Corporation have found that many European countries employ a
direct current electrical system. Accordingly, the firm produces electrical tools wired for
the European market, and provides adapters to allow its portable products to use either
the U.S. or the European system. Black and Decker’s redesigned European products are
BEST described as:
A.global products.
B.adapted products.
C.niche products.
D.localized products.
Of all the organizational approaches that may be used for global marketing, the MOST
democratic is the:
A.horizontal organization.
B.matrix organization.
C.transnational organization.
D.geographical/regional organization.
The America-First Corporation is heavily involved in standardization of the marketing
mix. The firm is most likely to be involved in:
A.foreign entry.
B.domestic marketing.
C.local marketing.
D.globalization.
The Lexus-Nexis Corporation is preparing to enter the global market with a complex
service offering that requires local presence. Which of the possible modes of entry is the
firm most likely to employ?
_____ advertising is more or less uniform across many countries, although it may be
_____ to fit linguistic, media, or regulatory differences. _____ advertising is
international advertising deliberately adapted to particular markets and audiences in
message and/or creative execution.
In mature markets, a strategy of _____ is often required to satisfy varied and/or
idiosyncratic tastes and a strategy of product _____ may be employed to attempt to
create a particular “meaning” for the product in the consumer’s mind.
Harley-Davidson Corporation is preparing to export one of its most successful domestic
products to its first foreign market. What pricing approach is the firm MOST likely to
use, and how will the price be MOST likely computed? How would the computational
approach vary for a new product that could become a “star” for a decentralized firm
emphasizing profit centers?
Explain what “corporate culture” is. Why does the culture of global firms tend to
become ethnocentric?
Merrill Lynch Corporation is preparing to launch a global marketing strategy. In order
to be effective, the firm must develop a multiple-way _____ system, provide _____ to
local country heads who must implement the strategy, and create the _____ required to
respond to and profit from changing conditions and new developments.
The Siemens Corporation markets highly standardized technical products throughout
the world. Their marketing programs are dictated from the headquarters. This situation
is all right, normally, but there needs to be some _____ in implementation retained by
the local units of the company.
After engaging in a preliminary screening of a pool of countries it had identified for
potential entry, the America-First Corporation is preparing to conduct an in-depth
screening of the “survivors.” What specific factors should the firm always consider–and
what “special” factors may become relevant?
The America-First Corporation is considering the use of licensing in its foreign markets.
Briefly describe the major options available to the firm.
As a universal trait, buyers are _____ regardless of where or when they may be
observed.
Beatrice Corporation is active in all three major types of foreign markets. How will the
PRIMARY focus of its marketing effort be affected by the stage of development of the
particular markets it attempts to sell?
Describe the relationship between free trade and the ability of nations to benefit from
comparative advantage. What role does technology transfer playing this process?
Briefly distinguish between “localization” and “adaptation.” What is the role of
multisystem compatibility?
Briefly discuss the concept of “industrial rationalization”. How does this concept relate
to other concepts discussed in the text?
Since the _____ approach to budgeting for advertising sets advertising on the basis of
past sales, it is of little use to a firm that is shifting from multidomestic to global
advertising.
Pep Boys Corporation, as part of its plan to enter new foreign markets, would like to
find a way to identify potential customers and competitors, identify trends, and keep
track of new products in potential foreign markets. The firm can accomplish these goals
by attending _____.
_____ involves a variety of activities, ranging from point-of-purchase displays and
trade promotions to coupons and sponsorships.
Briefly explain the likely impetus for the development of global teams. What is the
value of such teams?
In recent years, a number of airlines, including US Air, British Airways, Delta Airlines
and Swiss Air, have considered joining together to share routes and feed customers into
each other’s flights. How would a collaboration like this be BEST described? What
advantages and disadvantages are typically involved?
BMW Corporation feels that its global brands offer real advantages. What are the major
advantages that the firm might receive from standardization?