Professional Documents
Culture Documents
2. When marketers are making the decision to enter an international market or not,
the
first step is generally to:
a.
b.
c.
d.
e.
3. When marketers are making the decision to enter an international market or not,
the
final step in the decision process is generally to:
a.
b.
c.
d.
e.
4. Which of the following most accurately describes the first step in the market entry
decision process?
a.
b.
c.
d.
e.
internal audit.
external audit.
cross-border budget.
preliminary screen.
econometric analysis.
8. The four-step procedure that can be employed for the initial screening process
includes all of the following EXCEPT:
a.
b.
c.
d.
e.
major driver behind market opportunities and Coca-Cola looks at per capita
income
and the number of minutes that it would take someone to work to be able to afford
a
Coca-Cola product, they are following which of the following steps of the initial
screening process for market entry?
a.
b.
c.
d.
e.
10. A four-step procedure that can be employed for the initial screening process
includes
the following EXCEPT:
a.
b.
c.
d.
e.
11. When Coca-Cola looks at per capita income and the number of minutes that it
would
take for somebody to work to be able to afford a Coca-Cola product, the company
is
following which of the following steps of the initial screening process for
market entry?
a.
b.
c.
d.
e.
12. Wrigley, the U.S. chewing gum manufacturer, has not been interested in most
Latin
American markets because many of the local governments imposed ownership
restrictions. This would be an example of ________________ in markets.
a.
b.
c.
d.
e.
finding opportunities
weeding out
cross-fertilization
demand conflict
unfairness
13. One method of assessing whether a company should enter a foreign market or not
is
to use an opportunity matrix. To use such a matrix, the marketer should assess
high,
moderate, and low opportunities as measured on business and political risk and
___________________ scales or cells.
a.
b.
c.
d.
e.
demand
financial constraints
market opportunities
market sensitivity
distance from home market
14. All of the following are major external criteria for making a decision as to a mode
of
entry into a foreign market EXCEPT:
a.
b.
c.
d.
e.
company leadership.
market size and growth.
need for control.
government regulations.
local infrastructure.
15. The key determinant in the market entry choice decisions is the:
a.
b.
c.
d.
e.
risk.
local infrastructure.
flexibility.
internal resources and assets.
market size and growth potential.
16. In the mode of entry, many companies see liaison office as a low-cost
___________________.
a.
b.
c.
d.
e.
joint venture
export management company
listening post
contract exporter
alliance post
b.
c.
d.
e.
infrastructure
logistical
physical distribution
physical infrastructure
18. Markets can be classified in four types of countries based on their respective
market
attractiveness. All of the following are part of the classification scheme EXCEPT:
a.
b.
c.
d.
e.
platform countries.
emerging countries.
low-tech countries.
growth countries.
maturing and established countries.
19. Markets can be classified in four types of countries based on their respective
market
attractiveness. Which of the following of those types can be used to gather
intelligence and establish a network?
a.
b.
c.
d.
e.
platform countries.
emerging countries.
maturing and established countries.
growth countries.
none of the above.
20. Markets can be classified in four types of countries based on their respective
market
attractiveness. Hong Kong and Singapore would fall into which of the types listed
below (where the purpose would be to gather intelligence and establish a
network)?
a.
b.
c.
d.
e.
platform countries.
emerging countries.
maturing and established countries.
growth countries.
none of the above.
21. Markets can be classified in four types of countries based on their respective
market
attractiveness. Which of the following of those types can be used to build up an
initial presence (such as through a liaison office)?
a. platform countries.
b. emerging countries.
c. maturing and established countries.
d. growth countries.
e. none of the above
22. Markets can be classified in four types of countries based on their respective
market
attractiveness. Vietnam and the Philippines would fall into which of the types
listed
below (where the purpose would be to build up an initial presence such as through
a
liaison office)?
a.
b.
c.
d.
e.
platform countries.
emerging countries.
maturing and established countries.
growth countries.
none of the above.
23. Markets can be classified in four types of countries based on their respective
market
attractiveness. Which of the following countries would most likely be listed as a
maturing/established market?
a.
b.
c.
d.
e.
China.
Burma.
India.
Taiwan.
China.
24. Markets can be classified in four types of countries based on their respective
market
attractiveness. Which of the following countries would most likely be listed as an
established/maturing market?
a.
b.
c.
d.
e.
China.
the Philippines.
India.
Vietnam.
Japan.
25. Markets can be classified in four types of countries based on their respective
market
attractiveness. Which of the following countries would most likely be listed as
a growth country?
a. Hong Kong.
b. Vietnam.
c. China.
d. Taiwan.
e. Japan.
26. A _________________________ perspective argues that the desirable governance
structure (high- versus low-control mode) will depend on the comparative
transaction
costs (the costs of running an operation).
a.
b.
c.
d.
e.
demand-delivery
just-in-time management
management-by-objectives
quantity-cost allocation
transaction-cost analysis
optional
valuable
expendable
less-valuable
weaker
exporting
joint ventures
licensing
franchising.
contract manufacturing.
30. Companies that plan to engage in exporting have a choice between indirect,
_________________, and direct exporting.
a.
b.
c.
d.
e.
licensing
parallel
cooperative
venture
summation
31. _______________________ means that the firm uses a middleman based in its
home
market to do the exporting.
a.
b.
c.
d.
e.
Licensing
Contract manufacturing
Cooperative exporting
Venture exporting
Indirect exporting
Licensing
Parallel exporting
Cooperative exporting
Direct exporting
Indirect exporting
33. ___________________ has disadvantages. Chief among these are that the
company
has little or no control over the way their product is marketed in a foreign country,
lack of adequate sales support (among other support variables) can lead to poor
sales,
and bad decisions made by an intermediary can damage the corporate image.
a.
b.
c.
d.
e.
Licensing
Parallel exporting
Cooperative exporting
Direct exporting
Indirect exporting
b.
c.
d.
e.
Parallel exporting
Cooperative exporting
Venture exporting
Indirect exporting
Licensing
Parallel exporting
Cooperative exporting
Direct exporting
Indirect exporting
specialist exporting.
lean exporting.
long-range exporting.
backward exporting.
piggyback exporting.
parallel exporting.
venture exporting.
piggyback exporting.
make-or-buy exporting.
foreign export management exporting.
38. One of the main advantages of direct exporting over indirect exporting is that the
exporter has more:
a.
b.
c.
d.
e.
leverage.
risk.
control over its operations.
budget.
leadership.
a.
b.
c.
d.
e.
Licensing
Parallel exporting
Cooperative exporting
Direct exporting
Indirect exporting
40. The Oriental Land Company in Japan owns Tokyo Disneyland. This would be
an example of an international _________________ agreement between the
Oriental Land Company (owner) and Disneyland (receives royalties).
a.
b.
c.
d.
e.
licensing
parallel exporting
cooperative exporting
direct exporting
indirect exporting
licensing
parallel exporting
cooperative exporting
direct exporting
indirect exporting
43. One of the most popular entry modes in the international marketplace for service
firms is:
a.
b.
c.
d.
e.
licensing.
franchising.
cooperative exporting.
direct exporting.
indirect exporting.
b.
c.
d.
e.
45. One of the most popular franchise plans used in international marketing is
____________________ where the franchiser gives the franchise to a local
entrepreneur who in turn sells local franchises within a territory.
a.
b.
c.
d.
e.
sales franchise
master franchise
strategic franchise
cross-country franchise
border-territory franchise
licensing
franchising
cooperative exporting
contract manufacturing
indirect exporting
Advertising cooperation
Leadership
Cost savings
Profit expansion
Desire to be part of a cartel
48. Like licensing and franchising, nurturing a future competitor is one of the biggest
dangers in ___________________.
a.
b.
c.
d.
e.
contract manufacturing.
parallel exporting.
cooperative exporting.
using an export management company.
indirect exporting.
just-in-time items
under-value items
low-value items
high-value items
none of the bove
50. With a __________________, the foreign company agrees to share equity and
other
resources with other partners to establish a new entity in the target country.
a.
b.
c.
d.
e.
52. All of the following are considered benefits of forming joint ventures EXCEPT:
a.
b.
c.
d.
e.
demand
parallel management
consensus management
domestication
synergy
54. Lack of trust and mutual conflicts can often turn ______________ into
partnerships
doomed to failure.
a.
b.
c.
d.
e.
55. One of the problems with joint ventures is ________________ between partners.
An
example would be when one partner wants to stress reduction of political and
economic controls on decision-making and the other partner wants to accept
technology and capital but precludes foreign authority infringement on sovereignty
and ideology.
a.
b.
c.
d.
e.
56. There are no magic ingredients to foster the stability of joint ventures, however,
all
of the following are good guidelines EXCEPT:
a.
b.
c.
d.
e.
58. When a multinational company chooses to invest in foreign markets with wholly
owned subsidiaries, these subsidiaries may be acquisitions or _______________
operations.
a.
b.
c.
d.
e.
joint venture
strategic alliance
greenfield
franchise
piggyback
joint venture
strategic alliance
greenfield
franchise
piggyback
almost no control
partial control
moderate control
full control
strategic control only
61. Advantages of wholly owned subsidiaries include all of the following EXCEPT:
a.
b.
c.
d.
e.
full control.
control of profits.
own processes.
control government relationships.
can often be set quicker that other forms of investment.
63. One way to address hostility to foreign acquisitions in the host country is by
______________ the firms presence in the foreign market by hiring local
managers,
regionalizing
localizing
socializing
acculturating
emphasizing the self-reference criterion (SRC)
64. Companies that enter via wholly owned subsidiaries are sometimes perceived as a
threat to the culture and/or economic sovereignty of the____________________.
a.
b.
c.
d.
e.
host country.
home country.
buffer country.
greenfield country.
high-tech country.
65. The chief reason that some firms choose acquisitions (or mergers) to enter a
foreign
market is that they can:
a.
b.
c.
d.
e.
licensing
exporting
contract manufacturing
acquisitions
joint ventures
Joint ventures
Strategic alliances
Greenfield operations
Franchises
Piggyback arrangements
strategic alliance.
contract manufacturing.
licensing.
wholly owned subsidiary.
exporting.
69. All of the following are illustrations of the four generic reasons for forming
strategic alliances EXCEPT:
a.
b.
c.
d.
e.
offense.
defense.
catch-up.
remain.
restructure.
offense
defense
catch-up
remain
restructure
71. The strategic alliance strategy of ______________ might be enacted when the
firm
has an established leadership position but that only plays a peripheral role in the
companys business portfolio.
a.
b.
c.
d.
e.
offense
defense
catch-up
remain
restructure
72. When a firm uses a strategic alliance as a vehicle to rejuvenate a business that is
not core and in which it has no leadership position, it is probably using a
________________ strategy.
a. defend
b. catch up
c. restructure
d. remain
e. none of the above
73. Decisions to exit or divest a foreign market may have all the following reasons
EXCEPT:
a.
b.
c.
d.
e.
sustained losses.
volatility.
premature entry.
ethical reasons.
new market.
74. Risks of exiting a foreign market may lead to all the following EXCEPT:
a.
b.
c.
d.
e.
True/False
Short Answer
75. The first step in the process of entering a foreign market is to decide on the
_____________________.
76. Preliminary screening is an accepted method of reducing the number of
candidates
for market entry.
77. As an example of a preliminary screening process in assessing international
market
opportunities, Colgate-Palmolive uses assessments of whether people bath
regularly
or not as a critical factor in deciding whether to enter a market or not.
78. To identify market opportunities for a given product (or service), the international
marketer usually starts off with a large pool of candidate cities.
79. Colgate-Palmolive views per capita purchasing power as a major driver
92. Ownership strategies in foreign markets can take two forms: acquisitions and
____________________.
93. There four generic reasons for forming strategic alliances are defense, catch-up,
remain, and __________________.
94. Strategic alliances between strong and weak partners often work because of the
synergy and learning that can take place between mentor and subordinate.
95. Stable alliances have the commitment and support of the top of the parents
organizations.
96. Exiting a country often involves substantial fixed cost.
Essay
97. List the steps in the global market entry decision process. Which of the steps is
probably the most important in the overall success of the foreign venture? Justify
your answer.
98. Explain what is meant by the concept of a liaison office and why some firms
prefer to use this technique to enter markets.
99. Briefly, explain the concept of licensing in a foreign market. In addition, cite the
benefits and drawbacks of licensing. Be specific in your responses.
100. Briefly explain the concept of joint venture. Additionally, give the benefits and
drawbacks of entering into a joint venture.
101. Provide an assessment of strategic alliances. What are they used for, what are
the characteristics of those that generally succeed, and what are the general types? Be
sure to be specific in your answers.
Chapter 10
Multiple Choice
1. Ikea, the Swedish furniture chain, insists that all its stores carry the basic product
line with little room for adaptation to local tastes. If research of the U.S. market
showed that Americans preferred larger beds than their Swedish counterparts,
which
of the following strategies would be advisable to Ikea?
a.
b.
c.
d.
e.
standardization.
new product development.
adaptation.
withdraw from market.
lower prices to encourage attitude change.
2. In the Australian market, rather than manufacturing disposable diapers, Procter &
Gamble decided to import them since the size of the market did not warrant local
manufacturing according to P&G. Unfortunately, by using packaging designed for
the Asian region with non-English labeling, P&G alienated its customers in
Australia. This is an example of improper:
a.
b.
c.
d.
e.
4. In the area of global product policy, companies can pursue three strategies to
penetrate
foreign markets. The strategies include:
a.
b.
c.
d.
e.
5. Which of the following is NOT one of the strategic options available to the
marketing
planner, considering various product policies that could be devised for the
international marketplace?
a.
b.
c.
d.
e.
soft drinks
motorscooters
shampoo
clothing
hand-powered washing machines
soft drinks
gum
shampoo
clothing
hand-powered washing machines
soft drinks
motorscooters
gasoline
diet aids
hand-powered washing machines
10. If a company is an early entrant in the global arena and possesses little
in the way of resources, they will probably chose _____________________ as a
method of entry.
a.
b.
c.
d.
e.
15. Many companies add brands to their portfolio via acquisitions of local companies.
When the local brand is retained but incorporated into the existing communications
strategy, the strategy can be described as being one of:
a.
b.
c.
d.
e.
16. Differences in both the cultural and physical environment across countries call for
a
_________________________ strategy.
a.
b.
c.
d.
e.
18. Genuinely global marketers try to figure out how to create products with a global
scope rather than just for a single country. The mindset is to zero in on global
opportunities. The strategy that best describes this approach is called:
a.
b.
c.
d.
e.
19. Black & Decker is a good example of a company that adopts the
_______________
approach to global expansion. The company aims to bring out new products that
cater to common needs and opportunities around the world.
a.
b.
c.
d.
e.
Customization
Standardization
Miniaturization
Assimilation
Marginalization
d. promotion-driven
e. product-driven
23. ____________________ is leveraging cross-border differences in needs and
wants
of the firms target customers.
a.
b.
c.
d.
e.
Customization
Standardization
Proliferation
Expansion
Synthesizing
market-driven
service-driven
budget-driven
promotion-driven
product-driven
25. All of the following are factors that favor a globalized product strategy EXCEPT:
a.
b.
c.
d.
e.
slowdown.
difficulties
convergence.
divergence.
rising strength of the Latin American markets.
27. During the last decade, car buyers in the Triad markets (Japan, the United States,
and
Europe) have increasingly begun to have the same outlook and preferences in cars.
Which of the following factors that favor globalization of product, would most
accurately be associated with this trend?
a.
b.
c.
d.
e.
Delivery-to-market
Orientation-to-market
Time-to-market
Extension-to-market
Perfection-to-market
core-product
uniform commercial code
die-casting
modular
Nexus
convergence approach
divergence
linear approach
forecasting approach
modular approach
b.
c.
d.
e.
core-product
uniform commercial code
die-casting
modular
PRIZM
overcustomization
micro-managing
technocracy
group think
overstandardization
34. One of the pitfalls that a global marketer can run into is _____________. This
would occur when too much adaptation to the local market occurs and the brand
becomes vulnerable to losing its unique foreigness.
a.
b.
c.
d.
e.
overcustomization
micro-managing
technocracy
group think
overstandardization
36. In general, the rate of adoption of new products (in foreign markets) is driven by
individual differences, personal influences, and:
a.
b.
c.
d.
e.
fashion.
trends.
cash on hand.
product characteristics.
promotion characteristics.
37. In general, the adoption of new products is driven by factors such as:
a.
b.
c.
d.
e.
individual differences.
personal influences.
product characteristics.
all of the above.
none of the above.
38. ___________________ are always eager to experiment with new ideas and
products.
a.
b.
c.
d.
e.
Early adopters.
Early majority.
Late majority.
Laggards.
Prior adopters.
39. Which of the following would NOT be one of the five key product characteristics
that contribute to its acceptance?
a.
b.
c.
d.
e.
40. To what extent does the new product offer more perceived value to potential
adopters
than exiting alternatives, would be a question that best fits with which of the
following
key product characteristics acceptance categories?
a.
b.
c.
d.
e.
observability.
relative advantage.
compatibility.
complexity.
trialability.
41. Is the product consistent with exiting values and attitudes of the individuals in the
social system, would be a question that best fits with which of the following
key product characteristics acceptance categories?
a.
b.
c.
d.
e.
observability.
relative advantage.
compatibility.
complexity.
trialability.
42. Is the product easy to understand or use, would be a question that best fits with
which
of the following key product characteristics acceptance categories?
a.
b.
c.
d.
e.
observability.
relative advantage.
compatibility.
complexity.
trialability.
43. The adoption rate for new products in countries with a ________________
population is usually faster than in countries with a highly diverse culture.
a.
b.
c.
d.
e.
heterogeneous
complex
diverse
homogeneous
polycentric
44. The adoption rate for a new product in countries with a homogeneous population
is usually faster than in countries with a highly diverse culture. Which of the
following countries would probably have the fastest adoption based on the
information provided above?
a.
b.
c.
d.
e.
Ireland.
United States.
Japan.
United Kingdom.
France.
a.
b.
c.
d.
e.
lead/lag
lag/lead
lead/middle adopters
lag/middle adopters
lead/opinion-lead
lag
low-profile
lead
high-profile
fast
lag
low-profile
lead
high-profile
fast
48. _______________________ are people who look beyond their immediate social
surroundings and are not local in their opinions.
a.
b.
c.
d.
e.
Domestics
Introverts
Negotiators
Cosmopolitans
Regionalists
49. All of the following are factors that affect product penetration in the European
market
(according to a recent survey), EXCEPT:
a.
b.
c.
d.
e.
cosmopolitanism.
number of locals in the market.
mobility.
percentage of children in the labor force.
percentage of women in the labor force.
50. A recent study examined the difference of six products in 31 developing and
European countries
global countries
advanced countries
developed countries
emerging market countries
51. All of the following are steps in the new product development process EXCEPT:
a.
b.
c.
d.
e.
52. Which of the following are among the best sources for finding new product ideas?
a.
b.
c.
d.
e.
53. Once new product ideas have been identified, the next logical step is to have
the ideas _______________.
a.
b.
c.
d.
e.
modeled
budgeted
screened
concept tested
test marketed
New Prod
ExProd
YProd
ZProd
none of the above
a.
b.
c.
d.
e.
geometric analysis
trade-off analysis
meta analysis
longitudinal analysis
metric analysis
chi-square.
correlation analysis.
focus groups.
regression analysis.
conjoint analysis.
57. The starting premise of _______________ is that people make trade-offs between
the different product attributes when they evaluate alternatives (or brands) from
which they pick a choice.
a.
b.
c.
d.
e.
chi-square
correlation analysis
focus groups
regression analysis
conjoint analysis
chi-square
correlation analysis
focus groups
regression analysis
conjoint analysis
59. A(n) ________________ is essentially a field experiment where the new product
is
marketed in a select set of cities to assess its sales potential and scores of other
performance measures.
a. attitude screen
b. product model
c. product concept
d. test market
e. focus concept
60. Testing objectives, testing marketing mixes, making projections of sales volume,
and analyzing potential competitive marketing mixes are all reasons to conduct:
a.
b.
c.
d.
e.
attitude screens.
product models.
product concepts.
test markets.
focus concepts.
thought panel
laboratory test market
internet exposure technique
preferred patron experiment
use of break-even analysis
62. If prospective customers are contacted and shown commercials for the new
product and existing brands (then asked to state attitudes and preferences of what
they have seen), then the marketing research entity will probably have conducted
a(n) __________________ instead of a full test market.
a.
b.
c.
d.
e.
thought panel
laboratory test market
internet exposure technique
preferred patron experiment
break-even analysis
63. A common technique to avoid a global test market is to make global sales
projections
based on product performance in a ________________ market.
a.
b.
c.
d.
e.
lag
middle adopter
lead
opinionated
innovative
64. Timing is a very important element in any new product launch. One of the
strategies
sprinkler method
shotgun method
rifle method
dribble method
waterfall method
65. Timing is a very important element in any new product launch. One of the
strategies
is described as being the ________________. This method often involves
introducing
the new product in the companys home market and then moving to other advanced
markets. Finally, less advanced markets are exposed to the product.
a.
b.
c.
d.
e.
sprinkler method
shotgun method
rifle method
dribble method
waterfall method
66. The prime motive for the waterfall model (in introducing new products on a
global
scale) is that the customization of the product for the foreign market is:
a. impractical.
b. very expensive.
c. time consuming.
d. promotionally limited.
e. not supported by top management.
67. Timing is a very important element in any new product launch. One of the
strategies
is described as being the ________________ where there is a simultaneous
introduction of products in other markets of the world.
a.
b.
c.
d.
e.
sprinkler method
shotgun method
rifle method
dribble method
waterfall method
a.
b.
c.
d.
e.
sprinkler rollouts
shotgun rollouts
staggered rollouts
dribble rollouts
waterfall rollouts
69. The chief reason for a company choosing the sprinkler method of new product
introduction is to off-set:
a.
b.
c.
d.
e.
rising costs.
unstable labor.
competitive preemption.
government control.
shoddy promotions.
70. The waterfall strategy of sequential entry is preferable over the sprinkler model
when all of the following conditions exist EXCEPT:
a.
b.
c.
d.
e.
71. The waterfall strategy of sequential entry is preferable over the sprinkler model
when:
a.
b.
c.
d.
e.
72. The sprinkler strategy of one to two entries (globally) is preferable over the
waterfall model when all of the following conditions exist EXCEPT:
a.
b.
c.
d.
e.
73. The sprinkler strategy of one to two entries (globally) is preferable over the
waterfall model when:
a.
b.
c.
d.
e.
metanational innovators.
delta innovators.
beta innovators.
gamma innovators.
none of the above.
75. To harvest the benefits of metanational innovators, a company must pursue three
things:
a.
b.
c.
d.
e.
True/False
Short Answer
76. Companies can pursue three global strategies to penetrate foreign markets. The
strategies are: extension, adaptation, and___________________.
77. Early market entrants often choose dual extension (product and communication
extension) as a strategy to enter markets with new products.
78. The biggest savings to the company when following a strategy of dual extension
is in economies of scale.
79. Because of their universally known products, the Wrigley chewing gum company
can
use product adaptation-communications extension strategies effectively.
80. Local market circumstances do not favor the case of product adaptation.
81. Many companies add brands to their product portfolio via acquisitions of local
brands.
82. Differences in both the cultural and physical environment across countries call for
a ________________________ strategy.
83. _________________ means offering a uniform product on a regional or
worldwide
basis.
84. The goal of standardization is to minimize competition.
85. ____________________ leverages cross-border differences in needs and wants
of
the firms target customers.
86. Five forces favor a globalized product strategy. These include: common customer
needs, global customers, scale economies, time to market,
and__________________.
87. Overstandardization is a risk of the core-product approach to introducing new
products in the world market.
88. In general, the adoption of new products is driven by individual differences,
personal
influences, and product characteristics.
89. With respect to categories of consumers that adopt new products, the __________
category is eager to experiment with new ideas or products.
90. The lead country is where the product is introduced first.
91. In marketing, new product ideas do not come from the company, customers,
competition, and collaborators.
92. In these days, many MNCs create organizational structures to foster global
product
development.
a.
b.
c.
d.
e.
trademark
patent
signature
figure
brand
the trademark
the patent
knowledge
proprietary investments
brand equity
brand color
brand equity
brand warranty
local brand value
brand mark
a.
b.
c.
d.
e.
proprietary investments
brand equity
brand warranty
local brand name
brand mark
national brand
country brand
regional brand
local brand
global brand
private brand
public brand
global brand
local brand
government brand
d. coordinated logistics.
e. corporate vision.
Difficulty: (1) Knowledge: (F) Page: 363
10. In 2008, which of the following brands was ranked the number one brand in the
world?
a.
b.
c.
d.
e.
Disney
Coca-Cola
GE
Nokia
IBM
BMW
Mercedes
GM
Ford
Toyota
Microsoft.
IBM.
Intel.
Hewlett Packard.
Dell.
global brand.
geo brand.
regional brand.
country brand.
local brand.
14. A desire to reflect its American roots motivated Disney to change the name for its
Paris themepark from Euro Disney to __________________.
a.
b.
c.
d.
e.
Disneyland Village
Disneyland Park
Disneyland Paris
Disneyland Europe
Disneyland France
competitive climate.
marketing support.
cultural receptivity to brands.
literacy.
product category penetration.
history.
competitive climate.
marketing support.
cultural receptivity to brands.
brand equity scale.
Domestic barriers
Regulatory barriers
Cultural barriers
Social barriers
Religious barriers
d. German
e. French
Difficulty: (3) Knowledge: (F) Page: 367
19. The following four branding strategies are available to markets EXCEPT:
a.
b.
c.
d.
e.
solo branding.
hallmark branding.
family(umbrella) branding.
Extension branding.
horizontal branding.
portfolio.
color.
basket.
Web
none of the above.
plain brands.
local brands.
regional brands.
worldwide strategic brands.
worldwide corporate brands.
ties the new global brand name to the existing local brand name. After a transition
period, the old name is dropped.
a.
b.
c.
d.
e.
transparent forewarning
summary axing
fade-in/fade-out
pyramid focusing
parallel dimension
transparent forewarning.
summary axing.
fade-in/fade-out.
pyramid focusing.
parallel dimension.
transparent forewarning
summary axing
fade-in/fade-out
pyramid focusing
parallel dimension
transparent forewarning
summary axing
fade-in/fade-out
pyramid focusing
parallel dimension
where the company simply drops the old brand name and immediately replaces it
with the global name.
a. transparent forewarning
b. summary axing
c. fade-in/fade-out
d. pyramid focusing
e. parallel dimension
Difficulty: (2) Knowledge: (F) Page: 372
28. Global product line mix options could be:
a.
b.
c.
d.
e.
Domestic branding
National branding
Manufacturers branding
Store branding or private labeling
Umbrella (corporate) branding
length
width
horizontal scale
vertical scale
consistency
length
width
horizontal scale
vertical scale
consistency
drop/add matrix
ship and shop approach
probing and learning approach
seal and deal approach
push down approach
core products.
cultural products.
niche items.
seasonal products.
filler products.
core product
cultural product
niche item
seasonal product
filler product
core product
cultural product
niche item
seasonal product
filler product
a.
b.
c.
d.
e.
core product
cultural product
niche item
seasonal product
filler product
core product
cultural product
niche item
seasonal product
filler product
joint ventures.
lobbying activities.
legal action.
product policy options.
communication options.
good
poor
high
special
none of the above
joint ventures.
lobbying activities.
legal action.
product policy options.
communication options.
customs.
lobbying activities.
legal action.
product policy options.
all of the above.
joint ventures.
lobbying activities.
legal action.
product policy options.
communication options.
regionalism
nationalism.
materialism
social sensitivity.
the country of origin (COO) effect.
c. the critical factor appears to be the place of manufacture rather than the location
of
the companys headquarters.
d. COO effects do not change very much over time.
e. demographics make a difference.
Difficulty: (2) Knowledge: (F) Pages: 383-84
57. All of the following statements about the country of origin effect (COO) are true
EXCEPT:
a. COO effects are restricted to Europe.
b. Asian consumers prefer domestic products over imports.
c. the critical factor appears to be the place of manufacture rather than the location
of
the companys headquarters.
d. COO effects do not change very much over time.
e. psychographics make a difference.
Difficulty: (2) Knowledge: (F) Pages: 383-84
58. If the country of origin (COO) effect is anticipated to be negative, a company can
follow all of the following strategies to offset the effect EXCEPT:
a. select a brand name that disguises the country of origin.
b. select a local brand name.
c. select a high prestigious price.
d. try to explain any negative government policy that might influence buyers.
e. select a relatively low price.
385-86-48
59. One of the major challenges faced by international marketers of services is:
a.
b.
c.
d.
e.
protectionism.
high costs.
patent infringement.
piracy.
low profits.
a warranty
a command of the local language
a local presence
low profit expectation
an inside government contact
World Bank
International Monetary Fund
United Nations
GATT (General Agreements on Tariffs and Trade)
none of the above
local know-how
global know-how
regional know-how
high-tech know-how
political know-how
scale economies.
weight economies.
hybrid economies.
perfect economies.
visible economies.
environmental opportunities
funding opportunities
regional opportunities
cultural opportunities
political opportunities
Short Answer
Page: 385
Page: 386
86. Demand for premium quality services expands with increases in consumers age.
Difficulty: (2) Knowledge: (A) Page: 387
Essay
87. Deciding to move toward global branding is a difficult decision. This must often
be considered with respect to the globalization versus localization issue. What are the
questions that might be useful in reaching a decision as to pursue globalization over
localization?
88. When the case for a transition from a local to a global (or regional) brand name is
made, the firm needs to decide on how to implement the changeover in practice.
Comment on the strategies that might be available for doing this and the
considerations that might steer the manager toward one of the strategies.
89. Describe the strategies that might be used by multinational corporations to cope
with the growing threat of product piracy. What are your feelings about purchasing
pirated products? Give a brief illustration.
90. Comment on how you perceive the marketing of services on a global basis to be
different from marketing tangible goods. Think about the difficulties that might be
present with marketing services.
Chapter 12
Multiple Choice
1. ________________ is the only marketing mix instrument that creates revenues.
a.
b.
c.
d.
e.
Product
Price
Place
Promotion
People
under-functional
low-functional
geo-functional
bi-functional
cross-functional
company
customers
controls
competition
channels
break-even analysis
regression functions
supply and service curves
government policies
business ethics
a.
b.
c.
d.
e.
country objectives.
company objectives.
consumer objectives.
monopoly objectives.
none of the above.
profits
costs
demand
supply
service
Demand
Supply
Derived
Fixed
Variable
Demand
Supply
Derived
Fixed
Variable
incremental costs
demand costs
fixed costs
target costs
service costs
raise prices
lower prices
lower service
raise quality
reduce costs
location
buying power
decision power
thinking power
none of the above
promotion sensitive
price sensitive
need sensitive
demand sensitive
service sensitive
downsized
upgraded
synthetic
copy
parallel
b.
c.
d.
e.
IBM
Coca-Cola
Toyota
BMW
promotion
service
product
price
place
demand-based
premium pricing
elastic pricing
promotion-related pricing
sensitivity-based
retailer sales.
discounts.
coupons.
advertising.
cents-off deals.
backward
gray
white
demand
forward
black market
white market
zero market
smuggled
parallel
a.
b.
c.
d.
e.
direct
indirect
artificial
planned
uncontrollable
direct
indirect
artificial
planned
uncontrollable
inflation.
the price deflator.
price escalation.
price sensitivity.
global arbitrage.
c. elastic pricing
d. promotion-related pricing
e. sensitivity-based
Difficulty: (1) Knowledge: (A) Page: 403
38. When McDonalds first opened their restaurants in Russia in 1990, the Big Mac
meal
cost 6 rubles. Three years later, the same meal cost 1,100 rubles. This would be
an
example of how:
a.
b.
c.
d.
e.
High
Low
Visible
Hyper
Slow
commodity
inflation
margin
discount
price
Interest rates
Credit rates
Bond rates
Inflation rates
Exchange rates
a.
b.
c.
d.
e.
Demand-based pricing
Negotiated pricing
Cost-based pricing
Markup-based pricing
Target return pricing
demand-based pricing
negotiated pricing
cost-based pricing
markup-based pricing
target return pricing
Price fixing
Dumping
Gray marketing
Countertrade
Predatory pricing
trading-up
service enhancement
distribution
government intervention
communications
a.
b.
c.
d.
e.
nature of customer.
amount of product differentiation.
nature of channels.
nature of competition.
role of the World Bank.
uniform-pricing contracts
diverse-pricing contracts
bilateral-pricing contracts
global-pricing contracts
local-pricing contracts
simple barter.
switch trading.
geo trading.
countertrade pricing.
clearing agreements.
clearing agreement
offset
buyback arrangement
switch trading
simple barter
Short Answer
77. According to the textbook, factors that impact global pricing decisions include
company, customers, competition, technology.
Difficulty: (2) Knowledge: (F) Page: 396
78. Cost differentials do not lead to wide price gaps.
Difficulty: (1) Knowledge: (F) Page: 397
79. In gray markets, products marketed in low-priced countries are shipped and
resold
by unauthorized channels in high-priced markets.
Difficulty: (2) Knowledge: (F) Page: 401
80. Government policies do not have any impact on pricing decisions.
Difficulty: (1) Knowledge: (A) Page: 402
81. To cover the incremental costs of doing business in a foreign market, the final
foreign retail price will often be much higher than the domestic retail price.
This is called price _________________.
82. To combat hyperinflation, governments occasionally impose price controls.
Difficulty: (2) Knowledge: (F) Page: 404
83. One of the courses of action that a company can follow when faced with price
controls is to adapt the product line.
Difficulty: (2) Knowledge: (F) Page: 404
84. A stronger U.S. dollar undermines the competitive position of American exports.
Difficulty: (2) Knowledge: (F) Page: 406
85. An exporter strategy when faced with a weak domestic currency would be to
engage in nonprice competition by improving quality, delivery, and aftersale
service.
Difficulty: (2) Knowledge: (F) Page: 406, Exhibit 12-4
86. If an exporter were to stress price benefits, the exporter would probably be facing
a domestic currency that was perceived as being weak.
98. Several multinationals doing business in the European Union harmonize their
prices
to narrow price gaps between different member states..
Difficulty: (2) Knowledge: (F) Page: 415
99. When sales transactions occur in some form of compensation other than money
(such as trading corn for whiskey), the two trading companies are engaged in
________________.
100. In switch trading, a third party is involved which uses the credits to buy goods
from
the deficit country.
Difficulty: (1) Knowledge: (F) Page: 419
101. Countertrade purchase is not the most popular form of countertrade.
Difficulty: (3) Knowledge: (F) Page: 419
Essay
102. In international marketing, price escalation can be a serious problem. To offset
these difficulties marketers must be prepared to creatively meet the price escalation
challenge. List the various ways that marketers might attack this problem.
103. Setting prices in a floating exchange rate world pose unique problems.
Comment on how a company might react to floating exchange rates. What
considerations are probably the most important for the decision maker to consider?
104. What is transfer pricing? Comment on the stakeholders and key drivers that
impact the decision maker faced with transfer pricing.
105. Antidumping measures are very popular with most of the governments of
industrialized nations. What measures might exporters consider to hedge themselves
against antidumping procedures? Which method do you think is probably the best?
Justify your answer.
106. Discuss the motives behind countertrade and the guidelines for making
countertrade successful.
Chapter 13
Multiple Choice
1. In international marketing, advertising to some extent is a _________________
phenomenon.
a.
b.
c.
d.
e.
cultural
social
general
static
global
5. All of the following are language barriers that can be identified as typical
international
translation errors EXCEPT:
a.
b.
c.
d.
e.
simple carelessness.
idioms.
local slang.
multiple-meaning words.
incorrect grammar.
local
regional
global
transnational
domestic
language barriers.
advertising regulations.
cultural constraints.
local attitudes toward advertising.
poor media infrastructure.
simple carelessness.
idioms.
local slang.
multiple-meaning words.
incorrect grammar.
9. In an advertising message, the original slogan was When I used this shirt, I felt
good. The translation in a foreign market was Until I used this shirt, I felt
good.
This would be an example of which of the following types of translation errors?
a.
b.
c.
d.
e.
simple carelessness.
idioms.
local slang.
multiple-meaning words.
incorrect grammar.
simple carelessness.
idioms.
local slang.
multiple-meaning words.
incorrect grammar.
simple carelessness.
idioms.
local slang.
multiple-meaning words.
incorrect grammar.
environment
money
technology
business
religion
language barriers
advertising regulations
cultural constraints or barriers
local attitudes toward advertising
poor media infrastructure
the government.
trade unions.
environmental rights groups.
women.
the host countrys religion(s).
power distance.
possessions.
uncertainty avoidance.
individualism.
masculinity.
power distance.
long-termism.
uncertainty avoidance.
individualism.
masculinity.
power distance.
long-termism.
uncertainty avoidance.
individualism.
masculinity.
a.
b.
c.
d.
e.
power distance.
long-termism.
uncertainty avoidance.
individualism.
masculinity.
percentage of sales
competitive parity
all-you-can-afford
objective-and-task
marginal increment
popularity.
accounting good sense.
control feature.
simplicity.
accuracy.
percentage of sales
competitive parity
all-you-can-afford
objective-and-task
marginal increment
d. objective-and-task
e. marginal increment
Difficulty: (2) Knowledge: (F) Page: 433
25. If an advertiser spells out the goals of their communication strategy and
determines
what they would like to accomplish with advertising and then plans a budget
accordingly, they are probably using the ______________ method of budgeting.
a.
b.
c.
d.
e.
percentage of sales
competitive parity
all-you-can-afford
objective-and-task
marginal increment
percentage of sales
competitive parity
all-you-can-afford
objective-and-task
marginal increment
scale economics.
consistent image.
government regulation.
global consumer segments.
creative talent.
a.
b.
c.
d.
e.
beer.
banking.
a beef product.
an automobile.
cosmetics.
scale economics
consistent image
cross-fertilization
global consumer segments
creative talent
scale economics
consistent image
cross-fertilization
global consumer segments
creative talent
b.
c.
d.
e.
budget.
advertising regulations.
differences in the degree of market development.
the Not Invented Here syndrome.
cultural differences.
budget.
advertising regulations.
differences in the degree of market development.
the Not Invented Here syndrome.
local
regional
global
transnational
multinational
host country
home country
foreign
laissez faire
polycentric
export
import
prototype (pattern)
concept cooperation
psychological
export
import
prototype (pattern)
concept cooperation
psychological
competitors
governments
advertising mangers
headquarters
CEOs
geotype
prototype
modulartype
export
psychological
40. Another term to describe the portfolio of media choices (and variations within
those
choices) is called:
a.
b.
c.
d.
e.
LMP
ZNP
MMP
GNP
PPP
a.
b.
c.
d.
e.
market coverage.
cost of agency talent and expense.
quality of coverage.
expertise with developing a central international campaign.
scope and quality of support services.
Advertising
Sales promotion
Internet marketing
Promotion
Publicity
advertising
sales promotion
direct marketing
public relations
publicity
economic development.
market maturity.
cultural perceptions.
trade structure.
new product development.
53. If promotional dollars are aimed at the end-user, then the strategy is described as
being a ______________ strategy.
a.
b.
c.
d.
e.
push
pull
conventional
vertical
horizontal
push
pull
conventional
vertical
horizontal
push
pull
conventional
vertical
horizontal
push
pull
conventional
vertical
horizontal
a.
b.
c.
d.
e.
event sponsorship
sales sponsorship
trade shows
publicity
public relations
guerilla marketing
ambush marketing
passive marketing
active marketing
cooperative marketing
trade marts
trade markets
trade fairs
trade expos
trade circles
vertical communications
horizontal communications
integrated marketing communications
global communications
synergistic communications
vertical communications
horizontal communications
globally integrated marketing communications
global communications
synergistic communications
Short Answer
Chapter 14
Multiple Choice
1. Unlike the United States where customers visit car dealers, a majority of cars are
sold
by door-to-door salespeople in _________________.
a.
b.
c.
d.
e.
India.
Pakistan.
Japan.
Ireland.
Mongolia.
take orders.
deliver products.
repair products.
educate consumers.
provide technical knowledge.
support mechanism
front line
mouthpiece
promoter
educator
a.
b.
c.
d.
e.
International product
International strategy
International mix
Intercultural
Global society
motivation.
cultural sensitivity.
ethical standards.
relationship building.
home to host communications.
motivation.
cultural sensitivity.
ethical standards.
relationship building.
home to host communications.
10. Sales force skill availability, company image, expatriate recruiting, and centralized
training are issues relevant to ________________________ considerations.
a.
b.
c.
d.
e.
international product
international sales strategy
international mix
intercultural issues with the foreign country
global society
international product
international sales strategy
international mix
intercultural issues with the foreign country
global society
form of marketing
form of entry
form of promotion
form of commission
form of management
form of marketing
form of entry
form of promotion
form of commission
form of management
zone process
level of migration
level of expatriation
level of complexity
level of integration
a.
b.
c.
d.
e.
vertical
horizontal
forward
backward
dual
vertical
horizontal
forward
backward
dual
low
middle
high
backward
parallel
A foreign franchise
An Export Trading Company
An Export Management Company
A Noraizi agent
A bulk-breaker
a.
b.
c.
d.
e.
contract manufacturers
franchisees
experienced exporters
inexperienced exporters
none of the above
b.
c.
d.
e.
A foreign franchise
An Export Trading Company
An Export Management Company
A Noraizi agent
A bulk-breaker
a foreign franchise
an Export Trading Company
an Export Management Company
a dealer network
a bulk-breaker
low
middle
high
backward
parallel
c. high-level
d. backward level
e. parallel level
Difficulty: (2) Knowledge: (A) Page: 426
31. Which of the following forms of company sales involvement generally have the
lowest involvement of expatriates?
a.
b.
c.
d.
e.
low-level
mid-level
high-level
backward level
parallel level
low-level
mid-level
high-level
backward level
parallel level
35. Which of the following statements MOST accurately describes the state of
international selling?
a. At the level of personal selling there is little true international selling.
b. International selling is a function of the degree of involvement.
c. Because of the global nature of business today, global selling transcends
international boundaries.
d. International selling will never work.
e. International selling is tightly monitored by most governments because of the
potential for funds outflow.
Difficulty: (3) Knowledge: (F) Page: 427
36. Which of the following statements MOST accurately describes the state of
international selling?
a. Despite growing international sales, salespeople typically work only in one
region.
b. International selling is a function of the degree of involvement.
c. Because of the global nature of business today, global selling transcends
international boundaries.
d. International selling will never work.
e. International selling is tightly monitored by most governments because of the
potential for funds outflow.
Difficulty: (3) Knowledge: (F) Page: 427
37. Personal selling is predominantly a _________________ activity.
a.
b.
c.
d.
e.
psychological
ethnic
tribal
group
personal
cultural assimilation
cultural harmony
cultural generalization
cultural syncopation
cultural similarity
cultural onomonopea
cultural adiaphoria
cultural generalization
cultural syncopation
cultural similarity
cultural onomonopea
cultural adiaphoria
cultural generalization
cultural syncopation
cultural similarity
consumers
governments
board of directors
CEOs
employees
Kelsey-Ciebold scale.
Johns-Hopkins initial perception scale.
Majors-Hawkins Cognitive Indicator.
Myers-Briggs Type Indicator.
Spaniel test.
extrovert versus introvert, sensing versus intuitive, thinking versus feeling, and
judging versus perceiving.
a.
b.
c.
d.
e.
Hartman profile
Myers-Briggs Type Indicator
Majors-Hawkins Cognitive Indicator
Spaniel test for concepts
Freudian fantasy test
extrovert
introvert
sensing person
intuitive person
thinking person
extrovert
introvert
sensing person
intuitive person
thinking person
extrovert
introvert
sensing person
intuitive person
thinking person
52. __________________ addresses the structure, size, and compensation of the sales
force.
a.
b.
c.
d.
e.
territorial
product
customer
matrix
open plan
territorial
product
customer
matrix
open plan
size
structure
compensation procedure
modeling procedure
evaluation procedure
Recruiting
Training
Evaluating
Supervising
Compensating
parametric
qualitative
quantitative
nonparametric
decisional
non-task sounding.
task-related information exchange.
foreign travel.
persuasion.
concessions and agreements.
a.
b.
c.
d.
e.
Managers
International personnel
Group managers
Expatriates
Foreign managers
more intelligence.
better communication.
better understanding of office politics.
develops better future managers.
better relationships with the home office.
cross-cultural training.
motivation.
honesty.
compensation.
family discord.
global, local
international, local
European, local
expatriate, local
Asian, local
motivation.
salary.
health.
fear of the foreign environment.
e. family discord.
Difficulty: (2) Knowledge: (F) Page: 447
70. Expaticas Relocation Services 2008 survey provided the following
recommendations regarding reducing attrition rates EXCEPT:
a.
b.
c.
d.
e.
Short Answer
71. Unlike the United States, the majority of cars sold in Japan are sold door-to-door.
Difficulty: (2) Knowledge: (A) Page: 421
72. The salesperson is not the front line for the company.
Difficulty: (1) Knowledge: (F) Page: 422
73. Sales people do not sell services.
Difficulty: (1) Knowledge: (A) Page: 422
74. When considering international sales management issues, ________________
considerations are issues that analyze more than one countrys assets, strengths,
and
situations, or that deal directly with cross-border coordination.
75. Sales force skill availability, country image, and expatriate recruiting are all
issues
that are relevant as intercultural issues with the foreign country.
Difficulty: (3) Knowledge: (F) Page: 423, Exhibit 14-1
76. Motivation, cultural sensitivity, ethical standards, and fairness are all issues that
are
relevant as intercultural issues with the foreign country.
Difficulty: (2) Knowledge: (F) Page: 423, Exhibit 14-1
77. The question of how to enter the market is central to marketing.
99. Considering the four major categories of the Myers-Briggs Type Indicator, which
of the categories (or combination of categories) best describes you? Explain why.
100. Not all United States sales methods or systems can automatically be exported
abroad. Considering the information provided by research on different cultural
dimensions, why might it be difficult to adopt a U.S.-style commission system for
salespeople in such countries as Japan or Mexico. Be sure to remember how these
two countries might rank on the five cultural dimension scales.
101. Why do most firms still consider expatriates to be a valuable extension of their
company? What are the advantages and disadvantages of using expatriates?
Chapter 15
Multiple Choice
1. In global logistics and distribution, Coca-Colas success relies largely on its global
distribution arm, ______________________, the worlds largest bottler group.
a.
b.
c.
d.
e.
Coca-Cola Enterprises
Coca-Cola Network
Coca-Cola Web
Coca-Cola Team
Coca-Cola Trucking Co.
Philip Kotler.
Stephen Covey.
Michael E. Porter.
Peter Drucker.
Tom Peters.
c. operations managers
d. outsourcing managers
e. information technology managers
Difficulty: (2) Knowledge: (F) Page: 452
4. In 2011, the total logistics cost represented about 8.5 percent of the GDP, or $1
trillion in the _________________.
a.
b.
c.
d.
e.
U.S.
Ireland
Portugal
Belgium
Romania
1
3
5.5
8.5
10.5
Bi-polar
Bi-modal
Intercontinental
Dual-basic
Intermodal
Data processing
Messaging service
Tracking technology
Computerized messaging
Hybrid technology
8. With electronic tracking technology, shippers are able to quickly react to any
disruption in the shipments because the shipper knows where exactly the goods are
in real time and:
a.
b.
c.
d.
e.
Global logistics
Physical distribution
Materials management
Purchasing processes
Global distribution
b.
c.
d.
e.
physical distribution
purchasing
intermodal transportation
materials handling
materials management
Physical distribution
Purchasing
Intermodal transportation
Global logistics
Materials management
transportation.
warehousing.
inventory.
order entry.
promotion and advertising.
d. materials handling
e. warehousing and transportation
Difficulty: (3) Knowledge: (A) Page: 453
17. Which of the following factors contribute significantly to the increased
complexity
and cost of global logistics as compared to domestic logistics?
a.
b.
c.
d.
e.
domestic intermediaries
service
purchasing
exchange rate fluctuation
materials handling
distance.
logistics.
exchange rate fluctuations.
foreign intermediaries.
domestic intermediaries.
ocean shipping
air transport
trucking services
railroads
inland waterways
perishability
cost of transportation
cost of insurance
value-to-volume ratio
intermodal ratio
a.
b.
c.
d.
e.
ocean shipping.
air freight.
cargo liner service.
truck.
intermodal transportation.
liner service.
bulk shipping.
tanker shipping.
irregular runs.
FedEx surface.
ocean shipping.
air freight.
truck.
rail.
barge.
ocean shipping.
air freight.
truck.
rail.
barge.
ocean shipping
air freight
truck
rail
barge
buying power
just-in-time management
just-in-time delivery
purchasing management
inventory
buying power
plant and equipment
trucks
materials handling equipment (such as forklifts)
inventory
the goods/parts held in inventory remains the same compared to the buying power
of
local currency.
a.
b.
c.
d.
e.
High-tech
Low-tech
High
Low
None of the above
Rationalization
Utility management
Physical distribution management
Logistic integration
Logistic modeling
Rationalization
Utility management
Physical distribution management
Logistic integration
Logistic modeling
IT warehouses
e-commerce
information technology
global shipping traffic
global air traffic
d. third-production logistics.
e. none of the above.
Difficulty: (1) Knowledge: (F) Page: 461
39. The largest third-party logistics sector is the value-added ________________ and
_________________ industry.
a.
b.
c.
d.
e.
warehousing, purchasing
warehousing, manufacturing
warehousing, distribution
warehousing, painting
none of the above
parallel delivery.
cheap delivery.
expensive delivery.
forward-time delivery.
on-time delivery.
another.
a.
b.
c.
d.
e.
Relative advantage
Absolute cost advantage
Comparative advantage
Competitive advantage
Sourcing advantage
alliances
mergers
acquisitions
consortia
joint ventures
importing
outsourcing
in-sourcing
matrix manipulation
horizontal integration
C2B
B2B
B2G
C2C
B2C
promotions
selling
manufacturing
auctions
production
vertical corporations.
horizontal corporations.
hollow corporations.
supply and demand corporations.
monopoly manufacturers.
border zone
red zone district
warehouse district
dock facility
free trade zone
Maquiladora operation
border zone
red zone district
Foreign Trade Zone
Channel Zone
Maquiladora operation
border zone
red zone district
Foreign Trade Zone
Channel Zone
maquiladora operations
assembly operations
imports
exports
none of the above
a.
b.
c.
d.
e.
push
pull
vertical shove
horizontal slant
parallelism
unique brand.
vertical brand.
horizontal brand.
store brand or private label.
hybrid label.
domestic brand.
national brand.
manufacturers brand.
store brand or private label.
service label.
United States.
United Kingdom.
Japan.
France.
Canada.
66. All of the following are factors that have explained the success of private labels
in recent years EXCEPT:
a.
b.
c.
d.
e.
domestic branding
national branding
manufacturers branding
store branding or private labeling
service labeling
service/product
product/service
push/pull
pull/push
pull/parallel
regional markets
global markets
world markets
submerging markets
emerging markets
Singapore
Pakistan
Indonesia
Japan
South Korea
Germany
USA
Mexico
Brazil
UK
China
India
Indonesia
Hong Kong
South Korea
a.
b.
c.
d.
e.
moonlighting
cross border
gray market
TRW
Maquiladora
1945
1955
1965
1975
1985
25
50
75
90
100
capital
labor
technology
repair
service
Short Answer
82. When Peter Drucker described logistics as the darkest continent of business he
probably meant it is was ________________________.
83. In 2008, in the United States, total logistical cost is estimated to be about 20
percent of the countrys GDP.
84. Global logistics encompasses materials management only.
Difficulty: (1) Knowledge: (F) Page: 453
85. _________________ transportation refers to the seamless transfer of goods from
one
mode of transport to another and vice versa without the hassle of unpacking and
repackaging.
86. Materials management does not include the inflow of raw material, parts, and
supplies through the firm.
Difficulty: (2) Knowledge: (F) Page: 453
87. ________________ is defined as the design and management of a system that
directs and controls the flows of materials into, through and out of the firm across
national boundaries to achieve its corporate objectives at a minimum total cost.
88. Global logistics, unlike domestic logistics, does not put emphasis on physical
distribution.
Difficulty: (2) Knowledge: (F) Page: 453
89. ___________________ refers to the inflow of raw materials, parts, and supplies
in and through the firm.
90. ___________________ refers to the movement of the firms finished products
to its customers, consisting of transportation, warehousing, inventory,
customer service/order entry, and administration.
91. Materials management refers to the movement of the firms finished products
to its customers, consisting of transportation, warehousing, inventory,
customer service/order entry, and administration.
92. Physical distribution refers to the inflow of raw materials, parts, and supplies
in and through the firm.
93. The bulk of international trade is handled by airlines.
94. The inventory-to-volume ratio is determined by how much value is added to
materials
used in the product.
95. Air freight represents more than 40 percent of the value of goods shipped in
international commerce.
96. Ocean shipping is used extensively for the transport of heavy perishable cargoes.
97. In intermodal transportation, only one type of transportation is employed.
98. Rationalization means reducing resources to achieve more efficient and costeffective operations.
Difficulty: (1) Knowledge: (A) Page: 459
110. The global logistics manager must understand the specific properties of the
different modes of transportation in order to use them optimally. What are the most
important factors in determining an optimal mode of transportation? List and briefly
describe each of the factors.
111. Explain the role that so called third-party logistics (3PL) companies play in
contemporary international trade. Cite the advantages of using third-party companies
in the trade process.
112. Explain the role of the free trade zone in modern trade. Explain the free trade
zones relationship and benefit to global logistics.
113. In which parts of the world are private labels popular? Why? What factors
might explain this?
114. Explain the concept and function of the Maquiladora operation or industry in
Mexico.
Chapter 16
Multiple Choice
1. ___________________ is the most popular way for many companies to become
international.
a.
b.
c.
d.
e.
Exporting
Importing
Licensing
Contract manufacturing
None of the above
Exporting
Importing
Licensing
Contract manufacturing
None of the above
a.
b.
c.
d.
e.
1 million
8 million
10 million
15 million
20 million
5 percent
8 percent
9 percent
10 percent
14 percent
primary data
secondary data
tertiary data
Internet data
intranet data
CD-ROMs
electronic encyclopedias
electronic databases
CIA reports
government intelligence reports
United Kingdom
Germany
Japan
France
United States
8. Approximately how many databases (that can be used to help with international
trade) are available online in the world?
a.
b.
c.
d.
e.
1,000
3,000
4,000
5,000
6,000
socioeconomic characteristics.
political and legal characteristics.
consumer variables.
service variables.
financial conditions.
demographics.
economic.
geographic.
econometrics.
climatic characteristics.
b.
c.
d.
e.
purchase frequency.
lifestyle.
preferences.
purchase behavior.
differentiated
semi-standardized
clustered
gray market
standardized
Direct
Indirect
Parallel
Synchronized
Dual
exporters
export specialists
export representatives
distribution specialists
parallel exporters
keiretsus
chaebols
sogonets
sogoshoshas
akimonos
b.
c.
d.
e.
chaebols
sogonets
sogoshoshas
akimonos
e. trading company
Difficulty: (2) Knowledge: (F) Page: 495
26. ___________________ are large, foreign organizations engaged in exporting and
importing. They buy on their own account and export the goods to their home
country.
a.
b.
c.
d.
e.
IBM.
General Motors.
Mitsui.
Volvo.
Wal-Mart.
Direct
Indirect
Parallel
Synchronized
Dual
30. With respect to direct exporting, the primary difference between a foreign sales
subsidiary and a foreign sales branch is that the foreign sales branch:
a.
b.
c.
d.
e.
is larger.
is smaller.
is not a separate legal entity.
uses home country managers.
does not pay taxes.
direct
indirect
parallel
synchronized
dual
letter of credit.
letter of ownership.
letter for transportation permission.
export license.
social security number.
b.
c.
d.
e.
bill of disclosure
term of sale
payment statement
transportation invoice
bill of lading
bill of disclosure
term of sale
payment statement
commercial invoice
bill of lading
ex-works.
free alongside ship (FAS).
free on board (FOB).
cost and freight (CFR).
Cost, Insurance, and Freight (CIF).
a.
b.
c.
d.
e.
ex-works.
free alongside ship (FAS).
free on board (FOB).
cost and freight (CFR).
Cost, Insurance, and Freight (CIF).
advance payment
third party draft.
confirmed irrevocable letter of credit.
unconfirmed irrevocable letter of credit
open account
Credit
Exchange
Transfer
Importer
Exporter
number of dollars.
a.
b.
c.
d.
e.
Foreign credit
Foreign exchange
Foreign transfer
Foreign payment
Foreign delivery
Credit
Exchange
Transfer
Importer
Exporter
importers, exporters
exporters, importers
investment, exporters
governments, exporters
none of the above
advance payment.
confirmed irrevocable letter of credit.
unconfirmed irrevocable letter of credit.
open account.
consignment.
loans to Japan.
loans to Taiwan.
loans to Mexico.
loans for prior bankrupt countries.
project finance (such as infrastructure projects---roads, dams, etc.).
state
domestic
regional
private
government
55. One of the biggest advantages the United States has in importing is that U.S.
companies can:
a.
b.
c.
d.
e.
capitalize
hedge
capitate
survey
monitor
visas
product passports
bills of landing
bills of shipping
entry documents
line of credit
transfer
bond
permit
tariff
holding pen
corporate security zone
bonded warehouse
wharf zone
parallel import zone
ad valorem
specific
compound
nontariff
import
d. nontariff
e. import
Difficulty: (2) Knowledge: (F) Page: 511
64. When import duties are paid, the _________________ duty is a combination of a
specified amount of the per unit weight or other quantity of the merchandise plus
an ad valorem rate.
a.
b.
c.
d.
e.
bonded
corkage
compound
nontariff
import
Ad valorem
Specific
Compound
Nontariff
Antidumping
Ad valorem
Specific
Compound
Countervailing
Antidumping
Black market
Gray market
Positioned
Zoned
Red zone
positioned imports
concentric marketing
strategic entry imports
parallel imports
sidebar hedging
gray
black
furniture
smuggled
none of the above
currency fluctuations.
differences in market demand.
legal differences.
opportunistic behavior.
foreign trade outlets.
Short Answer
71. Exporting is the first mode of foreign entry used by many companies.
Difficulty: (1) Knowledge: (F) Page: 491
72. Exports represent about 4 percent of the U.S. gross domestic product (GDP).
Difficulty: (3)Knowledge: (F) Page: 492
73. For a firm beginning exports for the first time, the first step is to use available
primary data.
Difficulty: (1) Knowledge: (F) Page: 492
74. The World Bank publishes the World Development Report.
Essay
96. Indicate the factors that a prospective exporter might examine to choose an export
market.
97. Describe the direct and indirect channels of distribution that are available to
exporters. As part of the description process, indicate any conditions or advantages
that might be present in these channels.
98. Pick three (3) of the options available to exporters when it comes to terms of
payment. Explain each of the options available based on your choice.
99. Describe the role the U.S. government plays in maintaining and fostering export
activities. Demonstrate this role with specific examples of activities that the
government might undertake.
100. Describe gray markets. Explain how they develop. Describe your feelings about
buying from a gray market.
Chapter 17
Multiple Choice
1. The capstone of a companys global marketing activities is its
____________________________.
a.
b.
c.
d.
e.
a.
b.
c.
d.
e.
decentralized
centralized
regional
globalized
local
local
global
transnational
manufacturing
high-tech
bottom-up
top-down
strategic
long-term
short-term
competitive environment.
rate of environmental change.
product diversity.
regional trading blocs.
e. nature of customers.
Difficulty: (2) Knowledge: (F) Pages: 577-78
8. As international sales grow, the organizational structure will evolve to mirror the
growing importance of the firms _________________ activities.
a.
b.
c.
d.
e.
local
regional
global
strategic
manufacturing
local customers.
strategic importance of international business.
product diversity.
company heritage.
quality of local managerial skills.
12. Typically, when overseas sales account for a very small fraction of the companys
overall sales revenues, ____________________ can easily handle the firms
global activities.
a.
b.
c.
d.
e.
an international division.
a city division.
a product-based structure.
a geographic structure.
a matrix structure.
international division
cryptic division
product-based structure
geographic structure
matrix structure
international division
cryptic division
product-based structure
geographic structure
matrix structure
international division
cryptic division
product-based structure
geographic structure
matrix structure
international division
cryptic division
product-based structure
geographic structure
matrix structure
city division.
country division.
international division.
export department.
export commission manager.
international division
cryptic division
global product division structure
geographic structure
matrix structure
portfolio?
a.
b.
c.
d.
e.
international division
cryptic division
global product division structure
geographic structure
matrix structure
international division
global product division structure
global network solutions
geographic structure
matrix structure
c. cross-fertilization is hindered.
d. local market conditions go unnoticed.
e. a not-invented-here mentality exists.
Difficulty: (3) Knowledge: (F) Page: 580
25. All of the following are profiles that are suggested for the twenty-first century
country manager EXCEPT:
a.
b.
c.
d.
e.
the trader.
the power broker.
the builder.
the ambassador.
the cabinet member.
the trader
the representative
the builder
the ambassador
the cabinet member
the trader
the representative
the builder
the ambassador
the trader
the power broker
the builder
the ambassador
the cabinet member
scouting.
liberating.
strategic simulation.
signaling commitment.
pooling resources.
international division
customer division
global product division
geographic
matrix
33. All of the following are considered to advantages of the matrix structure of
organizing EXCEPT:
a.
b.
c.
d.
e.
international division
global network
global product division
geographic
matrix
b.
c.
d.
e.
global network
global product division
geographic
matrix
local networking
regional networking
global networking
domestic networking
high-tech networking
international.
multinational.
transnational.
local-national.
quasi-national.
ad-hoc
temporary
longitudinal
outside
e. domestic
Difficulty: (2) Knowledge: (F) Page: 587
42. Global branding committees are usually made up of ________________
executives.
a.
b.
c.
d.
e.
matrix
network
medium-line
top-line
bottom-line
brand champion
product champion
local champion
corporate champion
high-tech champion
high-tech
human resources
operational
manufacturing
marketing
product prices
domestic services
foreign product deliveries
foreign product diversity
purchasing habits
local division
regional division
international division
global division
none of the above
host-country area
home-country area
global area
geographic area
local area
glocal mindset
global mindset
local mindset
regional mindset
country mindset
50. To make global marketing strategies work, companies need to establish a(n)
____________________.
a.
b.
c.
d.
e.
career system.
development system.
control system.
appeals system.
listening system.
career system
development system
control system
appeals system
listening system
administrative
conductive
selective
bureaucratic
strategic
outcome-based.
performance-based.
intellectual-based.
strategic-based.
structural-based.
strong leadership
bonuses
perks
due process
nondiscrimination
manufacturing
production
network structure
strategic control
corporate culture
market based
leader based
employee based
symbol based
tradition based
market based
leader based
employee based
clan based
tradition based
market based
leader based
employee based
clan based
tradition based
informal
formal
simple
dynamic
complex
Short Answer
63. The capstone of a companys global marketing activities is its strategic marketing
plan.
Difficulty: (1) Knowledge: (F) Page: 575
64. The first step of a global strategic marketing plan starts with market situation
analysis.
Difficulty: (2) Knowledge: (F) Page: 576
65. The content of a global strategic marketing plan covers four areas which include:
market situation analysis, objectives, strategies, and ____________________.
66. Companies with substantial product diversity tend to go for a global geographic
division configuration.
Difficulty: (2) Knowledge: (F) Page: 579
67. The charter of the international division is to develop and coordinate the firms
global
operations.
Difficulty: (3) Knowledge: (F) Page: 579
68. The global product structure is most appropriate for companies whose product line
is not too diverse and does not need a large amount of adaptation to local country
needs.
Difficulty: (2) Knowledge: (A) Page: 579
69. Under the ________________ design, the company configures its organization
along geographic areas.
70. Country-focused organizations can be very good forms of structure because they
tend to be less costly than other forms.
Difficulty: (3) Knowledge: (F) Page: 580
71. Under the __________________ design, the company integrates two approaches
and
has a dual chain of command.
72. Some corporate strategy experts believe that in the twenty-first century, the role of
the
country manager will be minimal.
Difficulty: (2) Knowledge: (F) Page: 581
87. List and briefly describe the principal organizational design options that firms can
use to organize their global activities. Cite the advantages and disadvantages of each
form.
88. Describe the five profiles that country managers might need to fit to be able to
lead their organizations into the challenges of the twenty-first century.
89. Explain how a global networked organization might differ from a matrix
organizational structure. To answer this question, review the characteristics of both
structures carefully.
90. Although some feel country managers are obsolete, most companies believe they
are essential to the firm. What reasons make country managers more important than
ever? What roles will they play?
Chapter 18
Multiple Choice
1. Emerging markets can be found in which of the following areas?
a.
b.
c.
d.
e.
Africa
Asia
Latin America
Eastern Europe
All of the above
developed countries
advanced emerging
secondary emerging
frontier countries
both a and d
Malaysia
Indonesia
Egypt
Mexico
Nigeria
global warming
Chinas rise as a global superpower
losses in the World Cup soccer matches
the Asian financial crisis
EU focus on North Africa as a trading partner
Italy
Russia
Germany
United Kingdom
Nigeria
United States
Philippines
Turkey
Canada
Malaysia
smart phones
computers
beer
cars
all of the above
South Korea
Taiwan
China
Japan
Singapore
theme parks
entertainment
fast food
childrens clothing
shoes
Malaysia
Indonesia
China
Philippines
India
Miller beer
Jaguar
IBM PC
Ferrari
Budweiser
25. When competing with the new champions from emerging markets, MNCs:
a. should give upthe new champions have cheaper labor and the latest
technology.
b. can ignore the new championsthey are only effective in emerging markets.
c. should focus on the high end of the market and leave the rest to the local
companies.
d. buy out local rivals and use them to challenge the new champion in the home
market.
e. none of the above
Difficulty: (2) Knowledge: (A) Page: 608
26. MNCs are being threatened by new champions from the emerging markets.
Which of the following strategies is NOT recommended for them?
a.
b.
c.
d.
29. Some people are optimistic about the BOP as a market segment. This is because:
a.
b.
c.
d.
e.
enormous.
much more coarse and difficult to define.
harder to reach because media options are not as well developed.
less wealthy.
all of the above
37. What best describes the outcome of early entry into emerging markets?
a.
b.
c.
d.
e.
It can be lucrative, especially for huge markets like China and India.
It is likely to fail because the markets dont or cant appreciate the product.
It will probably face few direct competitors.
Products will be too expensive for local consumers.
None of the above
export
licensing
joint venture
direct investment
all of the above
product piracy
enforcing property rights
well-developed marketing infrastructure
antitrust laws
government intervention
45. When MNCs enter an emerging market, they are likely to:
a.
b.
c.
d.
e.
49. Common features that products must have to be successful in emerging markets
include:
a.
b.
c.
d.
e.
be a backward innovation.
be an example of a product life cycle extension.
be rejected in emerging markets as not being modern enough.
be too difficult to operate.
likely have the idea copied as soon as it hit the market.
sturdiness
heat resistance
freshness
sustainability
none of the above
refrigeration
sustainability
safety
variety of sizes
metal containers
It isntpricing is.
It isntproduct adaptation is.
Distribution infrastructure is too complex to navigate.
The countrys land mass is a deterrent.
All of the above
Short Answer
Essay
92. Describe the characteristics that define emerging markets.
93. Despite coming from humble origins and lacking much of the resources of the
major global firms, many companies from emerging markets are serious challengers
in world markets. What strategies do they employ to enable them to succeed?
94. What are the strategic options for emerging market firms in global marketing?
Under what conditions would each be suggested?
95. There are some commonly held beliefs about marketing mix strategy that have
been proven to be less than optimal. Identify some of these.
96. Describe the communication challenges faced when entering emerging markets.
Chapter 19
Multiple Choice
1. According to the text, the Web clearly provides a unique _______________ and
______________ channel to marketers across the globe.
a.
b.
c.
d.
e.
Italy.
Japan.
U.S.A.
Belgium.
Singapore.
a.
b.
c.
d.
e.
1 billion
2 billion
3 billion
4 billion
5 billion
English
French
Arabic
German
Spanish
language
culture
infrastructure
access charges
none of the above
a.
b.
c.
d.
e.
language barriers.
cultural barriers.
infrastructure.
all of the above.
none of the above.
Hindu
Chinese
Spanish
German
Both a and d
is doomed to fail.
is ethnocentric.
works in some industries like aerospace.
limits your market.
both c and d
translators.
copy writers.
media specialists.
network specialists.
knowledge experts.
information and content into other languages have two alternatives that may
include:
a.
b.
c.
d.
e.
virtual basis.
simple basis.
complex basis.
face-to-face basis.
none of the above.
government deregulations.
increased competition.
new access alternatives.
all of the above.
none of the above.
British Telecom.
Toyota.
Nippon Telephone & Telegraph (NTT).
Seven-Eleven Japan.
AT&T.
b.
c.
d.
e.
regional
political
religious
secular
local integration
regional integration
transnational integration
polycentric integration
global integration
no online auctions.
astrology.
no online shopping.
real estate.
cricket.
cultural factors.
national factors.
technology factors.
consumption factors.
international factors.
d. 22
e. 24
Difficulty: (1) Knowledge: (F) Page: 644
33. Because of the Internet, many MNCs pricing decisions are less _____________.
50
51 a. national
b. flexible
c. creative
d. rigid
e. vertical
Difficulty: (3) Knowledge: (A) Page: 644
34. In the area of pricing, the Internet facilitates:
a.
b.
c.
d.
e.
work transparency.
price transparency.
profit transparency.
channel transparency.
none of the above is true.
profit transparency.
channel transparency.
price transparency.
channel captaincy.
knowledge transparency.
profit transparency.
knowledge transparency.
labor transparency.
profit transparency.
price transparency.
b.
c.
d.
e.
a. those large retail chains trying to compete by pursuing no Web site presence.
b. those large retail chains trying to compete by making alliances and joint
ventures.
c. those large retail chains trying to compete by going international.
d. those large retail chains trying to compete by hiring Web specialists.
e. those large retail chains trying to compete by setting up a Web site presence.
Difficulty: (2) Knowledge: (A) Page: 647
43. Click-and-mortar chains provide one advantage where:
a.
b.
c.
d.
e.
local
international
regional
economic
political
$10 billion
$16 billion
$20 billion
$30 billion
$35 billion
global reach.
interactivity.
precise information
all of the above.
none of the above.
internets databank.
advertisers web site.
Netscapes site.
Yahoos site.
none of the above.
annoyance factor.
audience measurement.
click-thru rates.
high access and/or phone charges
all of the above.
.
Difficulty: (1) Knowledge: (A) Page: 650
51. International marketers who plan on using the Web as an advertising tool should
familiarize themselves with:
a. advertising regulations and restrictions in foreign markets.
b. search engines.
c. distribution channels.
d. digital networks.
e. digital suppliers.
Difficulty: (2) Knowledge: (A) Page: 650
52. Keyword search advertising allows the company to have a link to its Web site
when
people are looking for ________________________ -related information.
a.
b.
c.
d.
e.
people
market
product
country
none of the above
hybrid
individual
complex
global
none of the above
True/False
Short Answer
56. Small and medium-size companies (SMEs) are also participating in the area of ecommerce and Internet-related opportunities.
Difficulty: (1) Knowledge: (A) Page: 626
57. Internet usage worldwide is not growing.
Difficulty: (1) Knowledge: (A) Page: 627
58. ISP is an acronym for Internet Standards Provider.
Difficulty: (2) Knowledge: (A) Page: 629
59. Knowledge barrier is not one of the barriers in Internet-related activities.
Difficulty: (1) Knowledge: (A) Page: 628
60. In many European markets, consumers are reluctant to spend time surfing the
Web
because of higher telecommunication charges.
Difficulty: (2) Knowledge: (F) Page: 632
61. There are many unsolved issues in the Internet. For example, e-commerce is
global
but the national laws are mostly transnational.
Difficulty: (1) Knowledge: (A) Page: 632
62. The Internet has leveled the playing field between large and small firms in global
competition.
63. Asians have the most favorable attitude toward Internet shopping.
64. The Internet is not helping companies to create global brands.
Difficulty: (3) Knowledge: (A) Page: 634
65. Google is the #1 search engine throughout the world.
66. Consumer co-creation involves customers in value creation.