Chapter 1: Introduction to Global Marketing
1. The least complicated form of non-domestic marketing is
Correct A. export marketing.
B. international marketing.
C. multinational marketing.
D. global marketing.
2. In export marketing, the firm concentrates mostly on
A. identifying foreign markets.
Correct B. product modifications.
C. process modifications.
D. choosing the best agents.
3. Understanding different cultural, economic, and political environments is important for a
firm undertaking
A. export marketing.
B. international marketing.
C. global marketing.
Correct D. both international and global marketing.
4. Multinational corporations (MNCs) operate in a number of foreign countries as if they were
local competitors.
Correct A. True
B. False
5. MNCs traditionally pursue __________ strategies.
A. international
Correct B. multidomestic
C. pan-regional
D. global
6. Which IS NOT a problem when firms pursue multidomestic strategies?
A. Lessons from one market aren't applied in others
B. Product promotion ideas are not shared within the firm
Correct C. Cultural differences are often overlooked
D. Firms fail to take advantage of their global size when
negotiating with suppliers
7. Pan-regional marketing strategies take advantage of
A. economies of scale.
B. marketing synergies.
C. political integration.
Correct D. economies of scale, marketing synergies, and
political integration.
8. Global marketing strategies attempt to
A. tailor strategies perfectly to each national market.
B. standardize strategies across all markets.
Correct C. establish a basic strategy worldwide but allow for
some local adaptation.
D. standardize products worldwide while allowing
national subsidiaries to decide.
9. When Philips attacked General Electric (GE) Lighting in the United States, GE responded
by
A. lowering prices in the united states.
B. lowering prices in Europe.
C. lowering prices in the united states and lowering prices
in Europe.
Correct D. buying a Hungarian lighting company.
10. Hollywood producers sell TV shows overseas because
A. per capita income is increasing.
B. they own the overseas affiliates.
C. their u.s. customers have asked them to do so.
Correct D. the u.s. market won't cover their costs.
Chapter 2: The Global Economy
1. Which country has the lowest imports/GDP ratio?
A. Canada
Correct B. Japan
C. Switzerland
D. United States
2. Income earned on overseas investments is called a (n)
A. remittance.
B. service earning.
C. invisible import.
Correct D. invisible export.
3. Which organization has helped decrease tariffs?
A. GATT
B. WTO
Correct C. GATT and WTO
D. World Bank
4. The theory of comparative advantage was developed in the twentieth century to explain
why certain industries moved production to less developed countries.
A. True
Correct B. False
5. Which IS NOT a factor influencing a country's competitive advantage in an industry?
Correct A. Balance of payments
B. Elements of production
C. Nature of domestic demand
D. Presence of related industries
6. Which IS NOT a unilateral transfer?
A. Aid
B. Gifts
Correct C. Investment income
D. Remittances
7. In the balance of payments, stock purchases are never considered direct investments.
A. True
Correct B. False
8. If the Euro's exchange rate changes from 0.50 yen to .65 yen, the euro is said to _____
Correct A. appreciate.
B. depreciate.
C. soften.
D. float.
9. A Brazilian worker can produce either 200 computers or 4,000 lbs. of coffee a year. A
Chinese worker can produce 100 computers or 1,000 lbs. of coffee per year. According to the
theory of comparative advantage
A. China should trade Brazil coffee for computers
Correct B. Brazil should trade China coffee for computers
C. Brazil should not trade with China
D. Brazil should trade with China, but not trade coffee or
computers
10. A surge in oil exports allowed Ecuador to
A. devalue its currency.
B. revalue its currency.
C. hedge its currency.
Correct D. dollarize.
11. Soft currencies are currencies that
A. constantly change value.
Correct
B. freely float.
C. attract little global demand.
D. have recently devalued.
12. Which of the following provides assistance to countries that experience temporary
balance-of-payments deficits?
Correct A. IMF
B. World Bank
C. European Monetary System
D. Groups of 7
13. In the United States, export tariffs are
A. common.
B. rare.
C. applied to military exports only.
Correct D. prohibited by the constitution.
14. The Omnibus Trade and Competitiveness Act of 1988 gave the U.S. president the right to
A. re-set U.S. balance of payments.
B. restrict remittances from foreigners working in the
united states.
C. sign NAFTA.
Correct D. negotiate orderly marketing arrangements.
15. The GATT principal of transparency requires that member countries
A. give MFN status to all other member countries.
B. never give MFN status to non-member countries.
Correct C. make trade restrictions overt.
D. agree to reciprocal reductions in trade barriers.
16. The Battle of Seattle involved protests against the
A. IMF.
B. World Bank.
Correct C. WTO.
D. NAFTA.
17. In NAFTA, member countries agreed to drop trade barriers among themselves, but the
agreement does not set common external tariffs.
Correct A. True
B. False
18. Mercosur is a
Correct A. customs union.
B. free trade area.
C. common market.
D. monetary union.
19. In 1999, the European Monetary System became the world's first monetary union.
Correct A. True
B. False
20. For domestic producers, a _________ provides the greatest protection.
A. strong domestic currency
B. tariff
Correct C. quota
D. free trade area
Chapter 3: Cultural and Social Forces
1. Culture encompasses
A. morals.
B. habits.
C. religion.
Correct D. all of these
2. What do kosher and halal rules have in common?
Correct A. They both forbid pork products
B. They both forbid alcoholic beverages
C. They both forbid pork products and alcoholic
beverages
D. They both designate Saturday as the day of rest
3. Confucianism is the major religion of the Chinese.
A. True
Correct B. False
4. The role of the extended family would be most pronounced in
A. Germany.
B. France.
C. United States.
Correct D. Malaysia.
5. Ethnic Chinese account for _____ percent of the population and _____ percent of the
economy in Indonesia.
A. 1 and 5
Correct B. 4 and 50
C. 5 and 10
D. There are no Chinese in Indonesia
6. Which country's educational system emphasizes analytical ability over knowledge
acquisition?
A. Egypt
B. France
C. Germany
Correct D. United States
7. In which country are average working hours the lowest?
Correct A. France
B. Japan
C. Mexico
D. United States
8. In Brazil, schedules are often ignored because
A. Brazil is a hierarchical society.
B. Brazil is a past-oriented society.
C. Brazilians don't care about money.
Correct D. it is impolite to cut off a conversation to run to a
prearranged meeting.
9. Japanese patriotism can be partially attributed to a
A. high power distance score.
B. low masculinity score.
Correct C. Shinto religion.
D. all of these.
10. High-trust societies are characterized by a history of
A. adherence to rules.
B. uncertainty avoidance.
C. civil law.
Correct D. voluntary organizations.
11. In a polychronic society, managers
A. are open to new ideas.
B. expect more input from subordinates.
Correct C. manage multiple tasks at one time.
D. All of these
12. Less developed countries usually rate higher on _____ than developed countries.
A. masculinity
B. femininity
Correct C. collectivism
D. There is no pattern
13. __________ societies are more concerned with public welfare.
A. Collectivist
Correct B. Feminine
C. Individualistic
D. Uncertainty Avoidant
14. To become a "trusted outsider" in a collectivist society
A. a firm must establish an excellent reputation.
Correct B. a salesperson must spend a lot of time courting
clients.
C. a firm must establish an excellent reputation and a
salesperson must spend a lot of time courting clients.
D. there is no such thing as a trusted outsider.
15. According to its Hofstede score, Japan IS NOT an individualistic society.
A. True
Correct B. False
16. Great Britain and the United States have very similar scores on all Hofstede measures
except
A. masculinity.
B. power distance.
C. religiosity.
Correct D. None of these
17. In high-context cultures, the meanings of words can change depending on who is speaking
and to whom.
Correct A. True
B. False
18. Physical proximity is a sign of confidence to which people?
A. Anglo-Saxons
Correct B. Arabs
C. Asians
D. Nordics
19. Which of the following is a neutral culture?
A. Arab countries
Correct B. China
C. Italy
D. United States
20. Making eye contact is a sign of trustworthiness in many Asian cultures.
A. True
Correct
B. False
Chapter 4: Political and Regulatory Climate
1. Which IS NOT a typical goal of a national government?
A. Prosperity
B. Prestige
C. Cultural identity
Correct D. They are all typical goals
2. Many governments limit foreign ownership in news media in order to
A. encourage xenophobia.
B. export ideology.
Correct C. preserve national sovereignty.
D. all of these
3. Because of concerns for national security, local sourcing of defense purchases is increasing
worldwide.
A. True
Correct B. False
4. Developing countries often promote national airlines as a means of
A. fostering national prospering.
Correct B. enhancing prestige.
C. assuaging local pressure groups.
D. promoting national security.
5. Nonalignment refers to
A. the decision by a country not to adhere to IMF
requests.
B. the decision by a country not to join the WTO.
C. the decision by a country not to join a regional
association.
Correct D. an ideology adopted by developing countries in the
1950s and 1960s .
6. Which country restricts Internet access by its citizens?
Correct A. China
B. Cuba
C. Iran
D. All of these
7. In the Arab World, American firms are most likely to be hurt by ____________ rather than
________________.
A. The Arab Boycott; consumer boycott
Correct
B. Expropriations; boycotts
C. Consumer boycotts; the Arab boycott
D. Confiscations; domestication
8. Expropriations of foreign firms are more common today than they were 20 years ago.
A. True
Correct B. False
9. Domestication refers to
A. the government takeover of a firm.
B. the government takeover of a firm without
compensation.
Correct C. the limitation of certain activities to local citizens.
D. the promotion of cultural identity.
10. The largest embargo by the United States was against
Correct A. Cuba.
B. Iran.
C. South Africa.
D. Vietnam .
11. Multilateral boycotts have been used against
A. Cuba and Iran.
Correct B. Iraq and Serbia.
C. Panama and Iraq.
D. Iran and Turkey.
12. Heinz switched to dolphin-safe tuna for its Star-Kist brand because of a
A. U.S. law.
B. Massachusetts law.
Correct C. consumer boycott.
D. All of the above
13. Laws affecting business in the Middle East are influenced by
A. Islamic law.
Correct B. Islamic and civil law.
C. Civil and common law.
D. Socialist and common law.
14. Chinese citizens cannot sue foreign companies or Chinese government ministries.
A. True
Correct B. False
15. A society that assumes that people cannot be trusted to obey rules is called
Correct
A. Xeno-negative.
B. RA- negative.
C. HNO- negative.
D. LSS- negative.
16. When a firm alters its product to comply with EU standards it is following an
____________ strategy.
A. adaptation.
B. alter.
Correct C. accede.
D. ally.
17. When a firm's bargaining power is relatively high it should adopt which strategy towards a
government regulation?
Correct A. Alter
B. Ally
C. Alter or ally
D. Accede
18. Many companies integrate their political assessments into their overall financial
assessments of projects.
Correct A. True
B. False
19. Local partners decrease the chance of expropriation when governments change.
A. True
Correct B. False
20. Which is a limitation of OPIC insurance?
A. It does not cover currency inconvertibility
B. It does not cover expropriation
C. It does not cover losses due to war and revolution
Correct D. It is not available for projects in developed
countries
Chapter 5: Global Buyer Behavior
1. Gross national income is an important indicator of total consumer potential in a country
because it
A. measures consumer spending.
B. measures growth in consumer spending.
Correct C. reflects the generation of wealth.
D. reflects income earned per person.
2. Starbuck's was attracted to the Mexican market because of its
Correct
A. gross-national income.
B. per-capita income.
C. purchasing power parity.
D. None of these
3. Converting income denominated in local currencies into dollars for the purpose of reporting
PCI statistics often overestimates the true purchasing power of consumers in poor countries.
A. True
Correct B. False
4. _____________ take(s) into account national differences in product prices.
A. PCI statistics published by the IMF
B. Maslow's hierarchy equation
Correct C. Purchasing power parity
D. PCI statistics published by the World Bank
5. Which IS NOT true of developing countries?
A. Income distribution often distorts the market potential
B. Lower-income segments of the population can be
attractive markets for consumer goods
C. Informal sectors can be very large
Correct D. The buying power of the poor may be overrepresented in official statistics
6. Maslow's hierarchy of needs is controversial due to its
A. religious bias.
B. association with u.s. materialism.
Correct C. cross-cultural applicability.
D. association with European Colonialism.
7. Consumers from more ________________ societies may attach more importance to hobby
related products.
A. Asian
Correct B. individualistic
C. Latin American
D. masculine
8. Japanese consumers are likely to be attracted to products in purple packages because purple
is associated with
A. birthdays.
B. Shinto ceremonies.
Correct C. luxury products.
D. Japan's emperor.
9. Social class is a grouping of consumers based on
Correct
A. income.
B. income and education.
C. education and occupation.
D. income, education and occupation.
10. A global segment IS NOT based on
A. age.
B. lifestyle.
C. social class.
Correct D. national income.
11. Cost-performance criterion is a key consideration for buyers of consumer products in
developing countries.
A. True
Correct B. False
12. When purchasing new machinery
A. Japan
Correct B. Mexico
C. Norway
D. Korea
13. Compared to Americans, Russian negotiators are usually more
A. price sensitive.
B. rushed and in a hurry.
Correct C. emotional.
D. passive in their demeanor.
14. Business markets in the Arab Gulf differ from business markets in other developing
countries because
Correct A. labor is relatively expensive.
B. Islam discourages labor-intensive technology.
C. Islam discourages capital-intensive technologies.
D. there are still high tariffs on imported capital goods.
15. Global account management evolved partially as a response to
A. differences in cross-cultural behavior of industrial
buyers.
B. the opening of government bidders.
Correct C. centralized purchasing by major companies.
D. global consumer segments.
16. When an aerospace firm agrees to outsource government contract to local suppliers, it is
addressing the
A. procedural screen.
Correct
B. linkage screen.
C. competitive screen.
D. influence screen.
17. Which IS NOT a part of addressing the competitive screen?
A. A competitive price
B. A firm's reputation
Correct C. Following procedures
D. Cultural sensitivity
18. Bribery is more endemic in countries that score lower on the Hofstede power-distance
dimension.
A. True
Correct B. False
19. The U.S. Foreign Corrupt Practices Act forbids U.S. firms to
A. bribe foreign corporate employees.
Correct B. bribe foreign government employees.
C. bribe both foreign corporate and government
employees.
D. make expediting payments.
20. Which nation did not sign the 1997 OECD anti bribery pact?
A. Sweden
B. Canada
C. Argentina
Correct D. None of these countries; They all signed it
Chapter 6: Global Competitors
1. When BIC uses profits in France to attack Scripto's pen business in Britain this is called
A. targeting global competitors.
B. an extension strategy.
Correct C. cross-country subsidization.
D. a counter parry.
2. A global roll-out is an example of a globally coordinated move involving
A. global competitors.
Correct B. a new product.
C. an extension strategy.
D. pricing policies.
3. In global industries, local firms should consider counter trade or dodger strategies.
Correct A. True
B. False
4. Which of the following IS NOT part of a contender strategy?
Correct A. Expanding into foreign markets similar to the
domestic market
B. Investing more in R & D
C. Establishing large-scale production.
D. Raising money through a stock offering
5. When a local firm avoids competition by finding a way to cooperate with its more powerful
competitors, this is called a(n)
A. business group.
Correct B. dodger strategy.
C. anti-trust infringement.
D. defender strategy.
6. A defender strategy may be successful when a local firm can leverage
A. knowledge of local tastes.
B. good relations with local distributors.
C. good relations with local subsidiaries.
Correct D. All of these
7. A firm's assets that work well for a defender strategy may also support a(n)
Correct A. extender strategy.
B. contender strategy.
C. dodger strategy.
D. None of these
8. In the past three decades, the most intense competition has been in
A. the European Union.
B. The United States.
Correct C. Japan.
D. developing countries.
9. Europe outlawed cartels before the United States developed its antitrust laws.
A. True
Correct B. False
10. Anti-trust laws in the European Union (EU) focus on
A. protecting consumers from monopolies.
Correct B. guaranteeing fairness among competitors.
C. protecting consumers from monopolies and
guaranteeing fairness among competitors.
D. protecting european competition from foreign firms.
11. Fujitsu and Hitachi are examples of
A. Korean business groups.
Correct B. horizontal keiretsus.
C. vertical keiretsus.
D. privatized SOEs.
12. Governments in developing countries sometimes licensed production in order to
A. protect SOEs.
B. discriminate against foreign investors.
C. discriminate against local investors.
Correct D. protect new ventures from intense competition.
13. Encouraging competition where prior monopolies or strict entry controls previously
existed is called
Correct A. market liberalization.
B. privatization.
C. trade liberalization.
D. economic development.
14. In 2002, Mexico's antitrust commission found which company guilty of abusing their
dominant position in Mexico?
A. Cemex
B. Citibank
Correct C. Coca-Cola
D. Wal-Mart
15. In 1990s many SOEs faced
A. bankruptcy.
B. decreasing ancillary agendas.
Correct C. privatization.
D. increasing ancillary agendas.
16. China and India are two countries in which privatization has been slow.
Correct A. True
B. False
17. A fiduciary bond often replaces equity ownership in a(n)
Correct A. business group.
B. SOE.
C. privatized SOE.
D. global firm.
18. Which IS NOT a characteristic of a business group?
Correct A. Concentration in a single industry
B. Family-ownership to some degree
C. A financial core such as a bank or an insurance
company
D. Concentration in its domestic market
19. The positive effect of a country of origin is usually product-specific.
Correct A. True
B. False
20. Which IS NOT true of the country of origin phenomenon?
A. It can be positive or negative
B. Perceptions of countries can change quickly
Correct C. The home country of the brand's firm is more
important than where the product is made
D. All of these are true
Chapter 7: Global Marketing Research
1. Inadequate market research resulted in the failed introduction in Europe of
Correct A. cake mix.
B. the Crisp oven.
C. Pepsi Max.
D. all of these.
2. Which is an example of "problem definition"?
A. Is 'marital status' defined differently in Brazil and the
United States?
Correct B. Are bicycles used primarily for transportation or
for sport in Malaysia?
C. Will women participate in focus groups in the Middle
East?
D. All of these
3. Which is not a possible source of secondary data?
A. The U.S. embassy in Egypt
B. New York City Library
C. The Internet
Correct D. A focus group in Vietnam
4. Which is not true about secondary data?
A. Data may be inaccurate
B. Data may be unavailable
Correct C. Secondary data is usually more expensive than
primary data
D. Even within the European Union, statistics can vary in
their reliability and timeliness
5. Shuifen refers to
Correct A. statistics that exaggerate Chinese successes.
B. the expanded Chinese gallop poll.
C. a research permit issued by the Chinese government.
D. a research permit issued by the Taiwanese
government.
6. To translate a questionnaire, researchers should use
A. back translation.
Correct B. parallel translation.
C. either back translation or parallel translation.
D. researchers must use both back translation and parallel
translation and then compare the results of the two
methods.
7. Utilizing a probability sample in a developing country can be difficult because
A. respondents are wary of researchers.
B. governments often forbid the use of such sample.
Correct C. adequate lists of target populations are often
unavailable.
D. respondents prefer non-profitability sampling.
8. The Safe Harbor framework
A. allows U.S. respondents to report unethical research
methods.
B. allows EU respondents to report unethical research
methods.
C. stipulates the conditions under which data collected in
the EU can be transmitted outside the EU.
Correct D. provides a streamlined way for U.S. firms to
comply with European standards for research
collection.
9. A common challenge associated with research in Japan is
A. husbands commonly object to wives participating in
focus groups.
Correct B. respondents may be unwilling to criticize a
potential product.
C. Japanese object to face-to- face interviews.
D. All of these
10. The actual sales volume a company will realize in a country is estimated by the
A. potential demand.
B. effective demand.
Correct
C. market demand.
D. sales potential.
11. A good example of a proxy variable for a product category is
A. college degrees for television.
Correct B. cars for replacement tires.
C. per capita income for cars.
D. per capita income for college degrees.
12. To study competition, it is best to concentrate on competitors'
A. financial statements.
B. products.
C. markets.
Correct D. core competencies.
13. Which is NOT a component of an environmental review?
A. Economic activity
B. Physical environment
Correct C. Competitive structure
D. Regulatory environment
14. Spanish retailer, Zara, stays competitive by
A. extensively utilizing secondary research.
B. outsourcing primary research.
C. regularly holding focus groups in all major markets.
Correct D. utilizing an integrated marketing information
system.
15. Telephone directories are a good source for a sample of Mexican consumers.
A. True
Correct B. False
16. The EU Data Privacy Directive seriously limits the use of telephone surveys related to
political beliefs.
Correct A. True
B. False
17. Analysis of demand patterns allow researchers to gain insights into relationship of proxy
variables and industrial growth.
A. True
Correct B. False
18. Saudi Arabia is the one Arab country where mail surveys are a successful way to research
consumer behavior.
A. True
Correct B. False
19. The Chinese gallop poll includes respondents from both urban and rural China and
provides insights into lifestyles in modern China.
Correct A. True
B. False
20. Costs are usually higher for collecting secondary data rather than primary data.
A. True
Correct B. False