Question 1

CNS,Inc.is the manufacturer of Breathe Right nasal strips,a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages.Since their introduction,Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow,snorers hoping for a sound night's sleep,and allergy and cold sufferers looking for relief from their stuffed noses.Because CNS is a small company,it initially had trouble promoting its product.Then San Francisco 49er Jerry Rice started regularly wearing one,and U.S.sales took off.Today,Breathe Right strips are marketed in more than 40 countries.When CNS decided to expand globally,its size made it look for a partner.It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.
-Refer to Breathe Right.To market the nasal strips in countries outside North America,CNS and 3M provided the strips to national sports teams.For example,sales in South Africa took off when the entire South African rugby team wore the strips when they won the World Cup of rugby.This example primarily illustrates the use of which element of the global marketing mix?

Accepted Answer

A)  production
B)  publicity
C)  promotion
D)  distribution C

Question 2

CNS,Inc.is the manufacturer of Breathe Right nasal strips,a spring-loaded adhesive device that can be stuck on your nose to open up the nasal passages.Since their introduction,Breathe Right strips have been used by athletes hoping to improve their performance through increased oxygen flow,snorers hoping for a sound night's sleep,and allergy and cold sufferers looking for relief from their stuffed noses.Because CNS is a small company,it initially had trouble promoting its product.Then San Francisco 49er Jerry Rice started regularly wearing one,and U.S.sales took off.Today,Breathe Right strips are marketed in more than 40 countries.When CNS decided to expand globally,its size made it look for a partner.It chose 3M because 3M already had a global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.
-Refer to Breathe Right.How people value a sound night's sleep is an example of which element of the global environment?

Accepted Answer

A)  culture
B)  natural
C)  socioeconomic
D)  technical A

Question 3

The latest round of World Trade Organization (WTO)talks has been contentious.Up to two-thirds of the population of Africa,Asia,and Latin America works in agriculture.A major goal of which of the following is to bolster these developing economies?

Accepted Answer

A)  Mercosur covenant
B)  CAFTA Alliance
C)  Doha Round
D)  Uruguay Round C

Question 4

According to an article in the Financial Times,bringing Coca-Cola to the Chinese market presented a special challenge to the soft-drink manufacturer.This challenge most likely had to do with which element of the marketing mix?

Accepted Answer

A)  production
B)  direct marketing
C)  distribution
D)  pricing

Question 5

The same environmental factors that operate in the domestic market also exist internationally.These factors (culture,economic development,political and legal structure,demographics,and natural resources)should be examined,regardless of the country.

Accepted Answer

A) True 
 B)False

Question 6

An English manufacturer of cricket equipment sells directly to Universal Sports,which markets the products in Canada.What is Universal Sports an example of?

Accepted Answer

A)  a franchisee
B)  a contract broker
C)  an export agent
D)  a contract manufacturer

Question 7

Since 1953,the United States has limited the amount of raw peanuts that can be imported to 1.7 million pounds a year.This is only about one-tenth of 1 percent of all domestic edible peanut consumption in the United States.What is this limitation an example of?

Accepted Answer

A)  a natural resource barrier
B)  a quota
C)  a tariff
D)  an exchange control

Question 8

A price war began in Japan in the personal computer market when Dell,Inc.introduced PCs at prices 25 to 60 percent lower than rivals.Dell targeted corporate customers from its Tokyo offices by "direct sales," the company's preferred name for mail order and its main avenue for PC sales in North America.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,which maintained a strong dealer network and had traditionally sold its computers at very high prices.Dell joined IBM and Compaq in targeting the Japanese market.Dell bet it could succeed in Japan by transplanting its North American method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to the customer.The company's success depended on its ability to sell PCs over the telephone.Analysts doubted this was possible in Japan because dealer networks are the key to the market,but Dell executives believed name recognition was the main hurdle.To familiarize its target market with the idea of buying a computer sight unseen,Dell launched a major ad campaign through direct mail and ads in computer-related magazines and newspapers.
-Refer to Computer Sales.Dell's decision to market PCs by phone in Japan mirrors its marketing strategy in North America.This suggests Dell believes in which concept?

Accepted Answer

A)  cultural marketing
B)  global marketing standardization
C)  traditional marketing concepts
D)  combination marketing

Question 9

U.S.wine producers export only about 14 percent of their total annual production of wine.This statement indicates that the U.S.wine industry is which of the following?

Accepted Answer

A)  selling more wine abroad than it does in the United States.
B)  an industry in the first stages of globalization.
C)  willing to take significant risks in order to sell more wine internationally.
D)  producing more wine than it can sell.

Question 10

What is the role of a domestic company that sells to an export merchant (also called a buyer for export)?

Accepted Answer

A)  guide the marketing actions of the merchant as the goods are sold in foreign countries
B)  pay all transportation,warehousing,and marketing expenses
C)  sell the product to that merchant who resells the product in the foreign country without the aid or input of the original manufacturer
D)  broker a partnership agreement such as a joint venture

Question 11

Nigeria has about 2,200 miles of railroad,but years of neglect of both the rolling stock and the right-of-way have seriously reduced the capacity to use the system.In part as the result of the failure of the railroad system,many of its 120,000 miles of roads are also barely usable.
-Refer to Nigeria.What are businesses hoping to do business in Nigeria most likely concerned with?

Accepted Answer

A)  production
B)  promotion
C)  place utility
D)  distribution

Question 12

Marlin manufactures washing machines.It is designing advertisements and planning the promotional mix for marketing in Eastern Europe,South Africa,India,and Brazil.The advertising manager should expect all of the following to cause problems EXCEPT which of the following?

Accepted Answer

A)  media availability
B)  government regulations
C)  exchange control
D)  cultural differences

Question 13

Sony,Panasonic,and other Japanese manufacturers that build products to customer order instead of churning out products in anticipation of demand have decided to hire Canadian companies to produce electronics for them.The Japanese companies will handle the marketing of the products.What are the Japanese electronics companies using?

Accepted Answer

A)  contract manufacturing
B)  direct investment
C)  franchising
D)  direct exporting

Question 14

Briefly define exchange controls and trade agreements.Make sure that your answer demonstrates how the two terms differ from each other.

Accepted Answer

The answer of Briefly define exchange controls and trade agreements.Make...

Question 15

The pricing component of the global marketing mix is which of these?

Accepted Answer

A)  the same in domestic and foreign markets
B)  fairly simplistic due to the strength of the U.S.dollar abroad
C)  the easiest element to implement successfully
D)  a complex matter due to tariffs,exchange rates,and government regulations

Question 16

NAFTA is the New American Foreign Trade Amendment,which allows for balanced trade with the European Union (EU).

Accepted Answer

A) True 
 B)False

Question 17

Assume you are the marketing manager for a leading Canadian manufacturer of earth-moving equipment.Your company would like to become heavily involved in global marketing (especially in India)but has some capital limitations.Your job is to evaluate whether it should use contract manufacturing or direct investment.Compare and contrast these two options and make a recommendation.

Accepted Answer

The answer of Assume you are the marketing manager for...

Question 18

The same Timex,Seiko,and Citizen wristwatches you buy in North America can be purchased around the world.Why is there is no difference in a watch purchased in Russia,in Mexico,or in Singapore?

Accepted Answer

A)  The manufacturers of these watches use an ethnocentric strategy.
B)  The manufacturers of these watches use a global marketing standardization approach.
C)  The manufacturers of these watches use a synergistic approach to globalization.
D)  The manufacturers of these watches use a cultural marketing strategy.

Question 19

When Krispy Kreme decided to expand its operation internationally,it chose to first make its doughnuts available in Canada to minimize its risk.In accordance with the policy of risk minimization,the company sold the right to manufacture and sell its doughnuts to Canadians.What did Krispy Kreme use?

Accepted Answer

A)  contract manufacturing
B)  direct investment
C)  importing
D)  licensing

Question 20

American catfish farmers mounted an aggressive offensive against imports of catfish from Vietnam,which have increased by over $40 million in four years.As a result of the offensive,U.S.consumers must pay about 50 percent more for catfish imported from Vietnam.What are mostly likely used to make sure that Vietnamese catfish was selling at a price comparable to U.S.-bred catfish?

Accepted Answer

A)  tariffs
B)  boycotts
C)  export duties
D)  countertrades

Exam 20: Developing a Global Vision

The latest round of World Trade Organization (WTO) talks has been contentious.Up to two-thirds of the population of Africa,Asia,and Latin America works in agriculture.A major goal of which of the following is to bolster these developing economies?