Question 1

Which of the following is an example of a product strategy that would be appropriate for a global marketing company to implement?

Accepted Answer

A)  product adaptation
B)  product divestment
C)  product penetration
D)  market substitution A

Question 2

Alcatel-Lucent and Huawei Technologies Ltd. (headquartered in China) announced they will establish an alliance for developing ultra-broadband access solutions for markets around the world. The new company will combine Huawei's market-leading broadband access solutions with Alcatel-Lucent's voice and broadband networking technologies to create a new product designed to be a leader in the industry in value and performance. What is another name for this alliance?

Accepted Answer

A)  contract manufacturing
B)  a trade bypass
C)  licensing
D)  a joint venture D

Question 3

With which of the following does a domestic firm assume an equity position (partial ownership) in a foreign firm to manufacture and/or market the domestic company's goods?

Accepted Answer

A)  direct investment
B)  a joint venture
C)  a buying-for-export agreement
D)  a contractual agreement B

Question 4

Just as mass marketing assumes a large market made up of consumers who are alike, global marketing assumes markets throughout the world are becoming more alike.

Accepted Answer

A) True 
 B)False

Question 5

The form of global organization that provides the highest potential for return on investment as well as the highest level of risk is contract manufacturing.

Accepted Answer

A) True 
 B)False

Question 6

Arista-Buvez Inc. manufactures a specialized fish food designed to enhance the natural colouration of tropical fish. The product is exported to 27 countries. Arista-Buvez wants to convey similar messages to its target market in each country and has a small promotional budget. To ensure the company fully meets the needs of all global markets, Arista-Buvez's most logical choice is to develop a new and unique promotional campaign for each country.

Accepted Answer

A) True 
 B)False

Question 7

Folk-guitar manufacturer, Play-Guitars sells its guitars in its home country for at least $1000.00. To get a hold of the Canadian market, Play-Guitars sold its products for $500.00. What is this known as?

Accepted Answer

A)  export re-engineering
B)  crossdocking
C)  boycotting
D)  dumping

Question 8

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 rights 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 9

Argentina has restrictions against "big-box" retail stores like The Home Depot. The only way these retail operations can open a store in Argentina is if they do not sell either clothing or food. Also, at least 50 percent of all merchandise sold in the stores must be manufactured in Argentina. Which type of environment is influencing globalization in this example?

Accepted Answer

A)  economic
B)  technological
C)  legal
D)  cultural

Question 10

McDonald's used expertise developed in Brazil's inflationary environment to deal with the economic environment in Russia when it exhibited similar inflationary tendencies. Which of McDonald's strategies would this experience have most strongly influenced?

Accepted Answer

A)  pricing
B)  promotion
C)  distribution
D)  product adaptation

Question 11

Which of the following is NOT created by vast differences in natural resources?

Accepted Answer

A)  potential for military intervention
B)  shifts in wealth between nations
C)  inflation and recession
D)  export opportunities for countries with no natural resources

Question 12

Which of the following statements best describes multinational firms?

Accepted Answer

A)  Multinationals typically do not change their methods of reaching their global markets if they are successful with their initial strategy.
B)  Multinationals are defined as companies heavily engaged in exporting and importing.
C)  All multinationals must enter the fourth stage of globalization before they are fully internationalized.
D)  Multinationals often develop their global businesses in stages.

Question 13

Multinational companies typically begin the development of their global business with direct investment and continue using this strategy throughout the company's life span.

Accepted Answer

A) True 
 B)False

Question 14

Traditionally, marketing-oriented multinational corporations have operated differently in each country, with segmentation strategies that provided different marketing mixes. Today, there has been a trend toward global marketing standardization. What is global marketing standardization? Can companies truly follow the basic premise of the global marketing standardization concept?

Accepted Answer

The answer of Traditionally, marketing-oriented multinational corporations have operated differently...

Question 15

In 1764, the British Sugar and Currency Acts created such economic difficulty in the American colonies that soon-to-be Americans refused to buy British goods in protest. What did this refusal mark one of the first examples of?

Accepted Answer

A)  the use of a boycott
B)  the use of a quota
C)  the use of a tariff
D)  the use of an exchange control

Question 16

What are the organizations that utilize a global vision to effectively market goods and services across national boundaries engaged in?

Accepted Answer

A)  practising international selling schemes
B)  implementing standard international marketing
C)  implementing global marketing standardization
D)  practising global marketing

Question 17

What is the term for an intermediary in the global market who assumes all risks and sells globally for its own account, and who is treated by the domestic manufacturer like a domestic customer?

Accepted Answer

A)  buyer for export
B)  export agent
C)  joint venture
D)  contract manufacturer

Question 18

A Canadian citizen, Daya Kaur was excited to purchase over 10,000 Fender amplifiers from the United States. She intended to sell them to Canadian music stores. One thing she didn't take in to account when working out her profit margins was the tax that would be levied on the amplifiers as they entered Canada. What is another name for these taxes?

Accepted Answer

A)  licences
B)  quotas
C)  transfer limits
D)  tariffs

Question 19

Once a firm has decided on which method to use to enter a global market and evaluated the various external variables, it is ready to create a marketing mix. What is the first step in creating the global marketing mix?

Accepted Answer

A)  create a new product
B)  select the method of promotion
C)  collect and analyze market research information
D)  decide whether product modification is necessary

Question 20

Which of the following statements best describes the use of the Internet in global marketing?

Accepted Answer

A)  Global consumers are much more interested in buying quality than finding a bargain when they shop on the Internet.
B)  The new Internet economy is being restrained by the old bricks-and-mortar rules, regulations, and habits.
C)  Businesses are not shopping at Internet websites.
D)  Buyers at Internet sites avoid trade restrictions.

Exam 4: Developing a Global Vision

Which of the following is an example of a product strategy that would be appropriate for a global marketing company to implement?

With which of the following does a domestic firm assume an equity position (partial ownership) in a foreign firm to manufacture and/or market the domestic company's goods?

Just as mass marketing assumes a large market made up of consumers who are alike, global marketing assumes markets throughout the world are becoming more alike.

The form of global organization that provides the highest potential for return on investment as well as the highest level of risk is contract manufacturing.

Folk-guitar manufacturer, Play-Guitars sells its guitars in its home country for at least $1000.00. To get a hold of the Canadian market, Play-Guitars sold its products for $500.00. What is this known as?

McDonald's used expertise developed in Brazil's inflationary environment to deal with the economic environment in Russia when it exhibited similar inflationary tendencies. Which of McDonald's strategies would this experience have most strongly influenced?

Which of the following is NOT created by vast differences in natural resources?

Which of the following statements best describes multinational firms?

Multinational companies typically begin the development of their global business with direct investment and continue using this strategy throughout the company's life span.

In 1764, the British Sugar and Currency Acts created such economic difficulty in the American colonies that soon-to-be Americans refused to buy British goods in protest. What did this refusal mark one of the first examples of?

What are the organizations that utilize a global vision to effectively market goods and services across national boundaries engaged in?

What is the term for an intermediary in the global market who assumes all risks and sells globally for its own account, and who is treated by the domestic manufacturer like a domestic customer?

Once a firm has decided on which method to use to enter a global market and evaluated the various external variables, it is ready to create a marketing mix. What is the first step in creating the global marketing mix?

Which of the following statements best describes the use of the Internet in global marketing?