Deck 3: Understanding the Global Marketplace: Marketing Without Borders

Question 1

The world's largest company in 2008 was _____________.

A) Exxon Mobile
B) Wal-Mart
C) BP
D) Toyota
E) Royal Dutch Shell

Answer 1

B

Question 2

Countries in the top five economies based on GDP include all but ___________.

A) European Union
B) United States
C) China
D) Brazil
E) India

Answer 2

A

Question 3

Global marketing research focuses on 14 types of basic information.

Answer 3

False

Question 4

According to Rostow, a Take-Off Economy is moving from agricultural to industrial and has banking systems, technology industries and other skilled industries.

Question 5

Germany has a very relaxed culture.If you make a business appointment at 10:00, your German counterpart will not mind if you do not show up until 11:00.

Question 6

NAFTA is the most successful regional trade zone.

Question 7

U.S.companies that earn more than 50% of their revenue from international markets include all but ______________.

A) Starbucks
B) Hewlett-Packard
C) Nike
D) Caterpillar
E) Chevron

Question 8

Nestlé embraces a local branding strategy globally while other companies like Coca-Cola and Kellogg use a global branding strategy.

Question 9

The most significant difference between international and global marketing is management philosophy and corporate planning.

Question 10

Many markets outside the U.S.are cost focused so exporting firms have to decide if they are willing to be price-driven.

Question 11

___________ is one of the most widely used measures of economic growth.

A) GNP
B) Purchasing Power Parity
C) GDP
D) GNI
E) Per capita income

Question 12

Countries create regional market zones for mutual economic benefit through reduced trade barriers and lower tariffs.

Question 13

Mr.Coffee had a good understanding of the Japanese culture when it introduced coffeemakers that fit well in a Japanese kitchen.

Question 14

PepsiCo, the maker of Pepsi soft drink, was established in 1965.

Question 15

Exporting is the most common market entry method and accounts for 10% of all global economic activity.

Question 16

An understanding of marketing beyond home markets develops over time as a company gets more international business experience.This process is referred to as the ___________.

A) Global experience curve
B) Global learning continuum
C) International experience learning curve
D) Global experience learning curve
E) International experience continuum

Question 17

Estēe Lauder found that it had to reduce product size to make its offering affordable for women when it entered the Czech market.This is an example of product invention.

Question 18

Over 80% of Coca-Cola's revenue comes from outside the U.S.

Question 19

The world's largest international company in 2008 was Exxon Mobile.

Question 20

A company can do business with an international company and still not engage in direct foreign marketing.

Question 21

_______ of the world's economic growth in the next 20 years in predicted to come from emerging economies.

A) 10%
B) 35%
C) 52%
D) 75%
E) 90%

Question 22

China would be classified as in the __________ stage of development.

A) Traditional Society
B) Pre-conditions for take-off
C) Take-off
D) Maturity
E) High mass consumption

Question 23

Great Britain should be classified as in the __________ stage of development.

A) Traditional Society
B) Pre-conditions for take-off
C) Take-off
D) Maturity
E) High mass consumption

Question 24

Data on consumer spending per capita or industrial purchasing trends would be identified in the _______ section of a global research report.

A) Economic
B) Cultural, societal
C) Business environment
D) Political, legal
E) History and geography

Question 25

The color red means different things in different parts of the world.For example, in China a bride traditionally would wear red but not white.White is a symbol of death.This would be identified in the _______ section of a global research report.

A) Economic
B) Cultural, societal
C) Business environment
D) Political, legal
E) History and geography

Question 26

Sudan should be classified as in the __________ stage of development.

A) Traditional Society
B) Pre-conditions for take-off
C) Take-off
D) Maturity
E) High mass consumption

Question 27

PDQ Corp.is concerned that the Euro is stronger than the U.S.dollar.This would be identified in the _______ section of a global research report.

A) Economic
B) Cultural, societal
C) Business environment
D) Political, legal
E) History and geography

Question 28

A country whose economy transitions from agricultural to industrial and has skilled industries such as banking or technology-based industries is in the _______ stage of development.

A) Traditional Society
B) Pre-conditions for take-off
C) Take-off
D) Maturity
E) High mass consumption

Question 29

The fastest growing economy in the world in 2007 was ______.

A) Bhutan
B) Timor-Leste
C) Qatar
D) Georgia
E) Azerbaijan

Question 30

ABC Inc.received an e-mail asking from a company in Jamaica asking to buy some of its products.ABC has shipped outside of the U.S.only three times in the past.ABC is engaged in ____________.

A) Foreign marketing
B) International marketing
C) Global marketing
D) No direct foreign marketing
E) Global partnerships

Question 31

Jonathan must travel to Japan to meet with a prospective supplier for his company.He wants to learn proper protocol for meeting his Japanese contact, presenting his business card and figuring out if he should call him by first name.The area of global market research where Jonathan would find this information is in the ____________ trends.

A) Economic
B) Cultural, societal
C) Business environment
D) Political, legal
E) History and geography

Question 32

Many countries base their court systems on those of former rulers or colonizers.For example, The British government ruled Singapore for many years so the court system there is based on English law.This would be identified in the _______ section of a global research report.

A) Economic
B) Cultural, societal
C) Business environment
D) Political, legal
E) History and geography

Question 33

Sam is flying down to Rio de Janeiro, Brazil to meet with a prospective customer.Sam is very successful in the U.S.because he is a multi-tasking high achiever who hates wasting time with small talk and leaves the details of a contract up to his legal staff.His personal assistant has prepared a global market research for him and emphasized that he should read the ___________ section.

A) Economic
B) Cultural, societal
C) Business environment
D) Political, legal
E) History and geography

Question 34

Toyota sells and manufactures automobiles worldwide with operational bases in 27 countries and regions.Toyota is engaged in ____________.

A) Global marketing
B) No direct foreign marketing
C) Global partnerships
D) Foreign marketing
E) International marketing

Question 35

The Czech Republic would be classified as in the __________ stage of development.

A) Traditional Society
B) Pre-conditions for take-off
C) Take-off
D) Maturity
E) High mass consumption

Question 36

In Spain, most people do not eat dinner until 10:00 at night.This would be identified in the _______ section of a global research report.

A) Economic
B) Cultural, societal
C) Business environment
D) Political, legal
E) History and geography

Question 37

A country that is primarily dependent on agriculture and has high illiteracy rates is in the _______ stage of development.

A) Traditional Society
B) Pre-conditions for take-off
C) Take-off
D) Maturity
E) High mass consumption

Question 38

Tim, an international marketing manager, is shocked that his company's agent in Burma has suggested that Tim's company buy his daughter a baby grand piano.Tim has read in the ________ section of a global marketing research report that while illegal in the U.S.bribes are expected in other countries.

A) Economic
B) Cultural, societal
C) Business environment
D) Political, legal
E) History and geography

Question 39

Andrew wants to fire a manager in the Dijon, France office of his company.He recently found out that French law makes it difficult to terminate employees.This would be identified in the _______ section of a global research report.

A) Economic
B) Cultural, societal
C) Business environment
D) Political, legal
E) History and geography

Question 40

Romania would be classified as in the __________ stage of development.

A) Traditional Society
B) Pre-conditions for take-off
C) Take-off
D) Maturity
E) High mass consumption

Question 41

The Euro has been a strong currency compared to the U.S.dollar.A firm considering direct foreign investment would report these finding under the heading of _____.

A) Timing
B) Legal issues
C) Transaction costs
D) Marketing communication barriers
E) Product differentiation

Question 42

The market entry strategy with the greatest long-term implication is __________.

A) Direct sales force
B) Strategic alliance
C) Joint venture
D) Direct foreign investment
E) Licensing

Question 43

The most successful regional market zone is ______.

A) NAFTA
B) The European Union
C) Mercosur
D) ASEAN
E) The Cooperation Council for the Arab States of the Gulf

Question 44

MERCOSUR is a regional market zone in ________.

A) Asia
B) Africa
C) North America
D) The Mideast
E) South America

Question 45

_____________ represent the exporting firm in foreign markets.They are the face of the company through servicing customers, selling products, and taking payment.They often take title to goods and resell them.

A) Brokers
B) Export agents
C) Distributors
D) Direct sales force
E) Freight forwarders

Question 46

Herbie recently read that Crane Airways of Japan, Kestral Airlines of Germany, Heron Air of Australia, and Egret Airways of India are allowing code sharing, allowing passengers to fly on any of the airlines, sharing frequent flyer miles and giving each other logistical support.Herbie had just learned in his Global Marketing class that this arrangement is known as a _________.

A) Franchise
B) Joint venture
C) Joint venture with minority ownership
D) Strategic alliance
E) Licensing

Question 47

Cost is one of the major disadvantages in running a promotion campaign that includes sampling.Many countries restrict the use of couponing.A firm considering direct foreign investment would report these findings under the heading of _____.

A) Timing
B) Legal issues
C) Transaction costs
D) Marketing communication barriers
E) Product differentiation

Question 48

__________ is not one of the forces that drive countries to form regional market zones.

A) Cultural differences
B) Geographic proximity
C) Economic
D) Cultural similarities
E) Political

Question 49

NAFTA is a market zone that eliminates tariffs between the U.S.and _______.

A) Canada, Mexico, and Costa Rica
B) Canada and Mexico
C) Mexico, Honduras, Nicaragua, Costa Rica and Panama
D) Canada, Mexico, Costa Rica, and Panama
E) Canada, Costa Rica, and Panama

Question 50

The ___________ industry best illustrates the power of strategic alliances.

A) Automobile
B) Telecommunications
C) Airline
D) Computer
E) Video gaming

Question 51

Advantages to licensing as a market entry strategy do not include ___________.

A) Limited financial risk in the short run
B) Complete control of the patent or trademark
C) Services such as local distribution
D) Protection of trade secrets
E) Both b and d

Question 52

ABC Tractor Company wants to enter the Chinese market.Chinese law prevents foreign entities from owning a majority position in a company there.The best method of entry for ABC is _________.

A) Franchise
B) Joint venture
C) Direct sales force
D) Strategic alliance
E) Licensing

Question 53

In an economy where the population has met basic needs and seeks to spend large discretionary income on products that improve quality of life is in the ______ stage of economic development.

A) Traditional Society
B) Pre-conditions for take-off
C) Take-off
D) Maturity
E) High mass consumption

Question 54

A marketing manager must evaluate global market opportunities that will allow the firm to utilize its strengths and minimize its weaknesses.A firm must be particularly strong in ___________ to succeed in expanding to global markets.

A) Accounting and law
B) Currency trading
C) Marketing and logistics
D) Human resources
E) Customer service

Question 55

You Are Here, a personal navigation system company, has contracted its manufacturing to a firm in Malaysia for five years.Now that You Are Here has wildly explosive growth, it wants to purchase the manufacturing facility.This market entry method is _________.

A) Direct sales force
B) Strategic alliance
C) Joint venture
D) Direct foreign investment
E) Licensing

Question 56

The leading franchising company in the world is ___________.

A) McDonald's
B) Coca-Cola
C) Dunkin' Donuts
D) Subway
E) 7-Eleven

Question 57

___________ is the most common method for entering foreign markets and accounts for ________ of all global economic activity.

A) Direct foreign investment, 20%
B) Licensing, 12%
C) Franchising, 35%
D) Exporting, 10%
E) Joint ventures, 15%

Question 58

A technology or high-end industrial product company is most like to use ______ in foreign markets.

A) Brokers
B) Export agents
C) Distributors
D) Direct sales force
E) Freight forwarders

Question 59

Advantages to franchising as a market entry strategy do not include ______.

A) Local market knowledge
B) No adaptation of products needed
C) Local management expertise
D) Quality control at the point of customer contact
E) Economies of scale

Question 60

A country that invests heavily in infrastructure, receives investment from foreign governments, and is attractive to firms seeking first-mover advantage is in the _______ stage of development.

A) Traditional Society
B) Pre-conditions for take-off
C) Take-off
D) Maturity
E) High mass consumption

Question 61

Outdated cell phones used in Europe or Asian have been introduced into the Latin American markets.This is an example of ____________.

A) Forward extension
B) Product adaptation
C) Backward product adaptation
D) Product invention
E) Hybrid products

Question 62

Bistrone corn canned soup was made expressly for the Japanese market by Coca-Cola Japan.This is an example of ___________________.

A) Direct product extension
B) Product adaptation
C) Backward product adaptation
D) Product invention
E) Hybrid products

Question 63

Ask your friends which country produces the best perfume and the most likely answer will be "France".This shows the issue international consumer marketers face of _________.

A) Brand strategy
B) Country of origin
C) Quality
D) Fitting the product to the culture
E) Manufacturing

Question 64

The most well established local distributors might already have relationships with competitors.This problem for new market entrants would be identified in the channel strategy of ___________.

A) Capital
B) Coverage
C) Character
D) Continuity
E) Control

Question 65

Coca-Cola advertisements in Brazil may feature famous Brazilian soccer players and use the theme "Always Coca-Cola".Ads in Japan may use Japanese rock stars and the theme "Always Coca-Cola".This approach to advertising strategy is _____.

A) Global marketing themes
B) Local advertising
C) Global marketing with local content
D) Basket of global advertising themes
E) Local market ad generation

Question 66

___________ is not a product issue for international product marketers.

A) Brand strategy
B) Country of origin
C) Quality
D) Fitting the product to the culture
E) Manufacturing

Question 67

_____________ spends more money on advertising than any other company in the world.

A) Toyota
B) Unilever
C) General Motors
D) Coca-Cola
E) Procter & Gamble

Question 68

Tyrone wants to get his girlfriend an impressive gift of chocolates for Valentine's Day.He chooses candy that was made in Belgium.This is an example of effective ____________.

A) Brand strategy
B) Country of origin effect
C) Quality
D) Fitting the product to the culture
E) Price

Question 69

The use of local distribution networks is identified in the channel strategy of ___________.

A) Cost
B) Coverage
C) Character
D) Continuity
E) Control

Question 70

The organizational structure that best lends itself to close connections to local governments is __________.

A) Targeted organization
B) Global product lines
C) Geographic regions
D) Hybrid
E) Multinationals

Question 71

When Pepsi translated its popular slogan, "Come Alive with the Pepsi Generation" into Chinese, it was understood as "Bring Your Ancestors Back from the Dead" and was not well received.This illustrates a problem with ___________.

A) Brand strategy
B) Country of origin effect
C) Quality
D) Fitting the product to the culture
E) Manufacturing

Question 72

Coca-Cola changes the taste of its soft drinks to meet local market preferences.These are examples of ___________.

A) Direct product extension
B) Product adaptation
C) Backward product invention
D) Product invention
E) Hybrid products

Question 73

All but the most accomplished global marketers rely on local distribution networks in foreign markets.It is very expensive to build the company's own distribution network.This issue would be identified in the channel strategy of ___________.

A) Cost
B) Coverage
C) Character
D) Continuity
E) Control

Question 74

The task of handling crises and giving the company's perspective to news organizations belongs in the ___________ element of marketing communications.

A) Advertising
B) Personal selling
C) Promotion
D) Public relations
E) Direct marketing

Question 75

Aligning the firm's philosophy with that of a potential channel partner would be identified in the channel strategy of ___________.

A) Cost
B) Coverage
C) Character
D) Continuity
E) Control

Question 76

The degree of centralization is a critical decision a firm makes before deciding on an international organizational structure.Options include _________.

A) Highly decentralized, decentralized, and centralized
B) Highly centralized, centralized, and decentralized
C) Regionalized, highly regionalized, and centralized
D) Decentralized, centralized, and regionalized
E) Regionalized, moderately decentralized, and centralized

Question 77

The issue of initial investment in creating a channel and the cost of then maintaining it is identified in the channel strategy of ___________.

A) Cost
B) Coverage
C) Character
D) Continuity
E) Control

Question 78

When Ford Motor Co.introduced the Nova model in Mexico, it faced certain ridicule because "No va" in Spanish means "It doesn't go." Oops! This illustrates a problem with __________________.

A) Brand strategy
B) Country of origin effect
C) Quality
D) Fitting the product to the culture
E) Manufacturing

Question 79

The organizational structure used by most companies is ______________.

A) Targeted organization
B) Global product lines
C) Geographic regions
D) Hybrid
E) Multinationals

Question 80

Pepsi and Coca-Cola both sponsor traveling carnivals in rural Latin America to encourage product trial.This element of marketing communications is _______.

A) Advertising
B) Personal selling
C) Promotion
D) Public relations
E) Direct marketing