SECTION A: True/False Questions (20%)
Please read the following statements and decide whether the statements are true or false. Write T for true and F for false on the answer booklet given.
1. Executives at both American and Japanese appliance manufacturers share a
consensus that the appliance industry is globalizing.
2. A cornerstone of Harley-Davidson's global marketing strategy is manufacturing
in Mexico and other low-wage countries.
3. An ethnocentric management orientation is preferable to a geocentric orientation. 4. Carl Hahn, the former chairman of Volkswagen, told Harvard Business Review in
1991 that \to now, Volkswagen has thought that what works in Germany should work in the United States.\that, historically speaking, an ethnocentric management orientation toward product development prevailed at VW.
5. Centrally-planned capitalism is characterized by command resource allocation
and private resource ownership.
6. If an American tourist in Tokyo pays more in dollars for the same amount of yen
that she bought last week, then, the dollar has depreciated relative to the yen. 7. Low-context subcultures can be present in a high-context culture.
8. A Westerner doing business in Japan should understand that self-denial,
cooperation and an emphasis on group harmony are important aspects of Japanese culture and tradition.
9. In Hofstede’s research on cultural values, the extent to which members of a
culture are uncomfortable with ambiguous or unstructured situations is a measure of power distance.
10. The U.S. is an individualist culture, while Japan is a collectivist culture.
11. According to Greek Hofstede, masculinity describes the extent to which members
of a society are oriented toward hard work, education, persistence, and thrift. 12. One common feature of patent laws around the world is that, once granted, patent
rights are guaranteed even if a registered product is not manufactured or sold. 13. France is not a common law country.
14. The Paris Convention protects patents, the Berne Convention protects copyrights. 15. Disputes between two nations would be taken before the International Court of
Justice.
16. By definition, secondary data is data gathered from country markets that rank as
“secondary” in terms of income and population figures.
17. A systematic, project-specific data gathering effort is generally known as
marketing intelligence.
18. Latent and incipent are two terms that researchers can use to describe markets in
any part of the world: Latent means \beginning to come into existence\incipient means \
19. A market researcher utilizing the experimental method of data collection
witnesses and records information about consumer behavior as they occur in real time.
20. When the Coca-Cola Company convened focus groups in Europe and Asia to
assess potential market acceptance of a contoured aluminum soft drink can, it was attempting to collect quantitative data.
SECTION B: Multiple Choice Questions (40%)
Please read the following questions carefully and choose the one best answer to each question. Write down each right answer on the answer booklet given.
1. Which of the following is defined as \company's effort to identify and categorize
groups of customers and countries according to common characteristics.\
(A) (B) (C) (D)
global sourcing global targeting global positioning
global market segmentation
2. Income and population are two variables that can be used in which type of segmentation:
(A) (B) (C) (D)
demographic psychographic ethnic behavioral
3. The term most closely associated with psychographics is:
(A) (B) (C) (D) (E)
gender lifestyle statistics heavy user
standard of living
4. B.A.T Industries PLC exports 8 billion cigarettes each year to China, where smokers
consume one-third of all cigarettes sold worldwide each year. As described here, B.A.T's focus on China reflects which type of segmentation:
(A) (B) (C) (D) (E)
demographic behavioral psychographic occupational benefit
5. Consumers shopping for high-touch products such as fine perfume are generally
energized by _______ motives.
(A) (B) (C) (D)
emotional rational
both emotional and rational neither emotional and rational
6. _______represent(s) a market entry strategy whereby one company permits a foreign
company to make use of its patents, know-how, technology, company name, or other intangible assets in return for a royalty payment.
(A) (B) (C) (D) (E)
joint ventures 100% ownership licensing exporting
global strategic alliances
7. Which of the following shows global market entry modes listed in order from highest
level of risk/commitment to lowest:
(A) (B) (C) (D)
licensing-joint venture-contract manufacturing-exporting-investment licensing-investment-exporting-joint venture-contract manufacturing investment-joint venture-contract manufacturing-licensing-exporting investment-exporting –contract manufacturing-licensing-joint venture
8. When targeting a country with a high degree of political instability, a company hoping to
limit the risk of expropriation would be well advised to choose which market entry strategy:
(A) (B) (C) (D)
licensing joint venture acquisition franchising
9. As a general rule, the Chinese government allows foreign companies to participate in its
market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances:
(A) (B) (C) (D)
acquisition licensing joint venture exporting
10. Which of the following is not a characteristic of global strategic alliances:
(A) (B) (C) (D)
the goal is world leadership technology transfer is one-way the vision is global
partners compete in markets unrelated to the GSP
11. _______ represents the cumulative added value of a company’s investment in the
marketing of a brand over time.
(A) brand extensions (B) cobranding (C) brand image
(D) brand equity (E) brand loyalty
12. Stella Artois is a Belgian beer brand described by locals as a run-of-the-mill brew that is
“fit for peasants.” Accordingly, a pint of Stella sells for the equivalent of $1.10 inBrussels. By contrast, in New York, London, and other cities, Stella Artois is marketed as a premium beer that sells for as much as $8 per glass at upscale bars. As described here, which of the following strategies is being used to market Stella outside of Belgium:
(A) (B) (C) (D) (E) product-communications extension
product adaptation-communications extension product extension-communications adaptation dual adaptation product invention
13. If the manufacturer of a sophisticated new consumer electronics product determines that
many target consumers qualify as \and \adopters\with relatively inelastic demand curves, the company should use the _______ pricing strategy:
(A) (B) (C) (D) (E)
gray market skimming penetration market holding cost based
14. For which of the following does a true global market exist such that the \of one
price\
(A) (B) (C) (D)
commercial aircraft crude oil
integrated circuits all of the above
15. Which of the following does not contribute to price escalation in global marketing:
(A) (B) (C) (D) (E)
shipping and insurance charges value added taxes (VAT) product differentiation duties and tariffs
fluctuating exchange rates
16. If company managers decide to set the export price for a particular product at an amount
equivalent to the home country price, they would be using which approach to pricing:
(A) (B) (C) (D)
ethnocentric polycentric regiocentric geocentric
17. Suppose that a manufacturer of golf equipment sells a golf club to its domestic
distributor for $200; it sells the same club to a distributor in Asia for $100. Although it is not authorized to do so, the Asian distributor resells the club to a retailer in the United States for $150. This type of behavior is known as: (A) gray marketing (B) dumping
(C) market skimming (D) offsets
18. If a company sells products in export markets at prices that are below fair market
value and that can harm producers in the export market, that company may be accused of:
(A) market skimming (B) using offsets
(C) pursuing artificially high margins (D) dumping
19. Which of the following is true about proper use of the term \
(A) the term \(B) the term \
(C) the term \
(D) \is a blanket term that refers to several different types of
business transactions
20. The direct exchange of goods or services between parties in lieu of monetary
payment is known as: (A) barter
(B) switch trading (C) offset
(D) compensation trading
SECTION A: True/False Questions (20%)
Please read the following statements and decide whether the statements are true or false. WriteT for true and F for false on the answer booklet given.
1. The Coca-Cola Company has achieved great success in global marketing by
pursuing a policy of strict standardization of all marketing mix elements. [ ] 2. Managers at an ethnocentric company believe that the home country is superior
compared with the rest of the world. [ ]
3. There is general agreement today among writers, academics, and global
marketing professionals about use of the terms \\\ ]
4. Most economic systems in the world today are \
[ ]