Question 1

Three types of companies populate and compete in the global marketplace. Identify and describe each type.

Accepted Answer

All three types of global companies employ people in different countries and many have administrative, marketing, and manufacturing operations (often called divisions or subsidiaries) around the world. However, a firm's orientation toward and strategy for global markets and marketing defines the type of company it is or attempts to be. The three are: (1) An international firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country. (2) A multinational firm views the world as consisting of unique parts and markets to each part differently. (3) A transnational firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs more than differences.

Question 2

A country's imports

Accepted Answer

A) stimulate the imports of other countries. 
B) have no affect on its exports. 
C) have no relationship with its balance of payments. 
D) affect its exports and exports affect its imports. 
E) over time will decrease its overall economic activity. 
A) stimulate the imports of other countries. 
B) have no affect on its exports. 
C) have no relationship with its balance of payments. 
D) affect its exports and exports affect its imports. 
E) over time will decrease its overall economic activity. D

Question 3

Global companies have five strategies for matching products and their promotion efforts to global markets. A same product-adapt promotion emphasis refers to which type of strategy?

Accepted Answer

A) product extension strategy 
B) product adaptation strategy 
C) dual adaptation strategy 
D) product invention strategy 
E) communication adaptation strategy 
A) product extension strategy 
B) product adaptation strategy 
C) dual adaptation strategy 
D) product invention strategy 
E) communication adaptation strategy E

Question 4

Tariffs refer to

Accepted Answer

A) government payments to companies or industries that primarily serve to create competitive advantage for domestic products. 
B) government taxes on products or services entering a country that primarily serve to raise prices on imports. 
C) a restriction placed on the amount of a product allowed to enter or leave a country. 
D) a minimum requirement for the purchase between two or more nations of products or services. 
E) a refusal to purchase or exchange products or services with another nation unless certain financial or ideological requirements have been satisfied. 
A) government payments to companies or industries that primarily serve to create competitive advantage for domestic products. 
B) government taxes on products or services entering a country that primarily serve to raise prices on imports. 
C) a restriction placed on the amount of a product allowed to enter or leave a country. 
D) a minimum requirement for the purchase between two or more nations of products or services. 
E) a refusal to purchase or exchange products or services with another nation unless certain financial or ideological requirements have been satisfied.

Question 5

To avoid competing with Japanese firms through their traditional channel of distribution, Fran Wilson Creative Cosmetics Moodmatcher lip coloring is sold in which type of retail venue?

Accepted Answer

A) grocery stores 
B) flower shops 
C) beauty salons 
D) department stores 
E) gift stores 
A) grocery stores 
B) flower shops 
C) beauty salons 
D) department stores 
E) gift stores

Question 6

Generally, as the proportion of middle-income households in a country increases, the nation's purchasing power

Accepted Answer

A) levels off. 
B) decreases. 
C) increases. 
D) becomes less of an economic priority. 
E) becomes progressively unstable. 
A) levels off. 
B) decreases. 
C) increases. 
D) becomes less of an economic priority. 
E) becomes progressively unstable.

Question 7

One disadvantage of direct investment when entering a new global market is

Accepted Answer

A) intermediaries have the potential to harm the brand. 
B) the firm entering the foreign market must pay royalties to the government. 
C) the company forgoes control over its product. 
D) the financial commitments involved. 
E) this method is likely to provide the fewest cost savings relative to the other global market entry options. 
A) intermediaries have the potential to harm the brand. 
B) the firm entering the foreign market must pay royalties to the government. 
C) the company forgoes control over its product. 
D) the financial commitments involved. 
E) this method is likely to provide the fewest cost savings relative to the other global market entry options.

Question 8

PepsiCo and __________ entered into a joint venture to market Frito-Lay's, Cheetos, Ruffles, and Doritos in Israel.

Accepted Answer

A) The Strauss Group 
B) Ericsson 
C) General Mills 
D) Hebrew National 
E) CGCT 
A) The Strauss Group 
B) Ericsson 
C) General Mills 
D) Hebrew National 
E) CGCT

Question 9

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

Accepted Answer

A) an increase in economic protectionism and a decline in free trade. 
B) a more aggressive attitude toward initiating international tariffs and quota systems. 
C) global competition among global companies for global customers. 
D) a decrease in most countries' GDP and a renewal of nationalism. 
E) an increase in most countries' GDP coupled with an increased degree of consumer ethnocentrism. 
A) an increase in economic protectionism and a decline in free trade. 
B) a more aggressive attitude toward initiating international tariffs and quota systems. 
C) global competition among global companies for global customers. 
D) a decrease in most countries' GDP and a renewal of nationalism. 
E) an increase in most countries' GDP coupled with an increased degree of consumer ethnocentrism.

Question 10

Mars, America's second-largest candy company, began doing business in Russia in the late 1980s. The Snickers bar is one of the top-selling candies in Russia and is marketed in much the same way as it is in the United States. What type of global company is Mars?

Accepted Answer

A) an international firm 
B) a multidomestic firm 
C) a transnational firm 
D) a meganational firm 
E) a multinational firm 
A) an international firm 
B) a multidomestic firm 
C) a transnational firm 
D) a meganational firm 
E) a multinational firm

Question 11

The World Trade Organization (WTO) refers to

Accepted Answer

A) the world's largest banking institution responsible for establishing and maintaining equitable exchange rates for all member nations. 
B) the world's largest licensing institution responsible for the certification of products distributed to a global market. 
C) an institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions. 
D) a multinational trade organization composed of the world's wealthiest nations whose primary purpose is to aid in the economic growth of developing nations. 
E) a multinational trade organization comprised of the world's wealthiest nations whose primary purpose is to promote free trade economies. 
A) the world's largest banking institution responsible for establishing and maintaining equitable exchange rates for all member nations. 
B) the world's largest licensing institution responsible for the certification of products distributed to a global market. 
C) an institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions. 
D) a multinational trade organization composed of the world's wealthiest nations whose primary purpose is to aid in the economic growth of developing nations. 
E) a multinational trade organization comprised of the world's wealthiest nations whose primary purpose is to promote free trade economies.

Question 12

Which of the following examples best demonstrates a company's appreciation for another country's values?

Accepted Answer

A) A German company allows customers to make large purchases using lay-away (paying small amounts until the item is paid for and delivered). 
B) In Brazil, an appliance maintenance firm schedules service appointments allowing only 15 minutes of leeway for missed calls or no shows. 
C) In Japan, a spa owner created special exercise classes for husbands and wives. 
D) In India, a popular hamburger chain separated its dining area by color for people who wanted to eat beef and those who did not. 
E) Calvin Klein reduced the number of outdoor advertising placements showing scantily clad models in countries with predominantly Muslim populations. 
A) A German company allows customers to make large purchases using lay-away (paying small amounts until the item is paid for and delivered). 
B) In Brazil, an appliance maintenance firm schedules service appointments allowing only 15 minutes of leeway for missed calls or no shows. 
C) In Japan, a spa owner created special exercise classes for husbands and wives. 
D) In India, a popular hamburger chain separated its dining area by color for people who wanted to eat beef and those who did not. 
E) Calvin Klein reduced the number of outdoor advertising placements showing scantily clad models in countries with predominantly Muslim populations.

Question 13

Global competition exists when

Accepted Answer

A) a firm produces and markets its products domestically rather than globally. 
B) firms originate, produce, and market their products and services worldwide. 
C) two firms from two different countries compete for market share in a single domestic market. 
D) two or more firms from different nations combine their resources to market products in a single domestic market. 
E) the firm from one nation dominates the market for its product in every nation. 
A) a firm produces and markets its products domestically rather than globally. 
B) firms originate, produce, and market their products and services worldwide. 
C) two firms from two different countries compete for market share in a single domestic market. 
D) two or more firms from different nations combine their resources to market products in a single domestic market. 
E) the firm from one nation dominates the market for its product in every nation.

Question 14

Which of the following examples best demonstrates a company's appreciation of another country's values?

Accepted Answer

A) American companies in Germany encourage the use of all types of credit cards. 
B) In Brazil, American companies are extremely careful to keep to a strict agenda and time schedule, even though an informal structure is preferred. 
C) Bath products are advertised by portraying intimate scenes between husbands and wives in countries where personal privacy is important. 
D) McDonald's restaurants in India sell the Maharaja Mac rather than beef products. 
E) Vogue Italia published a feature with a model wearing "slave earrings," which it said were "worn by women of color during the slave trade." 
A) American companies in Germany encourage the use of all types of credit cards. 
B) In Brazil, American companies are extremely careful to keep to a strict agenda and time schedule, even though an informal structure is preferred. 
C) Bath products are advertised by portraying intimate scenes between husbands and wives in countries where personal privacy is important. 
D) McDonald's restaurants in India sell the Maharaja Mac rather than beef products. 
E) Vogue Italia published a feature with a model wearing "slave earrings," which it said were "worn by women of color during the slave trade."

Question 15

Dell established its company primarily with direct telephone- and Internet-based sales. In terms of Dell's global expansion strategy, which of the following statements is most accurate?

Accepted Answer

A) Dell sells its computers via word of mouth, which is the most powerful method for consumer electronics. 
B) Dell partners with each country's largest department stores and sells its computers in the small appliance department. 
C) Dell issues its own credit card through multinational banks, making it possible for customers who would not normally qualify for credit to do so. 
D) Dell distributes its products through individual sales associates who reach out to customers with a first-hand experience at their doorsteps. 
E) Dell maintains the exact same U.S. strategies that brought it this far because it sees no reason to change. 
A) Dell sells its computers via word of mouth, which is the most powerful method for consumer electronics. 
B) Dell partners with each country's largest department stores and sells its computers in the small appliance department. 
C) Dell issues its own credit card through multinational banks, making it possible for customers who would not normally qualify for credit to do so. 
D) Dell distributes its products through individual sales associates who reach out to customers with a first-hand experience at their doorsteps. 
E) Dell maintains the exact same U.S. strategies that brought it this far because it sees no reason to change.

Question 16

Black & Decker launched the Snake Light flexible flashlight. Created to address a global need for portable lighting, the product became a best seller in North America, Europe, Latin America, and Australia. This is an example of which type of global marketing product and promotion strategy?

Accepted Answer

A) product extension 
B) product customization 
C) product adaptation 
D) product invention 
E) product integration 
A) product extension 
B) product customization 
C) product adaptation 
D) product invention 
E) product integration

Question 17

Another term for a gray market is

Accepted Answer

A) equivalent exporting. 
B) back-channel market. 
C) mature marketing. 
D) parallel importing. 
E) transparent market. 
A) equivalent exporting. 
B) back-channel market. 
C) mature marketing. 
D) parallel importing. 
E) transparent market.

Question 18

Pan-European marketing strategies are possible because

Accepted Answer

A) there is a legally binding code of economic conduct. 
B) there are effective countermeasures for protectionism. 
C) there are fewer regulatory restrictions on transportation, advertising, and promotion. 
D) there is a common language advantage among EU consumers. 
E) most companies within the EU are engaging in strategic global partnerships. 
A) there is a legally binding code of economic conduct. 
B) there are effective countermeasures for protectionism. 
C) there are fewer regulatory restrictions on transportation, advertising, and promotion. 
D) there is a common language advantage among EU consumers. 
E) most companies within the EU are engaging in strategic global partnerships.

Question 19

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

Accepted Answer

A) an increase in most countries' GDP coupled with an increased degree of consumer ethnocentrism. 
B) a significant increase in economic protectionism and a decline in free trade. 
C) a more aggressive attitude toward initiating international tariffs and quota systems. 
D) a decrease in most countries' GDP and a renewal of nationalism. 
E) a decline in economic protectionism by individual countries. 
A) an increase in most countries' GDP coupled with an increased degree of consumer ethnocentrism. 
B) a significant increase in economic protectionism and a decline in free trade. 
C) a more aggressive attitude toward initiating international tariffs and quota systems. 
D) a decrease in most countries' GDP and a renewal of nationalism. 
E) a decline in economic protectionism by individual countries.

Question 20

Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) exporting, (2) licensing, (3) __________, and (4) direct investment.

Accepted Answer

A) franchising 
B) joint venture 
C) cooperative 
D) multiparty initiative 
E) mutual investment 
A) franchising 
B) joint venture 
C) cooperative 
D) multiparty initiative 
E) mutual investment

Exam 7: Understanding and Reaching Global Consumers and Markets

Three types of companies populate and compete in the global marketplace. Identify and describe each type.

A country's imports

Global companies have five strategies for matching products and their promotion efforts to global markets. A same product-adapt promotion emphasis refers to which type of strategy?

Tariffs refer to

To avoid competing with Japanese firms through their traditional channel of distribution, Fran Wilson Creative Cosmetics Moodmatcher lip coloring is sold in which type of retail venue?

Generally, as the proportion of middle-income households in a country increases, the nation's purchasing power

One disadvantage of direct investment when entering a new global market is

PepsiCo and __________ entered into a joint venture to market Frito-Lay's, Cheetos, Ruffles, and Doritos in Israel.

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

Mars, America's second-largest candy company, began doing business in Russia in the late 1980s. The Snickers bar is one of the top-selling candies in Russia and is marketed in much the same way as it is in the United States. What type of global company is Mars?

The World Trade Organization (WTO) refers to

Which of the following examples best demonstrates a company's appreciation for another country's values?

Global competition exists when

Which of the following examples best demonstrates a company's appreciation of another country's values?

Dell established its company primarily with direct telephone- and Internet-based sales. In terms of Dell's global expansion strategy, which of the following statements is most accurate?

Black & Decker launched the Snake Light flexible flashlight. Created to address a global need for portable lighting, the product became a best seller in North America, Europe, Latin America, and Australia. This is an example of which type of global marketing product and promotion strategy?

Another term for a gray market is

Pan-European marketing strategies are possible because

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) exporting, (2) licensing, (3) __________, and (4) direct investment.

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Marketing Research: From Customer Insights to Actions

Market Segmentation Targeting and Positioning

Developing New Products and Services

Managing Successful Products Services and Brands

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising Sales Promotion and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Financial Aspects of Marketing

Building an Effective Marketing Plan

Filters