TEST BANK

INTERNATIONAL MARKETING MCQs (480 câu)

CHAPTER 1

1. Solberg’s framework (1997) is based on the following two dimensions: industry

globalism and preparedness for internationalization

2. With the globalization of markets, the tastes and preferences of consumers

world-wide are: converging upon a global norm

3. When management believes or assumes that the home country is superior and the
needs of the home country are most relevant in terms of doing business
internationally, then management is thought to have a(n) ………………………… business
orientation: ethnocentric

4. The goals of international marketing are to: create and retain customers in global
markets.

5. Being a global organization means: creating both standardized and customized

products

6. Which of the following represents a company’s effort to identify and categorize

groups of customers and countries according to common characteristics? global
market segmentation

7. Which term refers to the phenomenon in which the world’s population shares
commonly recognized cultural symbols? global village

8. A global market leader is an organization which: is recognized as being ahead of

the rest in terms of market share.

9. Which of the following industries are known for their high degree of globalism? a/
PCs, IT (software), records (CDs); b/ movies and aircraft → both a/ and b/

10. Regionalism is: the grouping of countries into regional clusters based on
geographic proximity

11. In the Eu, SMEs constitute approximately …………… percent of all firms: 99

12. Within an international context, what are “economies of scope” synonymous

with? Reusing a resource from one business/country in additional
businesses/countries.

13. According to the concept of the value chain, a firm is profitable if: the value it
commarids exceeds the costs involved in creating the product.
14. In which industries is global competition more common? where upstream and
support activities are crucial to competitive advantage.

15. Internationalization is a key factor to success in the long-term survival of SMEs:

FALSE

16. Contrary to LSEs, a characteristic of SME managers is: their limited formal
business education

17. Which of the following represents a company’s effort to identify and categorize
groups of customers and countries according to common characteristics? global
marketing research

18. The notion that a company can be both global and local represents: a paradox

19. Research has shown that the …………… typically makes the first decision to
internationalize in SMEs: head of the organization

20. Writing in his international bestselling book The World is Flat, Thomas I…
Friedman suggested that: + The world is becoming a level-playing field in terms of
commerce, where all players and competitors have an equal opportunity; +
Companies in emerging and developing countries are becoming integral parts of
complex global supply chains for large multinationals; + We are entering a new
phase of globalization, in which there will be no single geographic center and no
ultimate model for success. → all of the above are correct.

21. Global car manufacturers such as Ford and Volkswagen achieve great
economies of scale and scope by: using similar engines and gearboxes across their
entire product range and using them in different models of cars.

22. Estimation of total market is calculated as: number of buyers x average

consumption per year

23. An international organization may design a product in country A, produce parts

for it in countries B, C, D and E, assemble the product in country F, and then export it
worldwide. This is an example of: the globalization of production

24. Why did Lego’s strategic drift occur? because Lego’s management blindly
believed in their unique and pedagogical toys without adjusting their product in line
with the environmental market changes.

25. In Svend Hollensen’s view, ……………… are perhaps the most critical factor in the
initiation of the internationalization process in the SME: information and knowledge

26. Despite recent findings concluding that LSEs and SMEs manifest some degree of
convergence in their global marketing orientations, there are numerous qualitative
differences between management and marketing styles in LSEs and SMEs, such as:
+ SMEs focus on short-term opportunities while LSEs focus on long-term
opportunities; + SMEs rely upon outsourcing their resources while LSEs are
preoccupied with the internationalization of their resources; + the organization of
SMEs is predominantly informal while the organization of LSEs is predominantly
hierarchical/formal → all of the above

27. A global market leader is an organization which: is recognized as being ahead of

the rest in terms of market share

28. The economies of scale with Nintendo Game Boy relate to: the manufacturing of
the hardware.

CHAPTER 2

1. Key controllable factors in global marketing are: marketing activities and plans

2. The work of an international marketer is mainly concerned with: adapting a

marketing mix to enter a market in another country

3. From the point of view of marketing, an organization that enjoys competitive

advantage in an industry has done so by: creating superior value for customers

4. The main reason(s) for Elvis Presley Enterprises (EPE) internationalization was
(were): creating long-term profit for EPE and maintaining Graceland

5. The following represent major reactive motives for initiating export: extended
sales of seasonal products; competitive pressures; overproduction/excess capacity
and unsolicited foreign orders → all of the above

6. In Svend Hollensen’s view, ‘…………… are perhaps the most critical factor in the
initiation of the internationalization process in the SME’: information and knowledge

7. The case of SMEs, increasing internationalization often results in: multi-domestic

strategies

8. One of the major reasons why some organizations are reluctant to engage in
global marketing research is that: they are not sensitive to cross-cultural customer
tastes and preferences

9. Among the main reactive reasons for Haier’s Group internationalization was
(were): the saturation of the Chinese home appliance market; the need to dispose of
its excess capacity; the special conditions offered by the Chinese government to
international players → all of the above

10. The most common barrier encountered by exporting craft firms in foreign
markets is: the reliability of distributors

11. According to Svend Hollesen, the main internal triggers of export initiation are:
perceptive management; importing as inward internationalization; specific internal
event → all of the above

12. Which of the following does not represent a political risk in the
internationalization process: difficulties in obtaining export financing (W/A: lack of
tax incentives for companies that export; complexity of trade documentation; civil
strive, revolution and wars disrupting foreign markets)

13. …………… is the fundamental reason for exporting: making money

14. In which of the following countries would an organization expanding

internationally encounter the highest potential for political risk: Argentina (W/A:
Japan, Bulgaria, Canada)

15. Which of the following statements about the WTO anti-dumping agreement is
true? The WTO anti-dumping agreement allows governments to act against
dumping where there is genuine (material) injury to the competing domestic
industry; the WTO anti-dumping agreement enables governments to protect their
local producers from foreign producers that sell their products on local markets at
very low prices → both of the above are true

16. Japanese firms are known to exploit foreign market opportunities primarily by
using: penetration pricing strategies

17. Internationalization motives are: + the fundamental reasons for

internationalization; +reactive motives indicate that the firm reacts to pressures or
threats in its home market or in foreign markets; + proactive motives represent
stimuli to attempt strategy change, based on the firm’s interest in exploiting unique
competences → all of the above

18. Which of the following represent major proactive reasons for initiating export? +
technology competence and economies of scale; +managerial urge and tax
benefits; +profit and growth goals → all of the above

19. Internal triggers of internationalization include: perceptive management, specific

internal events and importing as inward internationalization.

20. Among the main reactive reasons for Haier Group’s internationalization was
(were): the competitive pressures and the saturation of its domestic market.

21. According to Svend Hollensen, the main external triggers of export initiations are:
financing; network partners, trade associations and other outside experts; market
demand and competing firms → all of the above
22. In a study of craft micro-enterprises (fewer than ten employees) in the Uk and
Ireland, Fillis (2002) found that ……………… business(es) in the domestic market was
the major factor in the decision not to export. having sufficient

23. The expression globalization of production suggests that: + W/A: many products
are assembled in one country from parts that may have been produced in the same
country; + many organizations base individual productive activities at the optimal
world locations for the particular activities; + many products are assembled in one
country from parts that may have been produced in a number of countries → both B
and C ar valid

24. Which one of the following does not represent a commercial risk in the
internationalization process? national export policy

25. Political risks include: foreign government restrictions

26. Compared to LSEs, SMEs often experience a low degree of interdependence

between markets. TRUE

27. What was Blake Mycoskie’s biggest challenge when he started up TOMS Shoes
in Santa Monica in 2006? He had no experience of making shoes

28. Following its declining profits throughout the 1990s, BT’s new defensive strategy
has meant that the company had to: withdraw from multiple interdependent
international markets

CHAPTER 3

1. The main consequence according to the Uppsala School model is that

organizations tend to: intensify their commitment towards foreign markets as their
experience grows

2. Uppsala is a city in: Sweden

3. According to the TCA model, firms integrate …………………… in order to reduce

transaction costs: vertically

4. Psychic distance refers to factors such as: differences in language, culture, and
political systems.

5. A defining characteristic of born globals is: relatively unique products or process

innovations.

6. There are 11 official languages in ……… and these tend to be vernacular/dialects. In

consequence, researchers must fix the conceptual aspect and then adjust it in order
to be able to convey the same idea and try to eliminate bias introduced in translation:
South Africa.

7. Which country has the largest economy (as measured by GNP) of the nations in
ASEAN? Indonesia

8. Which of the following are members of CARICOM? + St.Lucia and Jamaica;

+Antigua; +The Bahamas → all of the above

9. Which of the following is a preferential trading agreement in Latin America?

CARICOM; SICA; MERCOSUR → all of the above

10. A true multinational organization will often adopt a …………… strategy.

multidomestic

11. Born globals share the following similarities: +They possess unique assets;
+they have a strong customer orientation; + they focus on a narrow global market
segment → all of the above

12. According to the incremental approach, firms typically begin their

internationalization by going to those markets that they can: most easily understand

13. Which of the following internationalization models is criticized for ignoring the
internal transaction cost, assuming zero friction with a multinational firm? the TCA
model (W/A: the Uppsala model; Vernon’s life cycle model; the network model)

14. Which member of the Gulf Cooperation Council (GCC) has both the largest
economy and population? Saudi Arabia

15. The country with the largest telecommunication sector in all of Latin America is:
Brazil

16. Sequential modes of internationalization were introduced by: Raymond Vernon’s

1966 product life cycle hypothesis

17. During the past 10-15 years there has been much focus on ……………………………
where a firm has different relationships not only with customers but also with other
actors in the environment. internationalization in networks

18. Born globals share which of the following similarities? They possess unique
assets; they focus on a narrow global market segment; they have a strong customer
orientation → all of the above

19. Which one of the following statements is true? The main consequence according
to the Uppsala School model is that organizations tend to intensify their
commitment towards foreign markets as their experience grows.
20. Which of the following is not a stage in the Uppsala internationalization model?
Joint venture

21. The original stage model has been extended by Welch and Loustarinen (1988),
who operate with six dimensions of internationalization where ……… is one of them.
organizational structure

22. A defining characteristic of born globals is: relatively unique products or process
innovations

23. The network model of internationalization argues that internationalizing firms

typically engage in networks which are primarily: domestic

24. One of the main criticisms of the Uppsala model is that the internationalization
model is not valid for: service organizations

25. According to the incremental approach, firms typically begin their

internationalization by going to those markets that they can: most easily understand

26. The global financial market is an example of: the phenomenon of “born globals”

27. Born regional means: a firm that starts international activities early and with
significant international shares, but its international activities are only in its home
region

28. A very important trend in favor of born globals is the recent advance in:
communications technology

29. According to the case study, LG applied …………… in order to support their product
launch of the new L series of smartphones. a Facebook event

CHAPTER 4

1. Which of the following is not a determinant of the threat of new entrants in

Porter’s Five Forces Model: brand equity

2. Imperfect competition in international markets occurs in: oligopsony; monopoly;

monopsony → all of the above

3. According to Porter’s diamond, the characteristics of the ………………… play a central

role in explaining the international competitiveness of the firm: home base

4. The value chain activities by which the firm is regarded as a better performer than
any of its competitors are known as: core competences

5. What metaphor is used to describe the competitive space where products are not
yet well defined, competitors are not structured and the market is relatively
unknown? blue ocean

6. Portugal is relatively better at producing wine than wheat, so Portugal is said to

have a(n) …………………… advantage in the production of wine. comparative

7. According to the ……………………… , it can be concluded that firms have a competitive

advantage in a market if they offer products of a higher perceived value to the
customers and lower relative costs than competing firms. competitive triangle

8. An organization competing internationally should be aware of …………………………

which are common in oligopolistic markets. price wars

9. The key international marketing principles are: value, focus and competitive
advantage.

10. Organizations attempting to compete effectively in global markets are faced with
the following main interrelated challenges: complexity, change, competition and
conscience.

11. An indication of fierce international competition is given by which factors?

competitors are numerous; high exit barriers; competitors are of equal size and
power → all of the above

12. Which of the following sentences best summarizes the differences between the
red and blue oceans strategies? In the red oceans, industry boundaries are defined
and accepted and the competitive rules of the game are known. Blue oceans are
occasionally created well beyond existing industry boundaries.

13. Nintendo attempts to create a …………………… by offering a unique gaming

experience and keeping the cost of its system lower than Sony’s and Microsoft’s.
blue ocean

14. Nintendo’s Wii has managed to become a market leader by emphasizing which of
the following? +non-traditional users characteristics; +lower price than its
competition; +product simplicity → all of the above

15. Being focused in global marketing is equal to: concentrating on core business
and competence.

16. A global market challenger is an organization that: aims to attack the market
leader as well as the strong local and weaker firms

17. In relation to Figure 4.1 describing the firm’s international competitiveness, the
Porter diamond model is a part of ……………… level analysis. macro

18. Factor conditions involve: both basic and advanced factors

19. The double diamond describes that: the international competitiveness of an
industry in a country is not only dependent on its home country diamond conditions
but also on those of trading partners.

20. The key conditions for success in global markets are: value creation; focus;
competitive advantage → all of the above

21. If you were an international marketer for Nintenedo, an organization dependent

on software suppliers, then the global competitive environment you would have to
master has: several regional and local developers

22. What are red oceans? tough head-to-head competition in mature industries

23. The key international marketing principles are: value; focus and competitive
advantage.

24. When an organization is more successful at creating value for customers than its
competitors, it can be said that the organization has a(n) ………………… advantage in the
industry. competitive

25. BRIC markets are: Brazil, Russia, India and China

26. Which of the following statements is true? A global industry is an industry in

which there is some competitive advantage to integrated activities on a worldwide
basis.

27. An indication of fierce international competition is given by which factors? high

exit barriers; competitors are numerous and of equal size and power; slow market
growth and constant battle for market share → all of the above

28. Price-fixing is a form of collusion which typically occurs in a situation of:

oligopoly

29. If Portugal can produce wheat and wine much cheaper than England can, then it
can be concluded that Portugal has a(n) ……………… advantage in both commodities.
absolute

30. Being focused in global marketing equates to: concentrating on core business
and competence

CHAPTER 5

1. China is an example of a …………………… system. market socialism

2. In Svend Hollesen’s classification, which of the following is not a major type of

political risk? partnership risk (W/A: transfer risk; ownership risk; operating risk)
3. Which is the largest country within the EU by size of the population? Germany

4. Which country represents the largest market for breakfast cereals in the world?
USA

5. Approximately ……………… of world income is found outside the United States of

America. 75%

6. Which of the following is not a common form of tariff: quotas (W/A:

discriminatory; specific; ad valorem)

7. A quick method that can help international marketers compare relative value of
currencies is to check the price of a ………………… in different countries. Big Mac

8. An increase in the general level of prices, as measured against some baseline of

purchasing power is also known as ……………… inflation

9. The European Union is an example of: an economic union

10. ………………………… is the economic system whereby the state holds broad powers to
serve the public interest, it decides what goods and services are produced and in
what quantities and demand typically exceeds supply: Centrally planned socialism

11. Islamic Law is a comprehensive code based in part on: the Qur’an

12. The following are examples of political risk actions: price and tax controls;
import and labor restrictions; local-content laws and exchange controls → all of the
above

13. Which of the following options contains the correct order from the lowest to
highest level of economic integration: from free trade area to customs union to
common market to economic union

14. According to the Heritage Foundation, the country with the highest degree of
economic freedom is: Hong Kong

15. Among the factors that affect the balance of trade figures are: exchange rates,
taxes, tariffs and trade measures

16. The first step in global marketing research is: data collection

17. Primary data is: information that is collected first-hand, generated by original
research tailor-made to answer specific research questions

18. One of the problems with secondary research in foreign countries is:
non-availability of data

19. In the broadest sense, global marketing research is responsible for: market
studies, comparative studies and environmental studies

20. The main challenge in global marketing research is: the lack of secondary data

21. Which of the following is not classified as internal data? GNP

22. A proxy indicator is: an indirect variable

23. Which of the following is not a major economic indicator that can be researched
in global marketing research? industrial output in various countries

24. Global marketing research should be research carried out ……………… in more than
one country. either sequentially or simultaneously

25. A sampling plan is: a plan for outlining the group (or groups) to be surveyed in a
marketing research study

26. ………………………… represents a critical success factor of the Indian software

industry. the availability of advanced and highly educated people with general skills

27. Measurements can be deemed to be reliable if they: are measured repeatedly

with the same measurement device and the results are similar

28. Scenarios are: stories about plausible alternative futures

29. In international sports marketing surveys, individual Formula One teams may be
examined by presenting participants with test words such as: competitive,
dangerous, inspirational, elitist, sexy. This is an example of: a projective technique

CHAPTER 6

1. Which type of barriers become much more prevalent in times of recession?

non-tariff barriers

2. In this culture, equality is a desirable value. However the actual behavior of

……………… does not show so much equality, as in this culture people should get what
they deserve if they have the capabilities to work hard. Americans

3. BRIC, the acronym coined by Goldman Sachs in 2001, stands for: Brazil, Russia,
India, and China

4. Confucianism has adherents mainly in: the People’s Republic of China, Korea and
Japan

5. Mystery shopping, a popular global ethnographic tool, formally originated in: the
United States of America
6. Which of the following is not true about high-context cultures? negotiations are
lengthy (W/A: competitive bidding is less important; people make a big deal out of
private space; lawyers are less important)

7. Which of the following countries outranks the others in Hofstede’s dimension of

uncertainty avoidance: Greece (W/A: united kingdom; Hong Kong; Sweden)

8. …………………… enhance brand performance in countries that rank high on the power
distance dimension in Hofstede’s model. Social brand images

9. In this country, beliefs emphasize the spiritual progress of each person’s soul
rather than hard work and wealth creation. India

10. Which of the following statements about Saudi Arabia is true? + Saudi Arabia has
a population of about 9M people, yet it is the sixth biggest fragrance market in the
world behind the United States of America, Japan Germany, France and Italy;
+Saudi Arabia has a high-touch culture, however, inappropriate use of touch in
advertising messages may cause problems; +Saudi Arabia has the world’s highest
per capita consumption of fragrance → all of the above

11. The cultural environment of a country is best defined by which characteristics?

values, attitudes, heroes, myths and symbols

12. Hyperbole, persuasiveness, dreams, great expectations, and comparative

advertising are reflections of which Hofstede's dimension? Masculinity

13. Which of the following sentences is not true? N/T: Characteristic of weak
uncertainty avoidance is resistance to change, a desire for stability (T: + In large
power distance and collectivistic cultures, children remain dependent on their parents
much more than those in small power distance and individualistic cultures; + In small
power distance cultures, freedom means independence; + The norm, the desirable, in
masculine societies is that one wants to show one's success.)

14. ……………… of the world’s population is collectivist. 70-80%

15. Global marketers should emphasize …………………… in countries ranking low in

power distance. functional product benefits

16. GNP per capita is primarily used as a predictor of people’s: ability to buy

17. A recessionary gap causes national debt to increase because: income tax
receipts drop off markedly

18. …………………… is the economic system whereby the state holds broad powers to
serve the public interest, it decides what goods and services are produced and in
what quantities, and demand typically exceeds supply. centrally planned socialism
19. Three major types of political risk are: ownership risk, operating risk and transfer
risk

20. An EU country’s government delaying the privatization of its national

telecommunication giant is an example of which of the forces driving and restraining
global marketing and integration? national controls

21. Svend Hollensen argues that when barriers to leaving a market are high due to
such factors as lack of opportunities elsewhere, high vertical integration, emotional
barriers or the high cost of closing down plants, rivalry will be ………………………… when
exit barriers are low. more intense than

22. Which of the following is the correct arrangement of the terms from lowest to
highest level of economic integration? from free trade area to customs union to
common market to economic union

23. The economic system that relies upon consumers to determine the allocation of
resources is known as a ……………… system. market allocation

24. The Economist’s exchange-rate scorecard, known as the Big Mac Index, shows
that in 2010 currencies continued to be cheap in the developing world but
over-valued in Europe. TRUE

25. Economic development results from one of three types of economic activity,
which are: primary, secondary and tertiary

26. global marketers should be aware that the majority of the world’s population lives
in: low income countries

27. Major trade blocs in the world include: the EU, ASEAN, APEC and NAFTA

28. Which of the following statements about elections are true to a marketer carrying
out a global political environment analysis? Elections are often a poor guide to a
country’s overall state of democracy and civil liberties

29. A global marketer must know how to interpret political factors because they
provide a good indication of: + national controls and/ or other trade barriers;
+government policies on trade and product standards and employment; + the
potential political risk and stability in each country → all of the above

30. Some key economic factors that marketers need to consider in view of planning
for international marketing are: interest rates, inflation and employment levels; +
economic growth, GDP per capita and GNP, balance of trade → 2 of these (W/A:
levels of literacy and demographics)
CHAPTER 7

1. BERI, a useful tool in the coarse-grained, macro-oriented screening of international

markets, stands for: Business Environment Risk Index

2. Income and population are two variables that can be used in ……………………
segmentation: demographic

3. Strong exchange rates can: drive imports to become cheaper

4. Which of the following tools measure the general quality of a country’s business
climate? BMI; BERI; Euromoney → all of the above

5. The …………………… is based upon the identification of relative changes in

international import shares among various countries. shift-share approach

6. According to which approach have multinational companies stripped away

features of new products or technologies, originally for advanced countries, in order
to offer them at lower prices to people in developing countries? the waterfall
approach

7. When an organization selling electronic household goods evaluates international

markets in view of entering them, a crucial factor taken into account is represented
by: the economic factors

8. The least demanding targeting strategy in international marketing is:

undifferentiated

9. A marketing director for a car manufacturer is given particular responsibility for

the Far East markets. Which information will the marketing director require as a
priority in order to analyze and screen these markets? + Competition levels in each
country; +The number of cars sold and income distribution per country; +Price
levels in each country → all of the above

10. Bajaj’s international success was achieved by: focusing on markets ignored by
global leaders, among them: Sri Lanka, Bangladesh, Colombia, Peru and Egypt

11. SMEs’ choice for international market selection is often limited to: immediate
neighbors

12. A marketing director for a condom manufacturer is given particular responsibility

to market condoms internationally. Which environmental factors will likely have the
greatest impact on the marketing director’s decision? Socio-cultural

13. Which of the following are positive reasons for internationalization? international
competitiveness; economies of scale; market diversification → all of the above
14. Which of the following is not a major reactive motif for initiating export? Foreign
market opportunities/ market information (W/A: unsolicited foreign orders;
competitive pressures; proximity to international customers/psychological distance)

15. How can a marketer use the age distribution of the population in a market? The
marketer can use it to identify the potential number of customers in various age
groups.

16. In the book, culture is defined as: the learned ways in which a society
understands, decides and communicates.

17. Which of the following statements is true? National culture has a significant
impact on global marketing

18. The roots of individualism are in: England

19. Which of the following are generally true about the Japanese? They are generally
familiar with the culture of the people with whom they are dealing + They perceive
uncertainty with suspicion (W/A: they are very collectivistic, but only in the
workplace)

20. The many different bows used in Japan, such as the bow for meeting colleagues
in the hall, the bow for greeting customers and the bow for special occasions, are
examples of: non-verbal communication

21. The key value for Scotch, a whisky consumed globally, is generally: status

22. Judging by Hofstede’s cultural typology, which of the following statements is not
true? the USA, Germany and Israel score low in power distance

23. Islam and Christianity share which of the following similarities when it comes to
international business? They share the principles of honesty and respect for the
right of others; they both support free enterprise; they are both hostile to socialist
ideas → all of the above are valid similarities

24. The concept of friendship is ambiguous and does not exist in ………………… society.
Japanese

25. Which one of the following is true of the Chinese? They prefer to work on a
one-to-one basis + They pay close attention to long-standing relationships (W/A:
they are very relaxed about time)

26. Which of the following American values does not mean anything when translated
into Japanese? Salvation

27. Parody fits …………… cultures. small power distance

28. Which of the following statements best illustrates individualist versus collectivist
cultures? The USA is an individualistic culture, while Japan is a collectivist culture.

29. Which of the following sentences is not true? Characteristic of weak uncertainty
avoidance is resistance to change, a desire for stability.

30. Mediocrity is proof of failure in …………… cultures. masculine

CHAPTER 8

1. One of the following is not among the main internal factors affecting the choice
for market entry mode: demand uncertainty (W/A: product; firm size; international
experience)

2. One of the following is not a main external factor affecting the choice for market
entry mode: international experience (W/A: market size; intensity of competition;
demand uncertainty)

3. ………………… is the world global sports drinks market leader. PepsiCo

4. In which way do Japanese firms typically exploit foreign market opportunities? By

using penetration pricing strategies.

5. A firm globalizing within the international tourism industry must be aware of the
fact that comparable international data is: somewhat limited

6. Tata Nano’s expansion into Europe and North America is hindered by which two
clear barriers? emission standards and safety regulations

7. The rule whereby the decision maker systematically compares and evaluates all
entry modes before any choice is made is also known as: the strategy rule

8. The foreign entry mode pertaining to the lowest levels of control and risk is the
……………………… mode. export

9. Regionally, ……………………… has seen the largest decrease in child population.

Eastern Europe

10. Zara’s preferred entry mode is the ………………… mode, which it uses in most
European countries. hierarchical

11. The rule whereby the decision maker uses a workable entry mode for each
foreign market, although this may not be the best entry mode, is also known as: the
pragmatic rule

12. SMEs most probably use: the naive or pragmatic rule

13. The main benefit of planning an international centralized decision making
structure is that: it facilitates international coordination

14. The main advantage of employing a differentiation strategy in international

markets lies in that: the focus is taken away from price

15. One of the following does not represent a general market risk in the
internationalization process: lack of tax incentives for organizations that export
(W/A: language and cultural differences; competition from other organizations in
foreign markets; complexity of shipping services to overseas buyers)

16. SMEs’ choice for international market selection is often limited to: immediate
neighbors

17. High degree of measurability, accessibility and actionability in international

market segmentation equals analysis of general characteristics such as geographic,
language, political factors, etc. TRUE

18. Which of the following are positive reasons for internationalization? international
competitiveness ; economies of scale; market diversification → all of the above

19. It is generally believed that SMEs and firms that are in their early stages of
internationalization are more likely to use …………… procedures. rules of thumb +
psychic distance (W/A: cultural distance)

20. If you were a marketer for an organization selling software products and you
were assigned the task of evaluating a few international markets with a view to
entering them, a crucial factor that you would take into account would be: the
technological factor

21. Which of the following represent the main determinants of a firm’s choice for
international markets? the environment + the firm’s characteristics

22. According to the case study, Tata Nano’s entry mode strategy is: export mode

23. Which of the following are not among the main factors influencing international
market selection? pricing factors

24. A marketing director for a car manufacturer is given particular responsibility for
the Far East markets. Which information will the marketing director require as a
priority in order to analyze and screen these markets? The number of cars sold and
income distribution per country; Price levels in each country; Competition levels in
each country → all of the above

25. How can a marketer use a country’s balance of trade towards international
marketing decisions? In the long run, a country’s trade deficit makes a market less
attractive because of decreasing economic wealth + In the short run, a country’s
trade deficit indicates that the market is open to imports (W/A: A country’s balance
of trade gives solid information about the present and future economic state of a
targeted market)

26. When an organization selling electric and electronic household goods evaluates
international markets with a view to entering them, a crucial factor taken into
account is represented by: the economic factors

27. If you were a marketer for a manufacturer of bottled water and you were given
the task of identifying suitable foreign markets for the company’s products, you
would need to know which vital aspects about consumption of bottled water? Ireland
and Britain have only recently accepted bottled water as an alternative to alcohol
when socializing + French consumers are highly sophisticated in their consumption
of bottled water + In the United States bottled water is part of everyday life → All of
the above

28. Which of the following statements is true? SMEs do not systematically screen
markets because of: the fact that many are sub-suppliers to much larger firms and
they often get pulled out to certain markets by their large customers and
international networks

29. A marketing director for a funeral service firm is given particular responsibility for
the Western markets. Which information will the marketing director require as a
priority in order to analyze and screen these markets? The number of deaths per
year per country + GNP per capita in each country + The split of total number of
deaths per country into: earth burials and cremation → All of the above

30. How can the information on interest rates between countries help an
international marketer? Interest rate rises can influence the amount of cash a
consumer has available to purchase luxury items, for example

CHAPTER 9

1. The fundamental basis of the relationship between the exporter and the
intermediary is the: contract

2. Piggybacking brings the following main disadvantage(s) to the carrier: the rider
may not maintain the quality of the products sold by another company

3. Which is the most traditional and well established form of operating in foreign
markets? Exporting (W/A: joint-venture; importing; franchising)

4. Which of the following approaches is most appropriate for an organization with

little experience in international markets? Exporting (W/A: acquisition; joint venture;
strategic alliance)

5. Which of the following statements best describes the typical behavior of national
governments towards imports and exports? Exports are encouraged, imports are
discouraged (W/A: Both exports and imports are discouraged.; Both exports and
imports are encouraged; Imports are encouraged; exports are discouraged.)

6. One of the main criticisms of the Uppsala model is that the internationalization
model is not valid for: service organizations

7. The formal difference between a joint venture and a strategic alliance is that the
latter one is typically a(n): non-equity alliance

8. An appropriate entry strategy for a company seeking a limited form of

participation in global markets is: licensing

9. One of the international agreements by which an organization establishes local

production in foreign countries without capital investment is: licensing

10. Companies such as Coca-Cola and Disney have achieved growth through:
licensing

11. Among the main reasons why a firm would employ sales subsidiaries are: the
desire to be closer to its customers as well as potential tax advantages; the
possibilities to transfer greater autonomy to these subunits; the possibilities to
transfer greater responsibility to these subunits → all of the above

12. The main risks associated with establishing sales and production subsidiaries
are: subsequent withdrawal from any foreign market can be extremely costly in
terms of reputation in international markets; subsequent withdrawal from any
foreign market can be extremely financially costly; subsequent withdrawal from any
foreign market can be extremely costly in terms of reputation in the domestic
market. → all of the above

13. What is the main benefit of acquisitions over other hierarchical entry modes?
rapid entry

14. The overall goal of _______ is to achieve global competitiveness through

recognizing cross-border market similarities and differences and to link the
capabilities of the organization across national boundaries. a transnational
organization

15. In international marketing the main difference between a foreign branch and a
foreign subsidiary is: a foreign subsidiary is a local company owned and operated by
a foreign company under the laws of the host country.

16. According to F. R. Root (1994), there are three different rules for selecting the
international market entry mode. Which of the following is not among them?
Confident rule

17. The rule whereby the decision maker uses the same entry mode in all foreign
markets and ignores the heterogeneity of individual foreign markets is also known
as: the naive rule

18. Which of the following is not a main external factor affecting the choice for
market entry mode? international experience

19. The rule whereby the decision maker uses a workable entry mode for each
foreign market, although this may not be the best entry mode, is also known as: the
pragmatic rule

20. One of the disadvantages of the global tyre and rubber markets is that they do
not benefit from economies of scale. FALSE

21. SMEs most probably use: the pragmatic rule + the naive rule (W/A: the strategy
rule)

22. An organization's choice of its entry mode for a given product is the net result of
several, often conflicting forces. Which option reflects Svend Hollensen’s
categorization? Internal and external factors, desired mode characteristics and
transaction-specific behavior.

23. The four groups of factors influencing the choice of entry mode are: internal
factors, external factors, desired mode characteristics and transaction-specific
behavior

24. Which of the following is not among the main internal factors affecting the
choice for market entry mode? demand uncertainty

25. A firm globalizing within the international tourism industry must be aware of the
fact that comparable international data is: somewhat limited

26. Which of the following statements about global luxury watch firms is true? +
Most global luxury watch firms prefer to avoid Internet selling because these firms
believe that the Internet is all about the price and this is not what the luxury watch
industry wants people to think when they purchase luxury watches; + Most global
luxury watch firms prefer to avoid Internet selling because these firms argue that
the Internet is too impersonal for their products, which need the human touch ; +
Most global luxury watch firms prefer to avoid Internet selling because these firms
have long-standing agreements with independent retailers, and selling online would
disrupt the system → All of the above statements are true

27. According to the case study, Zara’s entry mode strategies have consisted mainly
of: hierarchical modes + intermediate modes (W/A: export modes)

28. Which of the following barriers have prevented Manchester United Football Club
from ripping off all the benefits from its global branding? + Internal resource
barriers, such as the ongoing concern stemming from the fact that strong players
like David Beckham develop rapidly into global brands and then become
unaffordable for the club; + Cultural barriers between international fans; + Financial
barriers, such as the club debt of over £700 million following a hostile takeover by
US sports tycoon Malcolm Glazer → All of the above

29. An appropriate entry strategy for a company seeking a limited form of

participation in global markets is: licensing

30. Which of the following statements is true? - The export mode is a better
alternative than the hierarchical mode because it is highly flexible; - The
hierarchical mode is a better alternative than the export mode because it presumes
that risk is shared; - The export mode is a better alternative than the intermediate
mode because of its low risk → None of the above statements is true

CHAPTER 10

1. OEM stands for: original equipment manufacturer

2. In the process of developing a business relationship in international markets,

SMEs are likely to be: reactive

3. American giants such as: IBM, Gillette, Dow Chemical, Hewlett-Packard and Xerox
get the majority of their sales from: outside the USA

4. 'Developing countries' such as China or India benefit from the patronage of

companies that outsource to them in terms of: increased quality of life; increased
wages; job prestige and education → all of the above

5. One of the following is not a basic element of the buyer-seller interaction model:
the value chain (W/A: the interaction process; the atmosphere; the participants in the
interaction process)

6. Buyer-seller interaction theory was developed by the: Swedes

7. Kanter argues that organizations will have a better relationship with their business
partners if they look for the following three key selection criteria: self-analysis,
chemistry, compatibility

8. Which of the following forms of industry structure is Korean? Chaebol (W/A:

Keiretsu; Kombinate; Zaibatsu)
9. Original Equipment Manufacturers (OEMs) are different from other typical
buyer-seller relationship in that: OEMs have much stronger bargaining power than
the subcontractors.

10. Multinationals have been criticized for: + having a significant impact on

government policy primarily through the threat of market withdrawal; + creating a
'race to the bottom' through their capital mobility; + dominating over local firms and
offering higher wages → all of the above

11. A person or a firm that agrees to provide semi-finished products or services

needed by another main party to perform another service, to which this person or
firm is not a party, is called: a subcontractor

12. One criticism of outsourcing is that: product quality suffers

13. The difference between management know-how and project know-how lies in
that: project know-how refers to project management, assembly and environmental
know-how, while management know-how generally refers to tactical and
operational management.

14. McDonalds is an example of a: horizontally integrated multinational corporation

15. Which of the following is not one of the basic internationalization routes
suggested by Andersen et al (1995)? dependent internationalization

16. Which is the most traditional and well-established form of operating in foreign
markets? exporting

17. According to Gibbs (2005), mindshare can be broken down into the following
three drivers: commitment and trust, collaboration and mutuality of interest and
common purpose

18. Indirect export occurs when: a manufacturer uses independent export

organizations located in its own country

19. Which of the following approaches is most appropriate for an organization with
little experience in international markets? exporting

20. The main difference between direct and indirect export is that: direct exporting
implies that the manufacturer performs the e Tesco prefer acquisition as a method
of entry into Eastern Europe? it is quicker xport task

21. Why do giant British food retailers such as

22. Lofthouse of Fleetwood (Fisherman’s Friend) have agreed on the following

criteria for selecting a distributor: size, products, organizational structure for sales
and financial status
23. Small organizations find that ________ is the easiest method of obtaining foreign
sales. selling to export commission houses

24. Compared to direct exporting, indirect exporting bears: a higher risk

25. One of the major strengths of Parle Products PVT Ltd, when considering further
developing its international markets, is: its extensive distribution network

26. The marketing philosophy adopted by Parle Products PVT Ltd emphasizes:
catering for the masses by designing products that provide nutrition for every age
group

27. For which product is export the most feasible internationalization option?
Diamonds

CHAPTER 11

1. The main motive for co-branding is: the expectations for synergies that create
value for both participants, above the value that they would expect to generate on
their own.

2. Global branding is a branding alternative that bears great advantages such as: +
uniform world-wide image; + reduction of advertising costs; + elimination of brand
confusion, easy identification and recognition → all of the above

3. The strategy involving the introduction of a standardized product with the same
promotion strategy throughout the world market is known as: straight extension

4. Compared to the high share of private labeling in northern Europe, the share in
southern Europe is no higher than: 2%

5. ______ are fashions adopted quickly by the public but which peak early and decline
very fast. Fads

6. In international marketing it is much easier to: standardize the core product

benefits across markets rather than to standardize the support services.

7. The strategy consisting of adapting both product and promotion for each market
is known as: dual adaptation

8. Which of the following does not contribute to price escalation in foreign markets?
product image (W/A: insurance charges; VAT; shipping charges)

9. ______ implies that the export price quote includes the cost of delivery to the
importer's premises. delivery duty paid
10. 'Cost and freight' is a popular term of sale which implies that: the seller's liability
ends when the goods are loaded on board a carrier or are in custody of the carrier
at the export dock.

11. ______ involves charging a high price to achieve the highest possible contribution
in a short period of time. skimming

12. ______ implies that the prices in the individual countries may only vary within a
set range. a price corridor

13. The main differences between the gray and the black markets are: + that gray
market goods are not illegal while black market goods may be illegal; + that black
markets may be the subject of illegal product dealings, such as weapons and illegal
drugs; +that black markets are the parts of an economic activity involving illegal
deals while gray markets refer to the flow of goods through unauthorized
distribution channels. → all of the above

14. _______ are vital in helping Ducati, the Italian motorcycle producer, explore new
product concepts. virtual communities

15. The most restrictive type of countertrade is: barter

16. 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 an appropriate choice
under these circumstances? joint venture

17. In Japan, keiretsu is a form of industrial alliance involving: hundreds of

companies

18. In which global industry is licensing a common form of internationalization?

fastfood

19. Which of the following factors may encourage an organization to produce in

foreign markets? + Closeness to its customers; + Low production costs; +
Unfavorable foreign tariffs or quotas → All of the above

20. Which type of international agreement implies that the expanding organization
develops and controls R&D, marketing, distribution, sales and the servicing of its
products in international markets while handling over responsibility for production to
a local firm? contract manufacturing

21. Which of the following factors have contributed to the rapid growth rate of
franchising? + The relaxation of many governments’ policies towards small
businesses; + The worldwide general decline of the manufacturing industry; + The
growth in popularity of self-employment → All the above factors have contributed
to the rapid growth rate of franchising

22. The internationalization of the LEGO brand is based on: licensing

23. ________ is the cornerstone of international franchising. standardization

24. Howard Johnson, 7-Eleven Inc., Domino’s Pizza LLC, Subway, Dunkin’ Donuts,
Day’s Inn World-Wide, Gold’s Gym Franchising LLC are examples of: franchises

25. X coalition entails: the partners in the value chain dividing the value chain
activities between them

26. Compared to licensing, franchising is a more advantageous entry mode because:

+ it generates economies of scale in marketing to international customers; + it
offers greater control; + it is low risk and low cost → all of the above

27. The two major types of franchising are: product and trade name franchise and
business format package franchising

28. Indian laws currently allow multi-brand retailers such as Wal-Mart to operate only
wholesale outlets and provide back-end support to local operators. TRUE

29. Hello Kitty, the iconic Japanese brand, became an example of a global success
by means of: licensing

CHAPTER 12

1. Countries in which the retail systems are fragmented tend to have: longer
distribution channels

2. In international marketing, the most critical distribution questions are: choice of

international shipping method and choice of local logistics in foreign markets

3. 'Locked-up' channels occur for all the following reasons except: channel members'
ability to change allegiance without major negative consequences (W/A: agreement
prohibiting distributors from selling competitive products; channel members'
unwillingness to risk pioneering new products; significant volume requirements from
manufacturers)

4. The physical storage of goods waiting to be passed on to the customers is known

as: warehousing

5. Consumer product channels tend to be ______ industrial product channels. longer

than

6. When an organization's intermediary is located in the target foreign market, the

international entry model is known as: direct exporting

7. Which of the following does not contribute to price escalation in foreign markets?
product image (W/A: insurance charges; VAT; Shipping charges)

8. ______ involves charging a high price to achieve the highest possible contribution
in a short period of time. skimming

9. ______ implies that the prices in the individual countries may only vary within a set
range. A price corridor

10. Which currency is also referred to as a vehicle currency? the US dollar

11. The main differences between the gray and the black markets are: + that black
markets are the parts of an economic activity involving illegal deals while gray
markets refer to the flow of goods through unauthorized distribution channels;+
that gray market goods are not illegal while black market goods may be illegal; +
that black markets may be the subject of illegal product dealings, such as weapons
and illegal drugs → all of the above

12. Tariff levels from country to country affect an organization's ______ strategies.
pricing

13. If an English tourist in Tokyo pays more in British Pounds for the same amount of
Yen that she bought last week, then: the British Pound has depreciated relative to
the Yen

14. The most restrictive type of countertrade is: barter

15. One of the following is not a form of letter of credit: confirmed revocable L/C
(W/A: revocable L/C; irrevocable but unconfirmed L/C; confirmed irrevocable L/C)

16. Hierarchical entry modes are synonymous with: complete ownership of the
foreign entry mode + 100% control of the foreign entry mode → both of the above

17. According to Svend Hollensen, the geocentric orientation is typically represented

by the: transnational organization

18. Domestic-based sales representatives are a popular foreign entry mode for a firm
in: + industrial markets; + situations where the firm sells to government buyers and
retail chains; + situations where there are only a few large customers that require
close contact with suppliers → All of the above-mentioned situations

19. In international marketing, the main difference between a foreign branch and a
foreign subsidiary is: a foreign subsidiary is a local company owned and operated by
a foreign company under the laws of the host country
20. In some developing countries, governments regard sales subsidiaries in a rather
negative light, as a means to take money out of those countries and not contributing
any value to the host country in which they are based. As a result, these governments
will often require foreign organizations to: establish local manufacturing or
production bases

21. The main reason why Japanese car manufacturers have used sales and
production subsidiaries in Europe as part of their internationalization strategy is: to
bypass the European import restrictions

22. According to the case study, three major reasons for Tesco’s failure in Japan
were: wrong local partner, tough competition and too few economies of scale

23. Coca-Cola is best described as a ________ organization. global

24. Unrelated expansion (i.e. diversification) ________ the governance cost of the
business. increases

25. The disadvantages of domestic-based sales representatives are: high travel

expenses and too expensive in foreign markets, far away from home country

26. The most obvious incentive to exit from foreign markets is: very low profits

27. Wal-Mart built its initial presence in Germany in 1997 through: acquisitions

28. Compared with most other industries, retailers were ______ in jumping on the
internationalization bandwagon. Given the relatively small size of their respective
home markets, it is not surprising that the frontrunners were European companies.
late

29. Which of the following statements is not true of global strategic alliances? Each
of the parties involved in an alliance focuses on an individual foreign market (W/A:
The parties involved in the alliance share the benefits as well as the control; A
successful alliance offers access to markets, technology, products and other
resources; Airlines enter alliances in order to improve their competitiveness in the
market and to achieve greater economic performances)

30. Gaining quick access to which of the following is an advantage of acquisition?

distribution channels

CHAPTER 13

1. A ______ style is the pattern of behavior an individual develops in response to

conflict with others, such as differences of opinion. conflict management
2. Japanese businessmen typically do not believe in: using first names unless in the
very best interest of personal relationships

3. Guinness is a stout market leader in which region(s)? North America & Middle
East

4. ______ is a type of negotiation in which the buyer and seller of a product dispute
the price which will be paid and the exact nature of the transaction that will take
place in hope that they will come to an agreement. Bargaining

5. Compared to North Americans and North Europeans who prefer short

negotiations and to 'get down to business' as soon as possible, Japanese
businessmen prefer: + to feel that there is mutual trust and respect + to meet up
several times before negotiating + to take their time → all of the above

6. Which statement is not true about how L'Oreal, a global brand, is perceived in
various world markets? In individualistic cultures L'Oreal is viewed as a 'must have
in order to be successful'.(W/A: In high uncertainty avoidance cultures L'Oreal is
viewed as trustworthy; In collectivistic cultures L'Oreal is viewed as prestigious and
international; In low power distance cultures L'Oreal is viewed as friendly.)

7. Business negotiations between which cultures usually result in more cooperative

and creative behavior? When a business person from a low masculine culture meets
a business person from a low power distance culture.

8. What is the main benefit of having a good BATNA? it increases negotiation power

9. Compared to feminine cultures, in masculine cultures conflict is usually resolved

through: fighting

10. Business negotiations between equals (low power distance) is not a concept
found in: Japan + Russia + Korea → all of the above countries

11. Compared to negotiators from low risk-avoidance countries, negotiators from

high risk-avoidance countries are likely to seek: + specific commitments in terms of
volume, timing and requirements + clearly defined structure and guidance (W/A:
flexibility and compromise)

12. International marketers must know that when contemplating offering gifts to
their Chinese business counterparts or their families, clocks are inappropriate
because: they are associated with death

13. When meeting a devout Muslim businessman, one must not: the shake with the
left hand as it is considered to be rude.

14. The main differences between bribery and lubrication are: + lubrication payments
accompany requests for a person to do the job more rapidly and efficiently + bribery
involves large sums of money, which are frequently not accounted for, and is
designed to entice an official to commit an illegal act on behalf of the one paying
the bribe + lubrication payments involve small cash sums, gifts or services made to
a low-ranking official in a country where such offerings are prohibited by law. → all
of the above

15. Which one of the following statements is true? The German model of
organization is more like a well-oiled machine compared to the British model of
organization which resembles that of a village market with no decisive hierarchy.
(W/A: The German and British organization models are similar in terms how personal
command is exercised.; The British organization model is more of a pyramidal
hierarchy held together by a united command issuing strong rules compared to the
French organization model where resolution of problems is achieved by negotiating.;
The French organization model is more of a pyramidal hierarchy held together by a
united command issuing strong rules compared to the British system where the
exercise of personal command is largely unnecessary because rules settle
everything.)

16. Outsourcing technically means: moving functions or activities out of an

organization + the delegation of non-core operations from internal production to an
external entity specializing in the management of that operation (W/A: buying
resources from outside a company’s main domestic market)

17. Outsourcing is used by an organization in the interest of: + redirecting or

conserving energy directed at the competencies of a particular business + making
more efficient use of worldwide labor, capital, technology and resources + lowering
firm costs or to make more efficient use of worldwide labor, capital, technology and
resources → any of the above

18. Under conditions of globalization, outsourcing and offshoring are not mutually
exclusive; however, outsourcing differs from offshoring in that: + offshoring
represents a relocation of an organizational function to a foreign country, not
necessarily a transformation of internal organizational control, while outsourcing
means sharing organizational control with another organization, or a process of
establishing network relations within an organizational field + outsourcing is
relative to the restructuring of the firm while offshoring is relative to the nation
(W/A: - outsourcing is relative to the nation while offshoring is relative to the
restructuring of the firm)

19. ‘Developing countries’ such as China or India benefit from the patronage of
companies that outsource to them in terms of: increased quality of life + increased
wages + job prestige and education → all of the above

20. OEM means: origins equipment manufacturer

21. One criticism of outsourcing is that: product quality suffers

22. The two underlying reasons for outsourcing are: economies of scale and lower
wage costs

23. Strategic alliances are: one of the many ways in which firms may enter foreign
markets

24. Which of the following is not an example of subcontracting? vertical

subcontracting (W/A: expanded subcontracting; simple subcontracting; strategic
development subcontracting)

25. The five relationship phases are: awareness, exploration, expansion,

commitment and dissolution

26. The marriage metaphor is: the process of reducing the psychic distance +
increasing dependence between buyer and seller

27. Reverse marketing is: where the buyer takes the initiative in searching for a
supplier that is able to fulfill their needs

28. In the example of seat-sourcing at Mazda, the competition for the remaining third
of the Mazda seat business is based on: primarily performance since the last
contract was awarded

29. In software the three types of know-how are: technology know-how, project
know-how and management know-how

30. Outsourcing on the American continents is supported by ________, in that there is

provision with reference to workers from low labor-cost countries, such as Mexico,
working in the USA or Canada. NAFTA

CHAPTER 14

1. Which staffing policy is the most consistent with an international multidomestic

strategy? polycentric

2. A strategy of ______ pricing involves using price as a competitive weapon in order

to push competitors out of a national market. predatory

3. GAM stands for ______ Global Account Management

4. Philip Kotler distinguishes the following four types of marketing control, each
involving different approaches, purposes and allocation of responsibilities: strategic
control, efficiency control, annual plan control and profit control
5. The purpose of the global marketing plan is to create sustainable competitive
advantages in the global marketplace. In SMEs, this process is likely to be: informal

6. In which of the following situations do geographical structures best serve firms

wishing to internationalize? When firms have a homogeneous range of products that
need fast and efficient world-wide distribution. (W/A: When firms have diversified
product lines and extensive R&D activities; When companies are more experienced
with international markets and business; None of the above)

7. The belief that a very technically competent employee from a domestic market will
perform just as well in any of the foreign countries where the organization operates
is a(n) ______ approach to international HR staffing. high risk

8. Which type of marketing structure implies that divisions become primarily

responsible for the development and implementation of the overall international
strategy? The international division structure

9. One of the main advantages of an ethnocentric staffing policy in international

markets is: it facilitates the transfer of core competencies to and among the firm’s
foreign subsidiaries.

10. Which type of relationship has the advantage of allowing the understanding of
global account opening? the ‘diamond’ relationship

11. The world’s number one producer of sunglasses is: Italy

12. The world-wide sunglasses market is usually segmented by: price and function

13. Which of the following countries is the most culturally challenging for a
Westernized organization wishing to expand internationally? Japan

14. According to Svend Hollensen, the simplest approach to global marketing

organization is represented by: the functional structure

15. The main situations when the existence of regional management centers are
necessary are: 'when sales volume in a particular region becomes substantial' and
'when each region needs to be treated separately due to the homogeneity within
regions and the heterogeneity between them' are correct.

16. When a manufacturer of soft drinks has to adapt the formulation of its product to
fit the foreign market requirements, it is an example of adapting: design features
(W/A: product quality; package dimensions; service standards level)

17. When designing electronic product warranties for the global market, a company
needs to consider all the following items except: the income level of potential
buyers
18. Svend Hollensen proposes three levels of an international product, namely: core
product benefits, product attributes and support services

19. In international marketing it is much easier to: standardize the core product
benefits across markets rather than to standardize the support services

20. International product attributes do not include the following: perceived value
(W/A: design, size and color variants; staff behavior; quality)

21. A brand alliance between two partners, such as the one between Girard
Perregaux and Ferrari, or Ferrari and Shell, is also known as: co-branding

22. Global travel organizations sometimes use email to pitch unsold, discounted
packages to the customers in their databases in response to which characteristics of
services? perishability

23. The main advantages of using a private label as a branding alternative are: the
possibility of a larger market share + no promotion problems (W/A: no price
competition)

24. The definition of__________ is a set of brand assets and liabilities that can be
clustered into five categories: brand loyalty, brand awareness, perceived quality,
brand association and other proprietary brand assets. brand equity

25. Private labels are: retailer’s own brand

26. One of the challenges facing private label retailers is reassuring those
consumers who infer that because private label is not a brand that they recognize,
the quality is: not the same

27. Co-branding is: a form of cooperation between two or more brands

28. Long tail is: a theory of selling suggesting that in the Internet era, selling fewer
copies to more people is a new strategy that can be successfully pursued

29. The key factor in Richard Branson’s Virgin global success lies in: constantly
extending the brand

30. QDF is: quality deployment function

CHAPTER 15

1. Which of the following factors does not contribute to price escalation in global
marketing? product differentiation (W/A: fluctuating exchange rates; VAT; shipping
and insurance charges)
2. The direct exchange between parties instead of monetary payment is known as:
barter

3. Which currency is also referred to as a vehicle currency? the United States dollar

4. In the former socialist states of Eastern Europe, price inflation was very high
relative to most other Westernized countries during the 1990s; as a result of this: the
currencies of the Eastern European states depreciated relative to most other
Western currencies

5. In general, countries with relatively high inflation have: depreciating currencies

6. Dumping is an important global pricing issue that translates into: a company

exporting a product at a lower price than it normally charges in its own market

7. The unauthorized distribution of trademarked goods to exploit price differentials in

world trade markets is known as: gray marketing

8. Transfer pricing in international trade is usually used to: + avoid domestic and
foreign tax + minimize exchange rate fluctuations + ensure quality perception in
foreign markets → all of the above

9. If you were a marketing manager for a small motorcycle manufacturer and you
were given the task of expanding the organization’s products abroad, you would need
to know which facts about this market? + Entry barriers in this sector are high, and a
new entrant needs a lot of capital investment in order to compete + The market is
oligopolistic and mature, with long-established American brands such as the iconic
Harley Davidson and Japanese brands such as Honda, Suzuki and Yamaha
dominating the market + Worldwide retail sales of motorcycles have dropped
continuously since 2008 → All of the above

10. The most restrictive type of countertrade is: barter

11. Which strategies are available in order to counter price escalation? +

Rationalizing the distribution process; + Pressurizing channel members to accept
lower profit margins; + Lowering the export price from the factory → All of the
above

12. Which firms are known for having used penetration pricing in foreign markets in
order to gain market share for their cars, home entertainment products and
electronic products? Japanese firms

13. In the global market for motorcycle manufacturing the economies of scale are:
low

14. In regions such as the Middle East, ________ is a common export financing
method because the contracts are cash or short term. bonding
CHAPTER 16

1. In international marketing, the most critical distribution questions are: choice of

international shipping method + choice of local logistics in foreign markets (W/A:
choice of market-entry methods)

2. ‘Locked-up’ channels occur for all of the following reasons except: channel
members’ ability to change allegiance without major negative consequences (W/A: -
significant volume requirements from manufacturers; agreement prohibiting
distributors from selling competitive products; channel members’ unwillingness to risk
pioneering new products)

3. Market coverage: can relate to geographical areas or number of retail outlets.

Three approaches are available: intensive, selective or exclusive coverage

4. Which of the following functions is not performed by an intermediate?

Responsibility for quality control in manufacturing (W/A: Carrying of inventory;
Psychical distribution; Demand generation, or selling)

5. The two types of channel integration are: vertical integration and horizontal
integration

6. Which of the following are the masters of countertrade? The Swiss (W/A: The
Americans; The Japanese; The Italians)

7. Germany’s export success is said to have been determined by its: location

8. According to the case study, Burberry’s strategy is to target: 25 of the world’s

wealthier cities

9. Logistics is: a term used to describe the movement of goods and services
between suppliers and users

10. The four main modes of transportation are: road, water, air and rail

11. Freight forwarders: provide service to exporters

12. In the exhibit of the banana split model, plantation owners get about ___ of the
retail value in the UK. 10%

13. International retailing is: tendency towards concentration in retailing, creating

huge buying power in the big international retail chains

14. In the model of channel relationships and the concept of trade marketing, the
consumers’ objectives are: choice, availability, value for money and convenience
15. Distribution channels in international marketing account for ________ of the retail
price of goods and services in an industry. 15-40%

CHAPTER 17

1. Factors influencing the communication situation do not include: infrastructure

differences (W/A: sociocultural differences; language differences; legal/regulatory
differences)

2. In contrast to North Americans or Europeans, Japanese consumers tend to be

more ________ in their attitude towards advertising. emotional

3. Japanese advertising is known for: its strong non-verbal component

4. What are the four elements of all effective marketing communication systems? A
sender, a message, a communication channel and a receiver

5. Radio is a ________ cost broadcasting activity than television. lower

6. Online advertising is today worth __________ television or print advertising. much

less than

7. _________ involves estimating and duplicating the amounts spent on advertising by

major rivals. competitive parity approach

8. Which form of advertisement is commonly used in the entertainment industry

whereby products and brands are placed in a context usually without ads? product
placement

9. Cinema advertising plays a lower key role in India compared to the United States
of America. FALSE

10. In the case of global products such as mixed martial arts, one of the advantages
of the games world is that it allows exposure to a captive audience for much longer
than afforded by traditional advertising methods and real fight bouts. Gamers’ views
suggest that in virtual environments they do not perceive adverts to be as ________ as
they are in their real worlds. intrusive

11. ‘Happy endings’ are rare in ________ culture, while North Americans crave
solutions. Japanese

12. International mobile phone firms such as Vodafone typically use: + individualist
appeals in individualistic countries + collectivist appeals, an example of group
identity, in collectivist countries (W/A: none of the above)

13. Although patients desire more information on medication, the advertising of

prescription medication is banned across the European Union through a directive
dating from 1992 that restricts such pluralism in the supply of information. Which of
the following statements is true? In France, any information supplied directly to the
public by the manufacturers is viewed as advertising (W/A: All the European Union
states are regulated in the same ways when it comes to prescribed medication; In Italy,
advertising of prescribed medication is not banned ; None of the above statements is
trueIn France, any information supplied directly to the public by the manufacturers is
viewed as advertising)

CHAPTER 18

1. Masculine cultures’ strategy for negotiation is usually: based on cooperation,

modesty, empathy and social relations; about finding solutions to win–win
situations; competitive and results in win/lose situations → none of the above

2. Which of the following is not true of negotiations in international markets? High

uncertainty avoidance cultures have formal, bureaucratic negotiation rules, they
rely on rituals and standards and believing family members only. They typically
need structure and guidelines; Low uncertainty avoidance cultures prefer to work
informally, with flexibility. They disfavor hierarchy and are likely to resolve
situations and come to a compromise; Feminine cultures value negotiations based
on cooperation, nurturing, modesty, empathy and social relations → All the above
statements about negotiations in foreign countries are untrue.

3. Compared to North Americans and North Europeans who prefer short

negotiations and to ‘get down to business’ as soon as possible, Japanese
businessmen prefer: to take their time; to meet up several times before negotiating;
to feel that there is mutual trust and respect → all of the above

4. A(n) ________ can appear to be a bribe. agent’s fee

5. Which of the following statements about Egyptians and Israelis are not true:
Egyptians prefer indirect forms of negotiation; Israelis view Egyptians’ indirectness
with impatience and consider it insincere, while Egyptians interpret Israelis’
directness as aggressive and insulting; Israelis prefer direct forms of negotiation →
None of the above statements is true

6. In business, compromise is considered: superficial and insincere in Australia,

New Zealand and South Africa

7. When meeting a devout Muslim businessman, one must not: shake with the left
hand as it is considered to be rude

8. In which international marketing negotiation will conflict most likely arise? When a
business person from a high masculine culture meets a business person from a
high power distance culture

9. According to Nonaka and Takeuchi (1995), the two sets of dynamics that drive the
process of international knowledge amplification are: converting tacit knowledge
into specific knowledge and moving knowledge from individual level to the group,
organizational and inter-organizational levels

10. The main differences between bribery and lubrication are: bribery involves large
sums of money, which are frequently not accounted for, and is designed to entice
an official to commit an illegal act on behalf of the one paying the bribe; lubrication
payments involve small cash sums, gifts or services made to a low-ranking official
in a country where such offerings are prohibited by law; lubrication payments
accompany requests for a person to do the job more rapidly and efficiently → all of
the above

11. Harmony in negotiation is important to the Japanese, and they ensure that social
relations are smooth and that consensus is overarching. TRUE

12. Bribery: is an illicit payment that may range from gifts to large amounts of
money

13. A handshake is a traditional form of greeting a business partner in the USA.

Which of the following is an equivalent in countries such as Japan and Thailand? A
bow

14. In his book International Negotiation: A Cross-Cultural Perspective, Glen Fisher

(1980) argues that negotiating styles are often dependent on the negotiating parties
involved. For example, when dealing with the USA, Mexican negotiators are engulfed
by the shadow cast by their northern neighbor and are forced into negotiation on US
norms. However, when negotiating with other nations, the sense of _________is
stronger and thus reflects Mexico’s strong Spanish heritage. formal social occasion
and protocol

15. In 2010, Burundi was ranked as _______ in East Africa, according to global
watchdog Transparency International. the most corrupt country

CHAPTER 19

1. The predominant reason why expatriates from US and European firms return to
their home countries prematurely is: their partners being unable to adapt to the host
countries’ environment

2. Japanese firms expanding overseas typically tend to employ ________ on middle

and bottom end positions: people from high power distance cultures as well as
those from masculine cultures

3. Implementing a global standardized advertising programme has the following

advantage(s) to a firm internationalizing: creative talent can be more readily and
efficiently tapped + economic advantages + lower costs → All of the above

4. A strategy of ________ pricing involves using price as a competitive weapon in

order to push competitors out of a national market. predatory

5. What are the main advantages of employing expatriates? Greater home control +
Product knowledge + High service levels → All of the above

6. Which of the following countries is the least culturally challenging for an American
organization wishing to expand internationally? The UK

7. In which of the following situations do international divisions best serve those

firms internationalizing? + When firms promote new products which do not vary
significantly in terms of their environmental sensitivity + When firms’ international
sales and profits are quite insignificant compared with those of their domestic
divisions → both of the above

8. The geographical structure is frequently used by: + food and beverage companies
+ car and pharmaceutical companies → both of the above

9. Fast-expanding international firms such as Wal-Mart, Zara and H&M integrate:

vertically

10. A key factor to establishing a foreign brand in France is to have: an adequate

advertising budget

11. The design of the control system can be divided into the following two groups,
dependent on the objective of control: output control and behavioral controls

12. The contribution margin in % is calculated as: (total contribution/total revenue) x

100

13. According to the case study, the company with 26% of the market share, the
largest global market share, for recorded music in 2009 was: Universal Music Group

14. In the functional structure: the organizational structure is based on functional

departments