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F____1. In the era of "boundaryless" business, marketing should remain a monopoly organizational function under the exclusive control of the marketing department. F____ 2. The Coca-Cola Company has achieved great success in global marketing by pursuing a policy of strict standardization of all marketing mix elements. F____ 3. The rallying cry of the global marketer is ?°think locally, act locally.?± F____4. A cornerstone of Harley-Davidson??s global marketing strategy is manufacturing in Mexico and other low-wage countries. T____ 5. One strength of a polycentric management orientation is the ability to tailor marketing strategies to the needs of each local market. F____ 6. The dollar value of worldwide merchandise and services trade exceeds the value of worldwide foreign exchange transactions and capital movements. F____ 7. Most economic systems in the world today are "pure" market allocation systems. F____ 8. According to the Heritage Foundation, the country with the highest degree of economic freedom is the United States. F_____ 9. The largest percentage of the world's population lives in low-income countries with GNP per capita ??$755 but??$2,995. T____ 10. Argentina, Brazil, Mexico, Turkey, and Poland are all BEMs that are categorized as upper-middle-income nations. F____ 11. Competitive advantage is defined as "the concentration of attention on a core business or competence." T____ 12. In 1997, when currency speculators mounted an attack on the Hong Kong dollar, which was still pegged to the U.S. dollar, Hong Kong Monetary Authority defended the peg by using Hong Kong??s ample reserves to buy and therefore support the value of the Hong Kong dollar. This is a good

illustration of ?°Managed?±. F____ 13. Assume Germany and Japan are trading partners with floating exchange rates. If Japan experiences inflation while prices are stable in Germany, then, according to PPP, the euro will depreciate relative to the yen. F____14. Transaction exposure arises when currency fluctuations, together with price changes, alter a company??s future revenues and costs. F____15. If Sony Corp. hedges the company??s dollar-denominated receivables by buying a forward contract and the dollar subsequently strengthens against the yen, Sony has essentially missed an opportunity to realize extra revenue. T____16. Assume Imports Ltd. has signed a contract agreeing to buy product from Exports Ltd. Assume further that Imports Ltd. will pay in its home-country currency. If management at Exports Ltd. forecasts that the home currency of Imports Inc. will weaken, Exports Inc. should hedge in the forward market. F____17. Japan and Saudi Arabia are two countries with low-context cultures. F____18. In a high-context culture, lawyers and legal paperwork form the backbone of many business deals. F____19. The extent to which a new product can be tried on a limited basis without great expense is known as relative advantage.

T____20. According to Hofstede??s research on cultural values, Hong Kong and France outrank other OECD members in terms of power distance. T____21. Integrated circuits are an example of products that exhibit a low level of environmental sensitivity. F____22. The G7 is comprised of low-income countries. T____23. If a foreign company can be shown to be ?°doing business?± in the United States, then it is subject to the jurisdiction of U.S. courts. F____ 24. Under current U.S. patent laws, patents are valid for 20 years after the patent is granted. T____25. A proposed merger between two Swiss-based global companies would be subject to review by the European Commission. T____26. A company hoping to protect its trade secrets from being stolen by a foreign company can seek relief under the TRIPs agreement if both companies do business in GATT signatory countries. F____ 27. A U.S. company is exempt from the Foreign Corrupt Practices Act if a host-country citizen serving as an agent for the company pays a bribe to a government official in the host country. F____ 28. Industry experts agree that communication can only take place when an advertisement is translated into the local language in a particular country. T____ 29. Geert Hofstede??s name is associated with research on dimensions of culture in different countries of the world. T____30. Political risk tends to be higher in developing countries compared with industrialized countries. T____ 31. The surveillance scanning mode includes viewing and monitoring. F____ 32. As discussed in Chapter 5, management guru Peter Drucker

advises using the traditional survey approach when researching latent markets. F____33. ?°Back translation?± is a technique used to ensure that currency conversion is performed correctly when financial statements of foreign subsidiaries are consolidated with financial statements at headquarters. T____ 34. Multidimensional scaling is a market research technique that can help marketers create perceptual maps. T____35. In marketing research, factor analysis is useful technique for reducing large quantities of data to a few underlying dimensions. T____36. Analogy is a statement of similarity or partial resemblance. T____37. According to the notion of ?°segment simultaneity,?± the same market segments are appearing in different countries around the world. F____38. Conventional wisdom about market segmentation calls for acknowledging the emergence of global market segments that transcend national boundaries. F____39. Benetton's "United Colors of Benetton" slogan is an example of local consumer culture positioning.

T____ 40. According to Chapter 6, Apple Computer's iMac is positioned as both a high-tech and high-touch product. F____41. One advantage of pursuing a global strategic partnership is that this form of collaboration ensures that alliance partners will learn at the same rate. T____ 42. The print advertisement for Waterford crystal in Chapter 6 is an example of ?°high-touch?± global product positioning. F____43. The history of the transistor illustrates how U.S. companies prospered by licensing technology developed in Japan. F____ 44. A company that relies heavily on exporting is subject to a higher degree of political risk than a company that emphasizes investment as a market entry strategy. F____ 45. GM owns a 20% stake in Japan's Suzuki Motor Company. This is an example of greenfield investment. F____ 46. Japanese keiretsu represent a form of industry structure designed to provide Japanese consumers with low prices for products and services. F____47. Harley-Davidson's market expansion strategy is best described as market segment diversification and country diversification. T____48. The ?°deep, throaty rumble?± produced by Harley-Davidson motorcycles is an example of an intangible product attribute. F____49. The name "Sony Walkman" is an example of global cobranding. F____50. In Great Britain, Mars Inc. recently changed the names of its Snickers and Twix candy bars to Marathon and Raider to distinguish the products from those marketed in the United States. F____ 51. A product can only be classified as ?°global?± if it is advertised the same, sold for the same price, and distributed through the same channels, in every country. T____52. South Korea is one example of country that has overcome negative ?°country-of-origin?± bias.

F____53. The law of one price applies to most products and services that are marketed worldwide today. T____55. When Sony launched its Betamax VCRs in the United States in the 1970s, it used a market skimming strategy. T____56. Hewlett-Packard is the world??s leading marketer of inkjet printers. H-P??s printers are priced very low and margins are slim; by contrast, the company enjoys healthy margins on sales of replacement ink cartridges. This approach is sometimes known as ?°razors and blades?± pricing. F____ 57. Suppose the Japanese yen is weak in relation to the U.S. dollar. Rather than stressing price benefits, Japanese companies exporting to the U.S. should emphasize quality improvements and after sales service. T____58. According to current WTO (GATT) standards, governments cannot penalize foreign companies for dumping if the export price of a given product differs from the domestic price by less than 2 percent. T____ 59. Generally speaking, the larger the market, the more feasible it is for a manufacturer to use its own sales force.

F____ 60. When utilizing the services of a local independent distributor, management is well advised to treat the distributor as a temporary market-entry vehicle. F____ 61. Independent channel agents generally prefer to take on new products rather than established names. F____ 62. British retailer Marks & Spencer is a good example of a category killer. T____63. The experience of 7-Eleven stores in Japan shows how channel innovations developed in one country can be improved and refined in another. T____ 64. In the final analysis, the choice of a standardized or localized approach to advertising in world markets depends on the product involved. T____65. Typically, global advertising organizations incorporate several agency ?°brands?± as well as direct marketing and public relations units under a single corporate ?°umbrella.?± T____66. Ads for the Gillette Sensor in world markets are characterized by a standardized approach to both the selling proposition and the creative execution. F____ 67. Industry experts agree that communication can only take place when an advertisement is translated into the local language in a particular country. F____ 68. Publicity is similar to advertising in that companies pay the media for placement of stories and news items. F____ 69.The manufacturing cost of a product creates a price ceiling that marketers must not exceed. F____ 70. Relationships intermediaries are between manufacturers and channel

generally short-term in nature. T____ 71. According to the generic strategy framework, cost leadership is a sustainable source of competitive advantage if barriers exist

that prevents competitors from achieving the same low costs. F____ 72. Michael Porter is well known for developing the ?°strategic intent?± framework for pursuing competitive advantage. T____ 73. According to the flagship model, key suppliers, key customers, and key consumers are all elements of a flagship company??s partner network. F____ 74. Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of Hamel and Prahalad??s framework for innovation leadership. T____ 75. In a hypercompetitive business world, a company??s previous sources of sustainable competitive advantage may be rendered obsolete. T____ 76. ?°Convergence?± is a term that describes a world in which the telecommunications, consumer electronics, computer, and entertainment industries are entering each others?? markets. T____ 77. The strategic insight behind Procter & Gamble??s successful shufufufu.com Web site was that Japanese housewives feel isolated. F____78. The high degree of concentration in the U.S. book industry was a crucial factor contributing to Jeff Bezos?? success in launching Amazon.com. T____ 79. The growth of streaming media is dependent on the rate of adoption of

broadband Internet connections. F____80. Bluetooth technology makes it possible for PC users to make wireless connections to the Internet via hotspots.

1.German-made Montblanc fountain pen retailing for $250 in the United States is a luxury good that represents an exception to which general principle: ?? a. the smaller the denominator in the value equation, the higher the overall value created b. Japanese companies exploited economies of scale to become world-class competitors c. the world is becoming more homogeneous d. higher product development costs are a driving force behind globalization 2. According to Michael Porter, a global industry is one in which _________ can be achieved by integrating and leveraging operations on a worldwide scale. ??a. competitive advantage b. the marketing mix c. focus d. EPRG 3. When Jack Welch, former CEO of GE, says that, ?°Globalization must be taken for granted,?± he is advocating which management orientation: a. ethnocentric b. polycentric c. regiocentric ??d. geocentric 4. Which of the following is not a driving force behind global integration today: a. technology b. product development costs c. leverage opportunities ??d. national controls 5??Which of the following approaches does Nike use to supply world markets with its athletic shoes:

a. licensing b. investment ??c. original equipment manufacturing d. joint ventures 6. Which of the following does not constitute a source of leverage in global marketing: a. experience transfers b. scale economies c. global strategy ??d. myopia (pp. 21-29, hard) 7. Which of the following is a characteristic of a postindustrial society: a. codification of theoretical knowledge b. service sector accounts for more than 50% of GNP c. knowledge, not capital, is key strategic resource

d. scientists more important than semiskilled workers ??e. all are characteristics 8??The term global localization suggests that global marketers: ??a. must embrace paradox. b. need an ethnocentric mindset. c. can ignore customer preferences in individual countries. d. should focus on consumer markets rather than industrial ones

9. Which type of economic system is characterized by market resource allocation and private resource ownership: ??a. market capitalism b. centrally planned capitalism c. market socialism d. centrally planned socialism 10. The theory that a dollar buys the same amount of goods in various countries when converted into local currencies at prevailing rates is: a. balance of payments b. the gold standard ??c. purchasing power parity d. hedging 11. Which of the following is a true statement about a country??s balance of payments: a. Merchandise imports are entered with a minus (-) sign, while service imports are a positive number. b. Merchandise imports are positive numbers, while service imports are entered with a minus (-) sign. ??c. Both merchandise and service imports are entered with a minus (-) sign. d. Both merchandise and service imports are positive numbers. 12. On Friday, October 13, 1995, the Big Mac Index suggested that the yen was overvalued relative to the dollar by 70%. When currency markets opened on Monday, October 16, 1995, anyone using the Big Mac Index would conclude that yen was only 20% overvalued relative to the dollar. What is the most plausible scenario for this? a. Japan??s Central Bank devalued the yen.

b. McDonald??s headquarters stopped hedging. c. McDonald??s Japan cut the yen price of a Big Mac. d. Inflation in Japan suddenly raged out of control. ??e. Both a and c are plausible scenarios. 13??An enterprising wine lover notes that French champagne is priced lower in Paris than it is in London. If this individual can arrange to purchase a large quantity of champagne in France and transport it to London for resale at prices that undercut those offered by authorized distributors, he or she can be said to engage in: ??a. gray marketing

b. skimming the market c. black marketing d. price escalation marketing 14. According to the World Bank, there are 3 telephones for every 1,000 people in Bangladesh, compared with 643 telephones per 1,000 in the United States. Which concept pertains most directly to these statistics? a. country-of-origin bias b. brand extensions ??c. product saturation levels d. tangible product attributes e. the ?°NIH?± syndrome 15. Under today??s ?°managed?± floating system of exchange rates: a. exchange rates vary according to the price of gold ??b. governments can attempt to influence exchange rates by buying and selling currencies c. exchange rates depend on the value of SDR??s d. exchange rates are set at Bretton Woods 16. If an American tourist in Tokyo pays more in dollars for the same amount of yen that she bought last week, then: a. a Japanese tourist in San Francisco pays more in yen for the same amount of dollars that she bought the week before ??b. the dollar has depreciated relative to the yen c. the yen has depreciated relative to the dollar d. the dollar has appreciated relative to the yen 17. A weak dollar can have which kind of impact: a. Goods imported into the United States should become more expensive. b. Goods imported into the United States should become less expensive. c. Theoretically, the United States trade deficit should decrease. d. Theoretically, the United States trade deficit should increase. ??e. both a and c 17. A ?°quick and dirty?± method that can serve as a rule of thumb to help marketers compare the relative values of currencies is to check the price of a _______________ in different countries. ??a. Big Mac b. Snickers bar c. can of Coke d. pack of Marlboros e. liter of gasoline

18. Which of the following is not true about a high-context culture: a. lawyers are less important b. negotiations are lengthy ??c. people maintain a bubble of private space d. competitive bidding is less important 19. According to Chapter 3, the world of the central banker or the Mafia in the United States illustrates: a. a low-context subculture in a high-context culture ??b. a high-context subculture in a low-context culture

c. a uniformly low-context U.S. culture d. a uniformly high-con4text U.S. culture 20. European consumers have faced a number of food-related issues in recent years, including an outbreak of hoof-and-mouth disease and continuing concerns over mad cow disease. As a result, many are skeptical about GMOs (genetically-modified organisms) and the benefits of eating food products that incorporate genetically-engineered ingredients. As one French citizen noted recently, "We have a very risk-averse society that has been completely traumatized by food scares." Thinking about this situation in terms of Hofstede's cultural values framework, one might reasonably interpret this remark to indicate that France ranks relatively high in: a. power distance b. short term orientation c . masculinity ??d. uncertainty avoidance e. individualism 21. Which of the following describes the extent to which members of a culture feel threatened by ambiguous situations: a. individualism b. power distance ??c. uncertainty avoidance d. masculinity 22. Which of the following best describes the self-reference criterion: a. the extent to which Americans use the word ?°I?± in conversation compared to the Japanese ??b. reliance on one??s own culture or experience as a guide to behavior c. a rule of thumb that says ?°When in Rome, do as the Romans do?± d. the highest level in Maslow??s hierarchy 23. Which of the following can negatively influence the rate of diffusion of an innovation: a. substantial relative advantage b. high compatibility

??c. high complexity d. divisibility e. high level of communicability 24. Which of the following is not true about Japan's culture, traditions, and behavior: ??a. oriented towards individual b. consensus is important c. government and business cooperate d. attitude of self-denial 25. Which international patent treaty has the most signatory countries: ??a. Paris Union/Convention 171 b. Patent Cooperation Treaty 137 c. European Patent Convention d. Omnibus Trade and Competitiveness Act

26. A proposed alliance between British Airways and American Airlines would be subject to review by antitrust regulators from which of the following: a. the European Union only b. the United States only ?? c. both the European Union and the United States antitrust d. Great Britain and the United States only 27. A proposed merger between two Swiss-based global pharmaceutical companies, Ciba-Geigy AG and Sandoz AG, would be subject to review by regulators from which of the following: ??a. European Commission antitrust b. UN Conference on International Trade Law c. International Chamber of Commerce d. International Court of Justice e. none of the above 28. The U.S. Justice Department objected to a recent patent license agreement between S.C. Johnson & Sons and Bayer AG. The antitrust unit at Justice objected to: a. the duration of the license b. the amount of royalties Johnson agreed to pay c. Bayer??s attempts to circumvent FDA policies ??d. the exclusive nature of the license agreement 29. Which of the following statements best describes the relationship between EU law and national laws of individual European nations: ??a. EU law generally supersedes national laws. b. National laws generally supersede EU laws. c. All national laws are lax compared to EU laws. d. The relationship was codified by the Paris Union. 30. Wal-Mart??s computer system links the discount retailer with its suppliers. The system allows Wal-Mart??s computers to update inventory records in real time and order new merchandise to replace items as they are sold. As described here, Wal-Mart??s system is a good example of: a. an intranet ??b. ECR c. a data warehouse d. EDI \ 31. GE has an ?°environmental studies?± staff at headquarters that keeps

ongoing close tabs on worldwide social, political, legal, economic, and technological environments that are directly relevant to its businesses. Which scanning mode best describes the situation at GE: ??a. monitoring relevance to company b. viewing overall c. investigation trade publication d. research 32. Interested in a business opportunity in Russia, Peter Terian stood on a busy street corner in Moscow and watched the different cars that went past. He noticed a large number of Mercedes, but not a single Rolls Royce.

Terian later set up the first Rolls-Royce dealership in Russia. This story illustrates the importance of: a. analogy ??b. direct perception c. income elasticity measurements d. secondary data e. cluster analysis 33??Which of the following is a market entry strategy that represents, in essence, the transfer of technology to a target market: a. joint ventures ??b. licensing c. ownership d. exporting 34. In 1994, Thomson Consumer Electronics?? RCA unit began selling the first-ever 18?± home digital satellite system (DSS) in the United States for $699. Although DSS represented a totally new technology, one million DSS units were sold the first year. DSS is destined to become one of the most successful consumer electronics products ever. Which of the following best describes the market situation in the United States when RCA researched DSS in the early 1990s: a. There was an existing market for home digital satellite systems. b. There was an incipient market for home digital satellite systems. ??c. There was a latent market for home digital satellite systems. d. There was a subnational market for home digital satellite systems. 35. One study of adult involvement in household tasks revealed greater similarities between the UK and the U.S. compared with France, Belgium, and French Canada. Thus, the U.S. and UK were "twins" based on common language. This study is an example of: a. market latency b. conjoint analysis c. factor analysis

d. multidimensional scaling ??e. cluster analysis 36. Which of the following approaches is most appropriate for a company with little experience in international markets: a. acquisition b. strategic alliance c. ??exporting d. joint venture 37. Porsche AG uses the label ?°Top Guns?± to describe one segment of its customers, namely those who care about power and control and who expect to be noticed. Such a profile would be based on which type of segmentation: a. demographic b. Occupational

?? c. Psychographic d. behavioral 38. B.A.T Industries PLC exports 8 billion cigarettes each year to China, where smokers consume one-third of all cigarettes sold worldwide each year. As described here, B.A.T??s focus on China reflects which type of segmentation: a. demographic ??b. behavioral c. psychographic d. occupational e. benefit 39. Current and expected market size, potential competition, and compatibility and feasibility are all criteria used by marketers to make: ??a. targeting decisions b. sourcing decisions c. psychographic decisions d. research decisions 40. Which of the following criteria should marketers use when assessing potential target market segments: a.Key drivers of the marketing model. b. Presence or absence of enabling conditions. c. The cost of entry versus the cost of waiting. d. Whether the risk/control tradeoff is appropriate. ??e. all of the above 41. Managers at Lexus Marketing have created a spreadsheet mapping the various Lexus models and individual country markets around the world. This document is known as: ??a. a product-market grid b. a psychographic segmentation study c. GCCP d. segment simultaneity 42. Which of the following approaches does Nike use to supply world markets with its athletic shoes: a. licensing b .investment ??c. contract manufacturing d. joint ventures e. strategic alliances 43. Gerber's woes in France illustrate some of the disadvantages of which market entry strategy: a. joint ventures ??b. licensing

c. 100% ownership d. exporting 44. Which of the following is not a characteristic of global strategic alliances: a. Participants maintain independence outside the framework of alliance. b. Participants share benefits as well as control.

c. Participants make ongoing contributions in technology, products, and other areas. ??d. Participants agree not to compete in areas unrelated to the alliance. 45. ?°Discussion and consensus must be the norms. Partners must be viewed as equals.?± When applied to global strategic partnerships, this statement indicates the importance of which factor: a. mission b. strategy ??c. governance d. culture e. organization 46??One nation accounts for nearly one third of world income, namely: A. China B. Japan ??C. United States D. Germany 47??Which of the following is NOT classified as one of the "Big Six" keiretsu: A. Mitsubishi B. DKB C. Toyota D. Sumimoto 48. Scale, operational, and scope advantages are all associated with ________ market entry strategies. a. export-based b. affiliate-based ??c. network-based d. keiretsu-based 49. In recent years, the Coca-Cola Company has been plagued by such problems as employee lawsuits over diversity issues, deteriorating bottler relations, a production stoppage, and a disastrous product recall in Belgium. Taken together, these problems could dilute the company??s __________. a. brand extension program b. cobranding efforts c. international brands ??d. brand equity e. product/communications extension strategy

50. As discussed in Chapter 8, British American Tobacco??s experience with the Jan Sobieski brand in Poland demonstrates that: a. Local brands can be transformed into global brands. b. Global brands are quickly pushing aside established local brands. ??c. Global companies should be alert to possibilities for creating their own local brands. d. It is difficult to launch new brands in developing countries with transitional economies.

51. Global products offer which of the following advantages: a. manufacturing cost savings b. improved quality c. improved customer preference ??d. all of the above 52. Campbell??s has been marketing soup in Japan for more than 40 years. Early on, Japanese consumers were not receptive to ads featuring the Campbell Kids and the ?°M??m M??m Good?± slogan. This compelled Campbell??s to develop ads featuring a talking soup can known as ?°Mr. Campbell.?± Campbell??s also developed soup varieties for Japan with fish as the main protein source and spices that reflect local preferences. As described here, which of the following strategies has Campbell??s used in Japan: a. product-communications extension b. product extension-communications adaptation c. product adaptation-communications extension ??d. product-communication adaptation e. product invention 53??Which of the following pricing strategies recognizes both local market differences and the importance of headquarters input into pricing decisions: A. ethnocentric pricing B. polycentric pricing ??C. geocentric pricing D. rigid cost-based pricing 54. When introduced in the late 1970s, the VCR created new patterns of consumer behavior. For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time. DVD, a playback only video system, was introduced in the late 1990s. DVD discs contain full-length movies with digital sound in a format that resembles conventional music compact discs. Which of the following most accurately describes the respective degree of newness of these two global products: ?? a. The VCR is a discontinuous innovation; the DVD is a dynamically

continuous innovation. b. The VCR is a dynamically continuous innovation; the DVD is a discontinuous innovation. c. The VCR and DVD are both dynamically continuous innovations. d. The VCR and DVD are both discontinuous innovations. e. The VCR and DVD are both continuous innovations. 55. A manufacturer concerned about price escalation in export markets might do all but which of the following: a. attempt to shorten distribution channels b. switch to offshore sourcing ??c. pursue gray marketing d. license the product to a host-country manufacturer

56. As noted in Chapter 9, in the late 1980s, retailers in Latin America invested in computer systems for tracking and managing inventory. This action was a response to: a. dumping by foreign retailers b. the thriving black market c. a flood of gray market goods ??d. severe inflation 57. According to a recent study of European industrial exporters, companies that utilized independent distributors would be most likely to utilize: a.ethnocentric pricing ??b.polycentric pricing c.regiocentric pricing d.geocentric pricing 58??Which pricing strategy has the advantage of being simple to calculate but the disadvantage of ignoring demand and competitive conditions: A. gray marketing B. skimming C. penetration ??D. cost based 59. Germany??s Bayer Group was fined millions of dollars to settle a lawsuit alleging it had conspired with ArcherDanielsMidland and other global companies to set prices for an enzyme used in animal feeds. What was the issue in this lawsuit: a. price skimming ??b. horizontal price fixing c. price bundling d. vertical price fixing 60. The main purpose of Section 482 of the United States Internal Revenue Code is to: ??a. prevent tax avoidance by global companies b. lower prices in global markets c. discourage dumping d. put an end to status quo pricing 61. Ebay was a pioneer in a form of online marketing known as: a. b-to-c b. b-to-b ??c. p-to-p d. d-to-d

62. Which of the following is an appropriate guideline for companies selecting independent distributors in international markets: a. Select distributors??don??t let them select you. b. Look for distributors capable of developing markets. c. Treat local distributors as long-term partners. d. Maintain control over marketing strategy from the start.

??e.All of the above are appropriate guidelines. 63. Which of the following correctly characterizes the retailing strategy shared by Toys "R" Us and Virgin Megastores: a. few product categories, own-label focus ??b. few product categories, manufacturer brand focus c. many product categories, own-label focus d. many product categories, manufacturer brand focus 64. Which approach to global retail expansion involves "greenfield" investment using a company's own financial resources to build a new store from the ground up: a. chain acquisition ??b. organic growth c. franchise d. joint venture 65??Order processing, warehousing, and inventory management are all functions pertaining to: A. a polycentric orientation ??B.physical distribution and logistics C. sales promotion D. personal selling 66. A freighter loaded with 40-foot shipping containers leaves a port in Europe and sails to New York, where the containers are transferred to railroad cars and transported to the West coast. At the port of San Francisco, the containers are loaded onto another freighter bound for Japan. The term that best describes this situation is: ??a. intermodal transportation b. inventory management c. greenfield investment d. hypermarketing 67. Which of the following product category/company pairings best illustrates the concept of "product cultures": a. earth-moving equipment/Caterpillar b. personal hygiene/Procter & Gamble ??c. coffee bars/Starbucks d. batteries/Duracell e. automobiles/Ford 68. A company that successfully creates standardized global advertising can

reap which potential advantage: a. economies of scale b. improved access to distribution channels c. ?°first mover?± status in uncovering global market d. creative leverage ??e. all of the above

69. ___________ is the phrase global marketers use to describe ads with common design elements into which localized elements are inserted for individual country markets. ??a. "Pattern advertising" b. "Template advertising" c. "Cookie-cutter advertising" d. "Model advertising" e. "Stereotype advertising" 70. Which of the following is classified as a public relations tool as opposed to an advertising vehicle: a. print advertisement in trade association magazine ??b. video news release c. Internet banner ad d. broadcast advertisement that airs on a cable news channel 71. Recently, some of the biggest advertising holding companies have acquired leading public relations agencies. The best explanation for this trend is: ??a.Agrowing realization of the importance of IMC. b. Increasing client demands for localized PR campaigns. c. Stepped-up efforts by large companies to combat anti-globalization activists. d. Declining demand for global public relations means agencies have to agree to be acquired or risk going out of business. 72. Before being acquired by Ford, Jaguar produced so few cars that it couldn??t get volume discounts from components suppliers. Today, Jaguar benefits from Ford??s volume discounts that reduce parts prices by as much as 20 percent-30 percent. Former Ford chairman Alex Trotman recently noted, ?°you have a lot more leverage when you??re part of an organization that builds 7 million vehicles worldwide.?± In terms of Porter??s competitive forces framework, Jaguar is enjoying strategic advantage thanks to its newfound: ??a. buyer power b. supplier power c. threat of new entrants d. threat of substitute products 73. Microsoft might be described as the ?°900 pound gorilla?± in the computer

software industry: more than 80 percent of the PCs in use around the world use Microsoft??s operating system software. In terms of Michael Porter??s model of industry competition, Microsoft??s position in the software industry is an excellent illustration of: a. power of buyers ?? b. power of suppliers c. threat of new entrants d. threat of substitute products 74. As described in the text, IKEA has achieved competitive advantage in the global furniture industry by pursuing which generic strategy: a. cost leadership b. differentiation ??c. cost focus plus differentiation focus d. differentiation focus 75. When managers at Matsushita realized that cost advantages in TV production were often fleeting, they added quality and reliability advantages, thus establishing:

a. loose bricks b. a ?°double diamond?± c. attribute diversity ??d. layers of advantage e. buyer power 76. Intel??s focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of: a. building layers of advantage ??b. loose bricks c. changing the rules of engagement d. collaborating 77. According to the innovator??s dilemma: a. The computing power of a microprocessor doubles every 18 months. b. Markets that don??t exist can??t be analyzed ??c. Well-managed companies that listen and respond to needs of established customers may miss opportunities to innovate. d. Regulation of e-commerce activities will increase at a rate that is directly proportional to the growth of e-commerce revenues. 78. Which of the following is one of Clayton Christensen??s principles of disruptive innovation: a. Companies depend on customers for resources. b. Small markets don??t satisfy the growth needs of large companies. c. Markets that don??t exist can??t be analyzed. d. Technology supply may not equal market demand. ??e. all of the above 79. Online bookseller Amazon.com would best be described as exemplifying which type of Web site: a. domestic focus, provider of information, support, and service b. domestic focus, emphasis on retail transactions c. global focus, provider of information, support, and service ??d. global focus, emphasis on retail transactions 80. ________ -commerce is one of the opportunities made possible by the digital revolution. a. Multinational ??b. Mobile c. Multisegment significant marketing

d. Marginal-cost 81. Skype is a pioneering company that markets: a. ring tones ??b. software for Internet telephone calls c. video games for cell phones d. massively multiplayer online games 82. The former chairman of Nestl¨? recently told an interviewer: ?°We are food and beverages. We are not running bicycle shops. Even in food we are not in

all fields. There are certain areas we do not touch. Also, we have no soft drinks because I have said we either buy Coca-Cola or we leave it alone.?± What strategic marketing principle does the chairman??s comment emphasize most specifically: a. customer value b. competitive advantage ??c. focus d. myopia

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