1) Global localization means that a successful global marketer must have the ability to think locally
and act globally. f
2) An ethnocentric management orientation is preferable to a geocentric orientation. f
3) In the context of global marketing, leverage means some type of advantage that a company
enjoys by virtue of the fact that it has experience in its home country. t
4) During the past two decades production has become "uncoupled" from employment. t
5) Due to globalization, it is easier to categorize economic systems within the confines of a fourcell matrix. f
6) In centrally planned socialism economic systems, the state allocates resources, whereas
production resources are privately owned. f
7) In centrally planned socialism economic systems, since demand typically exceeds supply, the
elements of the marketing mix are not used as strategic variables. t
8) The WTO's neutral trade experts also serve as mediators in global trade disputes. t
9) The ultimate goal of a free trade agreement is to have standardized duties on goods that cross
borders between the partners. t
10) Under Economic Union, a doctor or lawyer qualified in one country can practice in another
member country. t
11) Culture includes conscious and unconscious values, ideas, attitudes, and symbols that shape
human behavior that are confined to a generation. f
12) When marketers refer to "fast-food culture", or "credit-card culture" they are referring to a
cosmopolitan culture which is comprised of various segments of the population which are
interconnected. t
13) According to Hofstede's research on cultural values, masculinity dimension describes a society in
which social roles of men and women overlap.
14) When you call United Airlines for a reservation on a toll free number and get a response from an
operator in Mumbai, this is an example of:
A) anti-globalization
.B) global marketplace.
C) multilingual expression.
D) discrimination.
E) E-ticketing.
15) A fundamental difference between regular marketing and global marketing is:
A) the lack of marketing mix.
B) the scope of activities.
C) the lack of strategic planning.
D) the focus on resources.
E) the lack of communication.
16) Starbucks is building on its loyalty card and rewards program in the United States with a
smartphone app that enables customers to pay for purchases electronically. The app displays a
bar code that the barista can scan. This is an example of:
A) Market Penetration.
B) Market Development.
C) Market Diversification.
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D) Product Development.
E) Global Marketing.
17) According to Michael Porter, a global industry is one in which ________ can be achieved by
integrating and leveraging operations on a worldwide scale.
A) marketing mix
B) competitive advantage
C) cross border infiltration
D) ration analysis
E) production capability
18) 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 on specific food and beverages
D) myopia
E) policy of dealing only with Swiss businesses
19) Nike recently adopted the slogan "Here I am" for its pan-European clothing advertising targeting
women. The decision to drop the famous "Just do it" tag line was based on the research
indicating that:
A) the famous slogan did not have accurate translation in European languages.
B) Europeans do not like tag lines that portray American thinking.
C) college-age women in Europe are not as competitive about sports as men are.
D) the old slogan conveys superiority of men over women.
E) European women want to differentiate themselves from men.
20) Two decades ago, professor Ted Levitt wrote a classic Harvard Business Review article titled
"The Globalization of Markets." Which of the following statements about the author and the
article is accurate?
A) Levitt urged companies to adopt products on a country-by-country basis.
B) There was universal agreement about his thesis that the world is becoming homogeneous.
C) Levitt urged companies to develop standardized products that could be marketed worldwide with
little adaptation.
D) Levitt warned of the coming backlash against globalization.
E) Levitt did not recommend developing standardized products.
21) Statements that illustrate the success of global marketing include all of the following except:
A) the Coca-Cola company supports its Coke brand by utilizing global and local marketing mix.
B) Apple is synonymous with cutting-edge innovation and high-tech design.
C) Italys Benetton utilizes marketing as a knee-jerk reaction to world marketing needs.
D) the backbone of Caterpillars global success is its network of dealers.
E) Germany's reputation for engineering and manufacturing provides a competitive advantage.
22) Examples of effective global marketing by McDonalds include both standardized and localized
marketing mix elements. Which of the following does NOT represent a localized element?
A) It serves McAloo tikki potato burger in India.
B) It uses advertising slogan "Im lovin it."
C) It operates themed dining cars on the Swiss national rail system.
D) It has home delivery service in India.
E) It has slang nicknames such as MakDo in Philippines and McDo in France.
23) Nestl, Unilever, GlaxoSmithKline, and Royal Philips Electronics can be considered
transnational companies on the basis of:
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A) sales outside the home country to total sales.
B) assets outside the home country to total assets.
C) employees outside the home country to total employees.
D) headquartered in a relatively small home-country market.
E) all of the above
24) Pfizer, Merck, Novartis, and other pharmaceutical companies have little choice but to engage in
global marketing since:
A) there is little demand for their products in home countries.
B) their research centers are located overseas.
C) no single market is large enough to recover costs incurred in research.
D) there is more demand overseas for their products.
E) technology is not available in home countries.
25) During the past two decades, the world economic environment has become increasingly
dynamic. To achieve success, executives and marketers must take into account all of the
following realities except:
A) capital movements have replaced trade as the driving force of the world economy.
B) production has become "uncoupled" from employment.
C) the world economy dominates the scene.
D) the struggle between capitalism and socialism continues.
E) the growth of e-commerce diminishes the importance of national barriers.
26) One of the distinguishing features of a Centrally Planned Capitalism economic system is:
A) all production resources are privately owned.
B) the state has broad powers to serve the public interest as it sees fit.
C) command resource allocation is utilized extensively in a private resource ownership environment.
D) market allocation policies are permitted within an environment of state ownership.
E) none of the above
27) The Washington, D.C.-based Heritage Foundation survey consists of over 175 countries ranked
by degree of economic freedom. The key economic variables considered for this ranking
includes all of the following except:
A) taxation policy.
B) government consumption of economic output.
C) percent foreign ownership.
D) banking policy.
E) wage and price control.
28) Product and market opportunities in a postindustrial society are more heavily dependent upon
new products and innovations than in industrial societies. An example of this would be:
A) Nestl marketing Bono brand cookies in Brazil.
B) Coca-Cola company developing a beverage Vintago in low-income countries.
C) New e-commerce markets for interactive forms of electronic communication.
D) Hermes creating handbags called Amazonia.
E) India's Suzlon Energy using wind-driven turbines.
29) Which of the following is true about the Triad?
A) Triad countries account for approximately one-third of world income and one- third of world
population.
B) Triad countries account for approximately 75% of world income as measured by GNP.
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C) Triad countries are those in which consumer products, industrial products, and the services sector
each contribute one-third to GDP.
D) Triad countries account for approximately 25% of world income as measured by GNP.
E) Triad countries account for approximately 50% of world income as measured by the World Bank.
30) To the extent that a country sells more goods and services abroad than it buys, there will be:
A) a greater demand for its currency.
B) a surplus production of goods and services.
C) a scarcity of goods and services within the country.
D) a need for revaluation of its currency.
E) time for fluctuating its currency.
31) The Big Mac Index shows that the price of Big Mac in China converted from the local currency,
yuan, to be $2.18, whereas its price in the United States is $3.73. This shows that:
A) the Big Mac is more popular in China than in the United States.
B) the Big Mac is less expensive in the United States than in China.
C) the Chinese yuan is overvalued when compared to US $.
D) the Chinese yuan is undervalued against the US $.
E) beef is less expensive in China than in the United States.
32) 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.
E) the dollar and yen both remained same in value.
33) The World Trade Organization, which came into existence on January 1, 1995, is the successor of
another organization with the abbreviation:
A) DSB.
B) GATT.
C) FTAA.
D) NAFTA. E) ASEAN.
34) Which form of regional cooperation agreement, when fully implemented, entails creation of a
unified central bank, the use of a single currency, and common policies on agriculture, social
services, and welfare?
A) Free trade area
B) Customs union
C) Common market
D) Economic union E) Dispute settlement body
35) Trade ministers representing the WTO member nations meet ________ to work on improving
world trade.
A) weekly
B) monthly C) annually D) biannually E) fortnightly
36) The form of economic cooperation that calls for 1) eliminating internal barriers to trade and 2)
establishing common external barriers is known as a(n):
A) European Union. B) Economic union. C) Customs union.
D) Free trade area.
E) Common market.
37) Arrange the following in order from lowest to highest level of economic integration.
A) customs unioneconomic unionfree trade areacommon market
B) economic unioncustoms unioncommon marketfree trade area
C) common marketfree trade areaeconomic unioncustoms union
D) free trade areacustoms unioncommon marketeconomic union
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E) common marketeconomic unioncustoms unionfree trade area
38) The form of economic cooperation that calls for countries to eliminate all internal barriers to
trade among themselves even while maintaining independent trade policies vis--vis third
countries is known as a(n):
A) Economic union. B) Customs union. C) Free trade area.
D) Common market. E) None of the above
39) The allure (attractiveness) of the Latin American market has been its:
A) lack of inflation. B) considerable size. C) rapid economic growth.
D) low foreign debt. E) protectionism.
40) The five original members of the Central American Integration System did not include:
A) El Salvador.
B) Honduras. C) Guatemala.
D) Nicaragua.
E) Venezuela.
41) Implementation of the Central American Free Trade Agreement with the United States created a
free trade area known as DR-CAFTA that includes all SICA members except:
A) Honduras.
B) Guatemala.
C) Nicaragua.
D) Panama.
E) Costa Rica.
42) Which one of the ASEAN members has the World's second-largest container port?
A) Singapore
B) Thailand
C) India
D) Philippines
E) Brunei
43) The Maastricht Treaty called for:
A) the creation of an Asia Free Trade Area (AFTA).
B) the creation of an economic and monetary union in Europe.
C) Chile's acceptance into Mercosur.
D) the purchase of CDs and tapes from distributors in Europe.
E) the creation of the seven-nation European Free Trade Association (EFTA).
44) The new country which joined the EU at the beginning of 2015 is:
A) Slovakia.
B) Lithuania.
C) Latvia.
D) Slovenia.
E) Cyprus.
45) The Gulf Cooperation Council (GCC) includes all of the following countries except:
A) Kuwait.
B) Saudi Arabia.
C) Iraq.
D) Bahrain. E) Oman.
46) The world's newest common market (East African Community) includes all of the following
countries except:
A) Kenya
B) Tanzania
C) Rwanda
D) Nigeria
E) Burundi
47) While marketers should be secure in their own convictions and traditions, ________ are required
to appreciate the integrity and value of other ways of life and points of view.
A) standard of living and stage of economic development
B) production process and standards of measurement
C) open mind and absence of prejudice
D) degree of nationalism and economic community membership
E) fast food culture and slow food culture
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48) Suppose you have a friend from India who is a lifelong vegetarian and who does not like
McDonald's because the company sells hamburgers in many countries. Which of the following
describes your friend?
A) "vegetarianism" represents a value, "dislike McDonald's" represents an attitude
B) "vegetarianism" represents an attitude, "dislike McDonald's" represents a value
C) "vegetarianism" and "dislike McDonald's" both represent an attitude
D) "vegetarianism" represents a value, "dislike McDonald's" represents a belief
E) "vegetarianism" and "dislike McDonald's" both represent values
49) Cultural influences are also quite apparent in food preparation and consumption patterns and
habits. Domino's Pizza, the world's largest pizza-delivery company, pulled out of Italy because:
A) its tomato sauce was too bold and competed with Italian products.
B) people did not like to eat at home.
C) Italians perceived its products to be "too American."
D) Italians wanted more toppings on thick crust.
E) Italians did not like anyone else to use the name "pizza."
50) Considering Hofstede's notion of culture as "the collective programming of the mind," then
attitudes can be defined as:
A) a learned tendency to respond in a consistent way to a given object or entity.
B) an organized pattern of knowledge that an individual holds to be true about the world.
C) an enduring belief or feeling of a specific mode of conduct.
D) a personally or socially preferable mode of conduct.
E) the deepest level of a culture present in the majority of the members of a particular culture.
51) Giving business cards with the left hand in Malaysia, showing soles of shoes to a host in Saudi
Arabia, and winking one eye in India are all considered impolite interpersonal communication
due to the fact that:
A) in Middle Eastern countries it is customary to take off shoes at the door.
B) it is difficult to notice when one winks eyes since there are many people in India.
C) people pick up nonverbal cues and understand intuitively without being told.
D) these actions distract people from hearing at meetings.
E) people are not aware of Western ways of doing business.
52) In high-context cultures, time is:
A) monochronic.
B) polychronic.
C) linear.
D) short.
E) common.
53) Insisting on competitive bidding can cause complications in:
A) low-context cultures
B) high-context cultures.
C) low and high context cultures.
D) Korean cultures.
E) Japanese cultures.
54) Lawyers are more important in:
A) low-context cultures.
B) high-context cultures.
D) Korean cultures. E) Japanese cultures.
C) Indian cultures.
55) Which is not considered as a long-term value?
A) persistence B) sense of shame
C) thrift
D) ordering relationships
E) search for truth
56) European consumers have faced a number of food-related issues, including an outbreak of hoof6
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.
57) The lesson that SRC (Self-Reference Criterion) teaches can be summarized as:
A) a person's perception of market needs is framed by others cultural experience.
B) the perceptual blockage and distortion about cultures are hard to reduce.
C) an unbiased perception is a vital and critical skill in global marketing.
D) an unconscious reference to one's cultural values is critical in global marketing.
E) the prior success and ethnocentrism can override the SRC.
58) Which of the following shows the correct order of the product adoption process?
A) evaluationtrialawarenessinterestadoption
B) trialinterestevaluationawarenessadoption
C) interestawarenessadoptiontrialevaluation
D) awarenessinterestevaluationtrialadoption
E) adoptionevaluationtrialinterestawareness
59) 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
60) To speed adoption of a new product, a marketing team should:
A) ensure that features and benefits can be communicated or demonstrated.
B) design the maximum amount of complexity into the product.
C) discourage limited use on a "trial" basis.
D) attempt to make a clean break with existing customer values.
E) rely heavily on word-of-mouth marketing.
