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‫‪Global Marketing,‬‬
‫)‪(Keegan/Green‬‬
‫ابراهيم يوسف السلمان‬

‫اسئلة متوقعه شاملة المادة باذن هللا‬
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‫هذا الملف عن روح سيدي ‪ /‬فايز مسعود غانم‬

‫)هللا يرحمك يا سيدي ويجعلك من اصحاب النعيم)‬
‫‪Ch1‬‬ ‫‪Ch2‬‬ ‫‪Ch3‬‬
‫مادة الفيرست‬
‫‪1‬‬
‫‪ ///‬اعداد‪ :‬ابراهيم يوسف السلمان ‪ ///‬قسم التسويق ‪////‬‬ ‫هذا العمل عن روح سيدي فايز مسغود غانم (ابومسعود)‬ ‫‪//‬‬
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1) A management team that fails to understand the importance of global marketing risks losing
its domestic business to competitors with lower costs, more experience, and better products.
Answer: TRUE
Diff: 1 Page Ref: 4
AACSB: Reflective Thinking
2) As Wal-Mart expands into Guatemala and Central American countries, it is implementing a

market development strategy.
Answer: TRUE
Diff: 1 Page Ref: 4
3) Global marketing may take the form of diversification strategy in which a company creates
new products or services for the domestic market.
Answer: FALSE
Diff: 2 Page Ref: 4
4) The perceived value equation can be represented as Value = Price/Benefits.

Answer: FALSE
Diff: 2 Page Ref: 5
AACSB: Analytic Skills
5) Recently the auto industry is shifting its attention to emerging markets such as India and
Africa.
Answer: TRUE
Diff: 1 Page Ref: 5
6) Globalization is presenting significant marketing opportunities for professional sports

organizations such as the National Football League and Major League Soccer.
Answer: TRUE
Diff: 1 Page Ref: 6
7) If Nestlé decides not to market biscuits (cookies) in the United States due to competitive
reasons, it is considered as a lack of strategic focus and missed opportunity.
2
//// ‫ قسم التسويق‬/// ‫ ابراهيم يوسف السلمان‬:‫ اعداد‬/// )‫هذا العمل عن روح سيدي فايز مسغود غانم (ابومسعود‬ //
‫‪Answer: FALSE‬‬
‫‪Diff: 2‬‬ ‫‪Page Ref: 7‬‬
‫‪AACSB: Reflective Thinking‬‬
‫‪3‬‬
8) Value, competitive advantage, and the focus required to achieve them are universal in their
relevance and should guide global marketing efforts in any part of the world.
Answer: TRUE
Diff: 2 Page Ref: 9
9) The discipline of marketing is universal and such marketing practices do not vary from
country to country.
Answer: FALSE
Diff: 1 Page Ref: 9
10) Standardization versus adaptation is the extent to which each marketing mix element is
standardized or adapted in various country markets.
Answer: TRUE
Diff: 2 Page Ref: 9
11) Nike dropped their well known tagline "Just do it" in advertising women's clothing in Europe
and replaced it by the slogan "Here I am" since college-age women in Europe are not as
competitive about sports as men are.
Answer: TRUE
Diff: 2 Page Ref: 9
12) Global localization means that a successful global marketer must have the ability to think
locally and act globally.
Answer: FALSE
Diff: 2 Page Ref: 11
13) The Coca-Cola Company supports its Coke, Fanta, and PowerAde brands with marketing
mix elements that are both global and local.
Answer: TRUE
14) That Gillette uses the same packaging for its flagship Mach3 razor everywhere in the world
is an example of how companies have successfully pursued global marketing by creating strong
global brands.
Answer: TRUE
15) McDonald's global marketing strategy is based primarily on local marketing mix elements.
Answer: FALSE
4
16) McDonald's home delivery of burgers in India is an example of unusual standardized global
marketing practice.
Answer: FALSE
17) Harley-Davidson's motorcycles' competitive advantage is based in part on its "Made in the
USA" positioning.
Answer: TRUE
18) Some companies that fail to formulate adequate responses to the challenges and
opportunities of globalization will be absorbed by more dynamic, visionary enterprises.
Answer: TRUE
19) Wal-mart is the largest corporation, based on revenues, according to the Fortune 500 Global
ranking for 2008.
Answer: TRUE
20) Examining the size of individual product markets, measured in terms of annual sales,
provides another perspective on global marketing's importance.
Answer: TRUE
21) The form and substance of a company's response to global market opportunities depend
greatly on management's assumptions or beliefs about the nature of the world.
Answer: TRUE
22) Ethnocentrism is sometimes associated with attitudes of national arrogance or assumptions of

national superiority.
Answer: TRUE
23) Today, ethnocentrism is on one of the major internal weaknesses that must be overcome if a
company is to transform itself into an effective global competitor.
Answer: TRUE
5
24) The term 'polycentric' describes management's belief or assumption that each country in
which a company does business is unique.
Answer: TRUE
25) Unilever's Rexona deodorant brand had 30 different package designs and 48 different
formulations. This is an example of ethnocentrism.
Answer: FALSE
26) A U.S. company that focuses on the countries included in the North American Free Trade
Agreement (NAFTA) has a regiocentric orientation.
Answer: TRUE
27) A European company that focuses its attention on Europe can be considered to have
regiocentric orientation.
Answer: TRUE
28) A company with a geocentric orientation views the world as a potential market and strives to
develop integrated global strategies.
Answer: TRUE
29) Geocentric orientation represents true global marketing since it views the entire world as a
potential market and develops global strategy.
Answer: FALSE
30) An ethnocentric management orientation is preferable to a geocentric orientation.

Answer: FALSE
31) As new global competitors emerge on the scene, management at long-established industry
giants such as GM must face up to the challenge of organizational transformation.
Answer: TRUE
6
32) As GM teetered on the brink of bankruptcy in 2009, it was clear that it would have to be
remade as a smaller, leaner company.
Answer: TRUE
33) A global company can be described as one that pursues either a strategy of serving world
markets from a single country, or one that sources globally for the purpose of focusing on select
country markets.
Answer: TRUE
34) One way to assess a company's "degree of transnationality" is to look at the sales outside the
home country to total sales.
Answer: FALSE
35) Nestlé, being with a small home country market, is compelled to adopt regiocentric or
geocentric orientations in order to grow profitably.
Answer: TRUE
36) The ethnocentric company is decentralized in its marketing management whereas the
polycentric company is centralized.
Answer: FALSE
37) A key challenge facing organizational leaders today is managing a company's evolution
beyond an ethnocentric, polycentric, or regiocentric orientation to a geocentric one.
Answer: TRUE
38) 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 more than one country.
Answer: TRUE
39) Economic growth has reduced resistance that might otherwise have developed in response to
the entry of foreign firms into domestic economies.
Answer: TRUE
7
40) Companies that cannot formulate or successfully implement a coherent global strategy may
lose their independence.
Answer: TRUE
41) When you call United Airlines for 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.
Answer: B
Diff: 2 Page Ref: 3
42) Slumdog Millionaire, a movie which received several awards and an Oscar in 2009 was
filmed on a location in and around:
A) London.
B) San Francisco.
C) Cancun.
D) Mumbai.
E) Moscow.
Answer: D
Diff: 1 Page Ref: 3
43) 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.
Answer: B
Diff: 2 Page Ref: 4
44) The essence of marketing worldwide is to surpass the competition in creating perceived
value which can be represented as:
A) Value = Price/Benefits
B) Value = Benefits/Price
C) Value = Benefits x Price
D) Value = Benefits — Price
E) Value = Benefits + Price
Answer: B
Diff: 2 Page Ref: 5
8
45) A German-made Montblanc fountain pen retailing for $250 in the U.S. 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.
E) Luxury goods are taxed at a higher rate.
Answer: A
Diff: 2 Page Ref: 5
46) When a company succeeds in creating more value for customers than its competition, that
company is said to enjoy ________ in an industry.
A) competitive advantage
B) value
C) leverage
D) focus
E) scale economies
Answer: A
Diff: 2 Page Ref: 6
47) 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
Answer: B
Diff: 2 Page Ref: 7
48) The former chairman of Nestlé 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
Answer: C
Diff: 2 Page Ref: 7
9
‫‪AACSB: Reflective Thinking‬‬
‫‪10‬‬
49) PepsiCo divested its restaurant divisions. A new company, YUM! Brands, is comprised of
Taco Bell, Pizza Hut, and KFC. By spinning off the restaurants, PepsiCo management will be
able to concentrate its attention on the beverage and snack foods industries. PepsiCo's actions
illustrate the concept of:
A) leverage.
B) standardized global marketing.
C) ethnocentric orientation.
D) focus.
E) myopia.
Answer: D
Diff: 2 Page Ref: 7
50) A firm's global marketing strategy addresses which of the following issues?
A) standardization versus adaptation of the marketing mix
B) global market participation
C) coordination of marketing activities
D) integration of competitive moves
E) all of the above
Answer: E
Diff: 2 Page Ref: 9
51) An example of the benefit of globalization is that Apple can market iPod models worldwide
without extensive:
A) standardization.
B) modification.
C) integration.
D) concentration.
E) market participation.
Answer: B
52) 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.
Answer: C
11
53) Coca-Cola achieved success in Japanese market primarily by:
A) standardization of marketing mix elements.
B) global localization.
C) vending machine operations.
D) selecting market mix options.
E) homogenization.
Answer: B
54) Global localization means that a successful global marketer must have the ability to:
A) "think globally, act globally."
B) "think globally, act locally."
C) "think locally, act locally."
D) "think locally, act globally."
E) none of the above
Answer: B
55) A company that engages in global marketing:

A) pursues a "one size fits all" strategy by creating identical products for homogeneous markets.
B) customizes special products for each world country or region.
C) creates both standardized and localized products.
D) nurtures an ethnocentric management orientation.
E) uses localized products only.
Answer: C
56) Examples of companies that have successfully pursued global marketing by creating strong
global brands include:
A) Italy's Benetton using a sophisticated distribution system.
B) Marlboro identifying the brand name with a cowboy.
C) Gillette using the same packaging for Mach3 razor worldwide.
D) A and C
E) all of the above
Answer: E
12
57) McDonald's serves McAloo Tikki Burger in India; McRice Burger in Malaysia; McOZ
Burger in Australia; Kiwi Burger in New Zealand; and McHuevo Burger in Uruguay and
McSamurai Burger in Thailand. These menu variations are examples of:
A) a combination of global and local marketing mix elements.
B) a reflection of failure of US menu items in those countries.
C) a deviation from successful marketing practices.
D) a replacement of standard menu names with fancy names.
E) a selection of menu items that can be sold eventually in U.S. markets.
Answer: A
58) Which of the following correctly states McDonald's approach to standardization and
adaptation of the marketing mix?
A) McDonald's standardizes some product elements and adapts others.
B) McDonald's standardizes some place elements and adapts others.
C) McDonald's standardizes some promotion elements and adapts others.
D) McDonald's standardizes some price elements and adapts others.
E) all of the above
Answer: E
59) As of 2007 Gap operated 2,692 stores in the United States and more than 450 stores
internationally. The company sources most of its clothing from apparel factories in Honduras,
the Philippines, India, and other low-wage countries. If Gap would like to open more stores in
Japan, primary consideration should include:
A) industry conditions.
B) sources of competitive advantage.
C) the condition of the apparel market worldwide.
D) demand in Japan for U.S. style garments.
E) all of the above
Answer: E
60) Measured by national income, the United States represents the world's largest single market
for goods and services. Roughly what percentage of world income is found outside the U.S.?
A) 25%
B) 50%
C) 75%
D) 95%
E) 35%
Answer: C
13
61) Measured by national income, Japan represents the world's second largest single market for
goods and services. What percentage of world income is found outside Japan?
A) 40%
B) 55%
C) 70%
D) 85%
E) 75%
Answer: D
62) According to the Fortune global 500 companies for 2008, the largest corporation based on
revenue is:
A) Exxon Mobil.
B) Toyota Motors.
C) Wal-Mart Stores.
D) General Electric.
E) Citigroup.
Answer: C
63) Based on 2008 rankings of Fortune Global 500 companies, the world's most valuable car
company today is:
A) GM.
B) Daimler AG.
C) Toyota.
D) Ford.
E) Chrysler.
Answer: C
64) The highest-ranked German company in the 2008 Fortune Global 500 survey was:
A) Daimler.
B) Allianz.
C) Volkswagen.
D) Siemens.
Answer: A
14
65) Based on the size of the market in U.S. dollars the leading consumer products are:
A) cell phones.
B) bottled water.
C) cigarettes.
D) video games.
E) recorded music.
Answer: C
66) Based on the total annual units sold in the worldwide market, the leading product category is:
A) flat-panel TV sets.
B) cigarettes.
C) cell phone handsets.
D) cars and light trucks.
E) HDTV sets.
Answer: B
67) A person who assumes that his or her home country is superior to the rest of the world is said
to have:
A) ethnocentric orientation.
B) polycentric orientation.
C) regiocentric orientation.
D) geocentric orientation.
E) no correct answer
Answer: A
68) The cell phone divisions of Toshiba, Sharp, and other Japanese companies prospered by
focusing on the domestic market. When handset sales in Japan slowed a few years ago, the
Japanese companies realized that Nokia, Motorola, and Samsung already dominated key world
markets. Atsutoshi Nishida, president of Toshiba, noted, "We were thinking only about Japan.
We really missed our chance." This example illustrates:
A) geocentric orientation.
B) regiocentric orientation.
C) polycentric orientation.
D) ethnocentric orientation.
E) poor globalization orientation.
Answer: D
15
69) Unilever, the Anglo-Dutch consumer products company, at one time had 30 different
package designs and 48 different formulations for its Rexona deodorant brand. This is an
example of:
A) ethnocentric orientation.
B) polycentric orientation.
C) regiocentric orientation.
D) geocentric orientation.
E) transnational orientation.
Answer: B
70) Transnational companies, such as Toyota and Honda, have characteristic features that
include:
A) being in both global markets and utilizes global supply chains.
B) characterized by a mind-set of being "stateless."
C) using both localized and standardized elements in marketing programs.
D) decisions made on the basis of ongoing research.
E) all of the above
Answer: E
71) Nestlé, Unilever, GlaxoSmithKline, and Royal Philips Electronics can be considered
transnational companies on the basis of:
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
Answer: E
72) A number of multilateral trade agreements have accelerated the pace of global integration
which include:
A) NAFTA.
B) GATT.
C) WTO.
D) EU.
E) all of the above
Answer: E
16
73) 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.
Answer: C
74) In a recent book, Daniel Yergin and Joseph Stanislaw wrote "It is the greatest sale in the
history of the world. Governments are getting out of businesses by disposing of what amounts to
trillions of dollars of assets. Everything is going from steel plants and phone companies …. to
hotels, restaurants, and nightclubs." This is an indication of:
A) the fact that governments can make more money by selling assets.
B) privatization is becoming a driving force for global marketing.
C) these businesses are considered as closed markets.
D) foreign companies are competing with governments.
E) there is less demand for these type of companies.
Answer: B
75) When a country like China is experiencing rapid economic growth, policymakers are likely
to:
A) look more favorably on outsiders.
B) look less favorably on outsiders.
C) experience more resistance toward outsiders.
D) feel threatened by outsiders.
Answer: A
17
76) H.F. Iskander, general manager of Chevron's Kuwait office stated "Chevron is pumping oil
in different locations all over the world … there isn't a rock we haven't drilled through. We
centralize all that knowledge at our headquarters, analyze it, sort it out, and that enables us to
solve any oil-drilling problem anywhere." From the global marketing point of view this is an
example of a global company:
A) that is hungry to exploit natural resources.
B) that is trying to be first to explore oil.
C) that it is trying to solve world problems.
D) that gains leverage through experience transfers.
E) that it does not have easy access to information.
Answer: D
77) Japan's giant Matsushita Electric Company achieved scale economies by exporting VCRs,
televisions, and other consumer electronics products throughout the world from world-scale
factories in Japan. This is an example of the fact that:
A) scale economies were a cornerstone of Japanese success in the 1970's and 1980's.
B) leverage from scale economies in not limited to manufacturing.
C) a global company can achieve the same economies on a global scale.
D) the larger scale of the global company also creates opportunities to improve corporate staff
competence and quality.
E) all of the above
Answer: E
78) Despite the impact of the driving forces, several restraining forces may slow a company's
efforts to engage in global marketing. These restraining forces may include all of the following
except:
A) management myopia.
B) national controls.
C) opposition to globalization.
D) newcomers from emerging markets.
E) organizational culture.
Answer: D
18
79) In the United States, some people believe that globalization has depressed the wages of
American workers and resulted in the loss of both blue-collar and white-collar jobs. This is an
example of:
A) discrimination.
B) domination.
C) globaphobia.
D) management myopia.
E) economic crisis.
Answer: C
80) McDonald's restaurants are found in more than 118 countries. To ensure high levels of
consistency and quality, the company's far-flung restaurant system incorporates many
standardized elements (e.g. restaurant design, burgers/fries/soft drinks as basic menu offerings).
However, McDonald's also prides itself on sourcing many of its food inputs (e.g. potatoes and
dairy products) in individual host countries. McDonald's strives to be locally responsive it
creates new menu items specifically designed with local eating customs and preferences in mind.
Typically, McDonald's forms joint ventures with local partners, a tactic that ensures that a local
"face" is associated with the company. Finally, McDonald's has been in many country markets
long enough that a new generation of consumers has grown up with McDonald's and are not
aware of the company's U.S. origins. On the basis of this summary, what is the highest stage of
corporate development that McDonald's arguably has achieved:
A) international
B) multinational
C) global
D) transnational
E) myopic
Answer: D
Diff: 3 Page Ref: 33-36
19
Global Marketing, 6e (Keegan/Green)

Chapter 2 The Global Economic Environment
1) The global economic crisis vividly illustrates the dynamic, integrated nature of today's
economic environment.
Answer: TRUE
2) Cars with European nameplates such as Peugeot, Volvo, Renault, and Citroen were originally
designed as local cars mostly destined for local or regional markets.
Answer: TRUE
3) During the past two decades the volume of capital movements has decreased.
Answer: FALSE
4) Global capital movements far exceed the dollar volume of global trade in goods and services.
Answer: TRUE
5) Gross domestic product (GDP), a measure of a nation's economic activity, is calculated by

adding consumer spending (C), investment spending (I), government purchases (G), and net
exports (NX).
Answer: TRUE
6) Russia is so dependent on revenues from the fuel and energy sectors that some feared the
major decline in world oil prices that began in 2008 would have a destabilizing effect.
Answer: TRUE
7) The economic success of Germany and Japan is due to the fact that their company executives
and national leaders recognized the emergence of the world economy as the dominant economic
unit and therefore focused on world markets and their respective competitive positions in the
world economy.
Answer: TRUE
20
‫‪21‬‬
8) The personal computer revolution and the advent of the Internet era have increased the
importance of national boundaries.
Answer: FALSE
9) Due to globalization it is easier to categorize economic systems within the confines of a four-
cell matrix.
Answer: FALSE
10) Today, market capitalism is widely practiced around the world, most notably in North
America and the European Union.
Answer: TRUE
11) In centrally planned socialism economic systems the state allocates resources, whereas
production resources are privately owned.
Answer: FALSE
12) In centrally planned socialism economic systems, since demand typically exceeds supply, the
elements of the marketing mix are not used as strategic variables.
Answer: TRUE
13) In Sweden, where the government controls two-thirds of all expenditures, resource allocation
is more "market" oriented than "command" oriented.
Answer: FALSE
14) Market reforms and nascent capitalism in many parts of the world are creating opportunities
for large-scale investments by global companies.
Answer: FALSE
15) According to the Index of Economic Freedom compiled by the Heritage Foundation, Hong
Kong is ranked as having the highest degree of economic freedom.
Answer: TRUE
22
16) As per the listings of the Index of Economic Freedom by the Heritage Foundation, there is a
high correlation between the degree of economic freedom and the extent to which a nation's
mixed economy is heavily market-oriented.
Answer: TRUE
17) The World Bank has developed a four-category classification system for stages of marketing
development which uses GDP as a base.
Answer: FALSE
18) The World Bank has developed a four-category classification system for stages of marketing
development which uses per capita gross national income (GNI) as a base.
Answer: TRUE
19) About 40 percent of the world population is included into the low-income economic category
as per the World Bank classification system.
Answer: TRUE
20) Although Bangladesh is categorized in the low-income countries they have genuine market
opportunities, particularly in the garment industry.
Answer: TRUE
21) The United Nations designates 50 countries in the bottom ranks of the low-income category
as least-developed countries (LDCs); the term is sometimes used to indicate a contrast with
developing countries and developed countries.
Answer: TRUE
22) Upper-middle-income countries, also known as industrializing or developing countries, are

those that achieve the highest rates of economic growth and are also collectively referred to as
Newly Incoming Economies or NIEs.
Answer: FALSE
23
23) Today, Nike produces and sells only a small portion of its output in China, but when the firm
refers to China as a "two-billion-foot market," it clearly has the future in mind.
Answer: TRUE
24) According to C.K. Prahalad and A. Hammond the poor often pay higher prices for many
goods, and so there is an opportunity for efficient competitors to realize attractive margins by
offering quality and low prices.
Answer: TRUE
25) The Coca-Cola Company recently began to address dietary and health needs in low-income
countries by developing Vitango, a beverage product that can help fight anemia, blindness, and
other ailments related to malnutrition.
Answer: TRUE
26) Global companies can also contribute to economic development by finding creative ways to
preserve old-growth forests and other resources while creating economic opportunities for local
inhabitants.
Answer: TRUE
27) With the exception of a few oil-rich nations, the countries in the high-income category
reached their present income level through a process of sustained economic growth.
Answer: TRUE
28) A distinction between industrial and postindustrial countries is that the postindustrial
countries exhibit an orientation toward the future and stress the importance of interpersonal
relationships in the functioning of society.
Answer: TRUE
29) The thirty nations that belong to the OECD, that believe in market-allocation economic
systems and pluralistic democracy, addressed the vexing problem of bribery by requiring
members to cooperate when pursuing bribery allegations.
Answer: TRUE
24
30) In countries with low per capita income, product saturation levels for many products are
high.
Answer: FALSE
31) Both the G8 and the OECD are comprised of high-income countries and are referred to as a
"rich-man's club."
Answer: FALSE
32) As policymakers around the globe tried to respond to the financial crisis of 2008, some
looked to Mexico's Tequila Crisis for answers.
Answer: FALSE
33) A country with a positive current account balance has a trade deficit; that is, the outflow of
money to pay for imports exceeds the inflow of money for sales of exports.
Answer: FALSE
34) The United States regularly posts deficits in both the current account and the trade balance in
goods.
Answer: TRUE
35) China offsets its trade surpluses with an outflow of capital, while technology United States
offsets its trade deficit with an inflow of capital.
Answer: TRUE
36) The U.S. services surplus can be attributed to services provided by companies such as
Disney, IBM, and Microsoft.
Answer: TRUE
37) The foreign exchange market consists literally of a buyer's and a seller's market where
currencies are traded for both spot and future delivery on a continuous basis. The forward market
is for immediate delivery and the spot market is for future delivery.
Answer: FALSE
25
38) A country's currency would be overvalued if the Big Mac price (converted to dollars) is
higher than the U.S. price.
Answer: TRUE
39) Hedging exchange rate exposure involves establishing an offsetting currency position such
that the loss or gain of one currency position is offset by a corresponding gain or loss in some
other currency.
Answer: TRUE
40) A call option in foreign currency gives the buyer the right, not the obligation, to sell a
specified number of foreign currency units at a fixed price, up to the option's expiration date.
Answer: FALSE
41) 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.
Answer: D
42) That Russia is being transformed by economic change can be witnessed in all of the
following observations except:
A) affluent Russians can shop at boutiques that offer Versace.
B) per capita gross national income in Russia is only $ 5770.
C) the banking system in Russia is robust.
D) Russian shoppers spend an estimated $ 4 billion each year on luxury goods.
E) Russian government lifted all currency controls.
Answer: C
26
43) Market Capitalism is an economic system in which:
A) individuals and firms allocate resources and production resources that are privately owned.
B) the state has broad powers to serve the public interest as it sees fit.
C) market resource allocation is commanded by both private and state ownership.
D) there is no correlation between economic freedom and a nation's economy.
Answer: A
Diff: 1 Page Ref: 43- 45
44) 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.
Answer: C
45) The Swedish government has significant holdings in key business sectors and has a hybrid
economic system that incorporate:
A) market capitalism and centrally planned socialism.
B) centrally planned socialism and market socialism.
C) centrally planned socialism and capitalism.
D) market socialism and market capitalism.
E) market capitalism and socialistic capitalism.
Answer: C
46) Coca-Cola returned to India in 1994 after two decades of being forced out of the government
because:
A) Coca-Cola decided to reveal its formula to the government.
B) Coke was not very popular in earlier days.
C) a new law allowing 100 percent foreign ownership was passed.
D) the water supply was not consistent in earlier years.
E) installation of a bottling plant required special permits.
Answer: C
27
47) China predominantly follows an economic system that can be classified under:
A) centrally planned socialism.
B) market socialism.
C) market capitalism.
D) centrally planned capitalism.
E) socialistic capitalism.
Answer: A
48) Which of the following is true about economic output in China today?
A) The state sector accounts for about 70 percent of output.
B) The state and private sectors each account for about 50 percent of output.
C) The private sector accounts for about 70 percent of output.
D) The private sector is virtually nonexistent in China.
E) The state sector is virtually nonexistent in China.
Answer: C
49) The Washington, DC-based Heritage Foundation compiles a survey of over 150 countries
ranked by degree of economic freedom. Although there are a number of key economic variables
which are considered in this ranking it does not include:
A) monetary policy.
B) banking policy.
C) black market.
D) property rights.
Answer: E
50) According to analysis by the Heritage Foundation, which of the following countries ranks
number one in the world in terms of economic freedom?
A) Hong Kong
B) Singapore
C) Ireland
D) Denmark
E) Australia
Answer: A
28
51) Singapore banned the import, manufacture, and sales of chewing gum in the country since
wads of gum were making a mess on sidewalks, buses, and subway trains. Violators are subject
to severe penalties and before buying a pack consumers must register their names and addresses.
This, according to author William Greider, demonstrates that Singapore's government:
A) is harshly autocratic.
B) administers a paranoid control over Singaporeans.
C) administers a paranoid control over press and politics.
D) runs an effective welfare state.
E) all of the above
Answer: E
52) About 40 percent of the world's population is included into the following economic category:
A) high-income countries.
B) upper-middle-income countries.
C) lower-middle-income countries.
D) low-income countries.
E) lower-upper income countries.
Answer: D
53) Upper-middle-income countries, also known as industrializing or developing countries, are

those with GNI per capita ranging from:
A) $ 936 to $ 3,705
B) $ 3,706 to $ 11,455
C) $ 11,456 or higher
D) less than $ 936
Answer: B
54) According to the earlier classification of the BEM (big emerging markets) the
country/countries included were:
A) Indonesia.
B) Argentina.
C) South Africa.
D) Poland.
E) all of the above
Answer: E
29
55) The general characteristics shared by low-income countries does not include:
A) high birth rates.
B) low literacy rates.
C) concentration in Africa south of the Sahara.
D) heavy reliance on foreign aid.
E) lack of genuine market opportunities.
Answer: E
56) Global marketers should take note of the fact that almost half of the world's population is
located in:
A) low-income countries.
B) lower-middle income countries.
C) upper-middle income countries.
D) high-income countries.
E) higher-middle income countries.
Answer: A
57) Upper-middle-income countries that achieve the highest rates of economic growth are
sometimes referred to collectively as:
A) LDCs.
B) BEMs.
C) BRICs.
D) NIEs.
E) BOPs.
Answer: D
58) Which of the following nations fall in the lower-middle-income category?

A) Burundi
B) Bangladesh
C) China
D) Venezula
Answer: C
30
59) According to the authors of the Harvard Business Review article, "Serving the World's Poor,
Profitably", which of the following is a mistaken assumption that global companies might have
about the BOP (bottom of the pyramid)?
A) The poor have no money.
B) The poor are too concerned with fulfilling basic needs to "waste" money on nonessential
goods.
C) People in BOP markets will be criticized for exploiting the poor.
D) People in BOP markets cannot use advanced technology.
E) all of the above are mistaken assumptions discussed by the authors
Answer: E
Diff: 2 Page Ref: 51- 52
60) Pursuing alternative sources of energy, such as wind and solar power, is important due to the
fact that:
A) people in developing countries are more conscious about the environment.
B) global marketers are more interested in publicizing environmental issues.
C) it is easy to develop solar power in many parts of the world.
D) heavy reliance on fossil fuels contributes to global warming.
E) people worldwide can afford to buy power generated from wind and solar.
Answer: D
61) Which two companies are sourcing product components from small-scale enterprises, which
in turn are helping preserve old-growth forests as well as economic opportunities in Brazil?
A) Ford Motor Company and Armani
B) DaimlerAG and Hermes
C) General Motors and Hugo Boss
D) Volkswagen and Coach
E) Coca-cola and Nestlé
Answer: B
62) 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) Nestlé 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.
Answer: C
31
63) Which country is the only country classified as an emerging market among the high-income
countries by influential stock market indexes?
A) United States
B) South Korea
C) Britain
D) Italy
E) Malaysia
Answer: B
64) When the world's leaders meet to discuss policy issues, non-governmental organizations
(NGOs):
A) are included in meetings.
B) often take advantage of the opportunity to make their voices heard.
C) sign final documents.
D) provide educational materials.
E) are excluded from meetings.
Answer: B
65) The term tiger has frequently been used to describe:

A) market socialism.
B) less reliance on foreign aid.
C) upper-middle-income countries.
D) postindustrial countries.
E) fast-growing economies in Asia.
Answer: E
66) The term "tiger" has frequently been used to describe fast-growing economies in Asia which
does not include:
A) South Korea.
B) India.
C) Taiwan.
D) Singapore.
E) Hong Kong.
Answer: B
32
67) Recently, the Organization for Economic Cooperation and Development (OECD) has
become more focused on global issues as seen by:
A) addressing the vexing problem of bribery.
B) requiring members to cooperate when pursuing bribery allegations.
C) helping members candidly assess their own economic policies.
D) member nations working together in committees to review social policies.
E) all of the above
Answer: E
68) The Organization for Economic Cooperation and Development (OECD) is comprised of:
A) the 30 high-income countries.
B) countries that believe in market-allocation economic systems.
C) pluralistic democracies.
D) countries that demonstrate progress toward economic reform.
E) All of the above statements are applicable.
Answer: E
69) 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.
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.
Answer: B
70) India's teledensity a measure of ownership of private telephones — is only about 20

percent of the population is indicative of:
A) low product saturation level.
B) high product saturation level.
C) triad power.
D) high technological level.
E) low technological level.
Answer: A
33
71) The United States' growing trade deficit reflects a number of factors which exclude:
A) increased imports from China.
B) a seemingly insatiable consumer demand for imported goods.
C) the enormous cost of military operations in the Middle East.
D) the services trade surplus.
E) record goods sales to developing countries.
Answer: D
72) The fastest-growing sector of world trade includes:

A) travel and entertainment.
B) accounting and legal services.
C) royalties and license fees.
D) engineering services.
E) all of the above
Answer: E
73) Between the year 2001 and 2006, China bought more than $ 250 billion in U.S. Treasury
bonds. Such purchases:
A) ensures that China's currency is relatively weak compared to the U.S. dollar.
B) indicate that China is not sure of its economic viability.
C) show that currency exchange rate is unpredictable.
D) predict that yuan will be devalued in the near future.
E) indicate that China's currency is stronger than the U.S. dollar.
Answer: A
74) As a repercussion set by the devaluation of Chinese yuan in 1994, the following action was
noted:
A) the yuan became stronger than the U.S. dollar.
B) a stage was set for the devaluation of the Thai baht.
C) the demand for Indonesian rupiah increased considerably.
D) Malaysian ringgit became very competitive.
E) India rupees were devalued.
Answer: B
34
75) 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.
Answer: A
76) The Big Mac Index dated May 01, 2009 shows that the price of Big Mac in China converted
from the local currency, yuan, to be $ 1.83; whereas its price in the United States was $ 3.54.
This shows that:
A) Big Mac is more popular in China than in the United States.
B) Big Mac is less expensive in the United States than in China.
C) Chinese yuan is overvalued when compared to US $.
D) Chinese yuan is undervalued against the US $.
E) beef is less expensive in China than in the United States.
Answer: D
77) One Friday a few years ago, the Big Mac Index suggested that the yen was overvalued
relative to the dollar by 70%. When currency markets opened on the following Monday, anyone
using the Big Mac Index would conclude that yen was only 20% overvalued relative to the
dollar. What is the most likely explanation for this?
A) Japan's Central Bank acted to prop up the yen.
B) Inflation in Japan suddenly spiked upward.
C) McDonald's headquarters stopped hedging.
D) McDonald's Japan reduced the yen price of a Big Mac.
E) McDonald's Japan increased the yen price of a Big Mac.
Answer: D
78) 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.
Answer: B
35
79) Porsche relies on currency hedging rather than price increases in order to:
A) boost pretax profits on sales of its automobiles.
B) balance the relative value of the dollar compared to the euro.
C) protect all earnings from foreign-exchange movements.
D) generate about 45% of its sales in the United States.
E) A, B & C
Answer: E
80) The ripple effect from the global recession was felt strongly in:
A) China.
B) Japan.
C) Canada.
D) Russia.
E) India.
Answer: C
81) The world economic environment is changing very rapidly and has become increasingly
competitive. In order to achieve success, based on author William Greider's analysis, what are
the realities that executives and marketers should take into account in such a dynamic
environment?
Answer: (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; individual country economies play a subordinate role; (d) the struggle between capitalism
and socialism is largely over; and (e) the growth of e-commerce diminishes the importance of
national barriers and forces companies to reevaluate their business models.
82) Traditionally economists identified four main types of economic systems. However, due to
globalization it is harder to categorize the systems narrowly. What will be more robust
descriptive criteria that can be used for classification?
Answer: (a) type of economy; (b) type of government; (c) trade and capital flows; (d) the
commanding heights; (e) services provided by the state and funded through taxes; (f) institutions;
and (g) markets.
36
Global Marketing, 6e (Keegan/Green)

Chapter 3 Regional Market Characteristics and Preferential Trade Agreements
1) The Free Trade Agreement deal between the United States and South Korea, one of the
world's largest bilateral agreements, will reduce tariffs on about 90 percent of product categories.
Answer: TRUE
2) GATT (General Agreement on Tariffs and Trade) itself had no enforcement power and the
losing party in a dispute was entitled to ignore the ruling.
Answer: TRUE
3) Since GATT did not have enforcement power and the process of dealing with disputes
sometimes stretched on for years, some critics referred to it as General Agreement to Talk and
Talk.
Answer: TRUE
4) At the WTO, a Dispute Settlement Body (DSB) handles disagreements between countries.
Answer: TRUE
5) It remains to be seen whether the WTO will live up to expectations when it comes to
additional major policy initiatives on such vexing issues as foreign investment and agricultural
subsidies.
Answer: TRUE
6) A preferential trade agreement is a mechanism that confirms special treatment on select

trading partners, thereby at times discriminating against other trading partners.
Answer: TRUE
7) The ultimate goal of a free trade agreement is to have zero duties on goods that cross borders
between the partners.
Answer: TRUE
37
8) A free trade area represents the most fully developed form of preferential trade agreement
among nations.
Answer: FALSE
9) About 50 percent of global trade takes place among nations linked by Free Trade Areas.
Answer: TRUE
10) The Group of Three (G3) is a Free Trade Area encompassing Brazil, Mexico, and Venezuela.
Answer: FALSE
11) A Customs Union represents the most fully developed form of preferential trade agreement
among nations.
Answer: FALSE
12) Despite the fact that 16 member nations ratified a proposed European Constitution, the
initiative was derailed after voters in France and the Netherlands voted against the measure.
Answer: TRUE
13) In a Common Market there are no internal barriers to trade and it allows for free movement
of factors of production such as labor and capital.
Answer: TRUE
14) Under Economic Union a doctor or lawyer qualified in one country can practice in another
member country.
Answer: TRUE
15) As a result of CFTA, Canada takes 20 percent of U.S. exports and the United States buys
approximately 85 percent of Canada's exports.
Answer: TRUE
38
16) In spite of NAFTA creating a free trade area, Mexican avocado growers can only ship their
fruit to the United States during the winter months, and only to states in the northeast subject to a
quota of $ 30 million worth of avocados per year.
Answer: TRUE
17) In spite of NAFTA, Canadians fear that their own national industries will not be able to
survive the global juggernaut originating south of the border and are concerned about their
cultural preservation.
Answer: TRUE
18) NAFTA ensures that any product for sale in the U.S., Mexico, and Canada bearing a
certificate of origin qualifies for tariff reduction.
Answer: FALSE
19) El Salvador, Honduras, Guatemala, Nicaragua, Costa Rica, and Panama are all members of
the Central American Integration System.
Answer: TRUE
20) Implementation of the Central American Free Trade Agreement with the United States
created a free trade area known as DR-CAFTA.
Answer: TRUE
21) Despite trade agreements, attempts to achieve integration in Central America have been
described as uncoordinated, inefficient, and costly. There are still tariffs on imports of sugar,
coffee, and alcoholic beverages.
Answer: TRUE
22) In the year 2000, in an attempt to bring rampant inflation under control, Ecuador adopted the
U.S. dollar as its official currency.
Answer: TRUE
23) After President Hugo Chavez declared Venezuela to adapt socialism, there are no U.S. firms
operating in that country.
Answer: FALSE
39
24) Mercosur or the Common Market of the South resulted from a treaty signed by four
countries: Argentina, Brazil, Paraguay, and Venezuela.
Answer: FALSE
25) The currency devaluation made Argentina's wine industry a major player in the world
market..
Answer: TRUE
26) Chile decided to become only an associate member of Mercosur since full membership
would have required raising external tariffs.
Answer: TRUE
27) CARICOM's main objective has been to achieve a deepening of economic integration by
means of a Caribbean common market.
Answer: TRUE
28) Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand were the original six
members of the Association of Southeast Asian Nations (ASEAN).
Answer: TRUE
29) Singapore has more engineers per capita than the United States.
Answer: TRUE
30) Singapore's standard of living is second highest in the region as well as its seaport is the
world's second largest container port.
Answer: TRUE
31) ASEAN's goal is to strengthen intra-regional trade relationships so members do not have to
trade with China.
Answer: FALSE
40
32) Japan has changed from being a closed market to one that is a tough market. Marketers have
to master the 'kei retsu' system of tightly knit corporate alliances.
Answer: TRUE
33) The objective of the EU member countries is to harmonize national laws and regulations so
that goods, services, people, and eventually money can flow freely across national boundaries.
Answer: TRUE
34) The adoption of a single currency euro helps countries in the euro zone by eliminating costs
associated with currency conversion and exchange rate uncertainty.
Answer: TRUE
35) Slovakia became a member of Euro Zone on January 01, 2009 because the government has
kept inflation low and the budget deficit below 3 percent of GDP.
Answer: TRUE
36) As a result of the formation of EU, record companies like Sony, Warner and EMI are forced
to adopt more uniform pricing policies across Europe.
Answer: TRUE
37) Markets in Central and Eastern Europe are not eager to embrace well-known global brands
such as McDonald's, 3M International, and Philips Electronics.
Answer: FALSE
38) The Gulf Cooperation Council or GCC countries in Middle East hold about 45 percent of the
world's known oil reserves.
Answer: TRUE
39) The ultimate goal of SADC (Southern African Development Community) is to fully develop
a customs union and a common currency.
Answer: FALSE
41
40) Dubai World, a state-owned company, is negotiating a deal in Nigeria's energy sector that
could be valued at several billion dollars.
Answer: TRUE
Diff: 2 Page Ref: pp. 101-102
41) Open markets are one way that globalization has led to economic integration. The United
States and South Korea recently completed negotiations on the world's largest bilateral trade
agreement. The deal will result in:
A) a trade conference to be held once every year.
B) increase in tariffs for all product categories.
C) a series of multilateral trade negotiations among neighboring countries.
D) increase in trade gap between South Korea and the United States.
E) reduction of tariffs on about 90 percent of product categories.
Answer: E
42) 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.
Answer: B
43) 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
Answer: D
42
44) Arrange the following in order from lowest to highest level of economic integration.
A) customs union→economic union→free trade area→common market
B) economic union→customs union→common market→free trade area
C) common market→free trade area→economic union→customs union
D) free trade area→customs union→common market→economic union
E) common market→economic union→customs union→free trade area
Answer: D
45) 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) free trade area
B) economic union
C) customs union
D) free trade area
E) common market
Answer: C
46) As a result of CFTA the U.S. automakers participate in the Canadian auto market, thereby
benefiting due to:
A) greater economies of scale.
B) decreased production costs.
C) reduced competition.
D) ease of exporting automobiles.
E) creating a continental demand.
Answer: A
47) 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-à-vis third
countries is known as a(n) ________ :
A) economic union
B) customs union
C) free trade area
D) common market
Answer: C
43
48) A new bilateral agreement between the European Union and Turkey will eliminate internal
trade barriers and establish common external tariffs. This arrangement is a(n):
A) free trade area.
B) customs union.
C) common market.
D) economic union.
Answer: B
49) Agricultural subsidies and quotas that developed outside the multilateral framework under
GATT remained a divisive issue because:
A) affluent countries protect and subsidize farm production.
B) home-market consumers pay lower prices.
C) surplus agricultural output is sold abroad at high prices.
D) agricultural land became scarce in some countries.
E) American farmers did not participate in export.
Answer: A
50) NAFTA creates a free trade area, as opposed to a customs union or a common market, due to
the fact that:
A) the agreement does not leave the door open for discretionary protectionism.
B) the governments of all three nations decided to eliminate tariffs.
C) the issue of illegal immigration from Mexico to the United States is resolved.
D) restrictions are imposed on the use of goods, services, and investments.
E) restrictions are imposed on labor movements among members.
Answer: B
51) The most important preferential trading arrangements in Latin America do not include:
A) SICA.
B) the Andean Community.
C) CARICOM.
D) Mercosur.
E) BRIC.
Answer: E
44
52) The United States and Canada are bound together by many things, including a trade
agreement, a shared border, and a common language. However, from the cultural point of view,
many Canadians are worried of certain trade-related issues such as:
A) statistics indicating that 95 percent of the movies shown in theaters are not Canadian.
B) statistics indicating that 84 percent of the recorded music that Canadians buy is foreign.
C) Canadians fear that their own industries will not be able to survive the global juggernaut
originating south of the border.
D) foreign ownership of the book publishing business.
E) all of the above
Answer: E
53) Which member of the Central American Integration System has both the largest economy
and the largest population?
A) El Salvador
B) Honduras
C) Guatemala
D) Nicaragua
E) Costa Rica
Answer: C
54) 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.
Answer: D
55) As a result of America's failure to follow through on its promises in the Latin American
region, Mercosur, CARICOM, SICA, and the Andean Community intend to pursue further
integration among themselves as well as with:
A) Russia.
B) China.
C) Europe.
D) Asia.
E) Australia.
Answer: C
45
56) Which of the Andean Community members adopted the U.S. dollar as official currency?
A) Bolivia
B) Ecuador
C) Colombia
D) Peru
E) Venezuela
Answer: B
57) Argentina provides a good example of how a country can emerge from an economic crisis as
a stronger global competitor. An example of emergency measures implemented by Argentina
include:
A) Argentina reduced the duties on consumer goods.
B) Argentina devalued its currency for exports and capital transactions.
C) Argentina added tariffs on imported wines.
D) Argentina adapted U.S. dollar as official currency.
E) Argentina added tariffs on wine produced within the country.
Answer: B
58) "ASEAN plus three" refers to the expanded roster of members which include:
A) all ASEAN members and Australia, New Zealand, and India.
B) all ASEAN members and Canada, Japan, and India.
C) all ASEAN members and Japan, China, and Korea.
D) all ASEAN members and India, Bangladesh, and Pakistan.
E) all ASEAN members and Australia, Korea, and China.
Answer: C
59) There are barriers in Japan for global marketers in terms of attitudes as well as laws. Barriers
include all of the following except:
A) any organization wishing to compete in Japan must be committed to providing top-quality
products and services.
B) repeat visits and extended socialization with distributors.
C) goods marketed should have a semblance of western products and services.
D) marketers must master the keiretsu system of tightly knit corporate alliances.
E) trust has to be built before conducting successful business.
Answer: C
AACSB: Multicultural and Diversity
46
60) The business environment in Europe has undergone considerable transformation with
significant implications for all elements of the marketing mix, which includes all of the
following except:
A) harmonization in product standards, testing and certification process.
B) creating a more competitive environment.
C) direct comparability of prices in the Euro zone.
D) transshipment of products are not permitted.
E) common guidelines on TV broadcasting.
Answer: D
61) Markets of Central and Eastern Europe present interesting opportunities and challenge.
Companies such as 3M International, McDonald's, Philips Electronics, and Henkel are moving
into the region for all of the following reasons except:
A) the region is an important new source of growth.
B) that the first company to penetrate a country market often emerges as leader.
C) wage rates are much lower than those in Spain, Portugal, and Greece.
D) the region offers attractive locations for low-cost manufacturing.
E) core products and Western brand names need changes to meet consumer demands.
Answer: E
62) Which of the following ASEAN countries ranks number one in terms of two-way trade with
the United States?
A) Brunei
B) Malaysia
C) Singapore
D) Thailand
E) Vietnam
Answer: C
63) The new country that joined EU on January 01, 2009 is:
A) Romania.
B) Slovakia.
C) Bulgaria.
D) Slovenia.
E) Cyprus.
Answer: B
47
64) Which of the following is not a member of the European Union?
A) Sweden
B) Austria
C) Switzerland
D) Italy
E) Greece
Answer: C
65) The Maastricht Treaty called for:

A) the creation of an Asia Free Trade Area (AFTA).
B) the creation of an economic and monetary union (EMU) 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).
Answer: B
66) The introduction of Euro by EU resulted in multifaceted advantages which include:

A) elimination of costs associated with currency conversion.
B) fixed exchange rate worldwide.
C) elimination of paper currency and coins.
D) withdrawal of French Francs from circulation.
E) a choice for using local or European currency.
Answer: A
67) Management strategic options pertaining to products that are facilitated by a single European
market include:
A) standardized packaging and labeling.
B) consolidate production.
C) shift from brand to benefit segmentation.
D) seek marketing economies.
E) all of the above
Answer: E
68) The practice of transshipment under the single European market helped the music industry
by:
A) helping online downloading of music by customers.
B) allowing music retailers in Europe to buy CDs from a single distributor.
C) forcing major record companies to adopt uniform pricing policies across Europe.
D) allowing record companies to decide on price based on cost in each country.
E) letting record companies to maintain their own distribution system.
Answer: C
48
69) The enlargement of the EU has impacted marketing strategies in the Euro zone countries by:
A) making it difficult to export food products from one country to another.
B) increasing the cost of production since Euro replaced local currency.
C) shifting products from one market to another in the event of shortages.
D) reduced tariffs and quotas for products imported from non-EU members.
E) having less flexibility in the placement of factories.
Answer: C
70) The markets of Central and Eastern Europe present interesting opportunities and offer
attractive locations for low-cost manufacturing due to:
A) their location being close to sea.
B) the cultural similarities.
C) wage rates being lower than in Spain, Portugal and Greece.
D) strict laws and regulations.
E) prohibitive tariffs and export restrictions.
Answer: C
71) The country in the middle east which ranks highest in terms of freedom is:
A) Kuwait.
B) Saudi Arabia.
C) Bahrain.
D) Iraq.
E) Oman.
Answer: C
72) Political and social instability in the Middle Eastern region can primarily be attributed to:
A) desert conditions and lack of agricultural land.
B) cultural differences among nations.
C) a wide gap between rich and poor nations due to oil revenues.
D) lack of water purification facilities.
E) absence of Western corporations.
Answer: C
49
73) The member of the Gulf Cooperation Council (GCC) with the largest economy and
population size is:
A) Bahrain.
B) Kuwait.
C) Oman.
D) Qatar.
E) Saudi Arabia.
Answer: E
74) In spite of having about 45% of the world's known oil reserves, Saudi Arabia and other
Middle Eastern countries post current-account deficits, largely because:
A) of poor accounting practices.
B) of vast economic diversification.
C) they must import most of the goods and services.
D) most of the oil is exported.
E) new businesses are being developed.
Answer: C
75) The Middle East and North Africa are sometimes viewed as a regional entity referred to as:
A) GCC.
B) AMU.
C) MENA.
D) ACC.
E) ECOWAS.
Answer: C
76) In recent years, the economy of selected countries in ECOWAS has improved except in:
A) Ivory Coast.
B) Ghana.
C) Benin.
D) Sierra Leone.
E) Nigeria.
Answer: D
50
77) In order to form a free trade area, South Africa has been in discussion with:
A) Swaziland.
B) EU.
C) Namibia.
D) Angola.
E) Japan.
Answer: B
78) The highest GNP among ECOWAS members is found in ________, a country that generates
significant revenues from oil exports:
A) Ghana
B) Niger
C) Mauritania
D) Nigeria
E) Senegal
Answer: D
79) In 2003 South Korea decided to lift the ban on U.S. beef and in return the United States
agreed to exclude South Korea's rice industry from trade agreement because:
A) a high import tariff means that local rice farmers can charge much higher prices for their
crops than farmers in other rice-producing countries.
B) rice is not a very popular food commodity in the United States.
C) beef is not a very popular food item in South Korea.
D) South Korea was more interested in selling rice to other rice-producing countries.
Answer: A
80) The Ecuadorian government and the National Parks Service have maintained strict rules for
protecting Galapagos Island, an ecotourism destination, which includes all of the following
except:
A) all tourists must be accompanied by tourist guides.
B) there is a $ 100 per person entrance fee to the park.
C) visitors must follow a strict itinerary.
D) limits on the seafood harvested by local population.
E) visitors are limited to the fifty designated sites on the island.
Answer: D
51
‫‪52‬‬
‫‪Global Marketing,‬‬
‫)‪(Keegan/Green‬‬
‫ابراهيم يوسف السلمان‬

‫اسئلة متوقعه شاملة المادة‬
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‫‪https://www.facebook.com/ibraheem.ys‬‬
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‫هذا الملف عن روح سيدي ‪ /‬فايز مسعود غانم‬

‫هللا يرحمك يا سيدي ويجعلك من اصحاب النعيم‬
‫‪53‬‬

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‫ابراهيم يوسف السلمان‬

‫هذا الملف عن روح سيدي ‪ /‬فايز مسعود غانم‬

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55) A company that engages in global marketing:

Global Marketing, 6e (Keegan/Green)

5) Gross domestic product (GDP), a measure of a nation's economic activity, is calculated by

22) Upper-middle-income countries, also known as industrializing or developing countries, are

53) Upper-middle-income countries, also known as industrializing or developing countries, are

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69) Which of the following is true about the Triad?

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72) The fastest-growing sector of world trade includes:

Global Marketing, 6e (Keegan/Green)

6) A preferential trade agreement is a mechanism that confirms special treatment on select

65) The Maastricht Treaty called for:

66) The introduction of Euro by EU resulted in multifaceted advantages which include:

‫ابراهيم يوسف السلمان‬

‫هذا الملف عن روح سيدي ‪ /‬فايز مسعود غانم‬

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