CHAPTER 14

1. When a manufacturer of soft drinks has to adapt the formulation of its product to fit the foreign
market requirements, it is an example of adapting:

design features

2. When designing electronic product warranties for the global market, a company needs to
consider all the following items, except:

the income level of potential buyers

3. Svend Hollensen proposes three levels of an international product, namely:

core product benefits, product attributes, and support services

4. In international marketing it is much easier to:

standardize the core product benefits across markets rather than standardize the support services

5. International product attributes do not include the following:

perceived value

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

co-branding

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

Perishability

8. The main advantages of using a private label as a branding alternative are:

the first and third answers above (the possibility of a larger market share, no promotion problems)

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

brand equity

10. Private labels are:

retailer’s own brand

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

not the same

 12. Co-branding is:

a form of cooperation between two or more brands

13. Long tail is:

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

14. The key factor in Richard Branson’s Virgin global success lies in:

constantly extending the brand

15. QDF is:

quality deployment function

CHAPTER 15

1. Which of the following factors does not contribute to price escalation in global marketing?

Product differentiation

2. The direct exchange between parties instead of monetary payment is known as:

barter

3. Which currency is also referred to as a vehicle currency?

The United States dollar

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

the currencies of the Eastern European states depreciated relative to most other Western currencies

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

depreciating currencies

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

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

7. The unauthorized distribution of trademarked goods to exploit price differentials in world trade
markets is known as:

grey marketing

8. Transfer pricing in international trade is usually used to:

all of the above (minimize exchange rate fluctuations, avoid domestic and foreign tax, ensure quality
perception in foreign markets)
 9. If you were a marketing manager for a small motorcycle manufacturer and you were given the
task of expanding the organization’s products abroad, you would need to know which facts
about this market?

All of the above (Entry barriers in this sector are high, and a new entrant needs a lot of capital
investment in order to compete; The market is oligopolistic and mature, with long-established American
brands such as the iconic Harley Davidson and Japanese brands such as Honda, Suzuki, and Yamaha
dominating the market; Worldwide retail sales of motorcycles have dropped continuously since 2008)

10. The most restrictive type of countertrade is:

barter

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

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

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

Japanese firms

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

low

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

Bonding

CHAPTER 16

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

the first and third answers above (choice of international shipping method, choice of local logistics in
foreign markets)

2. ‘Locked-up’ channels occur for all of the following reasons except:

channel members’ ability to change allegiance without major negative consequences

3. Market coverage:

can relate to geographical areas or a number of retail outlets. Three approaches are available: intensive,
selective, or exclusive coverage

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

Responsibility for quality control in manufacturing

5. The two types of channel integration are:

vertical integration and horizontal integration

6. Which of the following are the masters of countertrade?

The Swiss

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

location

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

25 of the world’s wealthier cities

9. Logistics is:

a term used to describe the movement of goods and services between suppliers and users

10. The four main modes of transportation are:

road, water, air, and rail

11. Freight forwarders:

provide service to exporters

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

10%

13. International retailing is:

The tendency towards concentration in retailing, creating a huge buying power in the big international
retail chains

14. In the model of channel relationships and the concept of trade marketing, the consumers’
objectives are:

choice, availability, value for money, and convenience

15. Distribution channels in international marketing account for ________ of the retail price of
goods and services in an industry.

15–40%
CHAPTER 17

1. Factors influencing the communication situation do not include:

infrastructure differences

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

their attitude towards advertising.

emotional

3. Japanese advertising is known for:

its strong non-verbal component

4. What are the four elements of all effective marketing communication systems?

A sender, a message, a communication channel, and a receiver

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

lower

6. Online advertising is today worth __________________________ television or print advertising.

much less than

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

major rivals.

Competitive parity approach

8. Which form of advertisement is commonly used in the entertainment industry whereby products
and brands are placed in a context usually without ads?

Product placement

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

False

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

intrusive

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

Japanese
 12. International mobile phone firms such as Vodafone typically use:

the first and second answers above (individualist appeals in individualist countries; collectivist appeals,
an example of group identity, in collectivist countries)

13. Although patients desire more information on medication, the advertising of prescription
medication is banned across the European Union through a directive dating from 1992 that
restricts such pluralism in the supply of information. Which of the following statements is true?

In France, any information supplied directly to the public by the manufacturers is viewed as advertising.

CHAPTER 18

1. Masculine cultures’ strategy for negotiation is usually:

competitive and results in a win/lose situation

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

All the above statements about negotiations in foreign countries are untrue.

3. Compared to North Americans and North Europeans who prefer short negotiations and to ‘get
down to business as soon as possible, Japanese businessmen prefer:

all of the above

4. A(n) ________ can appear to be a bribe.

agent’s fee

5. Which of the following statements about Egyptians and Israelis is not true?

None of the above statements is true

6. In business, compromise is considered:

superficial and insincere in Australia, New Zealand, and South Africa

7. When meeting a devout Muslim businessman, one must not:

shake with the left hand as it is considered to be rude

8. In which international marketing negotiation will conflict most likely arise?

When a business person from a highly masculine culture meets a business person from a high power
distance culture

9. According to Nonaka and Takeuchi (1995), the two sets of dynamics that drive the process of
international knowledge amplification are:

converting tacit knowledge into specific knowledge and moving knowledge from the individual level to
the group, organizational, and inter-organizational levels
 10. The main differences between bribery and lubrication are:

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

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

True

12. Bribery:

is an illicit payment that may range from gifts to large amounts of money

13. A handshake is a traditional form of greeting a business partner in the USA. Which of the
following is equivalent in countries such as Japan and Thailand?

A bow

14. In his book International Negotiation: A Cross-Cultural Perspective, Glen Fisher (1980) argues
that negotiating styles are often dependent on the negotiating parties involved. For example,
when dealing with the USA, Mexican negotiators are engulfed by the shadow cast by their
northern neighbor and are forced into negotiation on US norms. However, when negotiating
with other nations, the sense of _______________________is stronger and thus reflects
Mexico’s strong Spanish heritage.

Formal social occasion and protocol

15. In 2010, Burundi was ranked as __________________________ in East Africa, according to

global watchdog Transparency International.

The most corrupt country

CHAPTER 19

1. The predominant reason why expatriates from US and European firms return to their home
countries prematurely is:

their partners being unable to adapt to the host countries’ environment

2. Japanese firms expanding overseas typically tend to employ ________ in middle and bottom-end
positions:

people from high power distance cultures as well as those from masculine cultures
 3. Implementing a global standardized advertising program has the following advantage(s) to a firm
internationalizing:

All of the above (creative talent can be more readily and efficiently tapped; economic advantages; lower
costs)

4. A strategy of ________ pricing involves using price as a competitive weapon in order to push
competitors out of a national market.

predatory

5. What are the main advantages of employing expatriates?

All of the above (Product knowledge; High service levels; Greater home control)

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

The UK

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

Both of the above (When firms promote new products which do not vary significantly in terms of their
environmental sensitivity; When firms’ international sales and profits are quite insignificant compared
with those of their domestic divisions)

8. The geographical structure is frequently used by:

both of the above (car and pharmaceutical companies; food and beverage companies)

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

vertically

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

an adequate advertising budget

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

output control and behavioral controls

12. The contribution margin in % is calculated as:

(total contribution / total revenue) × 100

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

Universal Music Group

 14. In the functional structure

the organizational structure is based on functional departments