Global Business Environment
Test Bank
Course Introduction
The Global Business Environment course provides students with a comprehensive understanding of the dynamic international landscape in which modern businesses operate. By examining economic, political, legal, technological, and cultural factors, the course equips students with the knowledge to analyze the opportunities and challenges faced by organizations in global markets. Key topics include globalization, international trade and investment, global governance and institutions, cross-cultural management, and emerging market trends. This course prepares students to think critically and strategically about business decisions in a complex and interconnected world, fostering skills essential for successful careers in international business.
Recommended Textbook
Global Marketing 8th Edition by
Warren J. Keegan
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1527 Verified Questions
1527 Flashcards
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Page 2
Chapter 1: Introduction to Global Marketing
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Sample Questions
Q1) Nontariff barriers (NTBs)are monetary restrictions on cross-border trade.
A)True
B)False
Answer: False
Q2) Walmart's recent exit from the German market was due,in part,to the fact that German shoppers could find lower prices at stores known as "hard discounters."
A)True
B)False
Answer: True
Q3) 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
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Chapter 2: The Global Economic Environment
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Sample Questions
Q1) The top global merchandise exporter is:
A) China.
B) Germany.
C) the United States.
D) Japan.
E) Korea.
Answer: A
Q2) In Brazil,Daimler AG works with a cooperative of farmers who transform coconut husks into natural rubber to be used in auto seats,headrests,and sun visors.
A)True
B)False
Answer: True
Q3) 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.
A)True
B)False
Answer: False
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Page 4
Chapter 3: The Global Trade Environment
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Sample Questions
Q1) 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
Q2) Management strategic options pertaining to products that are facilitated by a single European market include:
A) standardized packaging and labeling.
B) consolidated production.
C) shift from brand to benefit segmentation.
D) seeking marketing economies.
E) all of the above
Answer: E
Q3) About one-fourth of the cut roses sold in the United States come from Ecuador.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Social and Cultural Environments
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Sample Questions
Q1) In surveys about color preferences,50 percent of respondents indicate green is their favorite-and it is favored by a wide margin over the next-preferred color.
A)True
B)False
Q2) Which of the following is true about the innovation diffusion process in Asia?
A) Japan has a high-context culture with a relatively homogeneous population.
B) Because risk avoidance is a cultural value, there are fewer innovators in Asia than in the United States.
C) Once innovators in Asia have tried a product, early adopters and the early majority quickly follow suit.
D) After a new product has achieved success in one Asian market, it is likely to be adopted in other Asian markets at an even faster rate.
E) All of the above are true.
Q3) There are specific characteristics of innovations that affect which innovations are adopted.Define those characteristics giving examples of products or services.
Q4) What are some of the salient characteristics and differences between high- and low-context cultures?
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6
Chapter 5: The Political, Legal, and Regulatory Environments
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Sample Questions
Q1) Various types of political risk insurance to U.S.companies is provided by:
A) BERI (Business Environment Risk Intelligence).
B) PRS Group.
C) EIU (Economist Intelligence Unit).
D) WTO (World Trade Organization).
E) OPIC (Overseas Private Investment Corporation).
Q2) Which of the following is true about protection of computer software?
A) Copyright laws protect both the actual code and the idea embodied in the code.
B) Patent laws protect both the actual code and the idea embodied in the code.
C) Patent laws protect the actual code, while copyright laws protect the idea.
D) Copyright laws protect the actual code, while patent laws protect the idea.
E) License protects both the actual code and the idea embodied in the code.
Q3) In Saudi Arabia,the Communication and Information Technology Commission (CITC)was ready to restrict BlackBerry services citing security concerns since the location of RIM (Research in Motion)servers were in Canada.
A)True
B)False
Q4) What are the differences between a patent,trademark,and a copyright? What is meant by counterfeiting?
Page 7
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Chapter 6: Global Information Systems and Market Research
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Sample Questions
Q1) One study of adult involvement in household tasks revealed greater similarities between the United Kingdom and the United States compared with France,Belgium,and French Canada.Thus,the United States and United Kingdom were "twins" based on common language.This study is an example of:
A) market latency.
B) conjoint analysis.
C) factor analysis.
D) multidimensional scaling.
E) cluster analysis.
Q2) In global marketing research,it is important to establish scalar equivalence when obtaining information from different countries.
A)True
B)False
Q3) Discuss the guidelines submitted by David Arnold pertaining to the importance of data gathering for market research.Indicate the rationale behind each guideline.
Q4) A latent market is,in essence,an undiscovered market segment.
A)True
B)False
Page 8
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Chapter 7: Segmentation, Targeting, and Positioning
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Sample Questions
Q1) India is the world's fastest growing cell phone market with the industry expanding at a rate of 50% annually with 5 million new subscribers added every month.This is an indication of continued private-sector growth.
A)True
B)False
Q2) Some of Body Shop's recent advertising has emphasized the difference between the company's principles and those of "mainstream" cosmetics companies on such issues as animal testing.As described here,Body Shop's ads illustrate positioning by:
A) competition.
B) niche.
C) quality/price.
D) attribute/benefit.
E) culture.
Q3) A global segment is referred to as "global elite" which includes:
A) people between the ages of 12 and 19.
B) affluent, well-traveled persons.
C) graying population.
D) technology professionals.
E) persons having power.
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Page 9
Chapter 8: Importing,Exporting,and Sourcing
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Sample Questions
Q1) The Ministry of International Trade and Industry (MITI)has helped devise export strategies for companies in:
A) Singapore.
B) South Korea.
C) Taiwan.
D) Hong Kong.
E) Japan.
Q2) The only marketing mix element that is applicable in the export selling is:
A) price.
B) product.
C) promotion.
D) place.
E) process.
Q3) What are customs duties? How do they work in controlling imported goods? Discuss in light of the different categories of customs duties.
Q4) Switzerland exports 51 percent of their GDP,compared to the United States which exports only 14 percent.
A)True
B)False
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Chapter 9: Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances
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Sample Questions
Q1) Starbucks' relentless pursuit of global market opportunities illustrates the fact that most firms face a broad range of strategy alternatives.
A)True
B)False
Q2) An attribute which does not represent true global partnership is:
A) achieving world leadership by differentiation.
B) achieving a reciprocal relationship.
C) relationship is organized vertical lines.
D) continual transfer of resources.
E) retaining national identities.
Q3) Because "keiretsu" relationships are crossing the Pacific and directly affecting the American market,U.S.companies have reason to be concerned.
A)True
B)False
Q4) Walt Disney Company has successfully adapted licensing as a market entry mode in different countries.What are the advantages of using licensing as entry mode?
Q5) Why would any firm,whether global or otherwise,seek to collaborate with another firm,be it local or foreign?
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Chapter 10: Brand and Product Decisions in Global Marketing
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Sample Questions
Q1) Due to the European Commission's regulation,McDonald's cannot give away soft plastic toys with its Happy Meals in Europe.
A)True
B)False
Q2) Example of a "brand symbol" includes all of the following except:
A) date of manufacture on Coca-Cola cans.
B) the wave that appears on red Coke cans and bottle labels.
C) non-word marks such as the Nike swoosh.
D) three-pronged Mercedes star.
E) McDonald's golden arches.
Q3) When Kraft Foods launched Oreo brand cookies in China in 1996,they found that Oreo was too sweet for the Chinese palate,and the price was too high.Oreo reformulated a less-sweet chocolate-covered wafer and reduced its price.This strategy is referred to as product extension approach.
A)True
B)False
Q4) What are brands,and what are their functions in global marketing? How do brands develop their image,identity,and equity? Are global product and global brands the same?
Page 12
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Chapter 11: Pricing Decisions
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Sample Questions
Q1) Gray market goods are trademarked products that are exported from one country to another and sold by authorized persons or organizations.
A)True
B)False
Q2) A global company that uses market skimming as a pricing strategy is likely to invite charges of "dumping" by competitors in host-country markets.
A)True
B)False
Q3) In the United States,Levi Strauss & Company has to face competitive behavior since J.C.Penney and Sears are both aggressively marketing their own brands.
A)True
B)False
Q4) To win sales in important markets such as China,global companies can face demands for offsets even when transactions do not involve military procurement.
A)True
B)False
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Page 13
Chapter 12: Global Marketing Channels and Physical Distribution
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Sample Questions
Q1) When companies adopt "indirect involvement" channel they have all of the following activities except:
A) utilize independent agents.
B) use distributors.
C) utilize retailers.
D) establish their own sales force.
E) utilize those who have network of stores.
Q2) Channel decisions are important because:
A) commitments are flexible.
B) relationships change with time.
C) it is expensive to terminate.
D) issues can be solved by arbitration.
E) local laws do not protect agreements.
Q3) After successfully penetrating China's first-tier cities,Mary Kay expanded into second- and third-tier locations.
A)True
B)False
Q4) The less frequently a product is ordered,the lower the inventory carrying costs.
A)True
B)False
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Chapter 13: Global Marketing Communications Decisions I:
Advertising and Public Relations
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Sample Questions
Q1) Standardized print campaigns can be used in all of the following except:
A) visual appeal.
B) industrial products.
C) high-tech consumer products.
D) voiceovers TV commercials.
E) stereotype advertising.
Q2) The United States and ________ are the two top-ranked countries in terms of ad spending across all measured media in 2012.
A) the United Kingdom
B) France
C) Canada
D) Japan
E) Germany
Q3) Because of its size and presence in more than 200 countries,the Coca-Cola Company is often the target of anti-globalization protests.Giving examples,show how negative publicity affects global marketers.
Q4) How do the public relations differ around the world? Explain giving examples to show the importance of public relations for a global company.
Page 15
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Chapter 14: Global Marketing Communications Decisions II:
Sales Promotion, personal Selling, and Special Forms of Marketing Communication
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Sample Questions
Q1) The U.S.-style "I'll do whatever it takes to get your business" has proven to be a successful selling approach throughout the world.
A)True
B)False
Q2) Social couponing is one of the hottest online sales promotion trends.It offers its followers deal-of-the-day coupons that are sponsored by local businesses.
A)True
B)False
Q3) Which of the following is not a useful guideline for U.S.-based direct marketers wishing to reach global customers?
A) Do not treat prospects as though they are Americans.
B) Do not automatically assume that a direct-mail campaign that works in one country will work in another country.
C) Do not assume that all Europeans are similar in their tastes and wants.
D) Customers should be able to return products to an address in their local country market.
E) Focus on all countries included in the European Union.
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Q4) Giving examples,show how sampling can be an effective sales promotion technique.
Chapter 15: Global Marketing and the Digital Revolution
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Sample Questions
Q1) What is convergence? What kind of challenges does it present?
Q2) Which of the following is not a critical issue for a company whose management intends to engage in e-commerce?
A) privacy
B) credit card fraud in developing countries
C) ensuring that logos and other brand identity elements are consistent with local preferences
D) ensuring a company's ASCII system supports a particular language
E) the availability of hot spots for Wi-Fi
Q3) The Internet's powerful capabilities and increasing importance have resulted in a backlash that manifests itself in various ways.Giving examples,explain how this statement can be true.
Q4) The digital revolution is causing dramatic,disruptive changes in industry structures. A)True
B)False
Q5) Streaming media represents a huge market opportunity for the video game industry.
A)True
B)False
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Chapter 16: Strategic Elements of Competitive Advantage
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Sample Questions
Q1) Maytag has been called "the Rolls-Royce of washers and dryers," and it can be said that it has achieved a competitive advantage by means of differentiation.
A)True
B)False
Q2) When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage,it might be said to be:
A) searching for loose bricks.
B) changing the rules of engagement.
C) collaborating.
D) building layers of advantage.
E) innovating.
Q3) Which of the following is not identified by Porter as one of the five forces that explains competition in an industry?
A) threat of new entrants
B) threat of substitute products or services
C) bargaining power of suppliers
D) bargaining power of competitors
E) the competitive rivalry among current members
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Page 18
Chapter 17: Leadership, Organization, and Corporate Social Responsibility
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Sample Questions
Q1) Which global marketing expert recommends an organization design based on a "global superstructure" that views the world in terms of 30 regions?
A) Paul Krugman
B) Kenichi Ohmae
C) Tom Peters
D) Michael Porter
E) Kazuo Inamori
Q2) Nike came under fire from critics who alleged poor working conditions in the factories that make the company's athletic shoes.
A)True
B)False
Q3) Boeing has reorganized its commercial transport design and manufacturing engineers from functional lines into a matrix organization.This new design is expected to have all but one of the following benefits:
A) lower costs and quicken updates.
B) facilitate problem solving.
C) unite engineering and manufacturing processes.
D) provide customer contacts.
E) enhance product consistency.
Page 19
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