Global Business Strategy
Textbook Exam Questions
Course Introduction
Global Business Strategy examines the frameworks, tools, and concepts essential for firms to compete successfully in an increasingly interconnected world. The course explores how organizations develop and implement strategies to address the challenges of diverse markets, international competitors, and cross-cultural management. Topics include market entry strategies, global value chains, risk assessment, adaptation versus standardization of products and marketing, and the impact of economic, political, and regulatory environments on strategic decision-making. Case studies and real-world examples are used to illustrate strategic choices and execution in various industries and regions, preparing students to make informed decisions in complex global contexts.
Recommended Textbook
International Marketing 8th Edition by
Michael R. Czinkota
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Chapter 1: The International Marketing Environment
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Q1) What are the elements of the marketing mix?
A) Money, methodology, mechanics, and message
B) Fortune, forecast, future, and fashion
C) Product, price, place, and promotion
D) Money, fortune, price, and cost
Answer: C
Q2) Which of the following statements is not true when describing the role of and the effect of international marketing on companies?
A) International markets can become a source of growth.
B) International markets can become a source of profit.
C) International markets can produce a quality of life that would not have existed.
D) International markets can simplify the process and eliminate complex business decisions.
Answer: D
Q3) The four variables of the marketing mix are product, price, place, and promotion.
A)True
B)False
Answer: True
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Chapter 2: Trade Institutions and Trade Policy
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Q1) NAFTA, Mercosur, and GCC represent:
A) names of Soviet rockets that have made trips to the moon.
B) formal titles for the ministers of trade in South American countries.
C) the infrastructure of governmental courts related to trade.
D) examples of regional trade alliances between nations.
Answer: D
Q2) Because the United States economy was nearly decimated by the effects of World War II, the U.S. has not been able to emerge as an economic power in the world since that time.
A)True
B)False
Answer: False
Q3) When U.S. firms work together to establish export promotion development, as allowed by the Export Trading Company Act of 1982, the companies are in effect forming a:
A) bilateral consortium.
B) export-import industry.
C) export consortia.
D) run on banks.
Answer: C
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Chapter 3: The Cultural Environment
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Q1) Which department of the United States government publishes information about foreign countries?
A) Immigration and Naturalization Service
B) Department of Commerce
C) Department of Revenue
D) Internal Revenue Service
Answer: B
Q2) Which of the following is one way in which companies have tried to avoid the training problem inherent in being an international company?
A) Hiring nationals to staff overseas operations
B) Standardizing all procedures in English operations
C) Lobbying the United Nations for a World Chamber of Commerce
D) Global Positioning Satellite technology
Answer: A
Q3) In today's business environment, a company has no choice but to face international competition.
A)True
B)False
Answer: True
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Chapter 4: The Economic Environment
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Q1) Purchasing power is a function of income, prices, savings, and what other variable?
A) postal rates
B) education
C) credit availability
D) natural resources
Q2) Describe the three types of unions that were discussed in the text and that relate to trading partnerships between countries.
Q3) Purchasing power is a function of three distinct elements: available resources, temperate climate, and categorical supply.
A)True
B)False
Q4) What basic networks of transportation are essential for physical distribution?
A) Internet, fiber optics, and satellite
B) Roadways, bridges, and traffic control
C) Land, rail, waterway, and air
D) Tokens, tickets, and passes
Q5) Which three countries were involved in NAFTA and what are the characteristics of that agreement?
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Chapter 5: The Political and Legal Environment
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Q1) When chemical firms are required to make payments on their production volume, is known as:
A) Environmental superfund
B) Environmental sanction
C) Environmental embargo.
D) Environmental rights.
Q2) In the past, the participants in international trade did so based on wage-based competition. What has been the new competitive focus in recent years?
A) Human capital competition
B) Military production competition
C) Currency devaluation competition
D) Technology based competition
Q3) When products and goods enter a market in ways not desired by their manufacturers, this is known as:
A) embezzlement.
B) soft goods solicitation.
C) fortressing.
D) the gray market.
Q4) List and briefly describe the 3 different types of political risk.
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Chapter 6: Strategic Planning
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Q1) Coca-Cola, one of the most successful international and global marketers in the history of the world, recognized the need to be concerned about local products when it purchased:
A) a new processing plant in Georgia.
B) an airplane to ship products worldwide.
C) a pipeline to send pre-produced product to bottlers.
D) Inca Cola in Peru.
Q2) One of the side benefits for international marketers that have been able to globalize is that customer service is:
A) centralized and concentrated rather than being in all country markets.
B) not required because customers do not need service.
C) government control of customer service requirements.
D) subsidized by customer service activities in the U.S.
Q3) Executing global account management takes an account executive from a local firm and sends them around the world to situations of extreme need.
A)True
B)False
Q4) Why is standardization not the answer for companies wishing to go global?
Q5) Why is strategic planning critical in global marketing?
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Chapter 7: Marketing Organization, Implementation, and Control
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Q1) Reduction of governmental involvement in the marketplace is called:
A) de-overcapitalization.
B) red tape cutting.
C) decentralization.
D) centralization.
Q2) The area approach of organization follows the marketing concept most closely because individual areas and marketing are given concentrated attention.
A)True
B)False
Q3) A highly competent national subsidiary located in a strategically critical market can become a:
A) first place moderator.
B) gold star.
C) tactical advancer.
D) strategic leader.
Q4) What is a "best practice"?
Q5) What are the three organizational designs that make up international organizational structure?
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Q6) What are the differences between a decentralized and a centralized organization?
Chapter 8: Research
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Q1) Any changes in the business environment, whether domestic or foreign, may have serious repercussions on the marketing activities of the firm.
A)True
B)False
Q2) The American Marketing Association (AMA) defines marketing research as "the function that links the consumer, customer, and public to the marketer through information."
A)True
B)False
Q3) Although the objectives may be the same, the execution if international marketing research may differ substantially from the process of domestic marketing research.
A)True
B)False
Q4) Data collected directly from the marketplace by the researcher for the first time for "up-to-the second" information about a country is known as secondary research.
A)True
B)False
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Chapter 9: Market Entry and Expansion
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Q1) In order for change to take place, someone or something within the firm must initiate it and shepherd it through to implementation. This person/thing is called the:
A) shepherd.
B) change agent.
C) cambio.
D) leader.
Q2) With an increase in production on the international level, costs for production in the domestic market often double or triple.
A)True
B)False
Q3) Which of the following is not a reason joint ventures are disbanded?
A) Success rates
B) Non-disclosure of sensitive information
C) Conflicts of interest
D) Disagreements about profit sharing
Q4) Firms that are far away from customers and ports tend to be more active in exporting.
A)True
B)False
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Chapter 10: Product Adaptation
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Q1) In developing markets, products such as cigarettes and razor blades are often sold by the piece. Why?
A) It is easier to get these smaller items through customs.
B) Most developing country citizens cannot read, therefore do not need packaging.
C) Each product is taxed differently by unit.
D) So that consumers with limited incomes can afford them.
Q2) What is a Maharaja Mac?
A) A dance created by the group Date 5.
B) A taxi that increases speed through pedaling.
C) An Indian trade barrier.
D) A "Big Mac" made with mutton in India.
Q3) Which category of product has the most homogenous demand in all countries?
A) Food
B) Consumer nondurables
C) Business products
D) Consumer durables
Q4) Government requirements for products are usually rather lax.
A)True
B)False
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Chapter 11: Export Pricing
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Q1) The marginal cost method of pricing considers the direct costs of producing and selling products for export. What costs need to be excluded in these direct costs?
A) currency fluctuations
B) potential government regulations in future legislative sessions
C) fixed costs, R&D and domestic overhead
D) weather forecasts, especially in regards to El Nino
Q2) Which of the following is considered external factors in setting an export price?
A) Specific target market customers
B) Cost of developing the product
C) Cost of producing the product
D) Cost of marketing the product
Q3) What is the process of setting an export price?
Q4) Free on board (FOB) applies to what kind of shipments?
A) Rail
B) Truck
C) Air
D) Vessel
Q5) What is a skimming price strategy?
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Chapter 12: Marketing Communications
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Q1) What is the only objective way one can compare two different forms of media?
A) Cost per thousand
B) Sanitation method
C) Outsourcing
D) Agency fluency
Q2) Interference in the message transmission including environmental sounds, lack of receiver focus and other aural pollution is known as contrafusion.
A)True
B)False
Q3) Identify the term that describes the message moving through a channel is subject to the influence of extraneous and districting stimuli which interfere with the indented accurate reception of the message.
A) Noise
B) Clutter
C) Space
D) Disarray
Q4) What are the two basic tools that an exporting international marketer in the communications effort?
Q5) What is the dual purpose of effective and efficient communication?
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Chapter 13: Distribution Management
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Q1) In managing channel relationships, which of the following is not indicated as a complicating factor that may separate the two parties?
A) Ownership
B) Subletting
C) Geographic Distance
D) Different rules of law
Q2) What does the term channel design mean?
A) The color of the product packaging.
B) The texture of the product packaging.
C) The length and width of the channel employed.
D) Polishing up the research and development to submit to stockholders.
Q3) Existing channel structures which must be considered when planning a distribution system are called:
A) channeling.
B) precursors.
C) distribution culture.
D) interagency agreements.
Q4) Why is privacy such an issue in e-business?
Q5) How should a marketing channel be designed?
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Chapter 14: Global Product Management and Branding
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Q1) These companies, organizations, or individuals who are ahead of trends or have needs that go beyond what is offered by current products are known as:
A) intenders.
B) spacers.
C) lead users.
D) prima donas.
Q2) In 1875, the United States passed the National Cooperative Research Act to aid in the development of industrialization in the United States.
A)True
B)False
Q3) Which of the following is an inherent problem that many domestic firms encounter when marketing products abroad?
A) Institutionalization
B) Pre-product ascertainment
C) Assumption that other markets have the same priorities and lifestyles as the domestic market
D) Belief that financing can be sustained through multi-lateral bank referencing
Q4) How is branding affected in the worldwide global marketing effort?
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Chapter 15: Global Services
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Q1) Service industries that do market abroad often have at their disposal all of these except:
A) Large organizations
B) Specialized technology
C) Advanced professional expertise
D) External goods
Q2) Which country or region is not considered a financial giant (based on technology)?
A) United States
B) Australia
C) Japan
D) Europe
Q3) Services produce over 60 percent of the GDP throughout the world.
A)True
B)False
Q4) Because services cannot be stored, much greater responsiveness to demand fluctuation must exist, and therefore, much greater pricing flexibility must be maintained.
A)True
B)False
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Chapter 16: Global Logistics and Materials Management
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Q1) China is struggling to get demand and supply in line. The country is battling with all of the following except:
A) lack of demand.
B) insufficient transportation systems.
C) intellectual property theft.
D) poor lines of supply.
Q2) The shipper's export declaration:
A) is a political statement between two countries.
B) is a valuable tenant and is historically used by shipping captains.
C) voids previous contracts.
D) is a document that states proper authorization for export and serves as a means for governmental data collection efforts.
Q3) How can inventory be used as a strategic tool?
Q4) International logistics is the design and management of a system that controls the flow of the materials in all but which of the following?
A) Into the company
B) Through the company
C) To competitors' companies
D) Out of the international corporation
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Chapter 17: Global Pricing
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Q1) Which of the following matches this definition? "Adjusting prices to current conditions: for example, a status-conscious market that insists on products with established reputations will be inelastic, allowing for more pricing freedom than a price-conscious market."
A) Price elasticity of consumer demand
B) Price inelasticity of consumer demand
C) Price elasticity of business consumers
D) Price inelasticity of business consumers
Q2) What is not one of the reasons for currency crises that have shaken all emerging markets in the last ten years?
A) Free-market economy
B) Corporate socialism
C) Banking stability and management
D) Corporate governance
Q3) Global marketers must set and adjust both their financial and marketing objectives based on the prevailing conditions in their markets.
A)True
B)False
Q4) What are the three philosophies of transfer pricing?
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Chapter 18: Global Promotional Strategies
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Q1) Which country spends the most on advertising, outpacing the next five countries combined?
A) Japan
B) United Kingdom
C) China
D) United States
Q2) Which of the following is not a major factor in determining which media vehicles will be used for an advertising campaign?
A) Placement of reciprocal ads
B) The availability of the media in a given market
C) The product or service itself
D) Media habits of the intended audience
Q3) The promotional budget links the established objectives with three areas. Which is not one of these areas?
A) Government regulation
B) Media
C) Message
D) Control decisions
Q4) Why do international marketers use advertising agencies?
Q5) What is ambush marketing? Give an example.
Page 20
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