International Marketing Test Questions
Course Introduction
International Marketing explores the strategies, concepts, and techniques used by organizations to market products and services across international borders. The course examines the complexities of operating in diverse cultural, economic, legal, and political environments, emphasizing the need for adaptation in product development, pricing, distribution, and promotional tactics. Students will analyze case studies of successful and unsuccessful international marketing campaigns, understand the impact of globalization, and develop skills in market entry strategies, segmentation, and positioning for international markets. The course prepares students to navigate the challenges of global competition and to recognize emerging opportunities in the dynamic field of international marketing.
Recommended Textbook
Global Marketing 8th Edition by
Warren J. Keegan
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Page 2
Chapter 1: Introduction to Global Marketing
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Q1) According to the Fortune global 500 companies for 2012,the largest corporation based on revenue is:
A) Exxon Corporation.
B) Toyota Motors.
C) Royal Dutch Shell.
D) General Electric.
E) Walmart stores.
Answer: C
Q2) In an effort to "Americanize" the sound of the Beatles' recordings,a studio effect known as reverb was added to some tracks.From the global marketing perspective,what does this change represent?
Answer: The early albums released in the United Kingdom differed from releases in the United States as well as in other countries.EMI sent master tapes to various countries,often customizing them at the request of the local company.Reverb makes a dry (unprocessed)sound compared to the wetter echo-like sound preferred by Americans.In addition,some of the original mono and stereo tracks were remixed for the American market.Converting it to suit the local market is referred to as both product adaptation and product extension.
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Chapter 2: The Global Economic Environment
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Q1) According to the 2013 Index of Economic Freedom compiled by the Heritage Foundation,Hong Kong is ranked as having the highest degree of economic freedom.
A)True
B)False
Answer: True
Q2) All of the following facts pertain to Brazil except:
A) Brazil is the largest country in Latin America.
B) Brazil boasts the richest reserves of natural resources in the hemisphere.
C) Brazil's top trading partner is China.
D) Brazil's GNI has grown at an average annual rate of 4 percent over the past 8 years.
E) Brazil lacks logistics software, horse-drawn carts are still a common sight on many roads.
Answer: E
Q3) A country's currency would be overvalued if the Big Mac price (converted to dollars)is lower than the U.S.price.
A)True
B)False
Answer: False
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4
Chapter 3: The Global Trade Environment
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Q1) With the increase in oil prices,many of the Middle Eastern countries will find a hefty windfall income.Also,with greater involvement of world powers in the Middle Eastern region,there are certain unprecedented opportunities.What are some of the marketing issues that should be taken into consideration?
Answer: In Middle Eastern countries,the majority of the resident population is Arabs.Islam is the predominant religion.In spite of the apparent homogeneity,there are vast differences.The price of oil is the driving force behind all businesses.Although oil revenues help economically,they also widen the gap between rich and poor countries within the region.This disparity also creates political and social instability.As far as the business dealings are concerned,connections are keys for any success.Relationships with key government and business individuals open many doors.A predilection for bargaining is culturally ingrained.The Arab business person does business with the individual,not with the company.Understanding of Arab customs is very important.Women usually do not play an apparently prominent role in business.
Q2) 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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Q1) Linguists have divided the study of languages into four main areas.The system of word formation is referred to as:
A) syntax.
B) phonology.
C) morphology.
D) semantics.
E) semiotics.
Q2) The cultural environment of a country is best defined by which characteristics?
A) standard of living and stage of economic development
B) production process and standards of measurement
C) attitudes, beliefs, and values
D) degree of nationalism and economic community membership
E) fast food culture and slow food culture
Q3) Colgate discovered that in Spanish colgate is a verb form that means "go hang yourself."
A)True
B)False
Q4) In Korea 4 5683 968 can be interpreted as "I love you."
A)True
B)False
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Chapter 5: The Political, Legal, and Regulatory
Environments
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Q1) In many parts of the world,sales of unauthorized videos of Hollywood movies cost the movie studios billions of dollars.When illegal copies of movies are made,what form of intellectual property has been wrongly appropriated?
A) patent
B) copyright
C) trademark
D) trade secrets
E) down loading
Q2) The governmental action to dispossess a foreign company or investor is known as: A) compensation.
B) confiscation.
C) expropriation.
D) internationalization.
E) nationalization.
Q3) For years,Coca-Cola Corporation did not enter India since the government wanted some kind of disclosure of their trade secrets.Why are the trade secrets so important and what happens if a licensee or a government gains access to the licensor's trade secret?
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Chapter 6: Global Information Systems and Market Research
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Q1) Which of the following is an IT tool designed specifically to help retailers work more closely with vendors on stock replenishment?
A) BOLD
B) ECR
C) data warehouse
D) projection
E) EDI
Q2) An ________ system allows a company's business units to submit orders,issue invoices,and conduct business electronically with other company units as well as outside companies.
A) Internet
B) intranet
C) ECR
D) EDI
E) EPOS
Q3) A marketer of breakfast cereals might send researchers to preselected households at 6 a.m.to watch families go about their morning routines.
A)True
B)False
Page 8
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Chapter 7: Segmentation, Targeting, and Positioning
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Q1) Nutraceuticals are health food products which are manufactured by:
A) Kraft foods.
B) General Mills
C) Campbell's soups.
D) Nestlé foods.
E) Gerber foods.
Q2) Managers must decide how well a company's product fits the country market by asking the following questions except:
A) Will adaptation be required?
B) Will import restriction drive up the product price?
C) Is it advisable to source locally?
D) Will strong home currency have an adverse impact on product price?
E) Will it be possible to neglect home-country regulations?
Q3) Dove,a division of Unilever,traditionally targeted men and women with its Dove-branded skin care products.
A)True
B)False
Q4) Discuss the basics of a framework for selecting target markets highlighting the salient features of David Arnold's framework.
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Chapter 8: Importing,Exporting,and Sourcing
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Q1) Which of the following types of duties would be imposed on a company whose home-country government provided export subsidies?
A) ad valorem duty
B) countervailing duty
C) antidumping duty
D) specific duty
E) customs duty
Q2) For every one yen increase relative to the American dollar,Canon's operating income declines by 6 billion yen.
A)True
B)False
Q3) In which of the following forms of export financing does a bank assume a financial obligation?
A) with an L/C but not a documentary collection
B) with a documentary collection but not an L/C
C) neither an L/C nor a documentary collection requires a bank to assume financial obligation
D) with either an L/C or a collection letter
E) with both an L/C and a documentary collection
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Page 10
Chapter 9: Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances
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Q1) Toyota learned many things from its partnership with GM,however American Managers involved in the venture complained that:
A) Toyota learned many things about U.S. supply system.
B) Toyota learned about U.S. transport system.
C) Toyota learned about managing American workers.
D) Toyota did not apply manufacturing expertise at GM plant.
E) Toyota applied expertise at its Camry plant.
Q2) ________ represent(s)a market entry strategy whereby one company permits a foreign company to make use of its patents,know-how,technology,company name,or other intangible assets in return for a royalty payment.
A) Joint ventures
B) One-hundred-percent ownership
C) Licensing
D) Exporting
E) Global strategic alliances
Q3) Franchising in a global market is actually a market-entry strategy that is typically executed with less localization than is licensing.
A)True
B)False
Page 11
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Chapter 10: Brand and Product Decisions in Global Marketing
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Q1) Regulators in different countries have proposed various regulations for product labeling.All of the following statements pertaining to such regulations are true except:
A) mandatory health warnings on tobacco products are required in most countries.
B) the American Automobile Labeling Act clarifies the country of origin as well as the final assembly point.
C) in 2008, the United States enacted a country of origin labeling (COOL) law.
D) the use of terms "light" and "natural" are allowed on labels only in the United States.
E) McDonald's is posting nutrition information on all food packaging and wrappers in selected markets.
Q2) China and India take great pride in their manufacturing capabilities but,generally speaking,consumer perception lags behind the reality.
A)True
B)False
Q3) What are the differences between "product-communication extension" and "product extension-communication adaptation" as strategies?
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Chapter 11: Pricing Decisions
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Q1) In July 2001,the euro's value relative to the dollar was about 1.00 = $0.85.By November 2009,the euro had strengthened to 1.00 = $1.48.In February 2012,one euro was equal to $1.33.All other things being equal,if a European-based global company wants to preserve margins for goods exported to the U.S.market,the company should:
A) raise prices in dollars.
B) switch to cost-based pricing.
C) adopt a policy of market penetration pricing.
D) reduce prices in dollars.
E) use skimming pricing.
Q2) Coffee bearing the Fairtrade label signifies that the coffee is:
A) sponsored by an organization that supports price decisions.
B) pure and free of contamination and grown organically.
C) purchased with no taxes and duties paid to exporters.
D) donated by a Catholic organization to its members.
E) purchased with farmers getting a fair share based on the quality.
Q3) What is offset and why is it important in global marketing? How can it be distinguished from counterpurchase?
Q4) Why is compensation trading also called a "buyback?" How does it differ from switch trading?
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Chapter 12: Global Marketing Channels and Physical Distribution
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Q1) If a commodity raw material comes from Africa,gets refined in Asia,then shipped to South America for finishing,and finally transported to the Middle East and then sold around the world-this represents a similar process used for products marketed by:
A) Exxon.
B) McDonald's.
C) Caterpillar.
D) IKEA.
E) Sears.
Q2) As Walmart extends its reach around the globe,observers are using words such as "assault" and "invasion" to describe what it's like for a nation that the company has fixed its sights on.Using Walmart in India as example discuss all impacting factors.
Q3) Which of the following is an appropriate guideline for companies selecting independent distributors in international markets?
A) Select distributors; don't let them select you.
B) Look for distributors capable of developing markets.
C) Treat local distributors as long-term partners.
D) Maintain control over marketing strategy from day one.
E) All of the above are appropriate guidelines.
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Chapter 13: Global Marketing Communications Decisions I:
Advertising and Public Relations
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Q1) As companies recognize and embrace new concepts such as the globalization of coffee culture,the potential for effective global advertising:
A) decreases.
B) increases.
C) remains the same.
D) becomes evident.
E) is ignored.
Q2) In the language of global marketing,________ is the phrase used to describe advertising that represents a middle ground between 100% standardization and 100% localization.
A) "stereotype advertising"
B) "template advertising"
C) "cookie-cutter advertising"
D) "compromise advertising"
E) "pattern advertising"
Q3) A German agency devised McDonald's "I'm lovin' it" tagline.
A)True
B)False
Q4) What issues must be considered in selecting an advertising agency for global advertising?
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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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Q1) Market maturity can also be different from country to country; consumer sampling and coupons are appropriate for mature markets.
A)True
B)False
Q2) Traditional support media include:
A) indoor posters.
B) billboards.
C) newspapers.
D) magazines.
E) catalogs.
Q3) Ethnocentric companies are likely to use an expatriate sales force in countries at all levels of economic development.
A)True
B)False
Q4) Giving examples,show how sampling can be an effective sales promotion technique.
Q5) Coupons are a favorite promotion tool of consumer packaged goods companies such as Proctor & Gamble and Unilever.How does the couponing work,and what are the advantages for using different types of coupons?
Page 16
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Chapter 15: Global Marketing and the Digital Revolution
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Q1) Ideally,each country-specific site should reflect all of the following except:
A) local culture.
B) language usage.
C) customs.
D) universal shopping cart icon.
E) brand identity.
Q2) Singapore and Korea offer large sums of money to private citizens and business to pay for broadband equipment and consulting services.However,the spread of broadband is very slow in the United States.Giving reasons for slow movement in the United States,explain how broadband works.
Q3) An innovation that is disrupting to one firm can be sustaining to another firm.
A)True
B)False
Q4) Disruptive technologies enable something to be done that was previously deemed impossible.
A)True
B)False
Q5) Describe the principles developed by Christensen in order to help managers recognize the innovator's dilemma and develop appropriate responses to environmental change.
17
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Chapter 16: Strategic Elements of Competitive Advantage
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Q1) The country with the highest number of companies with Global Competitive Advantage is:
A) the United Kingdom.
B) the United States.
C) Japan.
D) France.
E) Germany.
Q2) Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the high-end audiophile segment of the consumer electronics industry.If analyzed in terms of Porter's generic strategies framework,such companies might be said to be pursuing competitive advantage via:
A) cost leadership.
B) differentiation.
C) cost focus.
D) focused differentiation.
E) consumer differentiation.
Q3) Intel's loose brick was its narrow focus on complex microprocessors for PCs.
A)True
B)False
Q4) How do chance events play a role in shaping the competitive environment?
Page 18
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Chapter 17: Leadership, Organization, and Corporate Social Responsibility
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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) As markets globalize,and as Japan opens its own market to more competition from overseas,more Japanese companies are likely to break from traditional organization patterns.
A)True
B)False
Q3) The universal concerns for global companies established by the United Nations Global Compact consist of the following three dimensions:
A) factor conditions, demand conditions, industry conditions.
B) human rights, animal rights, and the environment.
C) content domain, human conditions and animal rights.
D) human rights, labor, and the environment.
E) content domains, animal rights, and labor.
Page 19
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