MKT 505 FINAL EXAM PART 1

Coca-Cola achieved success in the Japanese market primarily by:

Answer

standardization of marketing mix elements.

global localization.

vending machine operations.

selecting market mix options.

homogenization.

Question 2

Slumdog Millionaire, a movie which received several awards and an Oscar in 2009, was filmed on a location in and around:

Answer

London.

San Francisco.

Cancun.

Mumbai.

Moscow.

Question 3

The essence of marketing worldwide is to surpass the competition in creating perceived value, which can be represented as:

Answer

Value = Price/Benefits

Value = Benefits/Price

Value = Benefits x Price

Value = Benefits - Price

Value = Benefits + Price

Question 4

That Russia is being transformed by economic change can be witnessed in all of the following observations except:

Answer

affluent Russians can shop at boutiques that offer Versace.

per capita gross national income in Russia is only $9370.

the banking system in Russia is robust.

Russian shoppers spend an estimated $4 billion each year on luxury goods.

the Russian government lifted all currency controls.

Question 5

The greatest percentage of world GDP is in the following income group countries:

Answer

high-income countries.

upper-middle-income countries.

lower-middle-income countries.

low-income countries.

BRIC countries.

Question 6

The member of the Gulf Cooperation Council (GCC) with the largest economy and population size is:

Answer

Bahrain.

Kuwait.

Oman.

Qatar.

Saudi Arabia.

Question 7

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:

Answer

of poor accounting practices.

of vast economic diversification.

they must import most of the goods and services.

most of the oil is exported.

new businesses are being developed.

Question 8

The original six members of the ASEAN (Association of Southeast Asian Nations) included all of the following countries except:

Answer

Singapore.

Thailand.

India.

Philippines.

Brunei.

Question 9

A characteristic of a low-context culture which is prevalent in United States, Switzerland, and Germany is:

Answer

less information is contained in verbal communication.

major emphasis on a person's values and position in society.

messages are explicit and specific.

a person's word is his or her bond.

negotiations are long and protracted.

Question 10

The cultural environment of a country is best defined by which characteristics?

Answer

standard of living and stage of economic development

production process and standards of measurement

attitudes, beliefs, and values

degree of nationalism and economic community membership

fast food culture and slow food culture

Question 11

Any Western country doing business in Malaysia or the Middle East should have understanding of:

Answer

the French Civil Code.

Anglo-Saxon common law.

Islamic law.

the Uniform Commercial Code.

Roman law and the Napoleonic Code.

Question 12

Located in The Hague, the International Court of Justice (ICJ) is the judicial arm of the:

Answer

United States.

European Union.

United Nations.

Netherlands.

United Kingdom.

Question 13

As part of their alliance relationship, Northwest Airlines and KLM Royal Dutch set air fare prices jointly and coordinate flight schedules. Normally, such behavior would be considered harmful to competition, but the U.S. government has granted the two airlines special exemptions from laws concerning:

Answer

intellectual property.

antitrust.

jurisdiction.

licensing.

Arbitration

Question 14

The decision by Toyota executives to introduce the Sienna minivan in the U.S. market was based on their study of a(n) ________ market.

Answer

existing

latent

parallel

incipient

global

Question 15

The international marketing manager of an office furniture company ordered a research report on global telecommunications equipment sales. The report noted that, in the early 1990s, AT&T was awarded a $4 billion contract to provide communication network products and services in Saudi Arabia. The manager took this as a cue to put Saudi Arabia on her information agenda, reasoning that office furniture sales would increase as the country's telephone system was improved. As described here, the marketing manager is viewing Saudi Arabia as a(n):

Answer

latent market.

incipient market.

cluster market.

existing market.

primary market.

Question 16

A(n) ________ is a company's private data network, accessible only by authorized persons inside the organization.

Answer

EDI

internet

intranet

EPOS

ECR

Question 17

The efforts of global companies to reach low-income consumers in emerging markets highlight the importance of skillful global market segmentation and targeting. Market segmentation represents:

Answer

targeting prospective customers.

finding customers who can respond to advertisement.

promoting products and services internationally.

identifying customers who can help in promoting products.

an effort to identify and categorize customers based on common characteristics.

Question 18

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 ________.

Answer

competition

niche

quality/price

attribute/benefit

culture

Question 19

The Swatch Group markets watches in all price ranges, from the Swatch brand at the low end to luxury brands such as Longines, Blancpain, and Breguet. Which target market strategy does this illustrate?

Answer

standardized global marketing

concentrated global marketing

differentiated global marketing

psychographic global marketing

Question 20

The international standard by which letters of credit (L/Cs) are interpreted is known as the ________ 500.

Answer

UCP

NTR

FSC

NTB

HTS

Question 21

Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction?

Answer

documentary credit (letter of credit)

documentary collection

cash in advance

sales on open account

draft

Question 22

Which of the following financing methods would be used by an exporter that enjoys good relations with a buyer in a well-established market?

Answer

letter of credit

cash in advance

sales on open account

barter

arrival draft

Question 23

The president of a Mexican company recently remarked, "Business in Mexico is done on a consensus basis, very genteel and sometimes slow by U.S. standards." A few months later, the Mexican company and its U.S. joint venture partner parted company. Judging by the president's remark, one important reason for the "divorce" was:

Answer

failure of one partner to live up to the terms of the contract.

cultural differences.

the cancellation of NAFTA.

the U.S. government's insistence on quick negotiations.

the language barrier.

Question 24

As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances?

Answer

acquisition

licensing

joint venture

exporting

franchising

Question 25

Licensing as a market entry mode has several disadvantages and opportunity costs, which do not include:

Answer