MKTG X3 QA

The only marketing mix element that companies alter for export selling (as opposed to export marketing) is:

• process

• promotion

• price

• product

• place

place

Governments commonly use activities to support and encourage firms that engage in exporting. Such activities include all of the following EXCEPT:

• export assistance

• subsidies

• tax incentives

• voting rights

• free trade zones

voting rights

Agricultural subsidies are particularly controversial because, although they protect the interests of farmers in some countries, they work to the detriment of farmers in countries such as:

• Singapore

• Switzerland

• Japan

• The United States

• India

India

Certainteed Gypsum in Canada accused American manufacturers of selling drywall in the Canadian market at prices that were too low to be fair. Certainteed accused the American manufacturers of _________.

• subsidizing

• shenanigans

• countervailing

• dumping

• tanking

dumping

Which of the following types of duties would be imposed on a company whose home-country government provides export subsidies?

• customs duty

• antidumping duty

• countervailing duty

• specific duty

• ad valorem duty

countervailing duty

A company may consider outsourcing production to another country, but if they want to avoid expensive shipping delays, product spoilage, and maintain their ability accurately to plan supply, they should consider which of the following?

• factor costs

• customer needs

• political factors

• country infrastructure

• foreign exchange rates

country infrastructure

In the two column tariff system, which countries fall into column 2.

• former colonies

• least developed nations

• countries that have normal trade relations

• countries that do not have normal trade relations

• countries that have preferential trade agreements

countries that do not have normal trade relations

Companies that want the most control over how their product is marketed in a new country should pick which market entry strategy?

• licensing

• acquisition

• joint venture

• exporting

• franchising

acquisition

The organizational decision to purchase production inputs, components, or finished goods from domestic or foreign producers is known as the ________ decision.

• import/export

• NTB

• security

• sourcing

• ultimate

sourcing

If the dollar, the yen, the euro or other single currency becomes seriously overvalued, a company with a production capacity in several countries can achieve competitive advantage by:

• shifting production among different sites

• reducing production and labor force simultaneously

• buying different currencies before major fluctuations take place

• conducting transactions in different currencies of the world

• cutting down production and waiting until the currency rate is reasonable

shifting production among different sites

For Starbucks and other companies whose business models include a service component, it is very difficult to use which one of the following methods for going global.

• exporting

• 1000% ownership

• joint ventures

• franchising

• licensing

exporting

You can see Disney characters on clothing and merchandise all over the world because the Walt Disney Company has aggressively pursued ________ as a way to expand globally.

• joint ventures

• exporting

• licensing

• franchising

• 100% ownership

licensing

The agreements that allow independent owner/ operators of McDonald's restaurants around the globe to use McDonald's trademarked name and menu items represent, in essence, which form of market entry?

• joint venture

• contract manufacturing

• franchising

• acquisition

• exporting

franchising

Reasons that a company might choose to acquire a business in a foreign country include all of the following except:

• allows technology transfers and gain new manufacturing methods

• circumvent tariffs & quota barriers

• purchase local customer loyalty

• take advantage of free trade agreements

• local management understands local market conditions

take advantage of free trade agreements

Volkswagen initially purchased 31% of Czech automaker Skoda but eventually increased their ownership to 70%. Once Volkswagen achieved more than 50% ownership of Skoda stock, this kind of investment is called: 

• greenfield development

• joint venture

• majority equity stake

• minority equity stake

• acquisition

majority equity stake

Which of the following is a tax used to discourage consumption of specific products, such as alcohol or cigarettes? 

• Capital Gains Taxes

• Excise Duties

• Ad Valorem Duty

• Customs Duties

• VAT

Excise Duties

Which of the following can be used to offset subsidies from the exporting country?

• Ad Valorem Duties

• Excise Duties

• Compound Duties

• Countervailing Duties

• Anti-dumping Duties

Countervailing Duties

Which of the following describes a duty that is levied based on a non-value unit of measure, such as weight, volume, or length?

• Excise Duty

• Ad Valorem Duty

• Countervailing Duty

• Compound Duty

• Specific Duty

Specific Duty

What does the Harmonized Tariff System (HTS) do?

• It systematically helps tariffs sing in harmony.

• It normalizes trade relationships between all WTO countries.

• It standardizes the tariff rates that countries charge for specific products across all WTO countries.

• It discriminates against mutants and classifies them as "non-human."

• It standardizes classification numbers for products moved across borders.

It standardizes classification numbers for products moved across borders.

Which of the following is a greenfield development?

• Manchester United FC putting new turf in their stadium. 

• USG partnering with Boral to leverage each other's strengths and form a new organization.

• Tata Motors purchasing Jaguar.

• Strategically applying fertilizer and pesticides to crops in order to increase yield. 

• Hyundai building a new manufacturing plant in the US.

Hyundai building a new manufacturing plant in the US.

There is nothing inherently "good" or "bad" about any color of the spectrum and all associations and perceptions regarding color arise from culture. Which of the following statements is NOT true?

• Red color is associated with blood in many countries.

• Red color is associated with "active," "vibrant," and "emotional."

• Red color is highly preferred in all African countries.

• Red is a popular color in most parts of the world.

• Red color is tied to the traditions of viticulture and winemaking.

Red color is highly preferred in all African countries.

Cultural influences are also quite apparent in food preparation and consumption patterns and habits. Domino's Pizza, the world's largest pizza-delivery company, had difficulty in Italy because:

• Italians wanted more toppings on thick crust

• Its tomato sauce was too bold and competed with Italian products

• people did not like to eat at home

• Italians perceived its products to be “too American.”

• Italians did not like anyone else to use the name “pizza.”

Italians perceived its products to be “too American.”

While some food preferences remain deeply embedded in culture, there is plenty of evidence that global dietary preferences are converging. Examples of such a change can be predicted from the:

• growing number of McDonald’s restaurants globally

• increased sales of soups and noodles in Thailand

• popularity of Domino’s Pizza in Italy

• popularity of Chinese foods in Taiwan

• preference for local hamburgers from a local chain, Jollibee’s, the the Philippines

growing number of McDonald’s restaurants globally

People who are critical of the breaking down of cultural barriers that occurs when global firms expand into new markets might call this phenomenon the "_________ of Culture."

• Disneyfication

• Californication

• Youtubification

• Bastarrdization

• McDonaldization

McDonaldization

True/False: Aesthetic elements that are attractive, appealing, and in good taste are perceived as decent and accepted universally.

False

When the Coca-Cola Company was developing its new Dasani bottled water brand, linguists helped guide the naming process. For example, the recurring "a" was chosen because it has a soothing sound. In linguistics, issues pertaining to letters and sounds are a matter of:

• syntax

• phonology

• synonym

• semiotics

• semantics

phonology

Words can change due to what their function is in a sentence. For instance, in English, we usually add an "s" to the end of a word to show it is plural, (ex. "test" becomes "tests"). This aspect of language is know as __________.

• syntax

• morphology

• semantics

• phonology

• mixology

morphology

A vice-president of an American software company introduced himself to a group of Korean partners and added "you may just call me John." Although this verbal cue shows the underlying reality that Americans have a high value on informality and equality, it needs adaptation due to the reason that:

• it is difficult to translate John in Korean language.

• customs, hierarchies, and class structure of Korean culture have to be respected.

• it is not appropriate to disclose nicknames in business meetings.

• Korean culture requires that first and last name be used in addressing guests.

• John is not a very popular name in Korea.

customs, hierarchies, and class structure of Korean culture have to be respected.

Which of the following is FALSE about non-verbal communication?

• Non-verbal communication can communicate rudeness and insults

• Non-verbal communication has very little meaning

• Non-verbal communication can have important nuances

• The same gesture can have different meanings to people from different cultures

• Non-verbal communication tends to be more important in Asian cultures than Western cultures

Non-verbal communication has very little meaning

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

• negotiations are long and protracted.

• less information is contained in verbal communication.

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

• the messages are explicit and specific.

• a person's word is his or her bond.

the messages are explicit and specific.

What is it called when non-English speaking marketers use English to make their product seem "cool" even if what is written does not make much sense?

• Cultural Appropriation

• Decoration English

• Linguistic Colonization

• Market English

• Advertising English

Decoration English

T/F: It is possible for number combinations to have specific (non-numerical) meanings in some cultures.

True

Which of the following brand names was chosen because it sounds and means the same in nearly all languages?

• Diesel

• IKEA

• Rolex

• Colgate

• Whirlpool

Diesel

The Walt Disney Company's decision to build Euro Disneyland in France provides an excellent vehicle to understanding SRC. All of the statements listed below are reasons STEMMING from inadequate consideration of the SRC that contributed to Euro Disneyland’s difficult start EXCEPT:

• Euro elicits images of glamour and excitement in the American mind, but has a very commercial connotation in the mind of most Europeans

• Disney executives assumed that all negotiations and meetings should be conducted in English.

• Consuming wine with the midday meal is a long-established custom which was not realized by Disney executives

• Disney executives had experienced phenomenal success in Tokyo Disney with their partner the Oriental Land Company

• French are sensitive about American cultural imperialism

Disney executives had experienced phenomenal success in Tokyo Disney with their partner the Oriental Land Company

Which of the following is NOT one of the steps to reducing SRC induced cultural myopia?

• Redefine the problem without the SRC influence and solve for the host country situation

• Educate business partners from the host-country about their own SRC induced cultural myopia

• Isolate the SRC influence and examine it

• Define the problem or goal in terms of home country cultural traits

• Define the problem in terms of host-country cultural traits

Educate business partners from the host-country about their own SRC induced cultural myopia

When a survey questionnaire in English is translated into Korean for use in South Korea and then translated back into English to check its accuracy, it is described as:

• native translation.

• incipient translation.

• comparative translation.

• parallel translation.

• back translation

back translation

There are currently no Apple stores in Sub-Saharan Africa. At this point, Apple believes that there are not enough customers with a high enough income to justify placing an Apple store in Sub-Saharan Africa. However, Apple is keeping they're eye on large cities like Capetown, South Africa and Lagos, Nigeria for when market conditions are right to enter. What kind of market does Apple considers these cities (for Apple stores)?

• incipient market.

• existing market.

• cluster market.

• latent market.

• primary market.

incipient market

Which of the following is true about etic and emic approaches to country analysis?

• An emic approach studies a culture "from the outside"; etic analysis studies a culture from within.

• The emic/etic distinction is not useful in cultural studies.

• The etic and emic approaches are identical.

• An emic approach studies a culture from within; etic analysis is "from the outside."

• The emic/etic approaches cannot be applied to Asian countries.

An emic approach studies a culture from within; etic analysis is "from the outside."

T/F: Companies tend to rely heavily on personal experience and personal sources when collecting initial market information about a new country.

True

When Mattel first introduced Barbie in Japan, managers assumed that Japanese girls would find the doll's design just as appealing as American girls did. This may be due to:

• Barbie being a symbol of American lifestyle.

• the SRC tendency on the part of Japanese consumers.

• the SRC tendency on the part of American managers.

• Barbie's physical features such as long legs and blonde hair.

• the limited competition for dolls in Japan.

the SRC tendency on the part of American managers

Using Hefstede's 6D model, what kind of culture would be most likely use high context communication?

• Flexhumble

• Low Power Distance

• Uncertainty Avoidant

• Collectivist

• Feminine/ Nurturing

• Indulgent

Collectivist

According to Hofstede, a cultural dimension which describes a society in which the social roles of men and women overlap, with neither gender exhibiting overly ambitious or competitive behavior is known as:

• masculine/ achievement

• collectivist

• feminine/ nurturing

• low power distance

• individualist

feminine/ nurturing

Danish companies generally have flat organizational structures. This is an example of low ________ in Hofstede's 6-D model of national culture.

• Individualism

• Masculine/ Achievement

• Future Orientation

• Power Distance

• Uncertainty Avoidance

Power Distance

T/F: A country's relative ranking on Hofstede's World Values Survey stays fairly consistent for each dimension throughout the years.

True

Two countries that score low on the Individualism scale are:

• Denmark and France

• United States and India

• Australia and Belgium

• Indonesia and Peru

• Japan and the UK

Indonesia and Peru

According to Hofstede, a cultural dimension which describes a society in which members of a society are uncomfortable with unclear, ambiguous, or unstructured situations is called:

• Power Distance

• Monumentalism

• Collectivism

• Masculine/ Achievement

• Indulgence

• Uncertainty Avoidance

Uncertainty Avoidance

T/F: A country's numerical score on Hofstede's World Values Survey stays constant for each dimension throughout the years.

False

Which of Hofstede's six dimensions was most recently added?

• Power Distance

• Uncertainty Avoidance

• Masculinity

• Individualism

• Indulgence

• Monumentalism

Indulgence

Products that emphasize purity and cleanliness do better than products that emphasize convenience in countries that score high on which dimension?

• Power Distance.

• Individualism.

• Short-term Orientation.

• Masculinity.

• Uncertainty Avoidance.

Uncertainty Avoidance

Based on the Monumentalism - Flexhumility Scale, which country would be most likely to consider traditions sacred and see good and evil as fixed?

• Australia

• Argentina

• Egypt

• China

• India

Egypt

Countries such as China that tend to view organizations as a “family,” typically score _______ on uncertainty avoidance, and _________ on power distance.
high; low

• high; high

• low; high

• low; low

low; high

Countries such as the United States that tend to view organizations as a “marketplace,” typically score _______ on uncertainty avoidance, and _________ on power distance.

• low; low

• high; high

• high; low

• low; high

low; low

Which of the following is not true of Japanese keiretsu?

• blocks foreign suppliers from the Japanese market

• promotes risk sharing

• relationships are cemented by cross ownership

• ensures low prices for Japanese consumers

• promotes long-term employment

ensures low prices for Japanese consumers

Toyota is considered a ___________ because of the high level of integration and reliance between itself and it's suppliers and distributors within the auto industry. 

• vertical chaebol

• monopoly

• vertical keiretsu

• horizontal keiretsu

• horizontal chaebol

vertical keiretsu

Which of the following is a chaebol?

• Samsung

• General Electric

• Toyota

• Unilever

• Tata

Samsung

Which of the following shows the correct order of the product adoption process?

• adoption→evaluation→trial→interest→awareness

• evaluation→trial→awareness→interest→adoption

• awareness→interest→evaluation→trial→adoption

• interest→awareness→adoption→trial→evaluation

• trial→interest→evaluation→awareness→adoption

awareness→interest→evaluation→trial→adoption

If a marketing manager plans to enter newly industrializing-countries (NICs) or other Asia markets with a product that has proved to be successful in the home market, the product's diffusion processes are likely to be:

• similar to that in the home market

• negligible since consumers will take time to assess the relative advantage

• less compatible in the Asian market

• much slower than in the home market

• much faster than in the home market

much faster than in the home market

Adopter categories are classifications of individuals within a market on the basis of their innovativeness. When Apple introduced the Apple watch people waited in long lines before the doors opened. According to experts, those people can be categorized as:

• innovators

• laggards

• late majority

• early majority

• early adopters

innovators

Which of the following is arranged starting with the highest level of environmental sensitivity and ending with the lowest level?

• none of these options

• integrated circuits→food→computers

• computers→food→integrated circuits

• food→computers→integrated circuits

• integrated circuits→computers→food

food→computers→integrated circuits

T/F: The lower the level of environmental sensitivity for a given product, the greater the need for managers to address country-specific economic, regulatory, technological, social, and cultural environmental conditions.

False

The MAIN difference between a parliamentary democracy and a presidential democracy is that:

• the Prime Minister is elected directly by citizen votes in a parliamentary democracy

• the executive branch is headed by the king or queen in a parliamentary democracy

• the President's party must keep a majority in the legislature to keep the presidency in a presidential democracy

• the head of government is part of a separate executive branch in a presidential democracy

• there are no major differences between parliamentary democracies and presidential democracies

the head of government is part of a separate executive branch in a presidential democracy

In Great Britain, the Wine and Spirit Association estimates that, pre-Brexit, cars returning from France were loaded with 80 bottles of wine. This is most likely due to

• high excise and VAT taxes.

• cross-border smuggling.

• bribes accepted by officers.

• antitrust scrutiny.

• trademarks and copyrights violation.

high excise and VAT taxes.

After Fidel Castro took power in Cuba in 1959, his government seized control of the entire sugar industry in Cuba and paid impacted foreign companies in Cuban government bonds. Which of the following terms most specifically describes the action Castro took against these companies?

• expropriation

• deportation

• internationalization

• nationalization

• confiscation

nationalization

Political risk insurance may be purchased in order to protect from which of the following:

• stock market losses

• confiscation of assets

• losses due to an accident

• tsunamis

• earthquakes

confiscation of assets

All of the following are anti-competitive behaviors that countries might use in order to limit the activities of foreign firms EXCEPT:

• limits on repatriation of profits, dividends, or royalties

• quotas for hiring local nationals

• tariffs

• local content laws

• VAT

VAT

What type of international disputes would be taken before the International Court of Justice?

• disputes between two nations

• disputes between a citizen of one country and a company from a different country

• disputes between a company and a nation

• disputes between two companies

• disputes between profit and non-profit organizations

disputes between two nations

The United States has more lawyers than any other country in the world. This is a reflection of:

• the lack of spirit of confrontational competitiveness.

• the lack of class action lawsuits.

• the fact that lawyers cannot undertake cases on contingency fee basis.

• the importance of previous judgements in common law countries.

• the fact that conflicts arise more in the United States.

the importance of previous judgements in common law countries.

In West Africa, Burkina Faso, the Ivory Coast and Senegal are former French colonies, while Nigeria, Sierra Leone, and Ghana are former British colonies. Based on this information, which of the following would be correct?

• All the West African nations mentioned are likely to be civil-code countries.

• Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria, Sierra Leone, and Ghana are common-law countries.

• West Africa, the Ivory Coast and Senegal are the only common-law countries.

• Burkina Faso, the Ivory Coast and Senegal are common-law countries, while Nigeria, Sierra Leone, and Ghana are civil-code countries.

• All the West African nations mentioned are likely to be common-law countries.

Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria, Sierra Leone, and Ghana are common-law countries.

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

• the Uniform Commercial Code.

• the French Civil Code.

• Anglo-Saxon common law.

• Islamic law.

• Roman law and the Napoleonic Code.

Islamic law.

In a recent case, Revlon sued United Overseas Limited (UOL) in the U.S. District Court for the Southern District of New York for breach of contract. UOL countered by asking the court to dismiss the claim since they are not operating in that area. Revlon cited the presence of a UOL sign above the entrance to the offices of a New York company in which UOL had a 50-percent ownership. The court dismissed UOL's claim. This is an issue related to :

• intellectual property.

• dilution of equity.

• jurisdiction.

• antitrust.

• bribery and corruption.

jurisdiction.

Engineers at a company in a developing country study an American computer chip design, copy it, and produce identical chips that are then sold to local computer makers. What form of intellectual property has been wrongly appropriated?

• patent

• copyright

• trademark

• trade secrets

• technological

patent

Counterfeiting is:

• the use of a formal legal document for illegal purposes.

• the unauthorized copying or production of a product.

• the use of a distinctive mark of a brand that is no longer producing the original brand.

• the ownership of a written, recorded, performed or filmed creative work.

• the use of a product name that has different meaning than the original brand.

the unauthorized copying or production of a product.

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?

• trade secrets

• patent

• trademark

• copyright

• down loading

copyright

In order to harmonize with European and Japanese patents, new U.S. patents are granted for a period of ________ years from the filing date.

• 27

• 20

• 10

• 17

• 30

20

Which of the following best describes the legal basis for protection of trade secrets, patents, and copyrights in the United States?

• Trade secrets are protected by federal statutes, while patents and copyrights are protected by state law.

• Trade secrets are protected by state law, while patents and copyrights are protected by federal statutes.

• Trade secrets, patents, and copyrights are protected by federal statutes.

• Trade secrets, patents, and copyrights are protected by state law.

• Trade secrets, patents, and copyrights are not protected by any laws.

Trade secrets are protected by state law, while patents and copyrights are protected by federal statutes.

Companies, non-profits, and trade organizations send their own representatives to Brussels and Washington DC in order to influence how laws and regulations are written and enforced. This practice is called:

• lobbying

• political risk insurance

• arbitration

• bribery

• corruption

lobbying

When companies operate abroad in the absence of home-country legal constraints, the best choice for ethical conduct would be:

• to adapt in varying degrees to local customs and practices.

• to have a product that is clearly superior to that of the competition.

• to maintain home-country ethics worldwide with no adaptations.

• to abandon any attempt to maintain company ethics.

• to ignore bribery and act as if it does not exist.

to have a product that is clearly superior to that of the competition.

OPEC can be considered as a "cartel" which is a group of separate companies that collectively:

• works on forming a union against management of other companies.

• produces more products in order to beat the competition.

• conducts activities that are considered illegal in the United States.

• sets prices, controls output, or takes other actions to maximize profits.

• dictates how other countries should use their products.

sets prices, controls output, or takes other actions to maximize profits.

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:

• antitrust.

• licensing.

• arbitration.

• jurisdiction.

• intellectual property.

antitrust.

All of the following are a RESULT of the EU enacting the GDPR (General Data Protection Regulation) EXCEPT:

• tech giants started focusing on primary data rather than 3rd party cookies

• European consumers have the right to demand personal data be removed from social media sites

• companies around the world updated their privacy policies

• Google Maps Streetview was banned in the EU

• companies must get consent from European consumers to send them marketing e-mails

Google Maps Streetview was banned in the EU