Global Marketing 8th edition Exam 1 - Flashcards

question

The market development strategy involves seeking new customers by introducing existing products or services to a new market segment.

answer

TRUE

question

Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. This is an example of Market Penetration.

answer

TRUE

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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."

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TRUE

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Nike dropped their well-known tag line "Just do it" in advertising women's clothing in Europe and replaced it by the slogan "Here I am" since college-age women in Europe are not as competitive about sports as men are.

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TRUE

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A U.S. company that focuses on the countries included in the North American Free Trade Agreement (NAFTA) has a regiocentric orientation.

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TRUE

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A European company that focuses its attention on Europe can be considered to have geocentric orientation.

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FALSE

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In global markets, Starbucks is a good example of simultaneously executing all of the growth strategies except: A) Market penetration. B) Market development. C) Product development. D) Market orientation. E) Diversification.

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Moderate

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Starbucks has launched several new ventures in global markets, including music CDs and movie production. This is an example of

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Market Diversification.

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A fundamental difference between regular marketing and global marketing is:

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the scope of activities

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Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. The app displays a bar code that the barista can scan. This is an example of:

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Market Penetration

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Starbucks is entering India via an alliance with the Tata Group. Phase 1 calls for sourcing coffee beans in India and marketing them at Starbucks stores throughout the world. This is an example of:

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Market Development.

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

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Value = Benefits/Price.

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The marketing mix is integral to the value equation which is represented by:

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Value = Benefits/Price.

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Renault and its rivals are racing to offer middle-class consumers a new value proposition by selling cars for the equivalent of $10,000 or less. On the heels of Renault's success with Dacia Logan came the $2,500 Nano from India's Tata Motors. This illustrates that

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market success depends on reaching a threshold of acceptable quality for consumers.

question

) Walmart's exit from the German market was due, in part, to the fact that German shoppers could find lower prices at stores known as:

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Hard discounters

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According to Michael Porter, a global industry is one in which ________ can be achieved by integrating and leveraging operations on a worldwide scale.

answer

competitive advantage

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The former chairman of Nestlé recently told an interviewer: "We are food and beverages. We are not running bicycle shops. Even in food we are not in all fields. There are certain areas we do not touch. Also, we have no soft drinks because I have said we either buy Coca-Cola or we leave it alone." What strategic marketing principle does the chairman's comment emphasize most specifically?

answer

Focus

question

Nike recently adopted the slogan "Here I am" for its pan-European clothing advertising targeting women. The decision to drop the famous "Just do it" tag line was based on the research indicating that:

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college-age women in Europe are not as competitive about sports as men are.

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The decision to enter one or more particular markets outside the home country depends on all of the mentioned factors except: A) company's resources. B) company's age. C) company's managerial mind-set. D) nature of opportunities. E) threats.

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company's age.

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From the global marketing perspective, the customization of the Beatles' records is a good example of:

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product adaptation.

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Two decades ago, professor Ted Levitt wrote a classic Harvard Business Review article titled "The Globalization of Markets." Which of the following statements about the author and the article is accurate?

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Levitt urged companies to develop standardized products that could be marketed worldwide with little adaptation.

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Coca-Cola achieved success in the Japanese market primarily by

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global localization.

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A company that succeeds in global marketing:

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creates both standardized and localized products.

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An important managerial task in global marketing is learning to recognize the extent to which it is possible to extend marketing plans as well as the extent to which adaptation is desired. The way a company addresses this task is a reflection of the company's

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global marketing strategy.

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One of the dimensions of global marketing strategy which pertains to marketing management is:

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integration of competitive moves.

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Statements that illustrate the success of global marketing include all of the following except: A) the Coca-Cola Company supports its Coke brand by utilizing global and local marketing mix. B) Apple is synonymous with cutting-edge innovation and high-tech design. C) Italy's Benetton utilizes marketing as a knee-jerk reaction to world marketing needs. D) the backbone of Caterpillar's global success is its network of dealers. E) Germany's reputation for engineering and manufacturing provides a competitive advantage.

answer

C) Italy's Benetton utilizes marketing as a knee-jerk reaction to world marketing needs.

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McDonald's serves McAloo Tikki Burger in India, McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, and McHuevo Burger in Uruguay and McSamurai Burger in Thailand. These menu variations are examples of

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a combination of global and local marketing mix elements.

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All of the following correctly states McDonald's approach to standardization and adaptation of the marketing mix except: A) McDonald's standardizes some product elements and adapts others. B) McDonald's standardizes some place elements and adapts others. C) McDonald's standardizes some promotion elements and adapts others. D) McDonald's standardizes some price elements and adapts others. E) McDonald's standardizes all product elements.

answer

McDonald's standardizes all product elements

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Examples of effective global marketing by McDonald's include both standardized and localized marketing mix elements. Which of the following does not represent a localized element?

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It uses the advertising slogan "I'm lovin' it."

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Uniqlo, a division of Japan's Fast Retail, operates about 850 stores in Japan and currently has six stores in the United States. Their plans call for a total of 200 U.S. stores by 2020. The fulfillment of their plan will depend on: A) industry conditions. B) sources of competitive advantage. C) the condition of the apparel market worldwide. D) the demand in Japan for U.S. style garments. E) all of the above

answer

All of the above

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Measured by national income, the United States represents the world's largest single market for goods and services. Roughly what percentage of world income is found outside the United States?

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75%

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Even though Germany is the largest single-country market in Europe, what percent of the world market potential for German companies is outside Germany?

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94%

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According to the Fortune global 500 companies for 2012, the largest corporation based on revenue is:

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Royal Dutch Shell

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Based on 2012 rankings of Fortune Global 500 companies, the world's most valuable car company is:

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Toyota

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Based on the size of the market in U.S. dollars, the leading consumer products are:

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Cigarettes

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Based on the size of the market in U.S. dollars, the second highest consumer products are

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Luxury Goods

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A person who assumes that his or her home country is superior to the rest of the world is said to have:

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ethnocentric orientation

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Nissan's earlier vehicles were difficult to start in many parts of the United States during the cold winter months. In northern Japan, it was customary for many car owners to put blankets over the hoods of their cars during winter months. Nissan's assumption was that Americans would do the same thing. This is an example of:

answer

ethnocentric orientation.

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The cell phone divisions of Toshiba, Sharp, and other Japanese companies prospered by focusing on the domestic market. When handset sales in Japan slowed a few years ago, the Japanese companies realized that Nokia, Motorola, and Samsung already dominated key world markets. Atsutoshi Nishida, president of Toshiba, noted, "We were thinking only about Japan. We really missed our chance." This example illustrates:

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ethnocentric orientation

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Unilever, the Anglo-Dutch consumer products company, at one time had 30 different package designs and 48 different formulations for its Rexona deodorant brand. This is an example of:

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polycentric orientation

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Transnational companies, such as Toyota and Honda, have characteristic features that include: A) being in both global markets and utilizing global supply chains. B) characterized by a mind-set of being "stateless." C) using both localized and standardized elements in marketing programs. D) decisions made on the basis of ongoing research. E) all of the above

answer

All of the above ***

question

Nestlé, Unilever, GlaxoSmithKline, and Royal Philips Electronics can be considered transnational companies on the basis of: A) sales outside the home country to total sales. B) assets outside the home country to total assets. C) employees outside the home country to total employees. D) headquartered in a relatively small home-country market. E) all of the above

answer

all of the above ***

question

A type of advantage that a global company possesses by virtue of the fact that it has experience in more than one country is referred to as:

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Leverage

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A number of multilateral trade agreements have accelerated the pace of global integration which include: A) NAFTA. B) GATT. C) WTO. D) EU. E) all of the above

answer

All of the above

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Pfizer, Merck, Novartis, and other pharmaceutical companies have little choice but to engage in global marketing since

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no single market is large enough to recover costs incurred in research.

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In their book, Daniel Yergin and Joseph Stanislaw wrote "It is the greatest sale in the history of the world. Governments are getting out of businesses by disposing of what amounts to trillions of dollars of assets. Everything is going—from steel plants and phone companies . . . to hotels, restaurants, and nightclubs." This is an indication of:

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privatization is becoming a driving force for global marketing.

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When a country like China is experiencing rapid economic growth, policymakers are likely to:

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look more favorably on outsiders.

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) H.F. Iskander, general manager of Chevron's Kuwait office, stated "Chevron is pumping oil in different locations all over the world . . . there isn't a rock we haven't drilled through. We centralize all that knowledge at our headquarters, analyze it, sort it out, and that enables us to solve any oil-drilling problem anywhere." From the global marketing point of view this is an example of a global company:

answer

) that gains leverage through experience transfers.

question

Japan's giant Matsushita Electric Company achieved scale economies by exporting VCRs, televisions, and other consumer electronics products throughout the world from world-scale factories in Japan. This is an example of the fact that: A) scale economies were a cornerstone of Japanese success in the 1970s and 1980s. B) leverage from scale economies is not limited to manufacturing. C) a global company can achieve the same economies on a global scale. D) the larger scale of the global company also creates opportunities to improve corporate staff competence and quality. E) all of the above

answer

All of the above

question

Anheuser-Busch, the brewer of Budweiser beer, lost its independence after years of focusing primarily on the domestic U.S. market. This is most likely a result of:

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management myopia.

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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:

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Globaphobia

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McDonald's restaurants are found in more than 118 countries. To ensure high levels of consistency and quality, the company's far-flung restaurant system incorporates many standardized elements (e.g. restaurant design, burgers/fries/soft drinks as basic menu offerings). However, McDonald's also prides itself on sourcing many of its food inputs (e.g. potatoes and dairy products) in individual host countries. McDonald's strives to be locally responsive—it creates new menu items specifically designed with local eating customs and preferences in mind. Typically, McDonald's forms joint ventures with local partners, a tactic that ensures that a local "face" is associated with the company. Finally, McDonald's has been in many country markets long enough that a new generation of consumers has grown up with McDonald's and are not aware of the company's U.S. origins. On the basis of this summary, what is the highest stage of corporate development that McDonald's arguably has achieved?

answer

transnational

question

People or organizations with needs and wants and the willingness and ability to buy or sell represent the definition of a market.

answer

TRUE

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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.

answer

TRUE

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The World Bank has developed a four-category classification system for stages of marketing development which uses per capita gross national income (GNI) as a base.

answer

TRUE

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Product and market opportunities in postindustrial society are heavily dependent upon new products and innovations.

answer

TRUE

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During the past two decades, the world economic environment has become increasingly dynamic. To achieve success, executives and marketers must take into account all of the following realities Except: A) capital movements have replaced trade as the driving force of the world economy. B) production has become "uncoupled" from employment. C) the world economy dominates the scene. D) the struggle between capitalism and socialism continues. E) the growth of e-commerce diminishes the importance of national barriers.

answer

the struggle between capitalism and socialism continues. ***

question

The Gross Domestic Product (GDP), a measure of a nation's economic activity, is calculated by all of the following factors except: A) consumer spending. B) investment spending. C) government purchases D) industry purchases. E) net exports.

answer

industry purchases ***

question

The demise of communism as an economic and political system can be explained by all of the following facts except: A) communism is not an effective economic system. B) relatively superior performance of the world's market economies. C) communism works when the currency exchange rate is weak. D) difficult to manage national economies with a single central plan. E) increased public participation in matters of state.

answer

communism works when the currency exchange rate is weak. ***

question

Traditionally economists identified main types of economic systems, which include all of the following except: A) market capitalism. B) market socialism. C) centrally planned socialism. D) centrally planned capitalism. E) centrally planned nationalism

answer

Centrally planned nationalism ***

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Market capitalism is an economic system in which:

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individuals and firms allocate resources and production resources that are privately owned.

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One of the distinguishing features of a Centrally Planned Capitalism economic system is:

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command resource allocation is utilized extensively in a private resource ownership environment.

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For decades, the economies of China, the former Soviet Union, and India functioned according to the tenets of:

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centrally planned socialism.

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The Swedish government has significant holdings in key business sectors and has a hybrid economic system that incorporates:

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centrally planned socialism and capitalism

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The Washington, D.C.-based Heritage Foundation survey consists of over 175 countries ranked by degree of economic freedom. The key economic variables considered for this ranking includes all of the following except: A) taxation policy. B) government consumption of economic output. C) percent foreign ownership. D) banking policy. E) wage and price control.

answer

Percent foreign ownership ***

question

Singapore banned the import, manufacture, and sales of chewing gum in the country since wads of gum were making a mess on sidewalks, buses, and subway trains. Violators are subject to severe penalties, and before buying a pack consumers must register their names and addresses. This, according to author William Greider, demonstrates that Singapore's government: A) is harshly autocratic. B) administers a paranoid control over Singaporeans. C) administers a paranoid control over press and politics. D) runs an effective welfare state. E) all of the above

answer

All of the above ***

question

Venezuelan President Hugo Chavez believed in all of the following aspects except: A) nationalization of international companies. B) imposition of currency controls. C) free-market economic policies. D) capitalism is a structural crisis. E) energy pact known as Petrocribe.

answer

All of the above ***

question

Low-income countries have a GNI per capita of $1,025 or less. The general characteristics shared by countries at this income level include all of the following except: A) high literacy rates. B) high birth rates. C) heavy reliance on foreign aid. D) political unrest. E) high agricultural population.

answer

High literacy rates ***

question

Myanmar is considered as one of the emerging markets open for business. All of the following facts pertain to Myanmar except: A) Myanmar is a low-income country in Southeast Asia. B) Myanmar has a population of 65 million people. C) Myanmar is one of the countries considered as "Stans." D) Myanmar's citizens elected a president. E) Only one quarter of Myanmar's population has access to electricity.

answer

Myanmar is one of the countries considered as "Stans." ***

question

The majority of the world's population is included in the following economic category

answer

lower-middle-income countries

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With a 2011 GNI per capital of $1,410, India has transitioned out from the former category and now is classified as a(n):

answer

lower-middle-income country.

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Upper-middle-income countries, also known as industrializing or developing countries are those with GNI per capita ranging from

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$4,036 to $12,475. ***

question

Among the upper-middle-income countries, also known as industrializing or developing countries, the following aspects are observed except: A) the CNI per capita ranges from $4,036 to $12,475. B) the percentage of the population engaged in agriculture drops sharply. C) people move to the industrial sector. D) the degree of urbanization increases. E) None of the above

answer

NONE OF THE ABOVE ***

question

The general characteristics shared by low-income countries do not include: A) high birth rates. B) low literacy rates. C) concentration in Africa south of the Sahara. D) heavy reliance on foreign aid. E) lack of genuine market opportunities.

answer

lack of genuine market opportunities. ***

question

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

Brazil lacks logistics software, horse-drawn carts are still a common sight on many roads. ***

question

All of the following facts pertain to China except: A) China is in the upper-middle-income category. B) China is the largest single destination for foreign investment in the developing world. C) China is a member of the World Trade Organization. D) China has sprawling bureaucracy. E) China lacks infrastructure.

answer

China has sprawling bureaucracy ***

question

Prahalad and Hammond have identified several assumptions and misconceptions about the "bottom of the pyramid" (BOP) that need to be corrected. All of the following mistaken assumptions are correct except: A) The poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods. B) The goods sold in developing markets are so expensive that there is no room for a new market entrant to make a profit. C) The poor have no money. D) People in BOP markets cannot use advanced technology. E) Global companies that target BOP markets will be criticized for exploiting the poor.

answer

The goods sold in developing markets are so expensive that there is no room for a new market entrant to make a profit. ***

question

Global marketers should take note of the fact that almost half of the world's population is located in:

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lower-middle-income countries.

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The United Nations designates 50 countries in the bottom ranks of the low-income category named as:

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LDCs (least-developed countries).

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Upper-middle-income countries are also known as:

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Industrializing countries

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Upper-middle-income countries that achieve the highest rates of economic growth are sometimes referred to collectively as:

answer

NIEs

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Which of the following nations fall in the lower-middle-income category? A) Burundi B) Bangladesh C) Egypt D) Venezuela E) none of the above

answer

Egypt

question

Nike produces only a small portion of its output in China, but when the firm refers to China as a "two-billion-foot market," it is referring to the fact that:

answer

China is a potential future market.

question

) According to the authors of the Harvard Business Review article, "Serving the World's Poor, Profitably", which of the following is a mistaken assumption that global companies might have about the BOP (bottom of the pyramid)? A) The poor have no money. B) The poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods. C) People in BOP markets will be criticized for exploiting the poor. D) People in BOP markets cannot use advanced technology. E) All of the above are mistaken assumptions discussed by the authors.

answer

All of the above ***

question

Pursuing alternative sources of energy, such as wind and solar power, is important due to the fact that:

answer

heavy reliance on fossil fuels contributes to global warming

question

Which two companies are sourcing product components from small-scale enterprises, which in turn are helping preserve old-growth forests as well as economic opportunities in Brazil?

answer

Daimler AG and Hermes

question

Product and market opportunities in a postindustrial society are more heavily dependent upon new products and innovations than in industrial societies. An example of this would be

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New e-commerce markets for interactive forms of electronic communication.

question

Which country was upgraded from "emerging" to "developed" status by the Financial Times Stock Exchange (FTSE) in 2009?

answer

South Korea

question

The Organization for Economic Cooperation and Development (OECD) is comprised of: A) the 34 high-income countries. B) countries that believe in market-allocation economic systems. C) pluralistic democracies. D) countries that demonstrate progress toward economic reform. E) All of the above statements are applicable.

answer

All of the above ***

question

The term "Expanded Triad" includes all of the following countries or regions except: A) Japan. B) United States. C) Canada. D) Mexico. E) Russia.

answer

Russia ***

question

Recently, the Organization for Economic Cooperation and Development (OECD) has become more focused on global issues, social policy, and labor market regulations as seen by: A) addressing the vexing problem of bribery. B) requiring members to cooperate when pursuing bribery allegations. C) helping members candidly assess their own economic policies. D) member nations working together in committees to review social policies. E) all of the above

answer

All of the above ***

question

Which of the following is true about the Triad? A) Triad countries account for approximately one-third of world income and one- third of world population. B) Triad countries account for approximately 75% of world income as measured by GNP. C) Triad countries are those in which consumer products, industrial products, and the services sector each contribute one-third to GDP. D) Triad countries account for approximately 25% of world income as measured by GNP. E) Triad countries account for approximately 50% of world income as measured by the World Bank.

answer

Triad countries account for approximately 75% of world income as measured by GNP.

question

Which of the following statements is not accurate? A) India's teledensity—a measure of ownership of private telephones—is only 20% of population. B) In China, saturation levels of private motor vehicles and personal computers (PCs) are quite low. C) In 2001, EU had 49 cars per 100 people. D) In Russia, 200 people out of 1,000 own cars. E) In India, 150 people out of 1,000 own cars.

answer

In India, 150 people out of 1,000 own cars. ***

question

) The "balance of payments" is a record of all economic transactions between the residents of a country and the rest of the world. It is divided into the current and capital accounts. Current accounts include all of the following except: A) balance on goods. B) portfolio investments. C) balance on services. D) goods imports. E) goods exports.

answer

portfolio investments ***

question

Measuring elevator populations in countries measured as units installed per thousand people gives an estimate of the market for elevators. That China has about one half an elevator per thousand people is indicative of:

answer

low product saturation level

question

The United States' growing trade deficit reflects a number of factors which exclude: A) increased imports from China. B) a seemingly insatiable consumer demand for imported goods. C) the enormous cost of military operations in the Middle East. D) the services trade surplus. E) record goods sales to developing countries.

answer

the service trade surplus ***

question

The fastest-growing sector of world trade includes: A) travel and entertainment. B) accounting and legal services. C) royalties and license fees. D) engineering services. E) all of the above

answer

All of the above ***

question

) Devaluation can result from government action or an economic crisis. In August 1998, the Russian economy imploded. As a result, all of the following listed events happened except: A) the ruble plunged in value. B) the government defaulted on its foreign debt obligation. C) many Russians faced wage cuts and layoffs. D) Russia's economy did not recover from the impact. E) savings were wiped out as banks collapsed.

answer

Russia's economy did not recover from the impact ***

question

To the extent that a country sells more goods and services abroad than it buys, there will be

answer

a greater demand for its currency.

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The top global merchandise exporter is

answer

China

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The Big Mac Index shows that the price of the Big Mac in China converted from the local currency, yuan, to be $2.18, whereas its price in the United States is $3.73. This shows that:

answer

the Chinese yuan is undervalued against the US

question

One Friday a few years ago, the Big Mac Index suggested that the yen was overvalued relative to the dollar by 70%. When currency markets opened on the following Monday, anyone using the Big Mac Index would conclude that the yen was only 20% overvalued relative to the dollar. What is the most likely explanation for this?

answer

McDonald's Japan reduced the yen price of a Big Mac. ___

question

If an American tourist in Tokyo pays more in dollars for the same amount of yen that she bought last week, then

answer

the dollar has depreciated relative to the yen

question

Porsche relies on currency hedging rather than price increases in order to: A) boost pretax profits on sales of its automobiles. B) balance the relative value of the dollar compared to the euro. C) protect all earnings from foreign-exchange movements. D) generate about 45% of its sales in the United States. E) A, B, and C

answer

A B and C ***

question

When countries or regions experience currency and/or economic stress, all of the following events can take place except: A) increased exposure to certain risks. B) new profit opportunities. C) lower local currency financing costs. D) bad debts occur. E) cancellation of aircraft equipment sales.

answer

lower local currency financing costs ***

question

A preferential trade agreement is a mechanism that confirms special treatment on select trading partners, thereby at times discriminating against other trading partners.

answer

True

question

Before an agreement can be reached between the United States and European Union, major differences will have to be worked out. These differences include aspects related to all of the following except: A) agriculture. B) genetically modified crops. C) tariff reduction. D) cross-border investment. E) job creation.

answer

Job creation ***

question

The World Trade Organization, which came into existence on January 1, 1995, is the successor of another organization with the abbreviation

answer

GATT

question

Which form of regional cooperation agreement, when fully implemented, entails creation of a unified central bank, the use of a single currency, and common policies on agriculture, social services and welfare?

answer

Economic Union

question

Trade ministers representing the WTO member nations meet ________ to work on improving world trade.

answer

Annually

question

The form of economic cooperation that calls for 1) eliminating internal barriers to trade and 2) establishing common external barriers is known as a(n):

answer

customs union

question

________ builds upon the elimination of internal tariff barriers, the establishment of common external barriers, and the free flow of factors.

answer

customs union

question

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

free trade area→customs union→common market→economic union

question

) free trade area→customs union→common market→economic union

answer

political unity

question

As a result of CFTA, the U.S. automakers participate in the Canadian auto market, thereby benefiting due to:

answer

greater economies of scale.

question

Custom unions or a common market does not create a free trade area as compared to NAFTA due to:

answer

no common external tariffs

question

The form of economic cooperation that calls for countries to eliminate all internal barriers to trade among themselves even while maintaining independent trade policies vis-à-vis third countries is known as a(n):

answer

Free trade era

question

) NAFTA creates a free trade area in North America. However, Mexican avocado growers:

answer

can only ship avocados to the United States in winter months.

question

NAFTA creates a free trade area, as opposed to a customs union or a common market, due to the fact that:

answer

the governments of all three nations decided to eliminate tariffs.

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The allure of the Latin American market has been its:

answer

considerable size.

question

) The most important preferential trading arrangements in Latin America do not include: A) SICA. B) the Andean Community. C) CARICOM. D) Mercosur. E) BRIC.

answer

BRIC ***

question

The five original members of the Central American Integration System did not include: A) El Salvador. B) Honduras. C) Guatemala. D) Nicaragua. E) Venezuela.

answer

Venezuela ***

question

Which member of the Central American Integration System has both the largest economy and the largest population?

answer

Guatemala

question

Implementation of the Central American Free Trade Agreement with the United States created a free trade area known as DR-CAFTA that includes all SICA members except: A) Honduras. B) Guatemala. C) Nicaragua. D) Panama. E) Costa Rica.

answer

Panama ***

question

The Secretariat for Central American Integration is headquartered in:

answer

Guatemala City

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Considering the progress, attempts to achieve integration in Central America has been described as:

answer

uncoordinated

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The country that withdrew from the original members of the Andean Community is:

answer

Chile

question

About 70% of Ecuador's flower harvest is exported to

answer

the United States

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The "Common Market of the South" in Latin America is used to describe

answer

Mercosur

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Argentina provides a good example of how a country can emerge from an economic crisis as a stronger global competitor as per the following statement:

answer

Argentina devalued its currency for exports and capital transactions

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The English-speaking CARICOM members in the eastern Caribbean are concerned with defending their privileged trading position with

answer

The United States

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The original six members of the ASEAN (Association of Southeast Asian Nations) included all of the following countries except: A) Singapore. B) Thailand. C) India. D) Philippines. E) Brunei.

answer

India ***

question

Which one of the ASEAN members has the World's second-largest container port? A) Singapore B) Thailand C) India D) Philippines E) Brunei

answer

Singapore

question

There are barriers in Japan for global marketers in terms of attitudes as well as laws. Barriers include all of the following except: A) any organization wishing to compete in Japan must be committed to providing top-quality products and services. B) repeat visits and extended socialization with distributors. C) goods marketed should have a semblance of western products and services. D) marketers must master the keiretsu system of tightly knit corporate alliances. E) trust has to be built before conducting successful business.

answer

goods marketed should have a semblance of western products and services. ***

question

For the past 40 years Bhutan, a kingdom of 700,000 people in the Himalaya mountains, has relied on the following measure:

answer

GNH

question

Which of the following ASEAN countries ranks number one in terms of two-way trade with the United States?

answer

Singapore

question

The Maastricht Treaty called for: A) the creation of an Asia Free Trade Area (AFTA). B) the creation of an economic and monetary union in Europe. C) Chile's acceptance into Mercosur. D) the purchase of CDs and tapes from distributors in Europe. E) the creation of the seven-nation European Free Trade Association (EFTA).

answer

the creation of an economic and monetary union in Europe.

question

The introduction of the euro by EU resulted in multifaceted advantages which include:

answer

elimination of costs associated with currency conversion.

question

The non-EU member which uses the euro as its currency is

answer

Vatican City

question

The new country joining the EU at the beginning of 2014 is:

answer

Estonia

question

Markets of Central and Eastern Europe present interesting opportunities and challenges. Companies such as 3M International, McDonald's, Philips Electronics, and Henkel are moving into the region for all of the following reasons except: A) the region is an important new source of growth. B) that the first company to penetrate a country market often emerges as leader. C) wage rates are much lower than those in Spain, Portugal, and Greece. D) the region offers attractive locations for low-cost manufacturing. E) core products and Western brand names need changes to meet consumer demands.

answer

core products and Western brand names need changes to meet consumer demands. ***

question

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

All of the above ***

question

Because they are in transition, the markets of Central and Eastern Europe present interesting opportunities and challenges which include: A) new source of growth. B) first mover advantage. C) exporting as an entry mode. D) lower wage rate. E) all of the above

answer

All of the above ***

question

The enlargement of the EU has impacted marketing strategies in the Eurozone countries by:

answer

shifting products from one market to another in the event of shortages

question

The markets of Central and Eastern Europe present interesting opportunities and offer attractive locations for low-cost manufacturing due to

answer

wage rates being lower than in Spain, Portugal and Greece

question

With the global economic crisis as a backdrop, the first-ever Happiness Congress was held in:

answer

Spain

question

Political and social instability in the Middle Eastern region can primarily be attributed to

answer

a wide gap between rich and poor nations due to oil revenues.

question

The Gulf Cooperation Council (GCC) includes all of the following countries except: A) Kuwait. B) Saudi Arabia. C) Iraq. D) Bahrain. E) Oman.

answer

Iraq ***

question

A key word(s) in conducting business in the Middle East is:

answer

Connection

question

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

they must import most of the goods and services

question

The Middle East and North Africa are sometimes viewed as a regional entity referred to as

answer

MENA

question

In recent years, the economy of selected countries in ECOWAS has improved except in: A) Ivory Coast. B) Ghana. C) Benin. D) Sierra Leone. E) Nigeria.

answer

Sierra Leone

question

In order to form a free trade area, South Africa has signed a Trade, Development, and Cooperation Agreement (TDCA) with:

answer

Eu

question

African companies will find it easier to gain access to financing from the U.S. Export-Import Bank due to:

answer

) AGOA.

question

Other than tariffs, there are certain problems that restrict free trade between the European Union and the United States which includes all of the following except: A) use of genetically modified agricultural products. B) product labeling. C) Hollywood movie domination. D) Internet usage. E) cultural diversity.

answer

Internet Usage ***

question

The reason why Greece, Ireland, Portugal, and Spain sometimes are referred to as the eurozone's "peripheral countries" is:

answer

that they all rank lower than their EU neighbors in terms of infrastructure.

question

Culture includes conscious and unconscious values, ideas, attitudes, and symbols that shape human behavior and that are confined to one generation

answer

F*CKING FALSE.

question

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

answer

attitudes, beliefs, and values

question

Suppose you have a friend from India who is a lifelong vegetarian and who does not like McDonald's because the company sells hamburgers in many countries. Which of the following describes your friend?

answer

"vegetarianism" represents a value, "dislike McDonald's" represents an attitude

question

The use of this color dates back millennia as seen by artisans in ancient Egypt, China, and Mayan civilizations all worked with the color, which is now associated with royalty and divinity.

answer

BLUE

question

An intern from the United Kingdom was working in an American software company during summers. One day her boss gave her a memo asking her to post it, with the intention of having it put on the bulletin board. To her boss's surprise the letter was mailed by the intern since the word "post" means "mail" in British English. In communication terms this error can be attributed due to:

answer

semantics

question

Linguists have divided the study of languages into four main areas. The system of word formation is referred to as:

answer

morphology

question

Anheuser-Busch and Miller Brewing both experienced market failures in the United Kingdom when they used the phrase "light beer" which was misinterpreted as:

answer

having less alcohol

question

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

answer

phonology

question

In China, Dell had to find a meaningful interpretation of "direct sales." A literal translation results in zhi xiao which is the Chinese term for "illegal pyramid marketing schemes." To counteract the negative connotation, Dell's sales representatives began using the phrase zhi xiao ding gou, which translates as:

answer

direct orders

question

Colgate discovered that in Spanish colgate is a verb form that means "go hang yourself." Whirlpool found that consumers in Italy, France, and Germany had trouble pronouncing the name. These are examples which show the importance of ________ in global marketing.

answer

phonology and morphology

question

Giving business cards with the left hand in Malaysia, showing soles of shoes to a host in Saudi Arabia, and winking one eye in India are all considered impolite interpersonal communication due to the fact that:

answer

people pick up nonverbal cues and understand intuitively without being told.

question

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:

answer

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

question

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

answer

the messages are explicit and specific.

question

In high-context cultures, time is:

answer

polychronic.

question

Insisting on competitive bidding can cause complications in:

answer

low-context cultures

question

Lawyers are more important in

answer

low context cultures

question

According to Geert Hofstede, which of the following is a key cultural dimension that helps account for rapid economic growth in Asia?

answer

long-term orientation

question

Two countries that score high in uncertainty avoidance are:

answer

Greece and Portugal

question

Long-term values include all of the following except: A) dynamism. B) persistence. C) sense of shame. D) thrift. E) ordering relationships.

answer

dynamism ***

question

Which is not considered as a long-term value? A) persistence B) sense of shame C) thrift D) ordering relationships E) search for truth

answer

search for truth ***

question

The power distance dimension reflects the degree of trust among members of society. Thus, the higher the power distance (PDI) the

answer

Lower the level of trust

question

Danes generally are not afraid of taking chances; they are comfortable doing things that are not carefully thought out or planned. Denmark's "flexicurity" policy combines free labor markets with adjustable welfare benefits. This is an example of the application of Hofstede's typology under the values which highlight:

answer

Uncertainty avoidance

question

) European consumers have faced a number of food-related issues, including an outbreak of hoof-and-mouth disease and continuing concerns over mad cow disease. As a result, many are skeptical about GMOs (genetically-modified organisms) and the benefits of eating food products that incorporate genetically-engineered ingredients. As one French citizen noted recently, "We have a very risk-averse society that has been completely traumatized by food scares." Thinking about this situation in terms of Hofstede's cultural values framework, one might reasonably interpret this remark to indicate that France ranks relatively high in:

answer

Uncertainty avoidance

question

) Procter & Gamble's introduction of All-Temperature Cheer laundry detergent in Japan was a flop at first. The problem was that Japanese women wash clothes in cold water—either tap water or leftover bath water—so they don't care about all-temperature washing (which is a big selling point in the United States). Also, Cheer was first introduced in Japan at a time when the market for fabric softeners in Japan was rapidly expanding. However, when Japanese housewives added lots of fabric softener to the water, Cheer didn't produce many suds (Americans don't use as much fabric softener). P&G reformulated the product so it wouldn't be affected by fabric softeners, and ads for Cheer in Japan pledged superior cleaning in cold water, not all temperatures. Which of the following might have helped P&G avoid the initial problems with Cheer?

answer

self-reference criterion

question

The Walt Disney Company's decision to build a theme park in France provides an excellent vehicle to understanding SRC (Self-Reference Criterion). All of the statements listed below portray this meaning except: A) Disney executives believed there is virtually unlimited demand for American cultural exports. B) French are sensitive about American cultural imperialism. C) Consuming wine with the midday meal is a long-established custom which was not realized by Disney executives. D) Disney executives were blinded by their prior success and ethnocentrism. E) The SRC can be a powerful negative force in global business.

answer

Disney executives were blinded by their prior success and ethnocentrism. ***

question

Which of the following best sums up the experience of Walt Disney Company executives when creating Disney's theme park in Paris?

answer

They fell victim to the self-reference criterion.

question

The lesson that SRC (Self-Reference Criterion) teaches can be summarized as:

answer

unbiased perception is a vital and critical skill in global marketing.

question

When Walt Disney Company's executives were planning to build a theme park in France, they firmly believed that the success of McDonald's and Coke as well as their success in Tokyo Disneyland ensures the runaway success of their plans. Disney policies prohibit sale or consumption of alcohol inside the theme parks which they also implemented in France. This proved to be a failure since consuming wine with the midday meal is a long-established custom in France. This is most likely a classical example of:

answer

a geocentric management orientation.

question

One of the basic elements of sociologist Everett Roger's Diffusion theory is the concept of an "adoption process." The first step in this adoption process is:

answer

Awareness

question

Which of the following shows the correct order of the product adoption process? A) evaluation→trial→awareness→interest→adoption B) trial→interest→evaluation→awareness→adoption C) interest→awareness→adoption→trial→evaluation D) awareness→interest→evaluation→trial→adoption E) adoption→evaluation→trial→interest→awareness

answer

awareness→interest→evaluation→trial→adoption

question

Which of the following can negatively influence the rate of diffusion of an innovation?

answer

High complexity

question

That floppy disks are being dumped in favor of USB mass storage devices can be attributed to which characteristics of innovation?

answer

relative advantage

question

To speed adoption of a new product, the marketing team should:

answer

ensure that features and benefits can be communicated or demonstrated.

question

In the 1990s, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette player. DCC allowed users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. This latter feature reflects which of the following characteristics of innovations?

answer

Compatibility

question

Together, innovators and early adopters make up about ________ of the potential market for a new product

answer

16%

question

If a marketing manager plans to enter the 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:

answer

Much faster than in the home market

question

) A few years ago, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette player. DCC did more than allow users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. However, die-hard audio buffs were the only ones to buy DCC and Philips ultimately discontinued the product. Which of the following statements based on adopter categories describes this?

answer

innovators bought, but early adopters didn't ___

question

Adopter categories are classifications of individuals within a market on the basis of their innovativeness. Recently Apple introduced the iPhone for which people waited in long lines before the doors opened. According to experts these 2.5% of people who bought the iPhone are categorized as:

answer

Innovators

question

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.

answer

All of the above ***

question

Comparing and contrasting the diffusion of innovations in Western countries and in Asia, one can say that

answer

in Asia, the adoption process begins more slowly but ramps up more rapidly than it does in Western countries.

question

Which of the following is arranged starting with the highest level of environmental sensitivity and ending with the lowest level? A) food→computers→integrated circuits B) integrated circuits→food→computers C) integrated circuits→computers→food D) computers→food→integrated circuits E) none of the above

answer

food-computers-integrated circuits

question

) The ________ the level of environmental sensitivity for a given product, the ________ the need for managers to address country-specific economic, regulatory, technological, social and cultural environmental conditions

answer

Greater, Greater

question

Which of the following is true about "coffee culture" in England?

answer

) American entrepreneurs found success in England with the Seattle Coffee Company which Starbucks later acquired.

question

Despite the fact that the American team advanced to the semi-finals in South Africa, the game is much more popular in other parts of the world. There is an effort to make soccer popular in the United States, and many fashion brands are interesting in marketing their products which pertain to soccer and other sports. Considering this aspect which of the following statements is incorrect? A) In the United States, 2010 World Cup merchandise such as T-shirts was available at Walmart. B) FIFA is the only global marketer seeking revenue growth by boosting soccer's popularity in America. C) Yves Saint Laurent designer was selling merchandise with soccer related embossed emblems. D) The fall 2010 collection of designer clothes included "FIFA Heritage Tees" with logos on shirts. E) FIFA has chosen Total Apparel Group (TAG) to boost soccer's visibility and popularity among Americans.

answer

FIFA has chosen Total Apparel Group (TAG) to boost soccer's visibility and popularity among Americans. ***

question

Coca-Cola billboards were recently put up near the Piazza San Marco in Venice, which has numerous historical landmarks. The major reason for allowing the billboards at a prominent historical site is:

answer

severe lack of founds for historic renovation

question

A massive effort dubbed as "Moses Project" is underway in Venice in order to:

answer

prevent flooding

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