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Axon Autombiles Ltd.,an American company,exported its cars to selected automobile dealers in India.The cars were designed with the driver's seat positioned on the left side.However,the position of the driver's seat was on the wrong side according to the driving rules in India,which resulted in a substantial failure.This failure can be best attributed to:


A) the lack of personal selling on the part of the sales force.
B) entering a domestic market without extensive product planning.
C) the lack of adequate pricing strategies in foreign markets.
D) problems encountered in effectively using census data.

Correct Answer

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Which of the following refers to political uncertainty?


A) Differences in perception of time, thought patterns, personal space, material possessions, family roles and relationships
B) Unstable governments, social unrest, and armed conflict
C) Differences in language, customs, norms and customer preferences
D) Economic conditions and policies of a country that could harm a firm's operations within a country

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Anchor Hospitals entered into a long-term contract with Helium Health Care,and allowed it the use of its brand name.In return Helium Health Care paid a lump sum and also a percentage of future profits and agreed to abide by all rules and operating procedures laid down by Anchor Hospitals.This is an example of _____.


A) direct ownership
B) strategic alliance
C) joint venture
D) franchising

Correct Answer

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When people in different countries perceive time,thought patterns,personal space,material possessions,family roles and relationships,personal achievement,competitiveness,individuality,social behavior,and other interrelated issues in different manners,which of the following might cause companies to shy away from attempting to enter global markets?


A) Cultural misunderstanding
B) Political uncertainty
C) Economic risk
D) Unstable government

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Which of the following refer to market factors?


A) Shorter product life cycles, transferable brands and advertising, and the ability to globalize distribution channels
B) Worldwide economies of scale in manufacturing and distribution, steep learning curves, worldwide sourcing efficiencies
C) Improving communications, favorable government policies, and the increasing speed of technological change
D) Competitive interdependencies among countries, global moves of competitors, and opportunities to preempt a competitor's global moves

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Which of the following is true of a company undertaking a global approach?


A) A global approach should not be delayed as success is dependent on a quick and rushed strategic process.
B) A multidomestic strategy, as a competitive strategy, is inherently more vulnerable to risk than a domestic strategy or a global strategy.
C) Market factors and economic conditions are internal factors that influence the potential gains to be realized by following a global strategy.
D) Successful global brands carefully stake out their markets, allowing plenty of time to develop their overseas marketing efforts.

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Census data for many countries does not exist and it is difficult to obtain in some countries.The problem encountered by researchers in using census data here pertains to:


A) language.
B) timeliness.
C) data content.
D) foreign market data.

Correct Answer

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Which of the following is true of using census data for in-depth demographic information?


A) Some countries offer census reports only in their native language.
B) Data contained in a census are uniform across all countries.
C) All census reports are published in English, and hence the census is the most reliable source for securing in-depth demographic information.
D) Census data is not allowed to be omitted.

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Cultural factors such as the group's values concerning acquisition of material goods,the role of the family and the positions of men and women in society can have an effect on marketing because:


A) each can influence consumer behavior.
B) they provide data for the distribution of income studies.
C) they can help duplicate previous success.
D) they provide a firm with the advantage of using a partner's distribution system.

Correct Answer

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Which of the following is true of a global corporation?


A) It pursues different strategies in each of its foreign markets.
B) It treats each overseas subsidiary as an autonomous subsidiary.
C) It gives local managers the authority to make the necessary decisions.
D) It views the world as one market.

Correct Answer

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Which of the following statements is true about multidomestic corporations?


A) Multidomestic corporations view the world as one market.
B) Local managers of multidomestic corporations are given the authority to make the necessary decisions and are held accountable for results.
C) Multidomestic corporations use worldwide product divisions, each responsible for selling its own products throughout the world.
D) Multidomestic corporations standardize marketing activities when there are cultural similarities and adapt them when the cultures are different.

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By investing solely in domestic operations or not willing to adapt products to foreign markets,U.S.companies are more susceptible to:


A)  higher economies of scale.
B)  domestic competition.
C)  foreign incursions.
D)  diminished operating costs.

Correct Answer

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Which of the following would qualify as an offensive goal?


A) An American software firm's desire to take advantage of significant differences in operating costs between America and Japan
B) A leather manufacturer deciding to expand its operations to other nations to enjoy the benefits of economies of scale
C) An oil dealer aiming to preempt its competitors' global moves
D) A Finnish electronic goods manufacturer's intention to acquire technological innovations developed in the United States

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Some nations establish limits on the amount of earned and invested funds that can be withdrawn from it.These exchange controls are usually established by nations that:


A) have a high trade-surplus.
B) are a part of larger trade agreements.
C) are experiencing balance-of-payment problems.
D) have an open economy.

Correct Answer

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Which of the following is an example of a defensive goal?


A) An American entertainment company's desire to secure technological innovation developed in France.
B) An Italian multiplex corporation aiming to increase long-term growth and profit prospects by expanding to other nations.
C) An automobile manufacturer planning to go overseas in order to increase its sales revenue.
D) A fast-food chain planning to improve overall market position across different nations by catering to the local needs of each nation.

Correct Answer

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Alpha Partners Ltd.,an international auditing firm audits accounts of various multinational corporations.The firm specializes in conducting audits for the hospitality sector by organizing global performance reviews.The ability of Alpha Partners Ltd.to conduct global performance reviews is associated with which of the following internal factors?


A) Structure
B) Culture
C) People
D) Management processes

Correct Answer

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The central government of Country A requires that 80% of the proprietorship of a corporation should be held by citizens of Country A.This particular requirement of the government is attributed to which of the following?


A) Exchange controls and ownership restrictions
B) Economic risks
C) Import restrictions
D) Cultural misunderstandings

Correct Answer

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Which of the following is an offensive goal of multinational firms that invest in other countries?


A) To take advantage of economies of scale
B) To compete with foreign companies on their own turf instead of in the United States
C) To take advantage of significant differences in operating costs between countries
D) To preempt competitors' global moves

Correct Answer

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Rodriguez Automobiles Inc.,a Swiss automobile giant shared management with Zeus Pvt.Ltd.,a Japanese automobile manufacturer.The two firms eventually combined to create Rodriguez and Zeus Ltd.and control was split equally.Which of the following approaches is being used by the combination?


A) Joint venture
B) Licensing agreement
C) Franchising
D) Direct ownership

Correct Answer

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Which of the following is true of sales promotion?


A) Sales promotion can be an effective means for reaching people living in rural locations.
B) Sales promotion is not a good choice where media support for advertising is virtually nonexistent.
C) Sales promotion cannot be used as a strategy for bypassing restrictions on advertising placed by some foreign governments.
D) Sales promotions contain certain characteristics that are less attractive than other elements of the promotion mix.

Correct Answer

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