MKT 505 FINAL EXAM PART 1 Coca-Cola achieved success in the Japanese market primarily by: Answer standardization of marketing mix elements. global localization. vending machine operations. selecting market mix options. homogenization. Question 2 Slumdog Millionaire, a movie which received several awards and an Oscar in 2009, was filmed on a location in and around: Answer London. San Francisco. Cancun. Mumbai. Moscow. Question 3 The essence of marketing worldwide is to surpass the competition in creating perceived value, which can be represented as: Answer Value = Price/Benefits Value = Benefits/Price Value = Benefits x Price Value = Benefits â€“ Price Value = Benefits + Price Question 4 That Russia is being transformed by economic change can be witnessed in all of the following observations except: Answer affluent Russians can shop at boutiques that offer Versace. per capita gross national income in Russia is only $9370. the banking system in Russia is robust. Russian shoppers spend an estimated $4 billion each year on luxury goods. the Russian government lifted all currency controls. Question 5 The greatest percentage of world GDP is in the following income group countries: Answer high-income countries. upper-middle-income countries. lower-middle-income countries. low-income countries. BRIC countries. Question 6 The member of the Gulf Cooperation Council (GCC) with the largest economy and population size is: Answer Bahrain. Kuwait. Oman. Qatar. Saudi Arabia. Question 7 In spite of having about 45% of the worldâ€™s known oil reserves, Saudi Arabia and other Middle Eastern countries post current-account deficits, largely because: Answer of poor accounting practices. of vast economic diversification. they must import most of the goods and services. most of the oil is exported. new businesses are being developed. Question 8 The original six members of the ASEAN (Association of Southeast Asian Nations) included all of the following countries except: Answer Singapore. Thailand. India. Philippines. Brunei. Question 9 A characteristic of a low-context culture which is prevalent in United States, Switzerland, and Germany is: Answer less information is contained in verbal communication. major emphasis on a personâ€™s values and position in society. messages are explicit and specific. a personâ€™s word is his or her bond. negotiations are long and protracted. Question 10 The cultural environment of a country is best defined by which characteristics? Answer standard of living and stage of economic development production process and standards of measurement attitudes, beliefs, and values degree of nationalism and economic community membership fast food culture and slow food culture Question 11 Any Western country doing business in Malaysia or the Middle East should have understanding of: Answer the French Civil Code. Anglo-Saxon common law. Islamic law. the Uniform Commercial Code. Roman law and the Napoleonic Code. Question 12 Located in The Hague, the International Court of Justice (ICJ) is the judicial arm of the: Answer United States. European Union. United Nations. Netherlands. United Kingdom. Question 13 As part of their alliance relationship, Northwest Airlines and KLM Royal Dutch set air fare prices jointly and coordinate flight schedules. Normally, such behavior would be considered harmful to competition, but the U.S. government has granted the two airlines special exemptions from laws concerning: Answer intellectual property. antitrust. jurisdiction. licensing. Arbitration Question 14 The decision by Toyota executives to introduce the Sienna minivan in the U.S. market was based on their study of a(n) ________ market. Answer existing latent parallel incipient global Question 15 The international marketing manager of an office furniture company ordered a research report on global telecommunications equipment sales. The report noted that, in the early 1990s, AT&T was awarded a $4 billion contract to provide communication network products and services in Saudi Arabia. The manager took this as a cue to put Saudi Arabia on her information agenda, reasoning that office furniture sales would increase as the countryâ€™s telephone system was improved. As described here, the marketing manager is viewing Saudi Arabia as a(n): Answer latent market. incipient market. cluster market. existing market. primary market. Question 16 A(n) ________ is a companyâ€™s private data network, accessible only by authorized persons inside the organization. Answer EDI internet intranet EPOS ECR Question 17 The efforts of global companies to reach low-income consumers in emerging markets highlight the importance of skillful global market segmentation and targeting. Market segmentation represents: Answer targeting prospective customers. finding customers who can respond to advertisement. promoting products and services internationally. identifying customers who can help in promoting products. an effort to identify and categorize customers based on common characteristics. Question 18 Some of Body Shopâ€™s recent advertising has emphasized the difference between the companyâ€™s principles and those of â€œmainstreamâ€ cosmetics companies on such issues as animal testing. As described here, Body Shopâ€™s ads illustrate positioning by ________. Answer competition niche quality/price attribute/benefit culture Question 19 The Swatch Group markets watches in all price ranges, from the Swatch brand at the low end to luxury brands such as Longines, Blancpain, and Breguet. Which target market strategy does this illustrate? Answer standardized global marketing concentrated global marketing differentiated global marketing psychographic global marketing Question 20 The international standard by which letters of credit (L/Cs) are interpreted is known as the ________ 500. Answer UCP NTR FSC NTB HTS Question 21 Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction? Answer documentary credit (letter of credit) documentary collection cash in advance sales on open account draft Question 22 Which of the following financing methods would be used by an exporter that enjoys good relations with a buyer in a well-established market? Answer letter of credit cash in advance sales on open account barter arrival draft Question 23 The president of a Mexican company recently remarked, â€œBusiness in Mexico is done on a consensus basis, very genteel and sometimes slow by U.S. standards.â€ A few months later, the Mexican company and its U.S. joint venture partner parted company. Judging by the presidentâ€™s remark, one important reason for the â€œdivorceâ€ was: Answer failure of one partner to live up to the terms of the contract. cultural differences. the cancellation of NAFTA. the U.S. governmentâ€™s insistence on quick negotiations. the language barrier. Question 24 As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances? Answer acquisition licensing joint venture exporting franchising Question 25 Licensing as a market entry mode has several disadvantages and opportunity costs, which do not include: Answer limited market control. agreement may have short life. leveraging and exploiting by licensee. similar product or technology development by licensee. adaptations by licensee to fit local tastes.