Exam
Name___________________________________

MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question. 

1) 

The main aim of global marketing is to 

1) 

_______ 

A) 

coordinate the marketing activities within the constraints of the global environment 

B) 

satisfy global customers better than competition 

C) 

find global customers 

D) 

achieve all the above 

2) 

Evidence from public media suggests that LSEs such as McDonald's are moving towards a higher degree of market 

2) 

_______ 

A) 

planning 

B) 

analysis 

C) 

responsiveness 

D) 

standardization 

3) 

With the globalization of markets, the tastes and preferences of consumers world-wide are 

3) 

_______ 

A) 

are being encouraged by multinational organizations to become increasingly similar 

B) 

becoming similar to the tastes and preferences of American consumers 

C) 

are converging upon a global norm 

D) 

so different that they can be ignored by international organizations 

4) 

Writing in the Harvard Business Review about the Globalization of Markets, Theodore Levitt argued that 

4) 

_______ 

A) 

the 4Ps do not apply to global marketing 

B) 

products should be adapted to needs and wants on a market-to-market basis 

C) 

the world is becoming more heterogeneous 

D) 

the world is becoming more homogeneous 

5) 

Within an international context, what are 'economies of scope' synonymous with? 

5) 

_______ 

A) 

reusing a resource from one business/country in additional businesses/countries 

B) 

buying components in a bulk  

C) 

decreased cost per unit of output 

D) 

any of the above 

6) 

Which of the following characterizes an organization using a multidomestic strategy? 

6) 

_______ 

A) 

the organization employs the same strategy in many different markets 

B) 

the organization employs a multitude of different strategies in one single country 

C) 

the organization employs many strategies, each one tailored for one market 

D) 

none of the above 

7) 

The goals of international marketing are to 

7) 

_______ 

A) 

eliminate competition in international markets 

B) 

expand business activities abroad 

C) 

create and retain customers in global markets  

D) 

gain market share and increase profit 

8) 

Svend Hollensen proposed a simplified version of the value chain comprising the following 

8) 

_______ 

A) 

technology, marketing, sales and service, logistics 

B) 

manufacturing, marketing, customer service, after-sales service 

C) 

research and development, production, marketing, sales and service 

D) 

procurement, production, marketing, sales and customer services 

9) 

The work of an international marketer is mainly concerned with 

9) 

_______ 

A) 

transferring a marketing mix to enter a market in another country 

B) 

establishing global brands 

C) 

adapting a marketing mix to enter a market in another country       

D) 

translating product instructions and advertising messages 

10) 

When identifying global market segments, a fundamental guiding principle should be the need to determine 

10) 

______ 

A) 

similar languages 

B) 

shared demographic characteristics 

C) 

similar needs and buying behavior    

D) 

similar lifestyles 

11) 

Which of the following represents a company's effort to identify and categorize groups of customers and countries according to common characteristics? 

11) 

______ 

A) 

global targeting 

B) 

global marketing research 

C) 

global positioning 

D) 

global market segmentation 

12) 

Which of the following does not represent a source of competitive advantage in global marketing? 

12) 

______ 

A) 

economies of scope 

B) 

economies of scale 

C) 

myopia 

D) 

transfer of know-how  

13) 

Key controllable factors in global marketing are 

13) 

______ 

A) 

government policy and legislation 

B) 

social and technical changes 

C) 

marketing activities and plans 

D) 

all the above 

14) 

When an organization decides to build and sell products in a country other than its home market, such activity is the result of a(n) ________ decision. 

14) 

______ 

A) 

foreign strategy 

B) 

international marketing 

C) 

global strategy 

D) 

transnational marketing 

15) 

Which is most likely to be a weakness of a global firm competing with a local firm in a particular market? 

15) 

______ 

A) 

lack of marketing expertise 

B) 

inability to research the local market 

C) 

lack of financial resources 

D) 

lack of flexibility 

16) 

From the point of view of marketing, an organization that enjoys competitive advantage in an industry has done so by 

16) 

______ 

A) 

constantly enlarging its marketing activities 

B) 

charging lower prices than competition 

C) 

creating superior value for customers 

D) 

focusing on long-term profit 

17) 

The notion that a company can be both global and local represents  

17) 

______ 

A) 

a metaphor  

B) 

an ambiguity 

C) 

a comparison 

D) 

a paradox  

18) 

The code of practice of the global marketer is 

18) 

______ 

A) 

'think globally, act globally' 

B) 

'think locally, act globally' 

C) 

'think locally, act locally' 

D) 

'think globally, act locally' 

19) 

An international organization adopting a(n) ________ management orientation believes that each country is unique and therefore should be targeted with a different strategy. 

19) 

______ 

A) 

geocentric 

B) 

regiocentric 

C) 

ethnocentric 

D) 

polycentric 

20) 

Being a global organization means 

20) 

______ 

A) 

customizing the product range for each segment in part 

B) 

creating both standardized and customized products 

C) 

creating standardized products for homogeneous markets    

D) 

any of the above 

21) 

An international organization adopting a(n) ________ management orientation believes that its home country is superior and the needs of the home country are most relevant. 

21) 

______ 

A) 

polycentric 

B) 

regiocentric 

C) 

geocentric 

D) 

ethnocentric 

22) 

Global car manufacturers such as Ford and Volkswagen achieve great economies of scale and scope by 

22) 

______ 

A) 

using similar engines and gear boxes across their entire product range and using them in different models of cars 

B) 

concentrating all the production in their own home market 

C) 

manufacturing automatic models for all their markets 

D) 

undertaking all the above 

23) 

Domestic marketing is characterized by which of the following? 

23) 

______ 

A) 

the organization's strategy is tailored to target its home market and/or several segments of the single-country market 

B) 

some of the products are exported to other segments in neighboring countries 

C) 

the organization's strategy targets several segments of the single-country market 

D) 

the organization's strategy is tailored to target the home market 

24) 

In contrast to the 'ethno' and 'poly' centric organizations, the 'regio' and 'geo' centric ones seek to ________ production and marketing on a regional or global scale. 

24) 

______ 

A) 

gain full control over the affiliates involved in 

B) 

fully localize 

C) 

organize and integrate  

D) 

heavily decentralize 

25) 

An organization dominated by a geocentric management orientation can also be called a ________ organization. 

25) 

______ 

A) 

transnational	 

B) 

multinational 

C) 

global 

D) 

both A and C 

26) 

Which of the following characterizes an organization employing a pan-regional strategy? 

26) 

______ 

A) 

the organization gathers its strategies on one continent 

B) 

the organization gathers its operations in one region 

C) 

the organization uses a regional strategy for a one-country market 

D) 

the organization centralizes its operations in one geographic region 

27) 

An international organization may design a product in country A, produce parts for it in countries B, C, D and E, assemble the product in country F, and then export it world-wide. This is an example of 

27) 

______ 

A) 

the globalization of production 

B) 

a glocalised organization 

C) 

an export strategy 

D) 

a local adaptation 

28) 

The organizations undertaking a global marketing strategy strive to achieve the slogan 

28) 

______ 

A) 

'think globally, act locally' 

B) 

'think locally, act globally' 

C) 

'think globally, act globally' 

D) 

'think locally, act locally' 

29) 

The main advantage of a differentiation strategy in international markets lies in that 

29) 

______ 

A) 

it enables brand stretching and extension 

B) 

imitators cannot reduce margins 

C) 

consumers in foreign markets pay less for the same product 

D) 

the focus is taken away from price  

30) 

Global products offer which of the following advantages? 

30) 

______ 

A) 

improved quality 

B) 

improved customer preferences 

C) 

manufacturing costs savings 

D) 

all the above 

31) 

________ views the world as a single market. 

31) 

______ 

A) 

export marketing 

B) 

multinational marketing 

C) 

global marketing 

D) 

multidomestic marketing 

32) 

A(n)________ organization is one that targets customers world-wide or sources products world-wide, standardizing some marketing mix and elements and adapting others. 

32) 

______ 

A) 

multinational 

B) 

international 

C) 

global 

D) 

local 

33) 

Within an international context, what are 'economies of scale' synonymous with? 

33) 

______ 

A) 

buying components in a bulk  

B) 

reusing a resource from one business/country in additional businesses/countries 

C) 

decreased cost per unit of output 

D) 

any of the above 

34) 

What does the term 'global village' represent? 

34) 

______ 

A) 

a phenomenon of convergence of people's tastes and preferences 

B) 

a metaphor for a village where all the inhabitants are foreign but understand the same language  

C) 

a metaphor for an ideal world dominated by peace 

D) 

a phenomenon of convergence of languages across the globe 

35) 

Protectionism represents 

35) 

______ 

A) 

an economic policy of restraining trade between nations 

B) 

an international management orientation 

C) 

an international political system 

D) 

none of the above 

36) 

In competition terms, 'perceived value' represents 

36) 

______ 

A) 

the value of the products in the eyes of the manufacturer 

B) 

the evaluation of the organization's products by its competitors 

C) 

the amount of money buyers are willing to pay for the organization's products 

D) 

none of the above 

37) 

Which of the following is not part of the 7-S framework? 

37) 

______ 

A) 

strategy 

B) 

synergy 

C) 

structure 

D) 

shared values 

38) 

An organization whose management views foreign markets as a convenient place to dispose of surplus production can be said to have a(n) ________ orientation. 

38) 

______ 

A) 

ethnocentric  

B) 

regiocentric 

C) 

polycentric 

D) 

geocentric 

39) 

A global market leader is an organization which 

39) 

______ 

A) 

has the monopoly over several foreign markets 

B) 

has more than 50% global market share  

C) 

is recognized as being ahead of the rest in terms of market share    

D) 

is ahead of the competition in terms of global innovation 

40) 

Despite recent findings concluding that LSEs and SMEs manifest some degree of convergence in their global marketing orientations, there are numerous qualitative differences between management and marketing styles in LSEs and SMEs, such as 

40) 

______ 

A) 

the organization of SMEs is predominantly informal while the organization of LSEs is predominantly hierarchical/formal 

B) 

SMEs focus on short-term opportunities while LSEs focus on long-term opportunities 

C) 

SMEs rely upon outsourcing their resources while LSEs are preoccupied with the internationalization of their resources 

D) 

all the above 

41) 

Which of the following is not a business orientation in the EPRG framework? 

41) 

______ 

A) 

egocentric 

B) 

regiocentric 

C) 

geocentric 

D) 

ethnocentric 

42) 

A global brand has the following features 

42) 

______ 

A) 

it has comparable brand loyalty across countries 

B) 

it has a substantial market share in all countries 

C) 

it carries the same logo, brand name and values across all countries 

D) 

all the above 

43) 

________ represents the difference between the values that the buyer gains from owning and using a product and the cost of obtaining it 

43) 

______ 

A) 

Product performance 

B) 

Customer satisfaction 

C) 

Quality 

D) 

Customer value 

44) 

An international organization adopting a(n) ________ management orientation tries to integrate and coordinate its marketing programme within regions but not across them. 

44) 

______ 

A) 

geocentric 

B) 

polycentric 

C) 

regiocentric 

D) 

ethnocentric 

45) 

The correct components of the 7-S framework are 

45) 

______ 

A) 

strategy, synergy, shared value, standardization, skills, staff and structure 

B) 

standards, strategy, style, staff, skills, systems and security 

C) 

structure, strategy, shared values, style, staff, skills and systems 

D) 

shared values, synergy, systems, strategy, style, staff and structure 

46) 

________ typically offer more flexibility in international markets. 

46) 

______ 

A) 

MNEs 

B) 

SMEs 

C) 

LSEs 

D) 

None of the above 

47) 

________ only take limited advantage of economies of scale and economies of scope in international markets 

47) 

______ 

A) 

SMEs 

B) 

MNEs 

C) 

Strategic alliances 

D) 

LSEs 

48) 

An emergent strategy is also known as a(n) ________ strategy. 

48) 

______ 

A) 

planned 

B) 

unplanned 

C) 

realized 

D) 

logical 

49) 

A trade bloc such as NAFTA represents 

49) 

______ 

A) 

an economic union between more developed countries 

B) 

a large free trade area or a free trade area formed by one or more tax, tariff and trade agreements 

C) 

a geographic area formed as a result of political similarities 

D) 

all of the above 

50) 

Regionalism is 

50) 

______ 

A) 

the grouping of countries into regional clusters based on geographic proximity 

B) 

a protectionist policy created to exclude third world countries from certain forms of international trade 

C) 

an international management orientation 

D) 

both A and B 

 

1) 

D 

2) 

C 

3) 

C 

4) 

D 

5) 

A 

6) 

C 

7) 

C 

8) 

C 

9) 

C 

10) 

C 

11) 

D 

12) 

C 

13) 

C 

14) 

B 

15) 

D 

16) 

C 

17) 

D 

18) 

D 

19) 

D 

20) 

B 

21) 

D 

22) 

A 

23) 

A 

24) 

C 

25) 

C 

26) 

B 

27) 

A 

28) 

A 

29) 

D 

30) 

D 

31) 

C 

32) 

C 

33) 

B 

34) 

A 

35) 

A 

36) 

C 

37) 

B 

38) 

A 

39) 

C 

40) 

D 

41) 

A 

42) 

D 

43) 

D 

44) 

C 

45) 

C 

46) 

B 

47) 

A 

48) 

B 

49) 

B 

50) 

A