46. Which of the following is not a benefit for licensees’ from a licensing agreement?

a. A relatively low outlay.

b. The ability to capitalise on existing know-how.
c. Limited risk.
d. Initial start-up funding from the licenser.
e. No market development costs.

47. Drafting agreement carefully to include duration, royalties, trade secrets, quality control and
performance measures, limiting the product and territorial coverage and retaining patents,
trademarks, copyrights are all ways of minimising the potential problems of;
a. franchising
b. contract manufacture
c. partnerships
d. licensing
e. joint ventures

48. Which is likely to be the most expensive method of market entry?

a. Franchising
b. Licensing
c. Opening a foreign subsidiary
d. Direct marketing
e. Direct exporting

49. The market entry method that could give rise to a potential for inheriting a demotivated
labour force, a poor image and reputation and out of date products and processes;
a. Merger
b. Acquisition
c. Licensing
d. Franchising
e. Setting up a wholly owned subsidiary

50. Acquisition by a large international firm is often associated with;

a. Rapidly increasing profitability
b. Job losses
c. A stimulation of the order book
d. Restructuring
e. Job creation

51. When Royal Dutch Shell and British Petroleum are going abroad to find new oil reserves
what is their motivation?
a. knowledge seeking
b. resource seeking
c. efficiency seeking
d. market seeking
e. profit seeking

52. When Nike or Acer are setting production facilities in new locations where labor is sourced
more economically what is their motivation?
a. economy seeking
b. resource seeking
c. market seeking
d. knowledge seeking
e. profit seeking

53. Several driving forces explain the trend towards global integration and coordination. Which
is not one of them?
a. scale economies
b. diverging consumer tastes and trends
c. the declining cost of freight and communication cost
d. communication cost
e. all of above

54. There are four main arguments supporting regional strategies. Which is not one of them?
a. national idiosyncrasies and the liability of foreignness increase when crossing regional
boundaries
b. regional strategies and organizational structures can reduce organizational complexities
c. cost reasons as it is more costly to transport merchandise and communicate over longer
distances
d. cognitive and emotional reasons when managers are managing in their own regions
e. all of above

55. What can be learned from studying case examples in international marketing?
a. Strategies or market policy decisions with which companies failed should be avoided in any
case.
b. Case studies are interesting to read, but you cannot learn much from them.
c. Case studies can provide ideas for market entry or market development strategies.
d. A marketing campaign that was successful in one country will also work in another country.
e. Case studies teach students to distinguish right from wrong decisions in marketing.

56. What is a key debate in international Marketing?

a. product development or product acquisition
b. market development or market share
c. standardization or adaptation
d. market research or market testing
e. market testing or market penetration
57. The SLEPTS analysis gives an overall picture of the macro environment and supports to
identify threats and opportunities that can be used in SWOT analysis. What does the acronym
stand for?
a. Solid, Legitimate, Economic, Provincial, Technological and Scientific Factors
b. Shared, Local, Ecological, Parochial, Technical and Social Factors
c. Social, Legitimate, Ecological, Parochial, Technological and Sustainability Factors
d. Social, Legal, Economic, Political, Technological and Sustainability Factors
e. Social, Legal, Economic, Political, Technological and Surrounding Factors

58. A market research study of soft drink consumption and distribution in Hungary
commissioned by an American company indicated that soft drinks were available in drugstores.
However, Western-style drugstores do not exist in Hungary. This illustrates an important issue in
global marketing research, namely:
a. comparability of data
b. using multiple dimensional scaling
c. market estimation by analogy
d. using convenience samples
e. inflated data

59. Which statement about the four-stage approach of selecting country markets is correct?
a. A quick weeding out of attractive country markets is the first step of the process.
b. An in-depth assessment of the short list of markets, for example drawing up pro-forma income
statement for each market is the final step.
c. The second step is the assessment of countries based on secondary data, usually involving
a scoring model.
d. The third step of the process is a personal visit of the potential markets.
e. The fourth step is to compare each region.

60. What is a characteristic of the international marketing research process?

a. The international marketing research process is less costly as it relies primarily on secondary
data.
b. The international marketing research process is considerably longer and involves more steps
than the local marketing research process.
c. The international marketing research process is way more complex because it poses
challenges to the company in terms of design and methodology.
d. The international marketing research process is easier because blue-prints form other markets
can be used thus a fundamentally new approach is not necessary.
e. The international marketing research process is to satisfy the shareholders.

61. When the Coca-Cola Company conducted focus groups in Europe and Asia to assess
potential market acceptance of a contoured aluminium soft drink can, it was attempting to collect
___ data.
a. primary
b. secondary
c. incipient
d. quantitative
e. Marketing Information System

62. In Singapore, Coca-Cola wanted to develop an advertisement program. They selected a group
of teenagers in a room, and a trained moderator facilitated discussion asking questions on brand's
image, advertisement, social trends, TV watching habits, and snack usage. This type of research
is called ___ .
a. survey research
b. observational studies
c. comparison studies
d. experimental research
e. focus group research

63. The literature distinguishes between different objectives for market-entry. Which is not one
of them?
a. efficiency seeking
b. information seeking
c. knowledge seeking
d. market seeking
e. resource seeking

64. Coke was invented in 1896 by John S. Pemberton. When Caleb Bradham invented Pepsi-
Cola thirteen years later, Coke was already selling a million gallons per year. For over a hundred
years, Pepsi has been trying to play catch-up in the cola beverage market, but Coca-Cola
continues to dominate the market. How can the success of Coca-Cola be explained?
a. Coca-Cola is smarter than Pepsi
b. Coca-Cola has a first mover advantage
c. Coca-Cola has the better advertising
d. Coca-Cola has the better management
e. Coca-Cola has more funds to invest in marketing

65. As a 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?
a. outsourcing
b. offshoring
c. joint venture
d. exporting
e. acquisition

66. Procter & Gamble has identified a group of consumers in Europe who are willing to pay
premium prices for pet food that will improve the health of their pets. This is an example of ___
segmentation.
a. demographic
b. psychographic
c. ethnic
d. behavioral
e. benefit
67. What is a disadvantage using the countries-as-segments strategy to target markets?
a. only one country can be targeted at a time
b. segments may not be homogeneous with respect to customer needs and preferences
c. geographic problems
d. necessary data may not be available
e. lack of field teams

68. The Lufthansa loyalty program groups travelers into Miles and More, Frequent Flyer,
Senator and Hon card holders.
This shows the application of which approach of segmentation?
a. behavioral segmentation
b. demographic segmentation
c. psychographic segmentation
d. benefit segmentation
e. ethnic segmentation

69. Volkswagen has a portfolio of diverse brands including Bentley, Lamborghini, Porsche,
Audi, SEAT, Skoda and others? This is an illustration of ___ .
a. concentrated marketing
b. differentiated marketing
c. undifferentiated marketing
d. mass marketing
e. micromarketing

70. A political decision involving _____ would most likely have a direct effect on a firm's
international marketing success.
a. domestic foreign policy
b. immigration reform
c. oil exploration policy
d. FCC satellite regulations
e. FAA airline regulations

71. Compared to the foreign environment uncontrollable variables, which of the following
elements is excluded from the domestic marketer's list of uncontrollable variables?
a. Political forces.
b. Competitive structure.
c. Economic climate.
d. Cultural forces.
e. Legal forces.

72. Which of the following is NOT true of the impact of culture?

a. The reaction to much of the environment's (cultural) impact on the marketer's activities is
automatic.
b. In dealing with unfamiliar markets, frames of reference are unimportant in evaluating
the potential of a market.
c. Judgments are derived from experience that is the result of acculturation in the home country.
d. An established frame of reference is an important factor in determining a marketer's reaction
to situations—social and even nonsocial.
e. As a result of acculturation, we react in a manner acceptable to our society without
consciously thinking about it.

73. Which of the following is the most critical difference between domestic marketing and
international marketing?
a. The environment in which marketing plans must be implemented
b. The different concepts of marketing
c. The change in marketing goals
d. The difference in technological standards
e. The change in corporate objectives
74. The task of _____ is the most challenging and important one confronting international
marketers.
a. caring for the environment
b. dealing with politics
c. international standardization
d. cultural adjustment
e. international branding

75. Which of the following mistakes committed by firms leads to inefficiency, lack of consumer
acceptance, and sometimes even corporate failure?
a. Over budgeting the overhead costs in international markets
b. Transferring knowledge around the globe
c. Lengthening product life cycles in other countries
d. Believing that international customers are just like the ones the firm deals with at home
e. all of above

76. International marketing differs from domestic marketing in that international marketing has
different:
a. marketing principles.
b. tenets of value and exchange.
c. applications, complexity, and intensity.
d. social responsibilities.
e. communication.

77. The International Monetary Fund (IMF) was founded to:

a. manage monetary policies around the world.
b. help restructure impoverished economies.
c. provide infrastructural and medical aid to developing countries.
d. provide financial assistance to developing countries for development programs.
e. provide fund for its members when they need.

78. Which of the following is true about closer global linkages and domestic policy makers?
a. They have more effective tools to carry out their responsibilities.
b. They find themselves with decreasing responsibilities.
c. They find it easy to distinguish between domestic and international economic activities.
d. They have imposed import regulations to restrict the impact of global trade.
e. All of above.

79. Firms increasingly understand that many of the key difficulties encountered in doing business
internationally are marketing problems.
a. True
b. False
80. Trading blocs encourage trade relations between their members, but through their rules and
standards, and the incentives they provide for mutual trade, they also affect the trade and
investment flows of non-member countries.
a. True
b. False

81. The environment is broken down into four major components: economic, trade institutions
and trade policy, political and legal, and cultural.
a. True
b. False

82. Which of the following has traditionally been a domestic issue and is now an international
issue?
a. Geographic boundaries of cities
b. The flow of water through dam diversion tunnels
c. Applications for government subsidies
d. Agriculture and farm policies affecting imports and exports
e. all of above

83. Which country has had the most dramatic growth in exports in the period 1990–2004?
a. Japan
b. India
c. USA
d. China
e. UK

84. Traditionally, trade flow determined currency flows and therefore the level of the exchange
rate. The exchange rate is now determined by:
a. currency flows.
b. trade levels.
c. domestic policy.
d. wholesalers who take possession of the product prior to sale.
e. banking relations.

85. All of the following are characteristics of the first stage of the global marketing evolution of
a company, except:
a. Entry is constrained by a lack of funding (domestic growth still priority investment), so entry
is low-cost
b. The risk tends to be minimised by entering close markets (geographically, culturally and
economically)
c. The entry is based on core products with technical superiority
d. The objective is to achieve economies of scope
e. a and b
86. The marketing manager’s task is to plan and execute programs that will ensure a long-term
competitive advantage for the company. This includes determining of a specific target market
and:
a. developing a uniform currency worldwide.
b. marketing management.
c. looking at occupants, objects, occasions and objectives.
d. testing markets.
e. resource management.