Deck 5: Global Markets

Question 1

The structure of families and roles assigned to each member determine what products are purchased and how the purchase decision is made.

Answer 1

True

Question 2

Total value of all imports into the country is the most important indicator of the wealth of the country.

Answer 2

False

Question 3

An important indicator of total consumer potential of a country is the total imports into the country.

Answer 3

False

Question 4

Country of manufacture is the most important factor influencing a business buyer's decision.

Question 5

In India,Hindus consider blue the most sacred color.

Question 6

Purchasing power parity takes into account the national differences in product prices and hence is a better indicator of purchasing power of the consumers than is PCI.

Question 7

Translation problems and attitudes towards negotiations make cross-cultural negotiations very challenging.

Question 8

The IMF suggests using PCI statistics because they take into account differences in product prices.

Question 9

Russian negotiators can surprise Americans by their emotional outbursts.

Question 10

Global segments are based on differences in national culture.

Question 11

China spends a larger percent of its national income on foods than does the United States.

Question 12

Consumption patterns vary greatly from one country to another due to great variations in consumers' abilities and motivations to buy.

Question 13

The Chinese government encourages companies to import labor-intensive technology to effectively utilize its vast population.

Question 14

Scarcity of labor is never a problem in developing countries.

Question 15

Informal sectors contribute to the economy by paying high levels of taxes.

Question 16

Maslow's hierarchy of needs is universally applicable in spite of cross-cultural differences.

Question 17

Global market segments are transnational consumer segments based on age,social class,and lifestyle rather than national culture.

Question 18

Global marketers realistically can only target the upper 10 percent of the population in developing countries.

Question 19

Capital-intensive manufacturing methods are more common than labor-intensive manufacturing methods in Norway and Germany.

Question 20

Global segments may be based on lifestyles.

Question 21

Soft-drinks consumption per capita is highest in

A)the United States.
B)France.
C)Germany.
D)Italy.

Question 22

An important indicator of total consumer potential of a country is the

A)size of the upper class.
B)gross national product.
C)total imports into the country.
D)total exports from the country.

Question 23

The World Health Organization is an example of a global buyer.

Question 24

Influence screens require firms to identify key decision makers and meet their needs.

Question 25

Governments use eligibility screens to weed out small firms and not serious firms during the bidding process.

Question 26

The U.S.FCPA forbids foreign citizens from bribing U.S.officials.

Question 27

Wine consumption per capita is highest in

A)the United States.
B)France.
C)Japan.
D)Turkey.

Question 28

Governments of developing countries encourage bribery because it helps to boost per capita income.

Question 29

Signs of status are more important to consumers in

A)India.
B)Sweden.
C)Japan.
D)Canada.

Question 30

National global buyers search the world for products but use those products in only one country.

Question 31

Multinational global buyers search the world for products but use those products in only one country.

Question 32

One phenomenon that supports a just-like-us strategy is world migration.

Question 33

When entering a national market,global marketers must choose between targeting the rich and targeting the poor.

Question 34

One reason global marketers are attracted to BOP consumers is the chance to build brand loyalty.

Question 35

Starbucks was attracted to the Mexican market because

A)of the country's rising PCI.
B)Mexico is a major coffee producer.
C)Mexico lowered tariffs on coffee.
D)Mexicans per capita drink five times as much coffee as Americans.

Question 36

Expediting payments are allowed under the U.S.FCPA.

Question 37

Asians are relatively thrifty and never splurge on luxury consumption.

Question 38

To understand a consumer market,global marketers must understand

A)the consumer's ability to buy.
B)consumer needs.
C)consumer behavior.
D)All of the above.

Question 39

When workers do not report their income to the government,they are said to participate in the ____ sector of the economy.

A)formal
B)semi-formal
C)informal
D)casual

Question 40

The Indian government's decision to seek builders who agree to operate roads as private concerns is a type of linkage screen.

Question 41

If a country has a surplus of labor,then

A)high labor rates are likely.
B)labor-intensive methods of manufacturing are appropriate.
C)sophisticated high-technology machinery will be commonly used.
D)None of the above.

Question 42

Negotiations between buyers and suppliers from different parts of the world are difficult due to

A)differences in exchange rates.
B)cultural differences.
C)differences in GDP.
D)political pressure.

Question 43

Chinese businesses seek to establish close relationships with foreign firms based on

A)cost-performance criteria.
B)multilateral agreements.
C)clear,legal contracts.
D)mutual loyalty.

Question 44

The practice of assigning special account executives and service teams to large global buyers is called ____ management.

A)global account
B)global asset
C)national account
D)special delivery

Question 45

Negotiations between which of the following pairs of countries would be most difficult?

A)United States and Britain
B)United States and Canada
C)United States and China
D)China and Japan

Question 46

Which is most likely to prove to be a global segment?

A)Newlyweds
B)Housewives
C)MBA students
D)Retirees

Question 47

Linkage screens for government contracts

A)require firms to implement various government requirements that relate to assisting local business.
B)require firms to identify the final key decision makers.
C)weed out smaller or not serious firms.
D)involve numerous bureaucratic procedures that the firm must properly address.

Question 48

Global segments may be based on

A)age.
B)social class.
C)lifestyle.
D)All of the above.

Question 49

A factor influencing government purchasing is

A)protection of local industry.
B)protection of national security.
C)preference for local suppliers.
D)All of the above.

Question 50

Which color is the most liked across cultures?

A)Blue
B)Yellow
C)Orange
D)Purple

Question 51

Bribery is giving away something valuable to an individual in a position of trust to

A)influence his or her judgment.
B)get reelected.
C)do his or her job.
D)Both b and c

Question 52

Buyers who search the world for products for use throughout their global operations are called ____ buyers.

A)national global
B)domestic global
C)world
D)multinational global

Question 53

Global segments may be based on

A)age.
B)country groupings.
C)regional associations.
D)differences in national consumption.

Question 54

When meeting for the first time,a salesperson will customarily present a prospective client with a small gift in

A)Latin America.
B)the Arab world.
C)Japan.
D)All of the above.

Question 55

In developing countries,which will be most prevalent?

A)Labor-intensive manufacturing methods
B)Capital-intensive manufacturing methods
C)Cost-intensive manufacturing methods
D)Sophisticated automated machinery

Question 56

For business buyers the main factor influencing the purchase decision is the

A)cost of the product.
B)performance of the product.
C)cost-performance criterion.
D)social and cultural factors.

Question 57

What are Russian and Chinese negotiations likely to have in common?

A)Emotional outbursts
B)An apparent irreverence of time
C)Both a and b
D)None of the above

Question 58

Eligibility screens for government contracts

A)require firms to implement various government requirements that relate to assisting local business.
B)require firms to identify the final key decision makers.
C)weed out smaller or not serious firms.
D)involve numerous bureaucratic procedures that the firm must properly address.

Question 59

National global buyers search the world for products

A)that are produced in a single country.
B)for use in a single country.
C)for use all over the world.
D)Both a and b

Question 60

The color purple is

A)the most sacred color among Hindus.
B)associated with expensive products in Japan and China.
C)associated with inexpensive products in the United States.
D)Both b and c

Question 61

Consumers who comprise the bottom of the pyramid number

A)4-6 billion
B)400 million to 4 billion
C)1 billion
D)500 million

Question 62

Ahmet Kirca,a college student,is employed by a textile company in Istanbul,Turkey during the summer.The company that he works for is not registered with the government.The company does not pay taxes to the government.Ahmet does not report his income on his annual tax return.Ahmet is working in the ____.

A)parallel universe
B)domestication section
C)ubiquitous market
D)informal economy

Question 63

Where would offering a gift at first meeting possibly be interpreted as a bribe?

A)Arab World
B)Europe
C)Latin America
D)All of the above

Question 64

Starbucks had been very successful in the United States.As Starbucks considered entering into the Mexican market,they were concerned because,unlike Americans,Mexicans rarely drank coffee.They wondered if Starbucks could create Mexican demand for coffee,and they questioned whether their upscale coffee shop format would offer a service experience attractive to Mexican consumers.Starbucks was concerned about differences in ____ in Mexico.

A)ability to buy
B)consumer behavior
C)per capita income
D)Maslow's hierarchy of needs

Question 65

For most Venezuelan family purchases,the husband makes the purchasing decision.In the United States,most family purchases are made jointly by the husband and wife.This illustrates differences in ____ between the two countries.

A)consumer behavior
B)Malsow's hierarchy of needs
C)purchasing power parity
D)real gross national product

Question 66

Much of the income earned in developing countries is never reported to the authorities.This income is earned in the ____.

A)parallel universe
B)domestication sector
C)informal economy
D)ubiquitous market

Question 67

In 1997,a multilateral anti-bribery pact was signed under the auspices of the

A)GATT.
B)WTO.
C)OECD.
D)OPIC.

Question 68

Raytheon seeks to source its purchases of electric component parts from countries where the expected performance of the components far exceeds the cost of the components.From this description,the ____ criterion is critical in Raytheon's electric component buying decision.

A)cost-performance
B)performance parity
C)performance ratio
D)cost-plus

Question 69

Purple is associated with expensive products in Japan,China,and South Korea but with inexpensive products in the United States.This buyer preference difference is due to cross-cultural differences in ____.

A)ability to buy
B)purchasing power parity
C)culture
D)family structure

Question 70

MBA students across the world have several things in common.They are young,affluent,mobile,well-educated,and fluent in English.Because of these similar demographic and lifestyle similarities,some international marketers argue that the MBA segment is a ____ segment.

A)limitless
B)Maslovian
C)heterogeneous
D)global

Question 71

Bribery is more common in ____ countries.

A)high-power-distance
B)developed
C)masculine
D)feminine

Question 72

Should we target French housewives or French working women? Should we develop a different marketing mix for Brazilian teens than the one we developed for Brazilian adults? These questions concern the firm's ____ strategy.

A)cosmopolitan
B)segmentation
C)financial
D)None of the above

Question 73

Which of the following countries is perceived as the least corrupt?

A)Finland
B)Denmark
C)Canada
D)Vietnam

Question 74

Within the upper class in Cairo,Egypt,there is a large group of young people who are included to purchase global brands to enhance their self-image of being sophisticated and modern.They could be described as a ____ segment.

A)cosmopolitan
B)poor
C)matrix
D)limitless

Question 75

Some cultures emphasize self-actualization before materialism.In many developing countries,consumers may deprive themselves of food in order to buy refrigerators to establish their social status and fulfill their self esteem.Therefore,there is a debate about the cross-cultural applicability of ____.

A)consumers' ability to buy
B)per capita income
C)purchasing power parity
D)Maslow's hierarchy of needs.

Question 76

The traditionally wine-drinking French are drinking more beer,and the beer-drinking Germans are drinking more wine.Japan,traditionally a fish-eating country,is consuming more beef.The Swiss prefer French cheese to their traditional Swiss varieties.These examples are evidence of ____.

A)global warming
B)universalism in purchasing power parity
C)similarity in gross national product
D)a convergence in global consumption patterns

Question 77

When Toys R Us entered into China,they targeted their marketing mix toward children because this was the strategy they employed in the U.S.market.This is an example of using a ____ segmentation strategy.

A)cosmopolitan
B)Maslovian
C)just-like-us
D)None of the above

Question 78

Bribing of foreign officials by U.S.citizens was outlawed by the

A)overseas Bribery Act.
B)Patriots Act.
C)U.S.Foreign Corrupt Practices Act.
D)There is no such law.

Question 79

Glazers Liquors purchases new alcoholic beverage brands in markets all over the world and distributes it throughout the United States.This description reveals that Glazers Liquors is a ____ global buyer.

A)multinational
B)schizophrenic
C)national
D)cost-performance

Question 80

Meghanna is trying to decide whether her company should enter into Turkey or Brazil.She is having trouble determining which is the better market based on available household disposable income (income available after regular household expenditures are paid).Since market prices are different in each country,regular household expenditure costs will differ across markets-but she is not sure by how much.Her boss suggests that she compare the ____ between the two countries,since this would take into account differences in product prices.

A)per capita income
B)purchasing power parity
C)accounting practices
D)gross national product