exam 1

Question 1

What is global marketing?

Answer 1

A focus on global market opportunities and threats using the marketing mix elements.

Question 2

What are the four Ps in global marketing?

Answer 2

• Product
• Price
• Place
• Promotion

Question 3

What does a firm’s value chain include?

Answer 3

Marketing, R&D, manufacturing, and other activities.

Question 4

What is the significance of a firm’s global marketing strategy (GMS)?

Answer 4

Enhances worldwide performance by addressing marketing program balance, activity concentration, coordination, and market participation.

Question 5

What are the two approaches a global marketing program can take?

Answer 5

• Standardization (extension)
• Localization (adaptation)

Question 6

What is the role of global companies in competitive advantage?

Answer 6

Maintain strategic focus while pursuing competitive advantage.

Question 7

What is the importance of global marketing today?

Answer 7

Most major corporations are active regionally or globally, as evidenced by rankings in major publications.

Question 8

What are the classifications of company management orientations?

Answer 8

• Ethnocentric
• Polycentric
• Regiocentric
• Geocentric

Question 9

What characterizes an ethnocentric orientation?

Answer 9

Belief that home country products and management processes are superior.

Question 10

What is ‘global localization’?

Answer 10

The strategy of thinking globally while acting locally.

Question 11

Is Coca-Cola considered a global product?

Answer 11

Yes, it is available in over 195 countries but adapts to local needs.

Question 12

Give an example of a company that uses global branding.

Answer 12

Coca-Cola

Question 13

How do Harley-Davidson and Toyota’s global marketing strategies differ?

Answer 13

Harley-Davidson emphasizes American heritage, while Toyota focuses on local production for global markets.

Question 14

What is the balance of payments?

Answer 14

A record of a country’s economic transactions with the rest of the world.

Question 15

What are the types of economic systems?

Answer 15

• Market capitalism
• Centrally-planned capitalism
• Centrally-planned socialism
• Market socialism

Question 16

What are the BRIC nations?

Answer 16

• Brazil
• Russia
• India
• China

Question 17

What is the current stage of economic development for India?

Answer 17

Low-Income category

Question 18

What does the Index of Economic Freedom indicate about BRIC nations?

Answer 18

All fall within the ‘Mostly Unfree’ category.

Question 19

What is leverage in global operations?

Answer 19

An increased means of accomplishing corporate goals.

Question 20

List the types of leverage utilized by companies with global operations.

Answer 20

• Experience transfers
• Scale economies
• Enhanced resource utilization
• Global strategy

Question 21

What is the role of the World Trade Organization (WTO)?

Answer 21

Mediates trade disputes and sets policy for world trade.

Question 22

What is a free trade area?

Answer 22

Eliminates tariffs and quotas among member countries.

Question 23

What is a customs union?

Answer 23

Includes common external tariffs among member countries.

Question 24

What is a common market?

Answer 24

Eases restrictions on labor and capital movement among member countries.

Question 25

What is an economic union?

Answer 25

Achieves unification of economic policies and institutions among member countries.

Question 26

What is the role of the DSB in WTO disputes?

Answer 26

The DSB is empowered to act on the panel’s recommendations.

Question 27

What can a losing party in a WTO dispute do?

Answer 27

Turn to the seven-member appellate body.

Question 28

What happens if a country's trade policies violate WTO rules?

Answer 28

The country is expected to change those policies and negotiate compensation via lower tariffs.

Question 29

What can the WTO authorize if changes and compensation are not forthcoming?

Answer 29

Trade sanctions against the loser.

Question 30

What are the four forms of economic integration?

Answer 30

* Free trade area * Customs union * Common market * Economic union

Question 31

Give an example of a free trade area.

Answer 31

NAFTA.

Question 32

Give an example of a customs union.

Answer 32

EU.

Question 33

Give an example of a common market.

Answer 33

Central American Common Market (CACM).

Question 34

Give an example of an economic union.

Answer 34

EU.

Question 35

Identify a regional economic organization in Latin America.

Answer 35

Central American Integration System (SICA).

Question 36

Identify a regional economic organization in Asia/Pacific.

Answer 36

Association of Southeast Asian Nations (ASEAN).

Question 37

Identify a regional economic organization in Western Europe.

Answer 37

European Union (EU).

Question 38

Identify a regional economic organization in Central Europe.

Answer 38

Central Cooperation Council (GCC).

Question 39

Identify a regional economic organization in the Middle East.

Answer 39

Arab Cooperation Council (ACC).

Question 40

Identify a regional economic organization in Africa.

Answer 40

Economic Community of West African States (ECOWAS).

Question 41

What is culture defined as?

Answer 41

A society’s 'programming of the mind.'

Question 42

What influences human behavior according to the text?

Answer 42

A person’s unique personality and interaction with society and culture.

Question 43

What factors can vary significantly from country to country?

Answer 43

* Attitudes * Values * Beliefs

Question 44

What are the two classifications of cultures mentioned?

Answer 44

* High-context * Low-context

Question 45

What does Hofstede's typology analyze?

Answer 45

National cultures in terms of power distance, individualism, masculinity, uncertainty avoidance, and time orientation.

Question 46

What is the self-reference criterion?

Answer 46

A conceptual tool to eliminate ethnocentric bias when perceiving other cultures.

Question 47

What are the five steps in Rogers' adoption process?

Answer 47

* Awareness * Interest * Evaluation * Trial * Adoption

Question 48

What are the five characteristics of innovations according to Rogers?

Answer 48

* Relative advantage * Compatibility * Complexity * Divisibility * Communicability

Question 49

What is a key difference between low-context and high-context cultures?

Answer 49

In low-context cultures, communication is primarily verbal; in high-context cultures, context carries more weight.

Question 50

Which country is an example of a high-context culture?

Answer 50

Japan.

Question 51

Which country is an example of a low-context culture?

Answer 51

United States.

Question 52

What is the primary focus of Western marketers in understanding Asian culture?

Answer 52

The findings of the Chinese Value Survey.

Question 53

What does the term 'sovereignty' mean?

Answer 53

Supreme and independent political authority.

Question 54

What are some sources of political risk?

Answer 54

* Currency crisis * Civil disorder * Ethnic unrest

Question 55

What is a key legal difference between common law and civil law countries?

Answer 55

Common law relies on precedent; civil law relies on codes.

Question 56

What is a significant issue related to global marketing and legal conflicts?

Answer 56

Counterfeiting and infringement of copyright or trademark ownership.

Question 57

What is a 'grease payment'?

Answer 57

A small payment intended to expedite a process.

Question 58

Why can the approach 'See you in court' backfire in global marketing?

Answer 58

Arbitration can be faster, easier, and less expensive than litigation.