1: True or False (20%, 1 point per question) 1) Companies doing business in China must take extra care to protect knockoffs. Answer: 2) Four decades ago, the phrase global marketing did not exist. Answer: 3) A critical reason why companies need to take global marketing seriously is survival. Answer: 4) The world economy has changed profoundly as evident by the fact that the global competitors have steadily displaced or absorbed local competitors. Answer: 5) The world's largest automakers have, for the most part, evolved into local companies. Answer: 6) In 2016, the United States filed a complaint with the WTO stating that Indian export duties on a range of extractive commodities gave its manufacturers access to key materials at market-distorting prices. Answer: 7) It is mandatory for countries to notify the WTO when they enter into preferential trade agreements. Answer: 8) The English language requirement by Matsushita is a potent symbol that this Japanese company is focusing on globalizing its operations. Answer: 9) Historically, the lagoon in Venice provided Venetians with a safe haven from Germanic and Hun invaders. Answer: 10) Culture includes conscious and unconscious values, ideas, attitudes, and symbols that shape human behavior that are confined to a generation. Answer: 11) According to Hofstede's definition of culture a particular "category of people" may constitute a nation, an ethnic group, a gender group, an organization, a family, or some other unit. Answer: 12) In Indonesia, home of the world's largest Muslim population, KFC uses Ramadan-themed outdoor advertising to encourage Indonesians to come to the restaurants at buka puasa, the end of each day's fast. Answer: 13) Aesthetic elements that are attractive, appealing, and in good taste are perceived as such universally. Answer: 14) The roots of modern international law can be traced to the twentieth-century Peace of Westphalia. Answer: 15) As the ruble's value fell through most of 2014, European firms began to feel the effects. Answer: 16) Russian consumers have little choice but to "buy local" since farmed salmon has expanded to keep up with booming demand. Answer: 17) Terms like crony capitalism and kleptocracy refer to rampant corruption and bribery within capitalism. Answer: 18) Using big data analytics, Netflix knows that twenty-something males have viewing habits that many people would associate with 70-year-old females, and vice versa. Answer: 19) Gathering data is an end in itself. Answer: 20) By combining household information with weekly purchase behavior data, Tesco is able to tailor promotions to specific customer segments. Answer: Section 2: MCQ (15%, 1 point per question) 1) The global market development strategy involves: A) creating new product offerings to a new country. B) seeking new customers in a geographical market. C) creating new service offerings targeting a new region. D) creating new products for a new country. E) seeking new customers targeting a new segment. Answer: 2) In global markets, Starbucks is a good example of simultaneously executing all of the growth strategies except: A) market penetration. B) market development. C) product development. D) market orientation. E) diversification. Answer: 3) Starbucks dropped the word "Coffee" from its logo. This is an example of: A) standardization. B) adaptation. C) diversification. D) automation. E) modernization. Answer: 4) The world economy has changed profoundly since the end of the World War II. Perhaps the most fundamental changes that took place include all of the following except: A) global competitors have steadily displaced local competitors. B) the integration of the world economy has increased significantly. C) economic integration is particularly striking in the European Union. D) protectionism and nationalism have rapidly increased economic integration. E) integration of the world economy is visible in NAFTA (North American Free Trade Agreement). Answer: 5) The Gross Domestic Product (GDP), a measure of a nation's economic activity, is calculated by all of the following factors except: A) consumer spending. B) investment spending. C) government purchases. D) industry purchases. E) net exports. Answer: 6) Which of the following statements related to Brexit is not accurate? A) Disillusionment was evident among members of the Tory party who had opposed Britain's initial inclusion in the European Union (EU). B) In 2013, Prime Minister Cameron was convinced that, after sufficient public debate, most U.K. citizens would opt for the status quo. C) When the final votes were tallied, the "Exit" camp prevailed. D) U.K. business community was firmly against the "Remain" camp. E) As a member of the EU, U.K. has access to a free, open market of nearly 500 million people. Answer: 7) The World Trade Organization, which came into existence on January 1, 1995, is the successor of another organization known as: A) DSB. B) GATT. C) FTAA. D) NAFTA. E) ASEAN. Answer: 8) That social and cultural environments influence marketing opportunities and dynamics around the globe is illustrated by all of the following facts except: A) coffee culture continues to spread around the globe. B) coffee brew is becoming popular in countries such as India and China. C) coffee became the hot beverage of choice in India. D) conflict is brewing between government budget and consumer aspirations. E) consumers want to drink more coffee made from premium coffee beans. Answer: 9) Suppose you have a friend from India who is a lifelong vegetarian and who does not like McDonald's because the company sells hamburgers in many countries. Which of the following describes your friend? A) "vegetarianism" represents a value; "dislike McDonald's" represents an attitude B) "vegetarianism" represents an attitude; "dislike McDonald's" represents a value C) "vegetarianism" and "dislike McDonald's; "both represent an attitude D) "vegetarianism" represents a value; "dislike McDonald's" represents a belief E) "vegetarianism" and "dislike McDonald's;" both represent values Answer: 10) Which of the following statements does not reflect performance and service provided by Uber nationally and internationally? A) Industry observers hailed the company as a prime example of digital technology disrupting an established industry. B) Uber's rapid growth was another example that the "sharing economy," also known as "collaborative consumption," was gaining traction. C) Uber has encountered resistance as its popularity has grown. D) In Brussels, a court fines drivers who use Uber service. E) The European Commission conducted an inquiry and found Uber to be different than taxi services. Answer: 11) Any company doing business outside the home country should first carefully study the ________ in the target country. A) political culture B) cultural activities C) intellectual activities D) social activities E) sovereignty Answer: 12) Categories of political risk listed by EIU (Economist Intelligence Unit) include all of the following except: A) war. B) social injustice. C) politically motivated violence. D) international disputes. E) corruption. Answer: 13) The reasons why a majority of recording artists are struggling to adapt to the new music economy include all of the following except: A) musicians can interact with fans via social networks. B) artists do not see significant financial returns even after a song is streamed millions of times. C) the majority of recording artists do not come close to achieving the same level of global success as Swift, Adele, Cardi B, Ed Sheeran, or Jay-Z. D) to supplement their incomes, many artists have opted to tour constantly, hoping to generate income from ticket and merchandise sales. E) the music industry has embraced information science and big data. Answer: 14) The music industry's use of big data shows how information about buyer behavior and the overall business environment is vital to effective managerial decision making. All of the factors listed below facilitate decision making for music industry except: A) musicians can interact with fans via social networks. B) big data allows record executives and band managers to find patterns and discern market trends. C) big data allows executives to see what factors "move the needle" across a variety of metrics. D) data analytics permit record company executives to overlay information about an artist's appearance on a TV show. E) big data helps in increasing revenues from paid downloads. Answer: 15) One of the key features of an EDI (Electronic Data Interchange) system is: A) it allows easy access to all company data to vendors. B) its transaction formats are universal. C) it allows third-party transmission connections to company data. D) it saves both time and money by using different languages. E) vendors receive orders by voice mail