Global Marketing 3rd Edition by Gillespie – Test Bank

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Sample Questions Posted Below

 

 

 

 

Chapter 5—Global Markets

 

TRUE/FALSE

 

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

 

ANS:  T                    PTS:   1                    DIF:    Easy               REF:   p. 138

NAT:  Analytic

 

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

 

ANS:  F                    PTS:   1                    DIF:    Easy               REF:   p. 139

NAT:  Analytic | Diversity

 

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

 

ANS:  F                    PTS:   1                    DIF:    Easy               REF:   p. 139

NAT:  Analytic | Diversity

 

  1. 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.

 

ANS:  T                    PTS:   1                    DIF:    Moderate        REF:   p. 140

NAT:  Analytic | Diversity

 

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

 

ANS:  F                    PTS:   1                    DIF:    Moderate        REF:   p. 140

NAT:  Analytic | Diversity

 

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

 

ANS:  F                    PTS:   1                    DIF:    Moderate        REF:   p. 141

NAT:  Analytic

 

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

 

ANS:  F                    PTS:   1                    DIF:    Easy               REF:   p. 141

NAT:  Analytic | Diversity

 

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

 

ANS:  T                    PTS:   1                    DIF:    Easy               REF:   p. 141

NAT:  Analytic | Diversity

 

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

 

ANS:  F                    PTS:   1                    DIF:    Moderate        REF:   p. 141

NAT:  Analytic

 

  1. In India, Hindus consider blue the most sacred color.

 

ANS:  F                    PTS:   1                    DIF:    Easy               REF:   p. 142

NAT:  Analytic | Diversity

 

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

 

ANS:  T                    PTS:   1                    DIF:    Easy               REF:   p. 142

NAT:  Analytic | Diversity

 

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

 

ANS:  T                    PTS:   1                    DIF:    Easy               REF:   p. 146

NAT:  Analytic

 

  1. Global segments are based on differences in national culture.

 

ANS:  F                    PTS:   1                    DIF:    Easy               REF:   p. 144

NAT:  Analytic

 

  1. Global segments may be based on lifestyles.

 

ANS:  T                    PTS:   1                    DIF:    Easy               REF:   p. 146

NAT:  Analytic

 

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

 

ANS:  F                    PTS:   1                    DIF:    Moderate        REF:   p. 148-149

NAT:  Analytic

 

  1. Scarcity of labor is never a problem in developing countries.

 

ANS:  F                    PTS:   1                    DIF:    Moderate        REF:   p. 160

NAT:  Analytic

 

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

 

ANS:  T                    PTS:   1                    DIF:    Easy               REF:   p. 150

NAT:  Analytic

 

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

 

ANS:  T                    PTS:   1                    DIF:    Easy               REF:   p. 150

NAT:  Analytic | Diversity

 

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

 

ANS:  T                    PTS:   1                    DIF:    Easy               REF:   p. 151

NAT:  Analytic

 

  1. Russian negotiators can surprise Americans by their emotional outbursts.

 

ANS:  T                    PTS:   1                    DIF:    Easy               REF:   p. 151

NAT:  Analytic | Diversity

 

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

 

ANS:  T                    PTS:   1                    DIF:    Easy               REF:   p. 152

NAT:  Analytic

 

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

 

ANS:  F                    PTS:   1                    DIF:    Moderate        REF:   p. 154

NAT:  Analytic

 

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

 

ANS:  T                    PTS:   1                    DIF:    Moderate        REF:   p. 152

NAT:  Analytic

 

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

 

ANS:  T                    PTS:   1                    DIF:    Moderate        REF:   p. 154

NAT:  Analytic

 

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

 

ANS:  F                    PTS:   1                    DIF:    Difficult         REF:   p. 155

NAT:  Analytic

 

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

 

ANS:  T                    PTS:   1                    DIF:    Moderate        REF:   p. 155

NAT:  Analytic

 

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

 

ANS:  F                    PTS:   1                    DIF:    Moderate        REF:   p. 156

NAT:  Analytic

 

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

 

ANS:  F                    PTS:   1                    DIF:    Moderate        REF:   p. 158

NAT:  Analytic | Ethics

 

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

 

ANS:  T                    PTS:   1                    DIF:    Moderate        REF:   p. 159

NAT:  Analytic | Ethics

 

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

 

ANS:  T                    PTS:   1                    DIF:    Moderate        REF:   p. 141

NAT:  Analytic

 

  1. Asians are relatively thrifty and never splurge on luxury consumption.

 

ANS:  F                    PTS:   1                    DIF:    Easy               REF:   p. 141

NAT:  Analytic | Diversity

 

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

 

ANS:  F                    PTS:   1                    DIF:    Easy               REF:   p. 145

NAT:  Analytic

 

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

 

ANS:  T                    PTS:   1                    DIF:    Difficult         REF:   p. 147

NAT:  Analytic | Diversity

 

MULTIPLE CHOICE

 

  1. Wine consumption per capita is highest in
a. the United States.
b. France.
c. Japan.
d. Turkey.

 

 

ANS:  B                    PTS:   1                    DIF:    Easy               REF:   p. 138

NAT:  Analytic

 

  1. Soft-drinks consumption per capita is highest in
a. the United States.
b. France.
c. Germany.
d. Italy.

 

 

ANS:  A                    PTS:   1                    DIF:    Easy               REF:   p. 138

NAT:  Analytic

 

  1. 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.

 

 

ANS:  D                    PTS:   1                    DIF:    Moderate        REF:   p. 138

NAT:  Analytic

 

  1. 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.

 

 

ANS:  B                    PTS:   1                    DIF:    Moderate        REF:   p. 139

NAT:  Analytic

 

  1. 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.

 

 

ANS:  A                    PTS:   1                    DIF:    Easy               REF:   p. 139

NAT:  Analytic | Diversity

 

  1. 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

 

 

ANS:  C                    PTS:   1                    DIF:    Moderate        REF:   p. 140

NAT:  Analytic | Ethics

 

  1. Signs of status are more important to consumers in
a. India.
b. Sweden.
c. Japan.
d. Canada.

 

 

ANS:  C                    PTS:   1                    DIF:    Easy               REF:   p. 142

NAT:  Analytic

 

  1. Which color is the most liked across cultures?
a. Blue
b. Yellow
c. Orange
d. Purple

 

 

ANS:  A                    PTS:   1                    DIF:    Easy               REF:   p. 142

NAT:  Analytic

 

  1. 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.

 

 

ANS:  D                    PTS:   1                    DIF:    Difficult         REF:   p. 142

NAT:  Analytic

 

  1. Which is most likely to prove to be a global segment?
a. Newlyweds
b. Housewives
c. MBA students
d. Retirees

 

 

ANS:  C                    PTS:   1                    DIF:    Difficult         REF:   p. 146

NAT:  Analytic

 

  1. Global segments may be based on
a. age.
b. social class.
c. lifestyle.
d. All of the above.

 

 

ANS:  D                    PTS:   1                    DIF:    Moderate        REF:   p. 146

NAT:  Analytic

 

  1. Global segments may be based on
a. age.
b. country groupings.
c. regional associations.
d. differences in national consumption.

 

 

ANS:  A                    PTS:   1                    DIF:    Easy               REF:   p. 146

NAT:  Analytic

 

  1. 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.

 

 

ANS:  C                    PTS:   1                    DIF:    Moderate        REF:   p. 148

NAT:  Analytic | Diversity

 

  1. 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.

 

 

ANS:  C                    PTS:   1                    DIF:    Moderate        REF:   p. 148

NAT:  Analytic

 

  1. 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.

 

 

ANS:  B                    PTS:   1                    DIF:    Moderate        REF:   p. 149

NAT:  Analytic | Diversity

 

  1. 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

 

 

ANS:  A                    PTS:   1                    DIF:    Moderate        REF:   p. 149

NAT:  Analytic | Diversity

 

  1. 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.

 

 

ANS:  B                    PTS:   1                    DIF:    Easy               REF:   p. 150

NAT:  Analytic

 

  1. 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

 

 

ANS:  C                    PTS:   1                    DIF:    Easy               REF:   p. 150

NAT:  Multicultural

 

  1. 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.

 

 

ANS:  D                    PTS:   1                    DIF:    Easy               REF:   p. 150

NAT:  Analytic | Diversity

 

  1. 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

 

 

ANS:  B                    PTS:   1                    DIF:    Moderate        REF:   p. 150

NAT:  Analytic | Diversity

 

  1. 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.

 

 

ANS:  B                    PTS:   1                    DIF:    Moderate        REF:   p. 154

NAT:  Analytic

 

  1. 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

 

 

ANS:  D                    PTS:   1                    DIF:    Moderate        REF:   p. 153

NAT:  Analytic

 

  1. 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

 

 

ANS:  A                    PTS:   1                    DIF:    Moderate        REF:   p. 152

NAT:  Analytic

 

  1. 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.

 

 

ANS:  D                    PTS:   1                    DIF:    Moderate        REF:   p. 152

NAT:  Analytic

 

  1. 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.

 

 

ANS:  C                    PTS:   1                    DIF:    Easy               REF:   p. 154

NAT:  Analytic

 

  1. 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.

 

 

ANS:  A                    PTS:   1                    DIF:    Moderate        REF:   p. 155

NAT:  Analytic

 

  1. 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.

 

 

ANS:  A                    PTS:   1                    DIF:    Easy               REF:   p. 156

NAT:  Analytic | Ethics

 

  1. Bribery is more common in ____ countries.
a. high-power-distance
b. developed
c. masculine
d. feminine

 

 

ANS:  A                    PTS:   1                    DIF:    Easy               REF:   p. 156

NAT:  Analytic | Ethics

 

  1. Which of the following countries is perceived as the least corrupt?
a. Finland
b. Denmark
c. Canada
d. Vietnam

 

 

ANS:  B                    PTS:   1                    DIF:    Difficult         REF:   p. 156

NAT:  Analytic | Ethics

 

  1. 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.

 

 

ANS:  C                    PTS:   1                    DIF:    Moderate        REF:   p. 156

NAT:  Analytic | Ethics

 

  1. In 1997, a multilateral anti-bribery pact was signed under the auspices of the
a. GATT.
b. WTO.
c. OECD.
d. OPIC.

 

 

ANS:  C                    PTS:   1                    DIF:    Easy               REF:   p. 159

NAT:  Analytic | Ethics

 

  1. 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

 

 

ANS:  D                    PTS:   1                    DIF:    Difficult         REF:   p. 148

NAT:  Analytic | Ethics

 

  1. 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

 

 

ANS:  C                    PTS:   1                    DIF:    Moderate        REF:   p. 141

NAT:  Analytic

 

  1. 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

 

 

ANS:  B                    PTS:   1                    DIF:    Easy               REF:   p. 137

NAT:  Reflective       KEY:  Application Questions

 

  1. 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

 

 

ANS:  D                    PTS:   1                    DIF:    Difficult         REF:   p. 138

NAT:  Reflective       KEY:  Application Questions

 

  1. 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 markets¾but 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

 

 

ANS:  B                    PTS:   1                    DIF:    Difficult         REF:   p. 139

NAT:  Reflective       KEY:  Application Questions

 

  1. 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

 

 

ANS:  C                    PTS:   1                    DIF:    Moderate        REF:   p. 140

NAT:  Reflective       KEY:  Application Questions

 

  1. 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

 

 

ANS:  D                    PTS:   1                    DIF:    Moderate        REF:   p. 140

NAT:  Reflective       KEY:  Application Questions

 

  1. 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.

 

 

ANS:  D                    PTS:   1                    DIF:    Moderate        REF:   p. 140

NAT:  Reflective       KEY:  Application Questions

 

  1. 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

 

 

ANS:  C                    PTS:   1                    DIF:    Moderate        REF:   p. 142

NAT:  Reflective       KEY:  Application Questions

 

  1. 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

 

 

ANS:  A                    PTS:   1                    DIF:    Moderate        REF:   p. 143

NAT:  Reflective       KEY:  Application Questions

 

  1. 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

 

 

ANS:  B                    PTS:   1                    DIF:    Easy               REF:   p. 144

NAT:  Reflective       KEY:  Application Questions

 

  1. 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

 

 

ANS:  A                    PTS:   1                    DIF:    Easy               REF:   p. 146

NAT:  Reflective       KEY:  Application Questions

 

  1. 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

 

 

ANS:  D                    PTS:   1                    DIF:    Easy               REF:   p. 146

NAT:  Reflective       KEY:  Application Questions

 

  1. 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

 

 

ANS:  C                    PTS:   1                    DIF:    Easy               REF:   p. 147

NAT:  Reflective       KEY:  Application Questions

 

  1. 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

 

 

ANS:  A                    PTS:   1                    DIF:    Easy               REF:   p. 148

NAT:  Reflective       KEY:  Application Questions

 

  1. 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

 

 

ANS:  C                    PTS:   1                    DIF:    Moderate        REF:   p. 154

NAT:  Reflective       KEY:  Application Questions

 

  1. McDonald’s Big Mac, sold in markets all over the world, consists of two all beef patties, purchased from Spain; special sauce, purchased from the U.S.; lettuce, purchased from Holland; cheese, purchased from New Zealand; pickles, purchased from the U.S.; onions and sesame seeds, purchased from Mexico; and wheat, sugar, and oil, purchased from Brazil. From this description, McDonald’s appears to be a ____ global buyer.
a. multinational
b. schizophrenic
c. national
d. cost-performance

 

 

ANS:  A                    PTS:   1                    DIF:    Easy               REF:   p. 151

NAT:  Reflective       KEY:  Application Questions

 

  1. Texas Instruments assigns special account executives and service teams to handle the needs of valuable but demanding global buyers. Texas Instruments practices ____.
a. international mission techniques
b. global account management
c. a strict screening process
d. multinational domestication

 

 

ANS:  B                    PTS:   1                    DIF:    Moderate        REF:   p. 152

NAT:  Reflective       KEY:  Application Questions

 

  1. The Indian government purchased 100 airplanes from Boeing. This is an example of ____.
a. a facilitating payment
b. an expediting payment
c. government procurement
d. domestication

 

 

ANS:  C                    PTS:   1                    DIF:    Easy               REF:   p. 152

NAT:  Reflective       KEY:  Application Questions

 

  1. The Russian government asks bidders on a contract to submit a US$150,000 fee with their bid to weed out firms that are not serious about the contract or are too small to handle the contract. This is an example of a governmental ____ screen that is common during government purchases in developing countries.
a. eligibility
b. procedural
c. linkage
d. influence

 

 

ANS:  A                    PTS:   1                    DIF:    Difficult         REF:   p. 155

NAT:  Reflective       KEY:  Application Questions

 

  1. To be considered as a supplier to the Bolivian government, a company must follow numerous bureaucratic procedures and fill out numerous long forms. This is an example of a governmental ____ screen that is common during government purchases in developing countries.
a. eligibility
b. procedural
c. competitive
d. influence

 

 

ANS:  B                    PTS:   1                    DIF:    Difficult         REF:   p. 155

NAT:  Reflective       KEY:  Application Questions

 

  1. During the bidding process with the Brazilian government, American computer giant, Dell, had to explain how local Brazilian firms would participate in the production of the computers Dell wanted to sell to the Brazilian government. Dell argued that local Brazilian companies would supply component parts and assemble the computers. In Brazil, Dell was negotiating the ____ screen that is common in developing countries.
a. eligibility
b. procedural
c. linkage
d. influence

 

 

ANS:  C                    PTS:   1                    DIF:    Difficult         REF:   p. 155

NAT:  Reflective       KEY:  Application Questions

 

  1. When considering which foreign construction company would be awarded a contract for India’s new highway project, the Indian government weighed each bidding company’s experience, reputation, and cultural sensitivity in addition to the price. In this example, the Indian government is executing the ____ screen that is common during government purchases in developing countries.
a. eligibility
b. influence
c. linkage
d. competitive

 

 

ANS:  D                    PTS:   1                    DIF:    Moderate        REF:   p. 155

NAT:  Reflective       KEY:  Application Questions

 

  1. Raytheon is preparing to sell radar equipment to the Taiwanese government. A Raytheon saleswoman recognizes that a certain general will be particularly influential in the government’s buying decision-making process. She meets with the general to ensure that Raytheon’s sales proposal will meet his needs and expectations. The Raytheon saleswoman is striving to make sure that her company successfully proceeds through the ____ screen that is common during government purchases in developing countries.
a. linkage
b. influence
c. eligibility
d. procedural

 

 

ANS:  B                    PTS:   1                    DIF:    Moderate        REF:   p. 155

NAT:  Reflective       KEY:  Application Questions

 

  1. If a U.S. company pays a customs official an extra US$100 to speed up the clearance of their shipment of US$1 million of goods through customs, it is ____.
a. a violation of the American Overseas Bribery Act
b. not a violation of the American Overseas Bribery Act
c. a violation of the U.S. Foreign Corrupt Practices Act
d. not a violation of the U.S. Foreign Corrupt Practices Act

 

 

ANS:  D                    PTS:   1                    DIF:    Moderate        REF:   p. 158

NAT:  Reflective       KEY:  Application Questions

 

  1. The Turkish Iznik Tile company sends the Egyptian education minister and his family on a one-week cruise throughout the Mediterranean in the hope that the minister will choose the Iznik Tile company as the tile supplier for three new university locations in Cairo. This is an example of ____.
a. bribery
b. an expediting payment
c. a linkage screen
d. All of the above

 

 

ANS:  A                    PTS:   1                    DIF:    Easy               REF:   p. 156

NAT:  Reflective       KEY:  Application Questions

 

  1. To influence the buying decision of the Indian general, Airbus transferred 1 million Euros into his Swiss bank account. This is an example of ____.
a. bribery
b. an expediting payment
c. a linkage screen
d. All of the above

 

 

ANS:  A                    PTS:   1                    DIF:    Easy               REF:   p. 156

NAT:  Reflective       KEY:  Application Questions

 

  1. The Dell distributor in Indonesia learns that a shipment of imported Dell computers is sitting unprocessed at the customs office. At the customs office, he pays 10 ringit to the customs official to get the imports processed and released that day. This is an example of ____.
a. bribery
b. an expediting payment
c. a linkage screen
d. a procedural screen

 

 

ANS:  B                    PTS:   1                    DIF:    Moderate        REF:   p. 158

NAT:  Reflective       KEY:  Application Questions

 

  1. Explorasis, an American company, pays their Swiss lawyer US$1 million and asks them to give the money to a Russian general. They hope that the US$1 million will encourage the Russian general to choose their contract bid. Explorasis has ____.
a. violated the Foreign Corrupt Practices Act
b. not violated the Foreign Corrupt Practices Act
c. violated the Overseas Bribery Act
d. not violated the Overseas Bribery Act

 

 

ANS:  A                    PTS:   1                    DIF:    Moderate        REF:   p. 156

NAT:  Reflective       KEY:  Application Questions

 

  1. The American IBM subsidiary manager in Brazil learns that a shipment of imported IBM computers is sitting unprocessed at the customs office. At the customs office, he pays 20 reais (Brazilian currency) to the customs official to get the imports processed and released that day. The subsidiary manager has ____.
a. violated the Foreign Corrupt Practices Act
b. not violated the Foreign Corrupt Practices Act
c. not violated the Overseas Bribery Act
d. violated the Overseas Bribery Act

 

 

ANS:  B                    PTS:   1                    DIF:    Moderate        REF:   p. 157

NAT:  Reflective       KEY:  Application Questions

 

  1. To influence the buying decision of the Egyptian general, an American manager at Lockheed-Martin transferred US$1 million into his Swiss bank account. The manager ____.
a. violated the Foreign Corrupt Practices Act
b. did not violate the Foreign Corrupt Practices Act
c. successfully passed the linkage screen
d. B and C are correct

 

 

ANS:  A                    PTS:   1                    DIF:    Moderate        REF:   p. 156

NAT:  Reflective       KEY:  Application Questions

 

COMPLETION

 

  1. In poor countries, the income earned by poor people often is not reported, and they are said to participate in the ____________________ sector of the economy.

 

ANS:  informal

 

PTS:   1                    DIF:    Easy               REF:   p. 140             NAT:  Analytic | Diversity

 

  1. In a business to business transaction, when the objective of the manufacturer is to maximize profit, the critical buying criteria will focus on the performance of the product purchased versus its cost. This is known as the ____________________ criteria.

 

ANS:  cost-performance

 

PTS:   1                    DIF:    Moderate       REF:   p. 149             NAT:  Analytic

 

  1. Buyers who search the world for products that are to be used in a single country are known as ____________________.

 

ANS:  national global buyers

 

PTS:   1                    DIF:    Moderate       REF:   p. 152             NAT:  Analytic

 

  1. The first stage in a bidding process in which governments seek to weed out not-so-serious firms or firms that are too small to handle the contract is known as the ____________________ screen.

 

ANS:  eligibility

 

PTS:   1                    DIF:    Moderate       REF:   p. 154             NAT:  Analytic

 

  1. The final step in the bidding process in which firms are required to identify the final, key decision makers and meet their needs is known as the ____________________ screen.

 

ANS:  influence

 

PTS:   1                    DIF:    Difficult         REF:   p. 155             NAT:  Analytic

 

  1. The practice of giving something of value to an individual in a position of trust to influence their judgment or behavior is known as ____________________.

 

ANS:  bribery

 

PTS:   1                    DIF:    Moderate       REF:   p. 156             NAT:  Analytic | Ethics

 

  1. The law that forbids U.S. citizens from bribing foreign government employees and politicians is called the ____________________.

 

ANS:

Foreign Corrupt Practices Act

FCPA

 

PTS:   1                    DIF:    Moderate       REF:   p. 158             NAT:  Analytic | Ethics

 

  1. According to the Foreign Corrupt Practices Act (FCPA), U.S. firms are allowed to make ____________________ payments, small sums paid to civil servants to do their job.

 

ANS:  expediting

 

PTS:   1                    DIF:    Difficult         REF:   p. 158             NAT:  Analytic

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