Chapter 1 – Introduction to Global Marketing
True/False
1. Skillfully implemented strategies that are implemented in conjunction with universal marketing
fundamentals increase the likelihood of market success.
Correct Answer: True (page 4; easy; AACSB: Reflective Thinking)
2. As Wal-Mart expands into Central American countries, it is implementing a market development
strategy.
Correct Answer: True (page 4; easy; AACSB: Reflective Thinking)
3. A fundamental difference between “regular” marketing and “global” marketing is the scope of
activities.
Correct Answer: True (page 4; medium; AACSB: Reflective Thinking)
4. The perceived value equation can be represented as Value = Price/Benefits.
Correct Answer: False (page 5; medium; AACSB: Analytic Skills)
5. If Nestle decides not to market biscuits (cookies) in the United States due to competitive reasons,
it is considered as a lack of strategic focus and missed opportunity.
Correct Answer: False (page 7; medium; AACSB: Reflective Thinking)
,1. Value, competitive advantage, and the focus required to achieve them are universal in their
relevance and should guide global marketing efforts in any part of the world.
Correct Answer: True (page 9; medium)
2. The discipline of marketing is universal and such marketing practices do not vary from country to
country.
Correct Answer: False (page 10; easy)
3. Global market participation is the extent to which a company has operations in major world
markets.
Correct Answer: True (page 10; easy; AACSB: Reflective Thinking)
4. Globalization presents companies with limited opportunities to configure themselves since it
allows producers to find the best partners.
Correct Answer: False (page 6; medium; AACSB: Reflective Thinking)
5. According to Professor Levitt organizations should develop standardized, high-
quality world products and market them around the globe by using standardized advertising.
Correct Answer: True (page 11; medium; AACSB: Reflective Thinking)
6. Global localization means that a successful global marketer must have the ability to think
locally and act globally.
Correct Answer: False (page 11; medium; AACSB: Reflective Thinking)
7. The Coca-Cola Company supports its Coke, Fanta, and PowerAde brands with marketing mix
elements that are both global and local.
Correct Answer: True (page 12; medium; AACSB: Reflective Thinking)
8. In order to be successful global marketing should not impose a totally standardized approach.
Correct Answer: True (page 13; medium)
9. McDonald’s global marketing strategy is based primarily on local marketing mix elements.
Correct Answer: False (page 13; medium; AACSB: Reflective Thinking)
10. The Coca-Cola Company has achieved great success in global marketing by pursuing a policy of
strict standardization of all marketing mix elements.
Correct Answer: False (page 13; medium; AACSB: Reflective Thinking)
,11. McDonald’s home delivery of burgers in India is an example of unusual standardized global
marketing practice.
Correct Answer: False (page 14; medium; AACSB: Reflective Thinking)
12. Global marketing that a company adopts will depend on industry conditions and its source of
competitive advantage.
Correct Answer: True (page 14; medium; AACSB: Reflective Thinking)
13. By definition, a company engaging in global marketing must standardize all elements of the
marketing mix everywhere in the world.
Correct Answer: False (page 14; easy; AACSB: Reflective Thinking)
14. A cornerstone of Harley-Davidson's global marketing strategy is manufacturing in Mexico and
other low-wage countries.
Correct Answer: False (page 14; medium; AACSB: Reflective Thinking)
15. According to William Greider the globalization of industries and markets will have some
unintended, possibly dire, consequences in the coming years.
Correct Answer: True (page 16; hard; AACSB: Reflective Thinking)
16. ExxonMobil and Wal-Mart Stores are world’s largest corporations by revenues according to “the
Fortune Global 500” companies in 2006.
, Correct Answer: True (page 17; hard, AACSB: Analytic Skill)
17. The form and substance of a company’s response to global market opportunities depend greatly
on management’s assumptions or beliefs about the nature of the world.
Correct Answer: True (page 17; hard; AACSB: Reflective Thinking)
18. Bangladesh is a leading country in Textiles and clothing market based on the overall Market Size.
Correct Answer: True (page 18; hard; AACSB: Analytic Skill)
19. The highest-ranking American company in the annual Fortune 500 survey of global companies is
General Motors (GM).
Correct Answer: False (page 17; hard; AACSB: Analytic Skill)
20. When comparing the size of global markets in terms of dollar sales, the market for cigarettes is
bigger than the market for cell phones.
Correct Answer: True (page 18; hard; AACSB: Analytic Skill)
21. A manager who assumes that his or her home country is superior to the rest of the world is said to
have an ethnocentric orientation.
Correct Answer: True (page 19; medium)
22. Ethnocentric companies that do business outside the home country can be described as domestic
companies.
True/False
1. Skillfully implemented strategies that are implemented in conjunction with universal marketing
fundamentals increase the likelihood of market success.
Correct Answer: True (page 4; easy; AACSB: Reflective Thinking)
2. As Wal-Mart expands into Central American countries, it is implementing a market development
strategy.
Correct Answer: True (page 4; easy; AACSB: Reflective Thinking)
3. A fundamental difference between “regular” marketing and “global” marketing is the scope of
activities.
Correct Answer: True (page 4; medium; AACSB: Reflective Thinking)
4. The perceived value equation can be represented as Value = Price/Benefits.
Correct Answer: False (page 5; medium; AACSB: Analytic Skills)
5. If Nestle decides not to market biscuits (cookies) in the United States due to competitive reasons,
it is considered as a lack of strategic focus and missed opportunity.
Correct Answer: False (page 7; medium; AACSB: Reflective Thinking)
,1. Value, competitive advantage, and the focus required to achieve them are universal in their
relevance and should guide global marketing efforts in any part of the world.
Correct Answer: True (page 9; medium)
2. The discipline of marketing is universal and such marketing practices do not vary from country to
country.
Correct Answer: False (page 10; easy)
3. Global market participation is the extent to which a company has operations in major world
markets.
Correct Answer: True (page 10; easy; AACSB: Reflective Thinking)
4. Globalization presents companies with limited opportunities to configure themselves since it
allows producers to find the best partners.
Correct Answer: False (page 6; medium; AACSB: Reflective Thinking)
5. According to Professor Levitt organizations should develop standardized, high-
quality world products and market them around the globe by using standardized advertising.
Correct Answer: True (page 11; medium; AACSB: Reflective Thinking)
6. Global localization means that a successful global marketer must have the ability to think
locally and act globally.
Correct Answer: False (page 11; medium; AACSB: Reflective Thinking)
7. The Coca-Cola Company supports its Coke, Fanta, and PowerAde brands with marketing mix
elements that are both global and local.
Correct Answer: True (page 12; medium; AACSB: Reflective Thinking)
8. In order to be successful global marketing should not impose a totally standardized approach.
Correct Answer: True (page 13; medium)
9. McDonald’s global marketing strategy is based primarily on local marketing mix elements.
Correct Answer: False (page 13; medium; AACSB: Reflective Thinking)
10. The Coca-Cola Company has achieved great success in global marketing by pursuing a policy of
strict standardization of all marketing mix elements.
Correct Answer: False (page 13; medium; AACSB: Reflective Thinking)
,11. McDonald’s home delivery of burgers in India is an example of unusual standardized global
marketing practice.
Correct Answer: False (page 14; medium; AACSB: Reflective Thinking)
12. Global marketing that a company adopts will depend on industry conditions and its source of
competitive advantage.
Correct Answer: True (page 14; medium; AACSB: Reflective Thinking)
13. By definition, a company engaging in global marketing must standardize all elements of the
marketing mix everywhere in the world.
Correct Answer: False (page 14; easy; AACSB: Reflective Thinking)
14. A cornerstone of Harley-Davidson's global marketing strategy is manufacturing in Mexico and
other low-wage countries.
Correct Answer: False (page 14; medium; AACSB: Reflective Thinking)
15. According to William Greider the globalization of industries and markets will have some
unintended, possibly dire, consequences in the coming years.
Correct Answer: True (page 16; hard; AACSB: Reflective Thinking)
16. ExxonMobil and Wal-Mart Stores are world’s largest corporations by revenues according to “the
Fortune Global 500” companies in 2006.
, Correct Answer: True (page 17; hard, AACSB: Analytic Skill)
17. The form and substance of a company’s response to global market opportunities depend greatly
on management’s assumptions or beliefs about the nature of the world.
Correct Answer: True (page 17; hard; AACSB: Reflective Thinking)
18. Bangladesh is a leading country in Textiles and clothing market based on the overall Market Size.
Correct Answer: True (page 18; hard; AACSB: Analytic Skill)
19. The highest-ranking American company in the annual Fortune 500 survey of global companies is
General Motors (GM).
Correct Answer: False (page 17; hard; AACSB: Analytic Skill)
20. When comparing the size of global markets in terms of dollar sales, the market for cigarettes is
bigger than the market for cell phones.
Correct Answer: True (page 18; hard; AACSB: Analytic Skill)
21. A manager who assumes that his or her home country is superior to the rest of the world is said to
have an ethnocentric orientation.
Correct Answer: True (page 19; medium)
22. Ethnocentric companies that do business outside the home country can be described as domestic
companies.
