Note:

The purpose of the following examination is to provide an opportunity for review and to provide some indication of the
form, rather than the content, of the course examination.

INTERNATIONAL MARKETING [COMM 4376]

PRACTICE EXAMINATION
IMPORTANT
Before starting to write the examination, make sure that it is complete and that there are no
printing defects. The practice examination consists of 7 pages.
READ THE QUESTIONS CAREFULLY AND ANSWER WHAT IS ASKED.

LAURENTIAN UNIVERSITY
SCHOOL OF COMMERCE AND ADMINISTRATION
INTERNATIONAL MARKETING [COMM 4376]
PRACTICE EXAMINATION
100 marks

Time: 3 Hours

Notes :
1. Please write your exam in pen.
2. An English tranaslation dictionary may be used during the exam, but it must be in print form only (not electronic)
and cannot have any additional notes written on it.
3. A simple calculator is permitted.
4. This is a closed book and closed note exam.
Part A : Multiple-choice questions
Part B : Case questions
Part C : Non-case questions

30 marks
40 marks
30 marks

Part A: Multiple-choice questions (30 marks)

Select the best answer for each of the following items. Answer each of these items in your examination
booklet by giving the number of your choice. For example, if (a) is the best answer for item (1), write
(1)(a) in your examination booklet.
Note:
1.5 marks each
!
1. A fundamental difference between regular marketing and global marketing is:
a) the lack of marketing mix.
b) the scope of activities.
c) the lack of strategic planning.
d) the focus on resources.
e) the lack of communication.
2. The essence of marketing worldwide is to surpass the competition in creating perceived value, which
can be represented as:
a) Value = Price/Benefits.
b) Value = Benefits/Price.
c) Value = Benefits Price.
d) Value = Benefits - Price.
e) Value = Benefits + Price.

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3. Low-income countries have a GNI per capita of $1,025 or less. The general characteristics shared by
countries at this income level include all of the following except:
a) high literacy rates.
b) high birth rates.
c) heavy reliance on foreign aid.
d) political unrest.
e) high agricultural population.
4. Global marketers should take note of the fact that almost half of the world's population is located in:
a) low-income countries.
b) lower-middle-income countries.
c) upper-middle-income countries.
d) high-income countries.
e) higher-middle-income countries.
5. Which form of regional cooperation agreement, when fully implemented, entails creation of a unified
central bank, the use of a single currency, and common policies on agriculture, social services and
welfare?
a) Free trade area
b) Customs union
c) Common market
d) Economic union
e) Dispute settlement body
6. NAFTA creates a free trade area, as opposed to a customs union or a common market, due to the fact
that:
a) the agreement does not leave the door open for discretionary protectionism.
b) the governments of all three nations decided to eliminate tariffs.
c) the issue of illegal immigration from Mexico to the United States is resolved.
d) restrictions are imposed on the use of goods, services, and investments.
e) restrictions are imposed on labor movements among members.
7. In high-context cultures, time is:
a) monochronic.
b) polychronic.
c) linear.
d) short.
e) common.
8. According to Geert Hofstede, which of the following is a key cultural dimension that helps account
for rapid economic growth in Asia?
a) power distance
b) individualist/collectivist
c) feminine/masculine
d) uncertainty avoidance
e) long-term orientation

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9. Which of the following is true about the innovation diffusion process in Asia?
a) Japan has a high-context culture with a relatively homogeneous population.
b) Because risk avoidance is a cultural value, there are fewer innovators in Asia than in the United
States.
c) Once innovators in Asia have tried a product, early adopters and the early majority quickly follow
suit.
d) After a new product has achieved success in one Asian market, it is likely to be adopted in other
Asian markets at an even faster rate.
e) All of the above are true.
10. The ________ the level of environmental sensitivity for a given product, the ________ the need for
managers to address country-specific economic, regulatory, technological, social and cultural
environmental conditions.
a) greater; greater
b) lower; greater
c) greater; lower
d) lower; lower
e) stronger; greater
11. Any company doing business outside the home country should first carefully study the ________ in
the target country.
a) political culture
b) nationalization
c) political risk
d) jurisdiction
e) sovereignty
12. The governmental action to dispossess a foreign company or investor is known as:
a) compensation.
b) confiscation.
c) expropriation.
d) internationalization.
e) nationalization.
13. Any Western country doing business in Malaysia or the Middle East should have an understanding
of:
a) the French Civil Code.
b) Anglo-Saxon common law.
c) Islamic law.
d) the Uniform Commercial Code.
e) Roman law and the Napoleonic
14. Which of the following environmental factors may require marketers to adjust their approach to
conducting international as opposed to domestic marketing research?
a) Researchers must be prepared for new parameters of doing business.
b) Company personnel must come to grips with a new set of culture-based assumptions about
conducting business.
c) Research may help reduce psychological overload.
d) Researchers may have to broaden the definition of competitors to include competitive pressures
not present in the domestic market.
e) All of the above
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15. Marketers must be aware of the impact of SRC and other cultural assumptions since:
a) it can have several positive effects on market planning.
b) it enhances management's willingness to pursue market research.
c) it can help ensure that the research effort is designed with minimal home-country bias.
d) it can help ensure that the research effort is designed with minimal second-country bias.
e) All of the above
16. In Singapore, Coca-Cola wanted to develop an advertisement program. They selected a group of
teenagers in a room, and a trained moderator facilitated discussion asking questions on brand's image,
advertisement, social trends, TV watching habits, and snack usage. This type of research is called:
a) survey research.
b) observational studies.
c) comparison studies.
d) focus group research.
e) experimental research.
17. Global marketing authority, Theodore Levitt, has noted that many ethnic and regional foodssushi,
for exampleare enjoying popularity in many countries of the world. This observation is known as:
a) the pluralization of consumption.
b) the ethnicitization of consumption.
c) the democratization of consumption.
d) the sophistication of consumption.
e) the domestication of consumption.
18. The process of global market segmentation begins with the choice of one or more variables to use as a
basis for grouping customers. All of the following are variables that are commonly used except:
a) demographics.
b) polycentrics.
c) behavioral characteristics.
d) benefits sought.
e) psychographics.
19. The only marketing mix element that is applicable in the export selling is:
a) price.
b) product.
c) promotion.
d) place.
e) process.
20. Export marketing requires all of the following except:
a) an understanding of the target market environment.
b) the use of marketing research.
c) identification of market potential.
d) decisions concerning product design.
e) reaching retail customers.

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PART B: Case questions (40 marks)

Please read the case McDonalds expands globally while adjusting its local recipe (from Chapter 1 of
your textbook*) and answer the questions below to the best of your knowledge. Give an example when
necessary.
1. Identify the key elements in McDonalds global marketing strategy (GMS). In particular, how does
McDonalds approach the issue of standardization? Does McDonalds think global and act local?
Does it also think local and act global?
2. Do you think government officials in developing countries such as Russia, China, and India welcome
McDonalds? Do consumers in these countries welcome McDonalds? Why or why not?
3. The Plan to Win initiative is built around five factors that drive McDonalds business: people,
products, place, price, and promotion. As a student of marketing what can you say about these
factors?
4. Is it realistic to expect that McDonalds or any well-known company can expand globally without
occasionally making mistakes or generating controversy? Why do anti-globalization protesters around
the world frequently target McDonalds?
Note:
Each answer has a value of 10 marks.
*During the actual examination, you would not have access to your textbook.

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PART C: Non-case questions (30 marks)

Please answer the questions below to the best of your knowledge. Give an example when necessary.
1. Identify and describe some of the forces that have resulted in increased global integration and the
growing importance of marketing
2. Explain the role of the World trade Organization and mention one regional economic organization or
agreement.
3. What is the difference between low-context culture and high-context culture? Name a country that is
an example of each type and offer evidence for your answer.
4. Explain how information technology puts powerful tools in the hands of global marketers.
5. There is an ongoing debate between standardization versus adaptation pertaining to global
advertising. Explain how different sides of the arguments fit into the global context.
6. What criteria should global marketers consider when making product design decisions?
Note:
Each answer has a value of 5 marks.
END OF EXAMINATION

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LAURENTIAN UNIVERSITY
SCHOOL OF COMMERCE AND ADMINISTRATION
INTERNATIONAL MARKETING [COMM 4376]
PRACTICE EXAMINATION
SUGGESTED SOLUTIONS
Part A: Multiple-choice questions (30 marks)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

B
B
A
B
D
B
B
E
E
A
A
C
C
E
E
D
A
B
D
E

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Part B: Case questions (40 marks)

1. Identify the key elements in McDonalds global marketing strategy (GMS). In particular, how
does McDonalds approach the issue of standardization? Does McDonalds think global and act
local? Does it also think local and act global?
McDonalds global marketing strategy (GMS) includes a combination of elements that can be
identified as standard and non-standard. For example, standard elements include; the business model
owner/supplier that can be set up anywhere in the world. All restaurants around the world offer an
opportunity to its customers to experience fast food legend by offering core menu items like
hamburgers, French fries and soft drinks. However besides the popularity of American-style menu
(supporting Levitts view of the global village), in many locations, menu items are adapted to the
customs and tastes of the individual countries.
One of the marketing objectives for Macdonald is to be able to create a successful GMS by including
standardized and localized elements to establish a prominent position with costumers in all countries
and to offer great service and quality anywhere.
McDonalds offers a great example of global localization, it acts globally standardization - (i.e. it
can be found in 118 countries and it is one of the most recognized symbols in the world; in 2012
Interbrand ranked it as the worlds number 7 most valuable brand.) However, it also thinks
globally with product adaptation. Global companies must identify consumer needs and wants and
meet those needs by modifying some of the marketing mix accordingly.
Students answer will vary here but the answer should incorporate terms such as global marketing
strategy, adaptation and standardization elements, globalization and forces affecting global
integration, global brand, and global product.
2. Do you think government officials in developing countries such as Russia, China, and India
welcome McDonalds? Do consumers in these countries welcome McDonalds? Why or why
not?
Despite concerns by governments and citizens in some countries about cultural imperialism,
McDonalds and other franchises with well-known brand names are generally welcome in many
countries. Such businesses provide both much-needed jobs and employee training. However,
government officials in countries such as Russia and China and India showed more resistance to
global companies.
McDonalds does a good job of earning the support of local authorities and the local population by
working with agricultural producers to develop local supply sources for beef, potatoes, and dairy
products in many countries. Finally, thanks to changing lifestyles around the globe and costumers
needs and wants are changing making them embrace the whole concept of fast food.
Students answer will vary here but the answer should incorporate political-culture, legal and
regulatory elements in emerging markets and describe how global marketing activities for
MacDonald can be affected by a number of environmental elements.

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3. The Plan to Win initiative is built around five factors that drive McDonalds business:
people, products, place, price, and promotion. As a student of marketing what can you say
about these factors?
These five factors closely mirror the four Ps of marketing: product, price, promotion, and place but
Mc Donalds added two for a service marketer: people and physical whish are also important Ps of
marketing. As was referenced previously, the Global Marketing Strategy for McDonalds is based on
a combination of standardized and localized marketing mix activities. The following table
exemplified this part.
Example of Marketing Mix Elements
Product
Standardized- Core menu, hamburgers, French fries and soft drinks
Localized- McDonalds in India developed the Chicken Maharaja Max and
vegetarian menu, mayonnaise is made without eggs. In 2010, in the Czech
Republic, restaurants featured a special lineup of New York-themed sandwiches
such as Wall Street Beef, Broadway Chicken, SoHo Grande, Manhattan Grilled
Chicken and Brooklyn Classic
Promotion Standardized - Smile and Im lovinit advertising theme
Localized- In Moscow, the Pushkin Square location offered customers a buy one,
get one free hamburger promotion and musicians provided background music. In
the Czech Republic they advertise a New York-themed menu.
Price
Standardized- McDonalds protects itself from currency fluctuation by purchasing
as much as possible from local suppliers.
Localized- Prices in India are lower than in other countries,
Place
Standardized- Strategic locations in high-traffic area.
Localized, In India identifies strategic locations in areas with heavy pedestrian
traffic, a site near a college or train station. In France, the restaurants do not look
like the restaurants elsewhere.
4. Is it realistic to expect that McDonalds or any well-known company can expand globally
without occasionally making mistakes or generating controversy? Why do anti-globalization
protesters around the world frequently target McDonalds?
McDonalds has a reputation for being sensitive to local issues and mentalities. According to the staff
director for international human resources in Central Europe, One of our guiding principles is that
our restaurants should always be a reflection of the communities they serve. Mistakes such as the
one in France represent exceptions that can serve as learning experiences. Still, each new nation has
the potential to present unique problems. In Israel, for example, McDonalds must deal diplomatically
and appropriately with dietary laws pertaining to kosher foods and operating restaurants on the
Sabbath (Friday and Saturday).
Another issue is to maintain the service attitude that was a cornerstone of McDonalds U.S.
reputation. A German student noted that in Germany, good service is not associated with McDonalds
because counter-help consists of immigrants who do not exhibit the cheerful demeanor of their U.S.
counterparts. It is unrealistic to expect a company like McDonalds not to make mistakes; therefore
accurate market research is essential to determine customer perceptions and feelings. Information
regarding the market and customers is critical in formulating and implementing a successful global
marketing strategy.

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Students answer will vary but should contain terms such as management orientations, market
Research, consumer culture, adaptation process, positioning.

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Part C: Non-case questions (30 marks)

1. Identify and describe some of the forces that have resulted in increased global integration and
the growing importance of marketing.
The dynamic involving driving and restraining forces is shown diagrammatically in Figure 1-2( revise
your book chapter 1). Driving forces include regional economic agreements such as NAFTA,
converging market needs and wants, technology advances such as the Internet and global TV
networks, transportation improvements, the need to recoup high product development costs in global
markets, the need to improve quality through R&D investment, world economic trends such as
privatization and finally, opportunities to use leverage, corporate culture, and the continuing presence
of national controls that create trade barriers.
2. Explain the role of the World trade Organization and mention one regional economic
organization or agreement.
The World Trade Organization (WTO) is the successor to GATT. Based in Geneva, the WTO has a
dispute-settlement body (DSB), representing all member countries, that mediates trade complaints
concerning unfair trade barriers and other issues. During a 60-day consultation period, parties to a
complaint are expected to engage in good-faith negotiations and reach amicable resolution of a given
issue. Failing that, the complainant can ask the DSB to appoint a three-member panel to hear the case.
After convening, the panel has nine months within which to issue its ruling.
3. What is the difference between low-context culture and high-context culture? Name a country
that is an example of each type and offer evidence for your answer.
In a low-context culture, most of the message weight in a communication is carried on by the verbal
component. A priority in such cultures is getting it in writing, and lawyers play an important role in
creating and backing up agreements. In a high-context culture, the context of the communication
carries more weight. The role of lawyers is reduced, and personal obligation and trust are emphasized
proportionately. Overall, Japan is a high-context culture, while the U.S. a low-context culture.!
4. Explain how information technology puts powerful tools in the hands of global marketers.
Electronic data interchange (EDI), electronic point of sale (EPOS), efficient consumer response, and
data warehouses are some of the new tools and techniques available. Speed, innovation, and
efficiency are some of the imperatives driving global marketing today. The gains from responding to
these imperatives are clearly seen in Wal-Marts success in the retailing industry.
5. There is an ongoing debate between standardization versus adaptation pertaining to global
advertising. Explain how different sides of the arguments fit into the global context.
Communication experts generally agree that the overall requirements of effective communication and
persuasion are fixed and do not vary from country to country. The same is true for the components of
communication process whereby the marketer is the source of the message; the message must be
encoded, conveyed via the appropriate media, and decoded by a member of the target audience. Also,
that the message is fully communicated when there is desired feedback. Four major difficulties can
compromise an organization's attempt to communicate with customers in any location: (a) the
message may not get through to the intended audience. This may be due to advertiser's lack of
knowledge or experience about appropriate media to reach certain types of audiences; (b) the message
may reach the target audience but may not be understood or may even be misunderstood. This may be
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due to inadequate understanding of the target audiences; (c) the message may reach the target
audience and may be understood but still may not compel the recipient to take action. This could be
due to the lack of cultural knowledge about a target audience, and the effectiveness of the message
can be impaired by noises, which in this case are external influences such as competitive advertising,
other prejudices and related factors. All these factors compel a marketer to think and decide whether
to use adaptations in advertising from country to country and region to region. Proponents of the one
world, one voice approach to global advertising believe that the era of the global village has arrived
and that tastes and preferences are converging worldwide. According to the standardization
arguments, people everywhere want the same products for the same reasons. Advertisers who prefer
the localized approach are skeptical of the global village argument. They assert that consumers still
differ from country to country and must be reached by advertising tailored to their respective
countries. Proponents of localization point out those very costly blunders have occurred since
advertisers have failed to understand or adapt to different cultures. Currently, the argument remains
unresolved and companies are using both standardized advertising as well as adapting where
necessary.
6. What criteria should global marketers consider when making product design decisions?
A standardized global product platform can offer potential cost savings. Customer preferences, costs,
country laws and regulations, and environmental compatibility are all noted in the text as factors
affecting design decisions. For example, Europes Single Market means a common harmonized
standard for many products. This creates an opportunity for many companies to design pan-European
products, subject to remaining cultural differences between European countries. However, product
safety provisions in Europe are still established on a country-by-country basis.
END OF SOLUTIONS

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